South Carolina General Assembly
116th Session, 2005-2006

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A138, R162, S140

STATUS INFORMATION

General Bill
Sponsors: Senators Hayes and Campsen
Document Path: l:\s-res\rwh\005reha.mrh.doc

Introduced in the Senate on January 11, 2005
Introduced in the House on May 3, 2005
Last Amended on June 2, 2005
Passed by the General Assembly on June 2, 2005
Governor's Action: June 7, 2005, Signed

Summary: Income tax credit for rehabilitation expenditures

HISTORY OF LEGISLATIVE ACTIONS 

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
  12/15/2004  Senate  Prefiled
  12/15/2004  Senate  Referred to Committee on Finance
   1/11/2005  Senate  Introduced and read first time SJ-150
   1/11/2005  Senate  Referred to Committee on Finance SJ-150
   4/26/2005  Senate  Recalled from Committee on Finance SJ-2
   4/27/2005  Senate  Read second time SJ-44
   4/27/2005          Scrivener's error corrected
   4/28/2005  Senate  Read third time and sent to House SJ-24
    5/3/2005  House   Introduced and read first time HJ-4
    5/3/2005  House   Referred to Committee on Ways and Means HJ-4
   5/26/2005  House   Recalled from Committee on Ways and Means HJ-44
    6/1/2005  House   Amended HJ-18
    6/1/2005  House   Read second time HJ-21
    6/2/2005  House   Read third time and returned to Senate with amendments 
                        HJ-53
    6/2/2005  Senate  House amendment amended SJ-123
    6/2/2005  Senate  Returned to House with amendments SJ-123
    6/2/2005  House   Concurred in Senate amendment and enrolled HJ-66
    6/2/2005          Ratified R 162
    6/7/2005          Signed By Governor
   6/13/2005          Copies available
   6/13/2005          Effective date See Act for Effective Date
   6/16/2005          Act No. 138

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/15/2004
4/26/2005
4/27/2005
5/26/2005
6/1/2005
6/2/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A138, R162, S140)

AN ACT TO AMEND SECTION 12-6-3535, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE INCOME TAX CREDIT ALLOWED TAXPAYERS MAKING QUALIFIED REHABILITATION EXPENDITURES FOR A CERTIFIED HISTORIC STRUCTURE IN THIS STATE, TO EXTEND THE CREDIT TO LICENSE TAXES AND TO CLARIFY THE APPLICATION OF THE CREDIT TO PASS-THROUGH ENTITIES; TO AMEND SECTION 12-43-215, RELATING TO VALUATION OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FOR AD VALOREM TAX PURPOSES, SO AS TO PROVIDE FOR THE VALUATION TO BE CONSIDERED BY AN ASSESSOR WHEN THE VALUE OF THE PROPERTY ASSESSMENT IS APPEALED.

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

Taxes to which credit applies

SECTION    1.    Section 12-6-3535(A) of the 1976 Code, as last amended by Act 69 of 2003, is amended to read:

"(A)    A taxpayer who is allowed a federal income tax credit under Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed to claim a credit against income or license tax imposed pursuant to this title. For the purposes of this section, 'qualified rehabilitation expenditures' and 'certified historic structure' are defined as provided in the Internal Revenue Code Section 47 and the applicable treasury regulations. The amount of the credit is ten percent of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, the taxpayer must attach to the return a copy of the section of the federal income tax return showing the credit claimed, along with any other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection."

Application of credit to pass-through entities

SECTION    2.    Section 12-6-3535(C)(2) of the 1976 Code, as last amended by Act 69 of 2003, is amended to read:

"(2)    The credit earned pursuant to this section by an 'S' corporation owing corporate level income tax must be used first at the entity level. Any remaining credit passes through to each shareholder in a percentage equal to each shareholder's percentage of stock ownership. The credit earned pursuant to this section by a general partnership, limited partnership, limited liability company, or any other entity taxed as a partnership pursuant to Subchapter K of the Internal Revenue Code must be passed through to its partners and may be allocated among any of its partners, including without limitation, an allocation of the entire credit to one partner, in any manner agreed by the partners."

Valuation to be used

SECTION    3.    Section 12-43-215 of the 1976 Code is amended to read:

"Section 12-43-215.    When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes. When a property owner or an agent for a property owner appeals the value of a property assessment, the assessor shall consider the appeal and make any adjustments, if warranted, based on the market values of real property as they existed in the year that the equalization and reassessment program was conducted and on which the assessment is based.

Time effective

SECTION    4.    This act takes effect upon approval by the Governor and applies to applicable tax periods beginning after 2004.

Ratified the 2nd day of June, 2005.

Approved the 7th day of June, 2005.

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