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Indicates Matter Stricken
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H. 4887
STATUS INFORMATION
General Bill
Sponsors: Reps. Kirsh and Cotty
Document Path: l:\council\bills\agm\19165mm08.doc
Companion/Similar bill(s): 1309, 4815
Introduced in the House on March 26, 2008
Introduced in the Senate on April 24, 2008
Last Amended on April 23, 2008
Currently residing in the Senate Committee on Finance
Summary: Motion Picture Incentive Act of 2008
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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3/26/2008 House Introduced and read first time HJ-7
3/26/2008 House Referred to Committee on Ways and Means HJ-17
4/2/2008 House Member(s) request name added as sponsor: Cotty
4/17/2008 House Committee report: Favorable with amendment Ways and
Means HJ-5
4/23/2008 House Debate interrupted HJ-18
4/23/2008 House Amended HJ-31
4/23/2008 House Read second time HJ-59
4/24/2008 House Read third time and sent to Senate HJ-21
4/24/2008 Senate Introduced and read first time SJ-7
4/24/2008 Senate Referred to Committee on Finance SJ-7
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 23, 2008
H. 4887
S. Printed 4/23/08--H.
Read the first time March 26, 2008.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-54-52 AND 12-54-53 SO AS TO PROVIDE THAT, FOR PURPOSES OF TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE, INTERNAL REVENUE CODE SECTIONS 6694 AND 6695, RESPECTIVELY, ARE ADOPTED; AND TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO IRC SECTIONS ADOPTED BY THIS STATE, SO AS TO CONFORM TO THOSE ADDITIONS; TO AMEND SECTION 4-9-195, AS AMENDED, RELATING TO SPECIAL PROPERTY TAX ASSESSMENTS GRANTED TO CERTAIN PROPERTY, SO AS TO FURTHER PROVIDE FOR CERTIFICATION OF LOW AND MODERATE INCOME RENTAL PROPERTY THAT DOES OR DOES NOT QUALIFY FOR A HISTORICAL DESIGNATION; TO AMEND SECTION 11-35-5230, AS AMENDED, RELATING TO REGULATIONS FOR NEGOTIATIONS WITH STATE MINORITY FIRMS, SO AS TO CHANGE STATUTORY REFERENCES FROM "MINORITY FIRMS" TO "SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESSES", AND TO CHANGE THE DELINEATION OF THE TEN-YEAR PERIOD FOR WHICH THE SUBJECT TAX CREDIT MAY BE CLAIMED; TO AMEND SECTION 11-45-55, AS AMENDED, RELATING TO TAX CREDIT CERTIFICATES IN CONNECTION WITH THE VENTURE CAPITAL INVESTMENT ACT, SO AS TO PROVIDE FOR THE EXCHANGE OF INFORMATION AMONG CERTAIN DEPARTMENTS AND THEIR EMPLOYEES AND AGENTS; TO AMEND SECTION 12-2-20, AS AMENDED, RELATING TO THE DEFINITIONS OF "PERSON" AND "INDIVIDUAL" FOR PURPOSES OF TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE, SO AS TO CLARIFY THE MEANING OF "PERSON"; TO AMEND SECTION 12-6-590, AS AMENDED, RELATING TO TREATMENT OF "S" CORPORATIONS FOR TAX PURPOSES, SO AS TO INCLUDE ADDITIONAL REFERENCES TO THE INTERNAL REVENUE CODE FOR SIMILAR STATE TREATMENT; TO AMEND SECTION 12-6-2250, AS AMENDED, RELATING TO THE APPORTIONMENT OF INCOME DERIVED BY A TAXPAYER TO THE TAXPAYER'S CONDUCT OF BUSINESS IN THIS STATE, SO AS TO CHANGE THE WORD "ALLOCATED" TO "APPORTIONED"; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE JOB TAX CREDIT AGAINST THE STATE INCOME TAX, SO AS TO DELETE A REFERENCE TO GENERAL CONTRACTORS IN CONNECTION WITH THE TERM "CORPORATE OFFICE"; TO AMEND SECTION 12-6-3376, RELATING TO A CREDIT AGAINST THE STATE INCOME TAX FOR THE PURCHASE OR LEASE OF A PLUG-IN HYBRID VEHICLE, SO AS TO REQUIRE THAT THE CREDIT BE THE FIRST CLAIMED FOR THAT VEHICLE, TO PROVIDE FOR REGULATIONS PROMULGATED BY THE STATE ENERGY OFFICE, TO FURTHER PROVIDE FOR CLAIMING THE CAPPED CREDIT, AND TO PROVIDE FOR THE EFFECT OF A REPEAL OF THE CAPS ON THE CREDIT; TO AMEND SECTION 12-6-3377, RELATING TO THE ALTERNATIVE MOTOR VEHICLE FUEL CREDIT AGAINST THE STATE INCOME TAX, SO AS TO FURTHER PROVIDE FOR THE CALCULATION OF THE CREDIT FOR BUSINESS USE AND TO DELETE A PROVISION DEEMING THE FEDERAL TAX TREATMENT OF THE ALTERNATIVE FUEL CREDIT TO BE PERMANENT; TO AMEND SECTION 12-6-3535, AS AMENDED, RELATING TO A CREDIT AGAINST THE STATE INCOME TAX FOR REHABILITATION OF A HISTORIC STRUCTURE, SO AS TO INCLUDE A CREDIT AGAINST THE CORPORATE LICENSE FEES; TO AMEND SECTION 12-6-3585, AS AMENDED, RELATING TO THE INDUSTRY PARTNERSHIP FUND CREDIT AGAINST STATE TAXES, SO AS TO ALLOW THE CREDIT TO BE USED AGAINST THE TAXPAYER'S APPLICABLE STATE INCOME TAX, BANK TAX, INSURANCE PREMIUM TAX, OR LICENSE FEE LIABILITY; TO AMEND SECTION 12-6-3587, AS AMENDED, RELATING TO THE CREDIT AGAINST STATE INCOME TAX FOR THE PURCHASE AND INSTALLATION OF A SOLAR ENERGY SYSTEM, SO AS TO PROVIDE THAT THE CREDIT IS AVAILABLE FOR A BUILDING, OR BUILDINGS ON A SINGLE SITE, THAT THE CREDIT BE CLAIMED IN THE TAX YEAR THE INSTALLATION IS COMPLETED, AND THAT THE STATE ENERGY OFFICE PRESCRIBE CERTIFICATION REQUIREMENTS; TO AMEND SECTION 12-6-3630, RELATING TO A CREDIT AGAINST CERTAIN STATE TAXES FOR A CONTRIBUTION TO THE SOUTH CAROLINA HYDROGEN INFRASTRUCTURE DEVELOPMENT FUND, SO AS TO FURTHER PROVIDE FOR CLAIMING THE CREDIT; TO AMEND SECTION 12-6-5060, AS AMENDED, RELATING TO THE DESIGNATION OF CHARITABLE CONTRIBUTIONS ON THE STATE INCOME TAX RETURN, SO AS TO CHANGE AN ORGANIZATION'S NAME FROM "THE GIFT OF LIFE TRUST FUND OF SOUTH CAROLINA" TO "DONATE LIFE SOUTH CAROLINA"; TO AMEND SECTION 12-8-1530, RELATING TO WITHHOLDING AND REPORTING TAXES ON INCOME, SO AS TO AUTHORIZE THE DEPARTMENT OF REVENUE TO ALLOW A TAXPAYER TO WITHHOLD AND REPORT TAXES ANNUALLY ON INCOME FROM CERTAIN ACTIVITIES; TO AMEND SECTION 12-10-80, AS AMENDED, RELATING TO THE JOB DEVELOPMENT CREDIT IN CONNECTION WITH THE ENTERPRISE ZONE ACT OF 1995, SO AS TO PROVIDE FOR THE TREATMENT OF A RETURN OF AN OVERPAYMENT OF WITHHOLDING RESULTING FROM CLAIMING THE CREDITS; TO AMEND SECTION 12-20-100, RELATING TO LICENSE TAX ON UTILITIES BASED ON PROPERTY VALUE AND GROSS RECEIPTS, SO AS TO DELETE A REFERENCE TO THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-20-105, AS AMENDED, RELATING TO CREDITS AGAINST ITS LICENSE TAX LIABILITY FOR A COMPANY WHO PAYS CASH FOR INFRASTRUCTURE FOR AN ELIGIBLE PRODUCT, SO AS TO PROVIDE FOR THE CONTINUATION OF ELIGIBILITY FOR THE CREDIT UNDER CERTAIN CIRCUMSTANCES FOR A COMPANY THAT CONTRIBUTES THE CASH TO A COUNTY OR POLITICAL SUBDIVISION FOR AN ELIGIBLE PRODUCT EVEN IF THE PROJECT IS DISPOSED OF OR REMAINS UNCOMPLETED; TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO THE STATE SALES TAX, SO AS TO DELETE A REDUNDANCY; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE'S SALES TAX, SO AS TO SPECIFY NOTIFICATION REQUIREMENTS FOR CLAIMING THE EXEMPTION ON THE CONSTRUCTION MATERIALS USED IN CERTAIN SINGLE MANUFACTURING AND DISTRIBUTION FACILITIES AND TO PROVIDE FOR ASSESSMENT OF ANY TAX DUE, TO SPECIFY THAT THE EXEMPTION IN CONNECTION WITH THE SALE OF CURRENCY APPLIES TO CURRENCY THAT IS LEGAL TENDER, AND TO CLARIFY THE EXEMPTION AS TO DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES; TO AMEND SECTION 12-37-90, RELATING TO RESPONSIBILITIES AND DUTIES OF ASSESSORS, SO AS TO DISALLOW THE ALTERATION OF AN ASSESSMENT BY THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTIES EXEMPTED FROM THE ASSESSMENT OF PROPERTY TAXES, SO AS TO CORRECT A CROSS-REFERENCE AND TO MAKE A DEFINITIONAL CHANGE FOR "FULL-TIME" JOB; TO AMEND SECTION 12-44-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO MODIFY A