South Carolina General Assembly
117th Session, 2007-2008

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S. 1098

STATUS INFORMATION

General Bill
Sponsors: Senator Alexander
Document Path: l:\s-res\tca\009recy.dag.doc
Companion/Similar bill(s): 4927

Introduced in the Senate on February 13, 2008
Currently residing in the Senate

Summary: Recycle facility

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   2/13/2008  Senate  Introduced and read first time SJ-17
   2/13/2008  Senate  Referred to Committee on Finance SJ-17
   4/23/2008  Senate  Committee report: Favorable with amendment Finance SJ-20

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VERSIONS OF THIS BILL

2/13/2008
4/23/2008

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

COMMITTEE REPORT

April 23, 2008

S. 1098

Introduced by Senator Alexander

S. Printed 4/23/08--S.

Read the first time February 13, 2008.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 1098) to amend Article 25, Chapter 6, Title 12 of the 1976 Code, by adding Section 12-6-3680, to provide a refundable tax credit to a recycling, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting:

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

"Section 12-6-3680.    (A)    For purposes of this section:

(1)    'Recycling facility' means a facility located in South Carolina that:

(a)    engages in recycling as defined in Section 44-96-40(37); and

(b)    manufactures product for sale composed of over fifty percent post-consumer recycled content and pre-consumer recycled content by weight or by volume.

(B)    A taxpayer owning and operating a recycling facility as defined in subsection (A) is allowed a refundable income tax credit equal to the yearly amount expended by the recycling facility for electric service used in the manufacturing process multiplied by the percentage of recycled content calculated in subsection (A)(1)(b) of this section, and multiplied by the following:

(1)    one percent in the first year the credit is claimed;

(2)    two percent in the second year the credit is claimed;

(3)    three percent in the third year the credit is claimed;

(4)    four percent in the fourth year the credit is claimed; and

(5)    four percent in subsequent years, not to exceed the amount of credit received pursuant to item (4).

(C)    The credit is first allowed against returns due to be filed in fiscal year 2009-2010. A credit is not allowed and may not be claimed for a taxable year except as provided in subsection (E).

(D)    A taxpayer may claim the credit allowed in this section only on the taxpayer's annual return. The taxpayer shall provide all information that the department determines is necessary for the calculation and administration of the credit.

(E)    Beginning with the February 15, 2009, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually after that, if the forecast of that growth then and in any adjusted forecast made before the beginning of the fiscal year equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable credit is allowed for the taxable year returns for which are due in the fiscal year beginning July first. If the February fifteenth forecast or adjusted forecast annual general fund revenue growth for the upcoming fiscal year meets the requirement for the credit, the board promptly shall certify this result in writing to the department.

(F)    The recycling facility must maintain or increase the number of employees in South Carolina in order to qualify for the credit. The benchmark for the number of employees of a recycling facility is the number of employees submitted to the department in the initial claim seeking the credit. The recycling facility must submit a notarized certification of the number of employees to the Department of Revenue each year."                 /

Renumber sections to conform.

Amend title to conform.

HUGH K. LEATHERMAN, SR. for Committee.

            

A BILL

TO AMEND ARTICLE 25, CHAPTER 6, TITLE 12 OF THE 1976 CODE, BY ADDING SECTION 12-6-3680, TO PROVIDE A REFUNDABLE TAX CREDIT TO A RECYCLING FACILITY EQUAL TO THE YEARLY AMOUNT EXPENDED BY THE RECYCLING FACILITY FOR ELECTRIC SERVICE MULTIPLIED BY ONE PERCENT IN THE FIRST YEAR THE CREDIT IS CLAIMED, TWO PERCENT IN THE SECOND YEAR, AND INCREASING BY TWO PERCENT IN THE YEARS THEREAFTER UP TO A MAXIMUM OF EIGHT PERCENT, AND TO PROVIDE THAT THE CREDIT SHALL ONLY TAKE EFFECT IF THE ANNUAL FEBRUARY FIFTEENTH FORECAST BY THE BOARD OF ECONOMIC ADVISORS OF ANNUAL GENERAL FUND REVENUE FORECASTS GROWTH THAT EQUALS AT LEAST FIVE PERCENT OF THE MOST RECENT ESTIMATE.

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 12-6-3680.    (A)    For purposes of this section:

(1)    'Recycling facility' means a facility located in South Carolina that:

(a)    engages in recycling as defined in Section 44-96-40(37);

(b)    manufactures product for sale composed of over fifty percent post-consumer recycled content and pre-consumer recycled content by weight or by volume;

(c)    produces over fifty thousand tons of product, which is manufactured as recycled content, for sale in a calendar year; and

(d)    employs at least one hundred employees in South Carolina.

(B)    For taxable years beginning July 1, 2009, a recycling facility as defined in subsection (A) is allowed a refundable income tax credit equal to the yearly amount expended by the recycling facility for electric service multiplied by one percent in the first year the credit is claimed, two percent in the second year the credit is claimed, and increasing by two percent each year thereafter. The percentage shall not exceed eight percent.

(C)    A taxpayer may only claim the credit allowed in this section on the taxypayer's annual return. The taxpayer shall provide all information that the department determines is necessary for the calculation and administration of the credit.

(D)    Beginning with the February 15, 2009, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable credit shall be imposed, effective the following July first. If the February fifteenth forecast meets the requirement for the credit, the board promptly shall certify this result in writing to the department."

SECTION    2.    This act takes effect upon approval by the Governor.

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