H 3473 General Bill, By Meacham, Harvin, Cobb-Hunter, Clyburn, J. Smith, Hayes, 
McGee, Howard, Kirsh, J.H. Neal, Lloyd, Stille, Sandifer, Maddox, Wilder, 
Lourie, Whatley, Govan, Knotts, Law and Bales
 A BILL TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO STATE INCOME 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 PROVIDE FOR THE DESIGNATION BY THE DEPARTMENT
 OF NATURAL RESOURCES OF CERTAIN LAND AS CRITICAL HABITAT FOR THREATENED OR
 ENDANGERED SPECIES.

   02/04/99  House  Introduced and read first time HJ-35
   02/04/99  House  Referred to Committee on Ways and Means HJ-35

TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE INCOME 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 PROVIDE FOR THE DESIGNATION BY THE DEPARTMENT OF NATURAL RESOURCES OF 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) A taxpayer who incurs costs for habitat management or construction and maintenance of improvements made to land as described in Section 50-15-55 and meeting the requirements of regulations promulgated by the Department of Natural Resources pursuant to Section 50-15-55(B) is eligible for a credit against his income tax liability in an amount equal to the costs incurred.

(B) All costs must be approved by the Department of Natural Resources and must be incurred in relation to land designated as a critical habitat for threatened or endangered species or land 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 provided by this section must be claimed in the year that the costs are approved by the Department of Natural Resources and may not exceed fifty percent of the taxpayer's income tax liability for any tax year. The taxpayer may carry forward any claimed but unused credit for ten years from the taxable year in which the credit is earned by the taxpayer.

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

(2) The amount of the credit allowed by this section is equal to the taxpayer's ownership interest in the entity 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 providing criteria for designation of land as critical habitat for threatened or endangered species or as land known to support populations of species in need of conservation and for 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 in Section 12-6-3520."

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