CROSS-REFERENCE IN THE DEFINITION OF "SPONSOR"; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO TIME LIMITATION FOR ASSESSMENT OF TAXES OR FEES BY THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE FOR THE INSTANCE OF A TAXPAYER LACKING A VALID BUSINESS PURPOSE; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO DISCLOSURE OF RECORDS AND REPORTS BY AGENTS OF THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE THAT THE DISCLOSURE BE WILFUL FOR CRIMINAL PENALTIES AND TERMINATION TO ATTACH AND SO AS TO CITE THE AGENTS AND EMPLOYEES OF SEVERAL AGENCIES; TO AMEND SECTION 12-54-250, AS AMENDED, RELATING TO PAYMENT TO THE DEPARTMENT OF REVENUE IN READILY AVAILABLE FUNDS, SO AS TO REQUIRE THE PAYMENT OF A PERSON OWING FIFTEEN THOUSAND DOLLARS OR MORE OR A WITHHOLDING AGENT MAKING AT LEAST TWENTY-FOUR PAYMENTS A YEAR, TO PROVIDE FOR EXEMPTIONS BY THE DEPARTMENT, AND TO REQUIRE ELECTRONIC FILING OF THE ACCOMPANYING RETURNS; TO AMEND SECTION 12-60-20, AS AMENDED, RELATING TO THE GENERAL ASSEMBLY'S INTENT IN CONNECTION WITH A DISPUTE INTERPRETED AND CONSTRUED PURSUANT TO THE SOUTH CAROLINA REVENUE PROCEDURES ACT, SO AS TO CLARIFY CERTAIN LANGUAGE; TO AMEND SECTION 12-60-510, AS AMENDED, RELATING TO EXHAUSTION OF REMEDIES BEFORE REQUESTING A HEARING BEFORE THE ADMINISTRATIVE LAW COURT IN CONNECTION WITH THE REVENUE PROCEDURES ACT, SO AS TO DISALLOW THE REMOVAL OF AN ASSESSMENT AGAINST A DEFAULTING TAXPAYER BY THE COURT; TO AMEND SECTION 12-63-20, RELATING TO THE ENERGY FREEDOM AND RURAL DEVELOPMENT ACT, SO AS TO DEFINE "BIODIESEL" FOR THAT PURPOSE AND TO REFERENCE THE DATE OF PURCHASE OF THE VEHICLE OR THE CONVERSION EQUIPMENT FOR PURPOSES OF CLAIMING A REBATE AGAINST THE SALES TAX; TO AMEND SECTION 44-43-1360, AS AMENDED, RELATING TO THE CHANGE FROM "GIFT OF LIFE TRUST FUND" TO "DONATE LIFE SOUTH CAROLINA", SO AS TO CORRECT A CROSS-REFERENCE; TO AMEND SECTION 46-3-260, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA RENEWABLE ENERGY INFRASTRUCTURE DEVELOPMENT FUND, SO AS TO PROVIDE FOR ADMINISTRATION OF THE FUND BY THE DEPARTMENT OF AGRICULTURE IN COORDINATION WITH THE STATE ENERGY OFFICE; TO ADD CHAPTER 64 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT", PROVIDING FOR DEFINITIONS OF "TEXTILE MILL", "TEXTILE MILL SITE", AND "NOTICE OF INTENT TO REHABILITATE", AND AN ENHANCED DEFINITION OF "REHABILITATION EXPENSES"; FOR TAX CREDITS AGAINST LOCAL PROPERTY TAXES OR STATE INCOME TAX AND CORPORATE LICENSE TAX, IN ADDITION TO THE TAX CREDIT FOR EXPENSES INCURRED IN THE REHABILITATION OF A HISTORIC STRUCTURE; FOR THE AMOUNT OF THE CREDITS AND PROCESSES FOR CLAIMING THEM INCLUDING REQUIREMENT OF FILING A NOTICE OF INTENT TO REHABILITATE; TO REPEAL CHAPTER 32 OF TITLE 6 RELATING TO THE SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT; TO ADD CHAPTER 66 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA RETAIL FACILITY REVITALIZATION ACT", PROVIDING FOR DEFINITIONS OF "RETAIL FACILITY", "RETAIL FACILITY SITE", AND "NOTICE OF INTENT TO REHABILITATE", AND AN ENHANCED DEFINITION OF "REHABILITATION EXPENSES"; FOR TAX CREDITS AGAINST LOCAL PROPERTY TAXES OR STATE INCOME TAX AND CORPORATE LICENSE TAX, IN ADDITION TO THE TAX CREDIT FOR EXPENSES INCURRED IN THE REHABILITATION OF A HISTORIC STRUCTURE; FOR THE AMOUNT OF THE CREDITS AND PROCESSES FOR CLAIMING THEM INCLUDING REQUIREMENT OF FILING A NOTICE OF INTENT TO REHABILITATE; TO REPEAL CHAPTER 34 OF TITLE 6 RELATING TO THE SOUTH CAROLINA RETAIL FACILITY REVITALIZATION ACT; TO ADD CHAPTER 68 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT OF 2008", REVISING AND UPDATING TAX INCENTIVES FOR MOTION PICTURE PRODUCTIONS IN THIS STATE BY ADDING AND MODERNIZING DEFINITIONS, MAKING TECHNICAL CORRECTIONS, ELIMINATING THE REBATE OF STATE AND LOCAL SALES TAXES PROVIDED UNDER FORMER LAW, PROVIDING FOR THE CARRY FORWARD OF REBATE FUNDS TO AVOID MULTIPLE APPLICATIONS, CLARIFYING THE WAGE INCENTIVE AND RESIDENT HIRING BONUS, ESTABLISHING A FIVE-YEAR APPRENTICESHIP PROGRAM, INCREASING THE NUMBER OF DAYS STATE PROPERTY MAY BE USED WITHOUT FEE FROM SEVEN TO TEN DAYS, AND PROVIDING ADDITIONAL REQUIREMENTS FOR FILM CREDITS FOR THIS STATE; TO REPEAL CHAPTER 62 OF TITLE 12 RELATING TO THE SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT; TO EXEMPT FROM THE ADMISSIONS LICENSE TAX FOR THE FIVE YEARS BEGINNING JULY 1, 2008, ALL PAID ADMISSIONS TO A MOTORSPORTS ENTERTAINMENT COMPLEX AND TO DEFINE MOTORSPORTS ENTERTAINMENT COMPLEX; TO AMEND SECTIONS 4-12-30 AND 4-29-67, BOTH AS AMENDED, RELATING TO FEES IN LIEU OF PROPERTY TAXES, SO AS TO PROVIDE FOR THE TREATMENT OF REPLACEMENT PROPERTY, TO REVISE FEE FILING REQUIREMENTS AND PROVIDE A CIVIL PENALTY FOR VIOLATIONS, TO PROVIDE FURTHER FOR PROPERTY ELIGIBLE FOR THE FEE; TO AMEND SECTION 12-6-3410, AS AMENDED, RELATING TO THE CORPORATE HEADQUARTERS INCOME TAX CREDIT, SO AS TO REVISE DEFINITIONS RELATING TO ENTITIES ELIGIBLE FOR THE CREDIT; TO AMEND SECTIONS 12-44-30, 12-44-50, 12-44-60, 12-44-90, AND 12-44-110, ALL AS AMENDED, RELATING TO DEFINITIONS, FEE AGREEMENTS, REPLACEMENT PROPERTY, FILING OF RETURNS AND PAYMENTS, AND PROPERTY INELIGIBLE FOR FEES IN LIEU OF TAX AND EXCEPTIONS THERETO, FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997, SO AS TO PROVIDE THAT THE BENEFITS OF TAX EXEMPTIONS AND THE FEE AGREEMENT ENDS AFTER THE TERMINATION DATE, TO PROVIDE FOR THE TREATMENT OF REPLACEMENT PROPERTY, TO REVISE FEE FILING REQUIREMENTS AND PROVIDE A CIVIL PENALTY FOR VIOLATIONS, AND TO PROVIDE FURTHER FOR PROPERTY ELIGIBLE FOR THE FEE; TO AMEND SECTION 12-6-3600, AS AMENDED, RELATING TO A TAX CREDIT FOR ETHANOL AND BIODIESEL PRODUCTION FACILITIES, SECTION 12-6-3610, AS AMENDED, RELATING TO A TAX CREDIT FOR THE USE OF PROPERTY IN CONNECTION WITH DISTRIBUTION OR DISPENSING OF RENEWABLE FUEL, SECTION 12-6-3620, AS AMENDED, RELATING TO A TAX CREDIT FOR THE PURCHASE AND INSTALLATION OF EQUIPMENT TO PRODUCE ENERGY FROM BIOMASS RESOURCES, AND SECTION 12-6-3631, RELATING TO A TAX CREDIT FOR BIODIESEL RESEARCH AND DEVELOPMENT EXPENDITURES, ALL SO AS TO PROVIDE FOR THE QUALIFICATION FOR THE CREDITS, THE PROCESSES FOR CLAIMING THE CREDITS FOR THE PREVIOUS CALENDAR YEAR, CLARIFICATION AND DEFINITION OF ADDITIONAL TERMS, AND EFFECTS OF REPEALS OF THE CREDIT CAPS, AND TO DELETE THE CAP ON THE CREDIT IN CONNECTION WITH DISTRIBUTION AND DISPENSING OF RENEWABLE FUEL; TO AMEND SECTION 12-14-80, AS AMENDED, RELATING TO THE ECONOMIC IMPACT ZONE TAX CREDIT, SO AS TO RESTATE THE CREDIT AS AN INVESTMENT TAX CREDIT, PROVIDE THAT THE CREDIT IS AVAILABLE FOR THE PLACEMENT IN SERVICE OF CERTAIN QUALIFIED EQUIPMENT AND A COMMITMENT TO THE REQUIRED CAPITAL INVESTMENT, PROVIDE FOR QUALIFICATIONS FOR AND LIMITATIONS ON THE CREDIT, AND TO PROVIDE FOR THE PROCESS FOR CLAIMING THE CREDIT; TO AMEND SECTION 12-28-110, AS AMENDED, RELATING TO DEFINITIONS IN CONNECTION WITH MOTOR FUELS SUBJECT TO USER FEES, SO AS TO ADD FUEL GRADE ETHANOL; TO AMEND SECTION 12-28-310, AS AMENDED, RELATING TO IMPOSITION OF THE USER FEE ON MOTOR FUELS, SO AS TO INCLUDE FUEL GRADE ETHANOL; TO AMEND SECTION 12-28-710, RELATING TO EXEMPTION FROM THE USER FEE ON MOTOR FUEL, SO AS TO EXCLUDE THE EXEMPTION FOR KEROSENE AND DIESEL FUEL WHEN THEY ARE USED TO PROPEL A VEHICLE ON THE HIGHWAY; TO AMEND SECTION 12-28-790, AS AMENDED, RELATING TO REFUND CLAIMS, SO AS TO FURTHER PROVIDE