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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 17, 2010
S. 915
Introduced by Senators Land, Anderson, Nicholson, Leventis, Elliott, Williams, Sheheen and Setzler
S. Printed 2/17/10--S.
Read the first time January 12, 2010.
To whom was referred a Bill (S. 915) to amend Act 314 of 2000, to terminate the provisions of the South Carolina Community Economic Development Act, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to reduce general fund individual income tax revenue in FY2010-11.
Explanation
This bill would amend Section 4 of Act 314 of 2000 to extend the provision of the South Carolina Community Economic Development Act through June 30, 2015. After this date, all laws and regulations dealing with community development corporations and community development financial institutions would be repealed. A community development corporation is a nonprofit corporation which is tax exempt and has a primary mission of developing and improving low-income communities and neighborhoods through economic and related development. A community development financial institution is an organization that has a primary mission of promoting community development by providing credit, capital, or development services to small businesses or home mortgage assistance to individuals. Pursuant to Act 314 of 2000 and Section 12-6-3530, a taxpayer is allowed a tax credit against South Carolina income tax, bank tax, or insurance premium tax equal to thirty-three (33) percent of the investment in a community development corporation or community development financial institution. The total credit that may be claimed by all taxpayers is $1,000,000 in one calendar year and $5,000,000 for all calendar years. Any unused credit may be carried forward and must be used before the taxable year that begins on or after ten (10) years from the date of the acquisition of stock or other equity interest that is the basis for the credit. The provisions of this credit terminate on June 30, 2010. This bill extends the termination date by five years to June 30, 2015, and is a continuation of programs and services that are currently in place.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND ACT 314 OF 2000, TO TERMINATE THE PROVISIONS OF THE SOUTH CAROLINA COMMUNITY ECONOMIC DEVELOPMENT ACT ON JUNE 30, 2015.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 4 of Act 314 of 2000 is amended to read:
"SECTION 4. Unless reauthorized by the General Assembly, the provisions of this chapter act shall terminate on June 30, 2005 2015, and this chapter act and all other laws and regulations governing, authorizing, and otherwise dealing with community development corporations and community development financial institutions are deemed repealed on that date."
SECTION 2. This act takes effect upon approval by the Governor.
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