H 3960 General Bill, By Sandifer, Loftis, Simrill, Coates, Wilkins, Cato, 
Harrison, Knotts, McGee, Bales, Davenport, Allison, Altman, Barrett, Bingham, 
Campsen, Chellis, Cooper, Dantzler, Edge, Fleming, Frye, Gilham, Hinson, Kelley, 
Kirsh, Koon, Law, Leach, Limehouse, Littlejohn, Lloyd, Meacham-Richardson, 
D. Owens, Quinn, Riser, Rivers, Robinson, Rodgers, Scarborough, Sharpe, 
Sinclair, D.C. Smith, G.M. Smith, J.R. Smith, Stuart, Talley, Taylor, Thompson, 
Trotter, Vaughn, Walker, Webb, White, Witherspoon and J. Young
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 12-6-3435 SO AS TO ALLOW A STATE INCOME TAX CREDIT FOR PREMIUMS PAID BY A
 SMALL BUSINESS FOR EMPLOYER-PAID EMPLOYEE HEALTH INSURANCE, TO LIMIT THE
 CREDIT TO FIVE HUNDRED DOLLARS AN EMPLOYEE AND ALLOW THE CREDIT ONLY FOR
 BUSINESSES EMPLOYING TWENTY OR FEWER PERSONS, TO ALLOW THE CREDIT ONLY IF THE
 BUSINESSES FORMERLY DID NOT PROVIDE SUCH COVERAGE TO EMPLOYEES, AND TO PHASE
 THE CREDIT OUT OVER SIX YEARS.

   04/18/01  House  Introduced and read first time HJ-41
   04/18/01  House  Referred to Committee on Ways and Means HJ-42

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3435 SO AS TO ALLOW A STATE INCOME TAX CREDIT FOR PREMIUMS PAID BY A SMALL BUSINESS FOR EMPLOYER-PAID EMPLOYEE HEALTH INSURANCE, TO LIMIT THE CREDIT TO FIVE HUNDRED DOLLARS AN EMPLOYEE AND ALLOW THE CREDIT ONLY FOR BUSINESSES EMPLOYING TWENTY OR FEWER PERSONS, TO ALLOW THE CREDIT ONLY IF THE BUSINESSES FORMERLY DID NOT PROVIDE SUCH COVERAGE TO EMPLOYEES, AND TO PHASE THE CREDIT OUT OVER SIX YEARS.

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 12-6-3435.    A taxpayer whose total payroll is twenty or fewer employees is allowed a credit against the tax imposed pursuant to Section 12-6-510 or 12-6-530, as applicable, in an amount equal to the health insurance premium paid for each full-time employee, not to exceed five hundred dollars an employee for each employee covered. This credit is allowed only in those instances where an employer formerly not providing employer-paid health insurance first begins to provide such coverage to all full-time employees. The five hundred dollar maximum credit for each employee applies for the first two taxable years then beginning in the third taxable year declines at the rate of one hundred dollars a year, but no credit is allowed if coverage is dropped or reduced during any taxable year the credit applies. The credit continues to apply subject to the twenty employee maximum if payroll grows to more than twenty during the credit period, if additional full-time employees are provided employer-paid health insurance when hired. Unused credit may be carried forward for ten succeeding taxable years."

SECTION    2.    Upon approval by the Governor, this act applies for taxable years beginning after 2000.