FOR THE CLAIM PROCESS; TO AMEND SECTION 12-28-905, AS AMENDED, RELATING TO THE USER FEE ON FUELS IMPORTED TO THIS STATE, SO AS TO DELETE REFERENCES TO FUEL IMPORTED BY A LICENSED OCCASIONAL IMPORTER AND MAKE TECHNICAL CHANGES; TO AMEND SECTION 12-28-925, AS AMENDED, RELATING TO COLLECTION OF THE USER FEE BY CERTAIN SELLERS, SO AS TO DELETE REFERENCE TO A BONDED IMPORTER; TO AMEND SECTION 12-28-975, AS AMENDED, RELATING TO DIVERSION OF MOTOR FUEL SUBJECT TO THE USER FEE, SO AS TO PROVIDE TIME REQUIREMENTS FOR A LICENSED OR UNLICENSED IMPORTER FOR NOTIFYING THE STATE OF THE DIVERSION AND PAYING THE FEE TO THE STATE, TO DELETE REFERENCES TO REGULATIONS ESTABLISHING THOSE REQUIREMENTS FOR LICENSED IMPORTERS, AND TO DELETE PROVISIONS FOR SUPPLIERS TO ASSUME THE LIABILITY OF IMPORTERS OR CLAIMS OF EXPORTERS; TO AMEND SECTION 12-28-990, AS AMENDED, RELATING TO LIABILITY OF CERTAIN VENDORS OF MOTOR FUELS SUBJECT TO THE USER FEE FOR THE UNPAID FEE, SO AS TO PROVIDE FOR PAYMENT OF THE FEE; TO AMEND SECTION 12-28-1125, AS AMENDED, RELATING TO IMPORTERS' LICENSES, SO AS TO DELETE REFERENCE TO AN OCCASIONAL IMPORTER'S LICENSE AND TO REDUCE THE FEE FOR A BONDED IMPORTER'S LICENSE; TO AMEND SECTION 12-28-1130, AS AMENDED, RELATING TO TANK WAGON IMPORTERS OF MOTOR FUEL, SO AS TO DELETE THE EXEMPTION FOR AN IMPORTER OTHERWISE LICENSED AS AN IMPORTER; TO AMEND SECTION 12-28-1139, AS AMENDED, RELATING TO LICENSING OF PERSONS LIABLE FOR THE USER FEE, SO AS TO PROVIDE FOR A BLENDER/VENDOR LICENSE AND A MANUFACTURER'S LICENSE; TO AMEND SECTION 12-28-1155, AS AMENDED, RELATING TO BONDING OF SUPPLIERS OF MOTOR FUEL SUBJECT TO THE USER FEE, SO AS TO EXEMPT CERTAIN VENDORS AND MANUFACTURERS FROM THE BONDING REQUIREMENT; TO AMEND SECTION 12-28-1300, AS AMENDED, RELATING TO REPORTING REQUIREMENTS, SO AS TO DELETE REFERENCE TO A CUSTOMER'S USER FEE LIABILITY; TO AMEND SECTION 12-28-1310, AS AMENDED, RELATING TO VERIFIED STATEMENTS FILED BY LICENSED BONDED IMPORTERS, SO AS TO FURTHER PROVIDE FOR THE INFORMATION REQUIRED; TO AMEND SECTION 12-28-1370, AS AMENDED, RELATING TO A TRANSPORTER OF MOTOR FUEL, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 12-28-1390, AS AMENDED, RELATING TO A VENDOR OF FUELS NOT SUBJECT TO THE USER FEE, AND TO ADD SECTIONS 12-28-1396 AND 12-28-1397, ALL SO AS TO PROVIDE FOR THE TIME REQUIREMENTS FOR REPORTING AND PAYING THE USER FEE; TO AMEND SECTIONS 12-28-1535, 12-28-1540, 12-28-1545, 12-28-1720, AND 12-28-1730, ALL AS AMENDED, AND ALL RELATING TO RESTRICTIONS ON SELLING, USING, DELIVERING, STORING, OR IMPORTING MOTOR FUELS SUBJECT TO THE USER FEE, ALL SO AS TO PROVIDE FOR CIVIL PENALTIES AND TO DELETE CRIMINAL PENALTIES EXCEPT AS TO NONPAYMENT OF THE USER FEE OVER TO THE STATE; TO REPEAL SECTION 12-28-1305 RELATING TO THE LICENSED OCCASIONAL IMPORTER; TO ADD SECTION 12-59-85 SO AS TO PROVIDE THAT A FORFEITED LAND COMMISSION MAY REFUSE TO ACCEPT TITLE TO PROPERTY BID ON BY THE COUNTY AUDITOR; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY EXEMPTED FROM TAXATION IN THIS STATE, SO AS TO EXEMPT A MOBILE HOME WORTH LESS THAN TWO THOUSAND FIVE HUNDRED DOLLARS; TO AMEND SECTION 12-37-714, AS AMENDED, RELATING TO PROPERTY TAXATION OF A BOAT FOR THE TIME PERIOD IN WHICH IT IS LOCATED IN THIS STATE, SO AS TO REVISE THE TIME PERIODS; TO AMEND SECTION 12-37-2725, AS AMENDED, RELATING TO REGISTRATION OF A LICENSED VEHICLE IN ANOTHER STATE, SO AS TO PROVIDE FOR A RECEIPT FORM TO SUBSTITUTE FOR RETURN OF THE LICENSE PLATE AND REGISTRATION CERTIFICATE TO THIS STATE; TO AMEND SECTION 12-39-220, RELATING TO ASSESSMENT OF REAL ESTATE OMITTED FROM A DUPLICATE OR RETURN, SO AS TO INCLUDE PERSONAL PROPERTY; TO AMEND SECTION 12-51-50, AS AMENDED, RELATING TO SALE OF PROPERTY AT A TAX SALE, SO AS TO PROVIDE THAT THE SALE OCCUR ON AN ADVERTISED DATE AND TO DELETE THE REQUIREMENT OF REGULAR HOURS; TO AMEND SECTION 12-51-70, RELATING TO A DEFAULTING BIDDER IN A TAX SALE, SO AS TO INCREASE HIS LIABILITY FROM THREE HUNDRED TO ONE THOUSAND DOLLARS; TO AMEND SECTION 12-54-85, AS AMENDED, RELATING TO COLLECTION AND ENFORCEMENT OF TAXES, SO AS TO PROVIDE FOR A TIME LIMITATION FOR ASSESSMENT OF TAXES OR FEES FOR PROPERTY OMITTED FROM A DUPLICATE OR RETURN; TO AMEND SECTION 61-6-20, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO SPECIFICALLY DESCRIBE ACTIVITIES THAT CONSTITUTE "BONA FIDE ENGAGED PRIMARILY AND SUBSTANTIALLY IN THE PREPARATION AND SERVING OF MEALS"; TO AMEND SECTION 61-6-1610, AS AMENDED, RELATING TO A LICENSED PREMISES "BONA FIDE ENGAGED PRIMARILY AND SUBSTANTIALLY IN THE PREPARATION AND SERVING OF MEALS", SO AS TO ADD DEFINITIONS AND TO PROVIDE FOR DISPLAY OF THE LICENSE; TO AMEND SECTION 61-6-2010, AS AMENDED, RELATING TO A FIFTY-TWO WEEK TEMPORARY PERMIT, SO AS TO PROVIDE FOR A PRORATED REFUND UNDER CERTAIN CIRCUMSTANCES; TO AMEND SECTION 12-6-40, AS AMENDED, RELATING TO THE APPLICATION OF THE FEDERAL INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO INCLUDE THE IRC AS AMENDED THROUGH 2007; TO AMEND SECTION 12-6-1120, AS AMENDED, RELATING TO COMPUTATION OF SOUTH CAROLINA GROSS INCOME, SO AS TO EXCLUDE TIER III RAILROAD RETIREMENT BENEFITS; TO AMEND SECTION 12-28-955, RELATING TO RETAINING A PORTION OF THE USER FEE FOR ADMINISTRATIVE COSTS, SO AS TO DELETE THE RETENTION IN FAVOR OF REQUESTING A REFUND FROM THE DEPARTMENT OF REVENUE IN SPECIFIED AMOUNTS FOR EXPENSES OR ANNUAL ADMINISTRATIVE COSTS; TO AMEND SECTION 12-44-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO MODIFY A CROSS REFERENCE IN THE DEFINITION OF "SPONSOR"; TO ADD SECTION 12-45-17 SO AS TO REQUIRE ANNUAL CONTINUING EDUCATION TRAINING FOR COUNTY TAX COLLECTORS; AND TO AMEND SECTION 12-54-70, AS AMENDED, RELATING TO EXTENSIONS OF TIME FOR THE FILING OF TAX RETURNS OR PAYMENT OF TAXES DUE, SO AS TO CONFORM THE EXTENSION TO THE CORRESPONDING FEDERAL EXTENDED TIME PERIOD.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1.A. Chapter 54 of Title 12 is amended by adding:
"Section 12-54-52. Internal Revenue Code Section 6694 is adopted for all taxes in Title 12 and other taxes administered by the department except:
(1) Subsection (c) is not adopted. Tax return preparers may use Chapter 60 to appeal penalties assessed pursuant to this section.
(2) For purposes of subsection (a)(2)(C)(i), Internal Revenue Code Section 6662(d)(2)(B)(ii) is adopted.
(3) Subsection (f), the definition of 'income tax preparer', is adopted but is not limited to income taxes and includes a return preparer for any taxes in Title 12 and any other taxes administered by the department.
Section 12-54-53. Internal Revenue Code Section 6695 subsection (a) regarding failure to furnish a copy of a return to the taxpayer, subsection (b) regarding failure to sign return, and subsection (f) regarding negotiation of checks are adopted for all taxes in Title 12 and other taxes administered by the department. For purposes of subsection (b), the penalty applies if the department requests identification of the return preparer on the return."
B. Section 12-6-50(16) of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:
"(16) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Sections 6015 and, 6701, 6107(a), 6694 which is adopted as provided in Section 12-54-52, 6695 which is adopted as provided in Section 12-54-53, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910 and Section 12-54-55."
