S 0187 General Bill, By Leventis, Courson, Gregory, Waldrep, Hutto, Thomas, 
Hayes and Washington
 A BILL TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO TAX CREDITS, BY ADDING SECTION 12-6-3520, SO AS TO
 ESTABLISH AN INCOME TAX CREDIT FOR COSTS INCURRED BY A TAXPAYER FOR HABITAT
 MANAGEMENT OR CONSTRUCTION AND MAINTENANCE OF IMPROVEMENTS ON REAL PROPERTY
 DESIGNATED BY THE DEPARTMENT OF NATURAL RESOURCES AS CRITICAL HABITAT FOR
 THREATENED OR ENDANGERED SPECIES; AND TO AMEND CHAPTER 15, TITLE 50, RELATING
 TO NONGAME AND ENDANGERED SPECIES, BY ADDING SECTION 50-15-55 SO AS TO
 DESIGNATE CERTAIN LAND AS CRITICAL HABITAT FOR THREATENED OR ENDANGERED
 SPECIES.

   12/16/98  Senate Prefiled
   12/16/98  Senate Referred to Committee on Finance
   01/12/99  Senate Introduced and read first time SJ-72
   01/12/99  Senate Referred to Committee on Finance SJ-72

TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX CREDITS, BY ADDING SECTION 12-6-3520, SO AS TO ESTABLISH AN INCOME TAX CREDIT FOR COSTS INCURRED BY A TAXPAYER FOR HABITAT MANAGEMENT OR CONSTRUCTION AND MAINTENANCE OF IMPROVEMENTS ON REAL PROPERTY DESIGNATED BY THE DEPARTMENT OF NATURAL RESOURCES AS CRITICAL HABITAT FOR THREATENED OR ENDANGERED SPECIES; AND TO AMEND CHAPTER 15, TITLE 50, RELATING TO NONGAME AND ENDANGERED SPECIES, BY ADDING SECTION 50-15-55 SO AS TO DESIGNATE CERTAIN LAND AS CRITICAL HABITAT FOR THREATENED OR ENDANGERED SPECIES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3520. (A) There shall be allowed as a tax credit against the income tax liability of a taxpayer an amount equal to the costs incurred by the taxpayer for habitat management or construction and maintenance of improvements on real property that are made to land as described in Section 50-15-55 and which meets the requirements of regulations promulgated by the Department of Natural Resources pursuant to Section 50-15-55(b).

(B) All costs must be approved by the Department of Natural Resources and must be incurred on land that has been designated as a critical habitat for threatened or endangered species or land that has been certified as critical and known to support populations in need of conservation. The total costs approved may not exceed five million dollars per taxpayer.

(C) The tax credit allowed by this section must be claimed in the year that such costs are approved by the Department of Natural Resources. The credit established by this section taken in one year may not exceed fifty percent of the taxpayer's income tax liability. If the amount of the credit exceeds the taxpayer's income tax liability for such taxable year, the taxpayer may carry forward any excess for a period of ten years.

(D)(1) An `S' corporation or partnership that qualifies for the credit under this section as an `S' corporation or partnership entitles each shareholder of the `S' corporation or partner of the partnership to a nonrefundable credit against taxes. Any credit generated by an `S' corporation must first be used against any tax liability of `S' corporation under Section 12-6-530. Any remaining credit passes through to the shareholders of the `S' corporation.

(2) The amount of the credit allowed a shareholder, partner, or owner of a limited liability company by this section is equal to the shareholder's percentage of stock ownership or partner's interest in the partnership, for the taxable year multiplied by the amount of the credit that the taxpayer would have been entitled to if it were taxed as a corporation."

SECTION 2. Chapter 15, Title 50 of the 1976 Code is amended by adding:

"Section 50-15-55. (A) The department may designate certain land as critical habitat for threatened or endangered species or as land known to support populations of species in need of conservation.

(B) The department shall promulgate regulations addressing criteria for designating land as critical habitat for threatened or endangered species or as land known to support populations of species in need of conservation and for the approval of costs incurred by the taxpayer for habitat management or construction and maintenance of improvements on real property in order to qualify a taxpayer for the income tax credit provided for in Section 12-6-3520."

SECTION 3. This act takes effect upon approval by the Governor.