C. This section takes effect upon approval by the Governor and applies to tax periods beginning after 2008.
SECTION 2.A. Section 4-9-195(B)(5) and (6) of the 1976 Code, as last amended by Act 292 of 2004, is further amended to read:
"(5) 'Preliminary certification' means a property has met the following conditions:
(a) the owner of the property applies for and is granted historic designation by the county governing body, certification pursuant to subsection (C)(1), or both; and
(b) the proposed rehabilitation receives approval of rehabilitation work from the reviewing authority, unless the property is certified solely pursuant to subsection (C)(1).
A county governing body may require that an owner applies for preliminary certification before any project work begins.
(6) 'Final certification' means a property has met the following conditions:
(a) the owner of the property applies for and is granted historic designation, certification pursuant to subsection (C)(1), or both by the county governing body;
(b) the completed rehabilitation receives approval of rehabilitation work from the reviewing authority, unless the property is certified solely pursuant to subsection (C)(1); and
(c) the minimum expenditures for rehabilitation were incurred and paid."
B. Section 4-9-195(C) of the 1976 Code, as last amended by Act 292 of 2004, is further amended to read:
"(C) 'Low and moderate income rental property' is eligible for certification if:
(1) the property provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p); or
(2) in the case of income-producing real property, the expenditures for rehabilitation exceed the appraised value of the property; and
(3) if the low and moderate income housing rehabilitation is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District; and
(1) 'Low and moderate income rental property' is eligible for certification if:
(a) the property is located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District and provides accommodations under the Section 8 Program as defined in the United States Housing Act of 1937 and amended by the Housing and Community Act of 1974 for low and moderate income families and persons as defined by Section 31-13-170(p); or
(b) the property is income-producing real property located in an area designated by the local government as a Low and Moderate Housing Rehabilitation District, and the expenditures for low and moderate income housing rehabilitation exceed the appraised value of the property.
(4)(2) the owner or estate of any property certified as 'low and moderate income rental property' takes no actions which cause the property to be unsuitable for such a designation. The county governing body granting the initial certification has the authority to decertify any property in these cases, and the property becomes immediately ineligible for the special tax assessments provided for this type of property; and if action is taken by the owner or his estate which causes the property to be unsuitable for designation as low and moderate income rental property.
(5)(3) Low and moderate income rental property that meets the requirement of subsection (C)(1) may be certified even if it does not qualify for 'historic designation' as defined in subsection (B)(1). However, if the property qualifies as "historic" for 'historic designation' as defined in subsection (B)(1), then the rehabilitation work must be approved by the appropriate reviewing authority as provided in subsections (B) and (D)."
SECTION 3. Section 11-35-5230(B) of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:
"(B)(1) Firms with state contracts that subcontract A taxpayer having a contract with this State who subcontracts with minority firms shall be a socially and economically disadvantaged small business is eligible for an income tax credit equal to four percent of the payments to minority subcontractors that subcontractor for work pursuant to a that state contract. Such subcontractors must be if the subcontractor is certified as to the criteria of a minority firm socially and economically disadvantaged small business as defined in Section 11-35-5010 of this code and any regulations which may be promulgated thereunder pursuant to it.
(2) The tax credit is limited to a maximum of fifty thousand dollars annually. A firm taxpayer is eligible to claim a tax credit for a period of ten years from the date the first income tax credit is claimed beginning with the taxable year in which the first payment is made to the certified subcontractor.
(3) Any firm A business desiring to be certified as a minority firm socially and economically disadvantaged small business shall make application apply to the Small and Minority Business Assistance Office (SMBAO) as defined by Section 11-35-5270, on such forms as may be prescribed by that office.
(4) Firms A taxpayer claiming the income tax credit shall maintain evidence of work performed for a state contract by minority subcontractors the subcontractor and shall present such evidence on a form and in a manner prescribed by the Department of Revenue at the time of filing its state income tax return and shall claim such the credit at the time of filing. All records shall must be available for audit by the Department of Revenue in accordance with prevailing tax statutes."
SECTION 4. Section 11-45-55(I)(3) of the 1976 Code, as added by Act 116 of 2007, is amended to read:
"(3) Notwithstanding Section 12-54-240(A), the authority, the Department of Commerce, the Department of Revenue, and the Department of Insurance, and their employees and agents, may exchange information for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to this chapter."
SECTION 5. Section 12-2-20 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"Section 12-2-20. As used in this title and in other titles that provide for taxes administered by the department, and unless otherwise required by the context, the term:
(1) 'person' includes any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity, or group, or combination acting as a unit; and
(2) 'individual' means a human being."
SECTION 6.A. Section 12-6-590 of the 1976 Code, as last amended by Act 116 of 2007, is further amended by adding at the end:
"(C) If Internal Revenue Code Section 1374 (Tax Imposed on Certain Built-In Gains and Capital Gains) or 1375 (Tax Imposed on Certain Passive Investment Income) imposes a federal income tax, a South Carolina tax is similarly imposed using the rates set forth in Section 12-6-530. If the exception in Internal Revenue Code Section 1374(c) is effective for federal tax purposes, then this exception is applicable for South Carolina income tax purposes."
B. This section takes effect upon approval by the Governor and applies to tax years after 2006.
SECTION 7.A. Section 12-6-2250(B) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(B) For taxable years beginning in 2007 through 2010 only, a taxpayer in subsection (A) shall apportion income by using the method provided in Section 12-6-2250(A) and, if applicable, the method provided in Section 12-6-2252. If the calculation permitted in Section 12-6-2252 results in a reduction in income allocated apportioned to this State, the reduction is allowed as follows:
Taxable year beginning in: Percentage of reduction allowed:
2007 20
2008 40
2009 60
2010 80."
B. This section takes effect upon approval by the Governor and applies for tax years beginning after 2006.
SECTION 8.A. Section 12-6-3360(A) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(A) Taxpayers that operate manufacturing, tourism, processing, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, extraordinary retail establishment, qualifying technology intensive facilities, and banks as defined pursuant to this title are allowed an annual jobs tax credit as provided in this section. In addition, taxpayers that operate retail facilities and service-related industries qualify for an annual jobs tax credit in counties designated as least developed or distressed, and in counties that are under developed and not traversed by an interstate highway. As used in this section, 'corporate office' includes general contractors licensed by the South Carolina Department of Labor, Licensing and Regulation. Credits pursuant to this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, bank taxes imposed pursuant to Chapter 11 of this title, and insurance premium taxes imposed pursuant to Chapter 7 of Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina income tax, bank tax, or insurance premium tax liability. In computing a tax payable by a taxpayer pursuant to Section 38-7-90, the credit allowable pursuant to this section must be treated as a premium tax paid pursuant to Section 38-7-20."
B. This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.
SECTION 9.A. Section 12-6-3376 of the 1976 Code, as added by Act 83 of 2007, is amended to read:
"Section 12-6-3376. (A) For taxable years beginning after 2007, and before 2011, a taxpayer is allowed a tax credit against the income tax imposed pursuant to this chapter for the in-state purchase or lease of a plug-in hybrid vehicle. The purchase or lease must be the first purchase or lease of the vehicle to qualify for the credit allowed by this section.
(B) A plug-in hybrid vehicle is a vehicle that shares the same benefits as an internal combustion and electric engine with an all-electric range of no less than nine miles. The credit is equal to two thousand dollars. The credit allowed by this section is nonrefundable and if the amount of the credit exceeds the taxpayer's liability for the applicable taxable year, any unused credit may be carried forward for five years.
(C) The State Energy Office may promulgate regulations addressing qualifying vehicles, qualifying leases of those vehicles, and the application process for claiming credits pursuant to this section.
(B)(D) Notwithstanding the credit amount allowed pursuant to this section, for a fiscal calendar year all claims made pursuant to this section must not exceed two hundred thousand dollars and must apply proportionately to all eligible claimants. To obtain the amount of capped credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office on a form prescribed by the State Energy Office. The form must be submitted by January thirty-first for vehicles purchased in the previous calendar year and the State Energy Office must notify the taxpayer of the amount of credit allocated to that taxpayer by March first of that year. A taxpayer may claim the capped credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided."
B. For the state's fiscal year beginning July 1, 2008, the capped credit is to be determined based on an eighteen-month period beginning July 1, 2008, through December 31, 2009. Applications must be made by January 31, 2010, for the previous eighteen-month period commencing July 1, 2008, and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year that contains December 31, 2009.
C. To the extent the caps on the credit contained in this section are repealed in legislation enacted before or after this section, the elimination of those caps must be seen as the last expression of the legislature and to the extent any language in this section conflicts with that repeal, it must be considered null and void.
SECTION 10. Section 12-6-3377 of the 1976 code, as added by Act 312 of 2006, is amended to read:
"Section 12-6-3377. (A) A South Carolina resident taxpayer who is eligible for and claims the new qualified fuel cell motor vehicle credit, the new advanced lean burn technology motor vehicle credit, the new qualified hybrid motor vehicle credit based on the combined city/highway metric or standard set by federal Internal Revenue Code Section 30B, and the new qualified alternative fuel motor vehicle credit allowed pursuant to Internal Revenue Code Section 30B is allowed a credit against the income taxes imposed pursuant to this chapter in an amount equal to twenty percent of that the federal income tax credit, without consideration of limitations on the amount of the federal credit allowable that result from the federal alternative minimum tax. For credits associated with business use of the vehicle, the credit must be calculated without consideration of reductions in the credit that result from being part of the general business credit in Internal Revenue Code Section 38. The credit allowed by this section is nonrefundable and if the amount of the credit exceeds the taxpayer's liability for the applicable taxable year, any unused credit may be carried forward and claimed in the five succeeding taxable years.
(B) The credit amount allowed by this section must be calculated without regard to the phaseout period limits of Internal Revenue Code Section 30B(f) and for purposes of the credits allowed pursuant to this section, the provisions of Internal Revenue Code Section 30B are deemed permanent law."
SECTION 11.A. Section 12-6-3535(A) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(A) A taxpayer who is allowed a federal income tax credit pursuant to 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 taxes and corporate license fees imposed by Chapter 20 of 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, a taxpayer filing a paper return must attach a copy of the section of the federal income tax return showing the credit claimed, along with other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection."
B. This section takes effect upon approval by the Governor and applies to tax years beginning after 2007.
SECTION 12.A. Section 12-6-3585(C) of the 1976 Code, as last amended by Act 116 of 2007, and (E) as added by Act 319 of 2006, is amended to read:
"(C) The use of the credit is limited to the taxpayer's applicable income, bank, or premium tax or license fee liability for the tax year of the taxpayer after the application of all other credits. An unused credit may be carried forward ten tax years of the taxpayer after the end of the tax year of the taxpayer during which the qualified contribution was made.
(E) 'Taxpayer' means an individual, corporation, partnership, trust, bank, insurance company, or other entity having a state income, bank, or insurance premium tax or license fee liability who has made a qualified contribution."
B. This section takes effect upon approval by the Governor and is effective for tax years beginning after December 31, 2005.
SECTION 13.A. Section 12-6-3587 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"Section 12-6-3587. (A) There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the purchase and installation of a solar energy system for heating water, space heating, air cooling, or the generation of electricity in or on a facility for a building, or buildings on a single site, in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be is claimed before the completion of in the tax year in which the installation of the solar energy system is completed. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility building or site in a single tax year or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars for each facility, the taxpayer may carry forward the excess for up to ten years An unused credit may be carried forward for ten years.
(B) 'System' includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar energy system. The term 'system' does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily contained in the structure. No credit shall be allowed for a solar system unless the system is certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office a building.
(C) A credit is not allowed for a solar energy system unless the credit is certified by the State Energy Office. A taxpayer must submit information indicating that the solar energy system meets all applicable requirements to the State Energy Office by the last day of the first month after the end of the taxpayer's taxable year in which the installation is completed. The State Energy Office must provide the taxpayer with certification that the credit may be claimed. The department may require a copy of the certification form issued by the State Energy Office be attached to the return or otherwise provided.
(D) The State Energy Office may promulgate regulations addressing requirements for solar energy systems to qualify for credits allowed by this section."
B. This section takes effect upon approval by the Governor and applies to taxable years beginning after December 31, 2007.
SECTION 14. Section 12-6-3630 of the 1976 Code, as added by Act 83 of 2007, is amended to read:
"Section 12-6-3630. (A) For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to Chapter 6 or of this title, bank tax imposed pursuant to Chapter 11 of this title, license fees imposed pursuant to Chapter 20 of this title, or insurance premium tax imposed pursuant to Chapter 7, Title 38, or a combination of them, for a qualified contribution made by a taxpayer to the South Carolina Hydrogen Infrastructure Development Fund established pursuant to Chapter 46, Title 11. A contribution is not a qualified contribution if it is subject to a condition or limitation regarding the use of the contribution.
(B) The credit is equal to twenty-five percent of a qualified contribution made by a taxpayer to the fund. The credit must be claimed in the year in which the qualified contribution is made. The credit must be used against the taxpayer's liability on income taxes tax, bank tax, premium insurance taxes tax, or license fees fee liability after the application of all other credits applicable to the taxpayer's tax liability. Unused credits may be carried forward for ten years after the tax year in which a qualified contribution was made. The credit is nonrefundable.
(C) A taxpayer who claims a credit for a qualified contribution pursuant to this section may not claim a deduction for the same qualified contribution.
(D) A taxpayer who claims a credit pursuant to this section must attach to his tax return a copy of a form provided by the authority identifying the taxpayer's qualified contribution. The department may require that a copy of the form identifying the taxpayer's qualified contribution be attached to the taxpayer's return or otherwise provided. The Department of Revenue department may require from the taxpayer additional information identifying the taxpayer's qualified contribution as it considers appropriate."
SECTION 15. Section 12-6-5060(A) of the 1976 Code, as last amended by Act 382 of 2006, is further amended to read:
"(A) Each taxpayer required to file a state individual income tax return may contribute to the War Between the States Heritage Trust Fund established pursuant to Section 51-18-115 , the Nongame Wildlife and Natural Areas Program Fund established pursuant to Section 50-1-280, the Children's Trust Fund of South Carolina established pursuant to Section 20-7-5010, the Eldercare Trust Fund of South Carolina established pursuant to Section 43-21-160 , or the First Steps to School Readiness Fund established pursuant to Section 20-7-9740, the South Carolina Military Family Relief Fund established pursuant to Article 3, Chapter 11 of Title 25, the Gift of Donate Life Trust Fund of South Carolina established pursuant to Section 44-43-1310, the Veterans' Trust Fund of South Carolina established pursuant to Chapter 21 of Title 25, the South Carolina Litter Control Enforcement Program (SCLCEP) and used by the Governor's Task Force on Litter only for the SCLCEP Program, the South Carolina Law Enforcement Assistance Program (SCLEAP) and used as provided in Section 23-3-65, the South Carolina Department of Parks, Recreation and Tourism for use in the South Carolina State Park Service in the manner the General Assembly provides, K-12 public education for use in the manner the General Assembly provides by law, South Carolina Conservation Bank Trust Fund established pursuant to Section 48-59-60, or the Financial Literacy Trust Fund as established pursuant to Section 59-29-510, by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated."
SECTION 16.A. Section 12-8-1530 of the 1976 Code is amended by adding at the end:
"(C) The department may allow a taxpayer to withhold and report taxes annually on income from activities described in Section 12-8-520(D)(1) through (11)."
B. This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2007.
SECTION 17.A. Section 12-10-80(A)(6) of the 1976 Code is amended to read:
"(6) To the extent any A return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (C) or by Section 12-10-95, it in a quarter when the taxpayer is not in compliance with Chapter 10 of Title 12 or the revitalization agreement must be treated as misappropriated employee withholding."
B. This section takes effect upon approval by the Governor and applies to tax years beginning after 2008.
SECTION 18. Section 12-20-100(A)(1) of the 1976 Code is amended to read:
"(1) one dollar for each thousand dollars, or fraction of a thousand dollars, of fair market value of property owned and used within this State in the conduct of business as determined by the department for property tax purposes for the preceding taxable year; and"
SECTION 19. Deleted.
SECTION 20. Section 12-36-910(B)(6), as added by Act 161 of 2005, and (7), as added by Act 386 of 2006, are amended to read:
"(6) gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible property, whether or not such contracts are purchased in conjunction with the sale of tangible personal property.
(7) gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible personal property, whether or not the contracts are purchased in conjunction with the sale of tangible personal property."
SECTION 21. Section 12-36-2120(67) of the 1976 Code, as last amended by Act 116 of 2007, is amended to read:
"(67) effective July 1, 2011, construction materials used in the construction of a new or expanded single manufacturing and or distribution facility, or one that serves both purposes, with a capital investment of at least one hundred million in real and personal property at a single site in the State over an eighteen-month period. The taxpayer must provide notice of the exemption, and the Department of Revenue may assess taxes owing in the manner provided in Section 12-36-2120(51). To qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall make the required investment over the eighteen-month period beginning on the date provided by the taxpayer to the department in its notices. The taxpayer shall notify the department in writing that it has met the investment requirement or, after the expiration of the eighteen-month period, that it has not met the investment requirement. The department may assess any tax due on construction materials purchased tax-free pursuant to this item but due the State as a result of the taxpayer's failure to meet the investment requirement. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for the time period beginning with notice to the department before the taxpayer uses the exemption and ending with notice to the department that the taxpayer either has met or has not met the investment requirement."
SECTION 22.A. Section 12-36-2120(70) of the 1976 Code, as added by Act 34 of 2007, is amended to read:
"(70)(a) gold, silver, or platinum bullion, or any combination of this bullion;
(b) coins that are or have been legal tender in the United States or other jurisdiction; and
(c) currency that is or has been legal tender in the United States or another jurisdiction.
The department shall prescribe documentation that must be maintained by retailers claiming the exemption allowed by this item. This Sufficient documentation must be sufficient maintained by the retailer to identify each individual sale for which the exemption is claimed."
B. This section takes effect July 1, 2007.
SECTION 23.A. Section 12-36-2120(74) of the 1976 Code, as added by Act 99 of 2007, is amended to read:
"(74) durable medical equipment and related supplies:
(a) as defined under federal and state Medicaid and Medicare laws; and
(b) which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale sales or use tax; and
(c) sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."
B. This section takes effect July 1, 2007, in accordance with the provisions of SECTION 1B and 1C of Act 99 of 2007.
SECTION 24. Section 12-37-90(h) of the 1976 Code is amended to read:
"(h) be the sole person responsible for the valuation of real property, except that required by law to be appraised and assessed by the department, and the values set by the assessor may be altered only by the assessor or by legally constituted appellate boards, the department, or the courts;"
SECTION 25. Section 12-37-220(B)(23) of the 1976 Code is amended to read:
"(23) Notwithstanding any other another provision of law, property heretofore exempt before from ad valorem taxation by reason of the imposition upon such the property or the owner of such the property of a tax other than an ad valorem tax pursuant to the provisions of Section 12-11-30, Section 12-13-50 or Section 12-21-1080 shall continue 1085 continues to be entitled to such the exemption."
SECTION 26. Section 12-37-220(B)(32)(2)(a) of the 1976 Code is amended to read:
"(a) 'full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina corporate headquarters, corporate office facility, or distribution facility and or worked at a rented facility pending construction of a corporate headquarters, corporate office facility, or distribution facility;"
SECTION 27. Section 12-44-30(18) of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:
"(18) 'Sponsor' means one or more entities which sign the fee agreement with the county and makes the minimum investment, subject to the provisions of Section 12-44-40, each of which makes the minimum investment as provided in Section 12-44-30(13) (14) and also includes a sponsor affiliate unless the context clearly indicates otherwise. If a project consists of a manufacturing, research and development, corporate office, or distribution facility, as those terms are defined in Section 12-6-3360(M), each sponsor or sponsor affiliate is not required to invest the minimum investment if the total investment at the project exceeds ten million dollars."
SECTION 28. Section 12-54-85(C) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(C) Taxes may be determined and assessed after the thirty-six month limitation if:
(1) there is fraudulent intent to evade the taxes;
(2) the taxpayer failed to file a return or document as required by law;
(3) there is a twenty percent understatement of the total of all taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later. For the purpose of this item, the total of all taxes required to be shown on the return is the total of all taxes required to be shown on the return before any reduction for estimated payments, withholding payments, other prepayments, or discount allowed for timely filing of the return and payment of the tax due, but that amount must be reduced by another credit other credits that may be claimed on the return;
(4) the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section; or
(5) the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty."
SECTION 29. Section 12-54-240(A) of the 1976 Code is amended to read:
"(A) Except in accordance with proper judicial order or as otherwise provided by law, it is unlawful for a person wilfully to divulge or make known in any manner any particulars set forth or disclosed in any a report or return required under pursuant to Chapters 6, 8, 11, 13, 16, 20, or 36 or Article 17 of Chapter 21 of this title. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. If the offender is an officer or an employee of the State, he must be dismissed from office and is disqualified from holding any public office in this State for a period of five years thereafter after that. If the offender is an officer or employee of a company retained by the State on an independent contract basis under pursuant to subsection (B)(3) of this section or Section 12-4-350, and the contractor fails to terminate the officer or employee, the contract is immediately terminated immediately and the company contractor is not eligible to contract with the State for this purpose for a period of five years thereafter after that."
SECTION 30. Section 12-54-240(B)(28) of the 1976 Code, as added by Act 116 of 2007, is amended to read:
"(28) exchange of information between the department, the Department of Commerce and its agency, the Venture Capital Authority, and the Department of Insurance, and their employees and agents, for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to Chapter 45 of Title 11."
SECTION 31. Section 12-54-250(A) and (B) of the 1976 Code, as last amended by Act 116 of 2007, (C)-(E), and (F), as last amended by Act 161 of 2005, is further amended to read:
"(A)(1) The South Carolina Department of Revenue may require, consistent with the cash management policies of the State Treasurer, that a A person owing fifteen thousand dollars or more in connection with any return, report, or other document to be filed with the department or a withholding agent making at least twenty-four payments in a year pursuant to Section 12-8-1520(D) is required to pay the tax liability to the State no later than the date the payment is required by law to be made, in funds that are available immediately to the State. 'Payment in immediately available funds' means payment by cash to the main office of the department before five o'clock p.m. or by electronic means established by the department, with the approval of the State Treasurer, which ensures the settlement of those funds in the state's account on or before the two banking day days following the due date of the tax as provided by law. The department may exempt specified payments from this requirement by tax type or if the department determines that the costs of implementation exceed the benefit provided to the State.
(2) Initiation of the transfer of funds must occur on or before the due date of the tax. If payment is made by means other than cash and (i) if initiation of the transfer is after the due date or (ii) settlement to the state's account does not occur on or before the two banking day days following the due date of the tax, payment is deemed to occur on the date settlement occurs. To ensure settlement to the state's account is timely, taxpayers must follow instructions provided by the department.
(3) A taxpayer may request a temporary exemption from the requirements of item (2) from the department if the taxpayer is unable to comply with the law due to a temporary hardship.
(3)(4) Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments.
(B) The department may provide alternative periodic filing and payment dates later than the dates otherwise provided by law for taxes collected by the department in those instances considered to be in the best interests of the State. An alternative date must not be later than the last day of the month in which the tax was otherwise due.
(C) The department may prescribe rules and the State Treasurer banking procedures necessary for the administration of the provisions of this section.
(D) The department may prescribe alternative means other than paper to file returns and reporting documents necessary for the administration of this section.
(E) Payment by immediately available funds and filing of the return are considered simultaneous acts with respect to penalties and interest for failure to file and failure to pay. Penalties and interest must be calculated based on the later of the return postmark date or payment date. Unless exempted by the department for technological or hardship purposes, taxpayers making payments by immediately available funds must file the accompanying return by electronic means.
(D) Taxpayers choosing voluntarily to pay by immediately available funds must comply with all requirements of this section.
(F)(E)(1) A tax return preparer who prepares one hundred or more returns for a tax period for the same tax year shall submit all returns by electronic means where electronic means are available. Where electronic means are not available to file the return, but 2D barcode is available, the preparer must use 2D barcode. If a taxpayer checks a box on his return provides the preparer with a signed statement indicating a preference that his return is to be filed by another means, the preparer may submit that return by another means.
(2) The department shall include a notice of this requirement in its form instructions and in the forms area of its website web site.
(3) For the purposes of this subsection, tax return preparer means the business entity and not the individual location or individual completing the return.
(4) If compliance with this section is a substantial financial hardship, a tax return preparer may apply in writing to the department to be exempted from these requirements. The department may grant an exemption for no more than one year at a time.
(5) A person who fails to comply with the provisions of this section may be penalized in an amount to be assessed by the department equal to fifty dollars for each return."
SECTION 32. Section 12-60-20 of the 1976 Code, as last amended by Act 110 of 2007, is further amended to read:
"Section 12-60-20. It is the intent of the General Assembly to provide the people of this State with a straightforward procedure to determine a any dispute with the Department of Revenue and any dispute concerning property taxes. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent."
SECTION 33. Section 12-60-510(A) of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:
"(A) Before a taxpayer may seek a contested case hearing before the Administrative Law Court, he shall exhaust the prehearing remedy.
(1) If a taxpayer requests a contested case hearing before the Administrative Law Court within ninety days of the date of the proposed assessment without exhausting his prehearing remedy because he failed to file a protest with the department, the administrative law judge shall dismiss the action without prejudice. If the taxpayer failed timely to provide the department with the facts, law, and other authority supporting his position, he shall provide them to the department. The administrative law judge shall then remand the case to the department for reconsideration in light of the new facts or issues unless the department elects to forego the remand.
(2) If a taxpayer fails to file a protest with the department within ninety days of the date of the proposed assessment, the taxpayer is in default, and the department must issue an assessment for the taxes. The assessment may be removed by the Administrative Law Court for good cause shown, and the matter may be remanded to the department."
SECTION 34.A. Section 12-63-20(A)(3) of the 1976 Code, as added by Act 83 of 2007, is amended to read:
"(3) the rebates allowed pursuant to this subsection shall be phased in at twenty percent a year until the rebate equals three hundred dollars for subitems (a) through (d) of subsection (A)(1) and five hundred dollars for subitem (e) of subsection (A)(1). The amount of rebate that a person may claim is limited to the amount of rebate in effect for the year in which the vehicle or conversion equipment was purchased or converted, whichever is applicable."
B. Section 12-63-20(B) of the 1976 Code, as added by Act 83 of 2007, is amended to read:
"(B)(1) An incentive payment for an alternative fuel purchase is provided beginning after June 30, 2009, and ending before July 1, 2012, and shall be provided from the general fund, excluding revenue derived from the sales and use tax as follows:
(a) five cents to the retailer for each gallon of E70 fuel or greater sold provided that the ethanol-based fuel is subject to the South Carolina motor fuel user fee;
(b) twenty-five cents to the retailer for each gallon of pure biodiesel fuel sold so that the biodiesel in the blend is at least two percent B2 or greater, provided that the qualified biodiesel content fuel is subject to the South Carolina motor fuel user fee. Biodiesel fuel is a fuel for motor vehicle diesel engines comprised of vegetable oils or animal fats and meeting the specifications of the American Society of Testing and Materials (ASTM) D6751; and
(c) twenty-five cents to the retailer or wholesaler for each gallon of pure biodiesel fuel sold as dyed diesel fuel for 'off-road' uses, so that the biodiesel in the blend is at least two percent B2 or greater.
(2) The payments allowed pursuant to this subsection must be made to the retailer upon compliance with verification procedures set forth by the Department of Agriculture.
(3) For purposes of this subsection, the definition of the term 'biodiesel' is the same as found in Section 12-28-110(70)."
SECTION 35. Section 44-43-1360 of the 1976 Code, as last amended by Act 92 of 2007, is further amended to read:
"Section 44-43-1360. The board may employ a director and other staff as necessary to carry out the provisions of this article; however, administration of this article may not exceed twenty percent of the total funds credited to the trust fund, excluding the administrative fee paid to the Department of Revenue pursuant to Sections 12-6-5065 5060 and 59-1-143."
SECTION 36. Section 46-3-260(B) of the 1976 Code, as added by Act 116 of 2007, is amended to read:
"(B) The Department of Revenue Agriculture may prescribe forms, procedures, issue policy documents, and distribute funds as necessary to ensure the orderly and timely implementation of the provisions herein. The Department of Revenue Agriculture shall coordinate with the Department of Agriculture State Energy Office as necessary."
SECTION 37.A. Title 12 of the 1976 Code is amended by adding:
Section 12-64-10. This chapter is known and may be cited as the 'South Carolina Textiles Communities Revitalization Act'.
(A) The primary purpose of this chapter is to create an incentive for the rehabilitation, renovation, and redevelopment of abandoned textile mill sites located in South Carolina.
(B) The abandonment of textile mills has resulted in the disruption of communities and increased the cost to local governments by requiring additional police and fire services due to excessive vacancies. Many abandoned textile mills pose safety concerns. A public and corporate purpose is served by restoring these textile mill sites to a productive asset for the communities and result in increased job opportunities.
(C) There exists in many communities of this State abandoned textile mills. The stable economic and physical development of these textile mill sites is endangered by the presence of these abandoned textile mills as manifested by the progressive and advanced deterioration of these structures. As a result of the existence of these abandoned mills, there is an excessive and disproportionate expenditure of public funds, inadequate public and private investment, unmarketability of property, growth in delinquencies and crime in the areas, together with an abnormal exodus of families and businesses, so that the decline of these areas impairs the value of private investments, threatens the sound growth and the tax base of taxing districts in these areas, and threatens the health, safety, morals, and welfare of the public. To remove and alleviate these adverse conditions, it is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in the areas by the redevelopment of these abandoned textile mill sites.
Section 12-64-30. For the purposes of this chapter, unless the context requires otherwise:
(1) 'Abandoned' means that at least eighty percent of the textile mill has been closed continuously to business or otherwise nonoperational for a period of at least one year immediately preceding the date on which the taxpayer files a 'Notice of Intent to Rehabilitate'. For purposes of this item, an eligible site that otherwise qualifies as abandoned may be subdivided into separate parcels, which parcels may be owned by the same taxpayer or different taxpayers, and each parcel must be deemed to be an eligible site for purposes of determining whether the parcel is considered to be abandoned.
(2) 'Ancillary uses' means uses related to the textile manufacturing, dying, or finishing operations on a textile mill site consisting of sales, distribution, storage, water runoff, wastewater treatment and detention, pollution control, personnel offices, security offices, employee parking, dining and recreation areas, and internal roadways or driveways directly associated with such uses.
(3) 'Textile mill' means a facility or facilities that were last used for textile manufacturing, dying, or finishing operations and for ancillary uses to those operations.
(4) 'Textile mill site' means the textile mill together with the land and other improvements on it which were used directly for textile manufacturing operations or ancillary uses; except that with respect to a site acquired by a taxpayer after December 31, 2007, the area of the site is limited to the land located within the boundaries where the textile manufacturing, dying, or finishing facility structure is located and does not include land located outside the boundaries of the structure or devoted to ancillary uses.
(5) 'Local taxing entities' means a county, municipality, school district, special purpose district, and other entity or district with the power to levy ad valorem property taxes against the textile mill site.
(6) 'Local taxing entity ratio' means that percentage computed by dividing the millage rate of each local taxing entity by the total millage rate for the textile mill site.
(7) 'Placed in service' means the date upon which the textile mill site is completed and ready for its intended use. If the textile mill site is completed and ready for use in phases, each phase is considered to be placed in service when it is completed and ready for its intended use.
(8) 'Rehabilitation expenses' means the expenses incurred in the rehabilitation, renovation, or redevelopment of the textile mill site; except that, with respect to a site acquired by a taxpayer after December 31, 2007, 'rehabilitation expenses' means the expenses incurred in renovating or demolishing an abandoned textile mill, renovating or demolishing buildings on the textile mill site, and renovating applicable land including expenditures incurred for environmental or site cleanup, grading, and infrastructure on the land, but excluding the cost of acquiring the textile mill site or the cost of personal property located at the textile mill site. Renovation must meet the requirements of Internal Revenue Code Section 47(c)(1)(A)(iii) to be qualified. If a taxpayer chooses not to renovate the textile mill or a building on the site, but instead chooses to demolish the textile mill or another building on the textile mill site, expenses incurred for demolishing the mill or the building and costs incurred for environmental or site cleanup, grading the land, and the costs of infrastructure for the site qualify as rehabilitation expenses. Some construction costs associated with a textile mill site may be allowed as rehabilitation expenses. New construction costs are allowed only to the extent the costs are for construction located within the original dimensions of the abandoned textile mill itself and the construction is equal to or less than the square footage of the textile mill as of the time of abandonment. For expenses associated with a textile mill site to qualify for the credit, the textile mill and buildings on the textile mill site must be either renovated or demolished.
(9) 'Notice of Intent to Rehabilitate' means, with respect to a textile mill site acquired by a taxpayer after December 31, 2007, a letter submitted by the taxpayer to the department or the municipality or county as specified in this chapter, indicating the taxpayer's intent to rehabilitate the textile mill site, the location of the textile mill site, the amount of acreage involved in the textile mill site, and the estimated expenses to be incurred in connection with rehabilitation of the textile mill site. The notice also must set forth information as to which buildings the taxpayer intends to renovate, which buildings the taxpayer intends to demolish, and whether new construction is to be involved.
Section 12-64-40. (A) Subject to the terms and conditions of this chapter, a taxpayer who rehabilitates a textile mill site is eligible for either:
(1) a credit against real property taxes levied by local taxing entities; or
(2) a credit against income taxes imposed pursuant to Chapter 6 and Chapter 11, Title 12, or corporate license fees pursuant to Chapter 20, Title 12, or both.
(B) If the taxpayer elects to receive the credit pursuant to subsection (A)(1), the following provisions apply:
(1) The taxpayer shall file a Notice of Intent to Rehabilitate with the municipality, or the county if the textile mill site is located in an unincorporated area, in which the textile mill site is located before incurring its first rehabilitation expenses at the textile mill site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after notice is provided.
(2) Once the Notice of Intent to Rehabilitate has been provided to the county or municipality, the municipality or the county shall first by resolution determine the eligibility of the textile mill site and the proposed rehabilitation expenses for the credit. A proposed rehabilitation of a textile mill site must be approved by a positive majority vote of the local governing body. For purposes of this subsection, 'positive majority vote' is as defined in Section 6-1-300(5). If the county or municipality determines that the textile mill site and the proposed rehabilitation expenses are eligible for the credit, there must be a public hearing and the municipality or county shall approve the textile mill site for the credit by ordinance. Before approving a textile mill site for the credit, the municipality or county shall make a finding that the credit does not violate a covenant, representation, or warranty in any of its tax increment financing transactions or an outstanding general obligation bond issued by the county or municipality.
(3)(a) The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the textile mill site times the local taxing entity ratio of each local taxing entity that has consented to the credit pursuant to item (4), if the actual rehabilitation expenses incurred in rehabilitating the textile mill site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the textile mill site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed. The ordinance must provide for the credit to be taken as a credit against up to seventy-five percent of the real property taxes due on the textile mill site each year for up to eight years.
(b) The local taxing entity ratio is set as of the time the Notice of Intent to Rehabilitate is filed and remains set for the entire period that the credit may be claimed by the taxpayer.
(4) Not fewer than forty-five days before holding the public hearing required by subsection (B)(2), the governing body of the municipality or county shall give notice to all affected local taxing entities in which the textile mill site is located of its intention to grant a credit against real property taxes for the textile mill site and the amount of estimated credit proposed to be granted based on the estimated rehabilitation expenses. If a local taxing entity does not file an objection to the tax credit with the municipality or county on or before the date of the public hearing, the local taxing entity is considered to have consented to the tax credit.
(5) The credit against real property taxes may be claimed for the property tax year the rehabilitated textile mill site is first placed in service.
(C) If the taxpayer has acquired the textile mill site after December 31, 2007, and elects to receive the credit pursuant to subsection (A)(2), the following provisions apply:
(1) The taxpayer must file with the department a notice of Intent to Rehabilitate before incurring its first rehabilitation expenses at the textile mill site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after the notice is provided.
(2) The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the textile mill site if the actual rehabilitation expenses incurred in rehabilitating the textile mill site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the textile mill site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed.
(3) The entire credit may not be taken for the taxable year in which the textile mill site is placed in service but must be taken in equal installments over a five-year period beginning with the tax year in which the rehabilitated textile mill site is placed in service. Unused credit may be carried forward for the succeeding five years.
(4) If the taxpayer qualifies for both the credit allowed by this subsection and the credit allowed pursuant to Section 12-6-3535, the taxpayer may claim both credits.
(5) The credit allowed by this subsection is limited in use to fifty percent of either:
(a) the taxpayer's income tax liability for the taxable year if taxpayer claims the credit allowed by this section as a credit against income tax imposed pursuant to Chapter 6; or
(b) the taxpayer's corporate license fees for the taxable year if the taxpayer claims the credit allowed by this section as a credit against license fees imposed pursuant to Chapter 20.
(6)(a) If the taxpayer leases the textile mill site, or part of the textile mill site, the taxpayer may transfer any applicable remaining credit associated with the rehabilitation expenses incurred with respect to that part of the site to the lessee of the site. If a taxpayer sells the textile mill site, or part of the textile mill site, the taxpayer may transfer all, or part of the remaining credit, associated with the rehabilitation expenses incurred with respect to that part of the site to the purchaser of the applicable portion of the textile mill site.
(b) To the extent that the taxpayer transfers the credit, the taxpayer must notify the department of the transfer in the manner the department prescribes.
(7) To the extent that the taxpayer is a partnership or a limited liability company taxed as a partnership, the credit may be passed through to the partners or members and may be allocated among any of its partners or members including, without limitation, an allocation of the entire credit to one partner or member.
Section 12-64-50. The provisions of Chapter 31 of this title also apply to this chapter; except that, the requirements of Section 6-31-40 do not apply."
B. Chapter 32, Title 6 of the 1976 Code is repealed.
C. With respect to a site acquired by a taxpayer after December 31, 2007, the area of the site is limited to the land located within the boundaries where the textile manufacturing facility structure is located and does not include land located outside the boundaries of the structure.
SECTION 38.A. Title 12 of the 1976 Code is amended by adding:
Section 12-66-10. This chapter is known and may be cited as the 'South Carolina Retail Facility Revitalization Act'.
(A) The primary purpose of this chapter is to create an incentive for the renovation, improvement, and redevelopment of abandoned retail facility sites located in South Carolina.
(B) The abandonment of retail facilities has resulted in the disruption of communities and increased the cost to local governments by requiring additional police and fire services due to excessive vacancies. Many abandoned retail facility sites pose safety concerns. A public and corporate purpose is served by restoring these retail facility sites to a productive asset for the communities and result in increased job opportunities.
(C) There exists in many communities of this State abandoned retail facilities. The stable economic and physical development of these retail facility sites is endangered by the presence of these abandoned retail facilities as manifested by the progressive and advanced deterioration of these structures. As a result of the existence of these abandoned retail facilities, there is an excessive and disproportionate expenditure of public funds, inadequate public and private investment, unmarketability of property, growth in delinquencies and crime in the areas, together with an abnormal exodus of families and businesses, so that the decline of these areas impairs the value of private investments, threatens the sound growth and the tax base of taxing districts in these areas, and threatens the health, safety, morals, and welfare of the public. To remove and alleviate these adverse conditions, it is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in the areas by the redevelopment of these abandoned retail facility sites.
Section 12-66-30. For the purposes of this chapter, unless the context requires otherwise:
(1) 'Abandoned' means that at least eighty percent of the retail facility has been closed continuously to business or otherwise nonoperational for a period of at least one year immediately preceding the date on which the taxpayer files a 'Notice of Intent to Rehabilitate'.
(2) 'Retail facility site' means an abandoned retail facility and any abandoned parking areas, walkways, and sidewalks that are connected to, and serve, the facility. If the site originally consisted of a shopping center or mall, the entire site will qualify even if separate stores within the mall or center were originally owned by different taxpayers provided that at least one store or separate building in the shopping center or mall meets the square footage requirements of subsection (3).
(3) 'Retail facility' means a shopping center, mall, or free standing store whose most recent and primary use was to make retail sales, with at least one forty thousand square-foot or larger store or separate building.
(4) 'Local taxing entities' means a county, municipality, school district, special purpose district, and other entity or district with the power to levy ad valorem property taxes against the retail facility site.
(5) 'Local taxing entity ratio' means that percentage computed by dividing the millage rate of each local taxing entity by the total millage rate for the retail facility site.
(6) 'Placed in service' means the date upon which the retail facility site is completed and ready for its intended use. If the retail facility site is completed and ready for use in phases, each phase is considered to be placed in service when it is completed and ready for its intended use.
(7) 'Rehabilitation expenses' means the expenses incurred in renovating or demolishing an abandoned retail facility, and other expenses associated with site cleanup, grading, and infrastructure on the site, but excluding the cost of acquiring the retail facility site or the cost of personal property located at the retail facility site. Renovation must meet the requirements of Internal Revenue Code Section 47(c)(1)(A)(iii) to be qualified. If a taxpayer chooses not to renovate the retail facility, but instead chooses to demolish the retail facility, expenses incurred for demolishing the retail facility or the building and costs incurred for site cleanup, grading the land, and the costs of infrastructure for the site qualify as rehabilitation expenses. Some construction costs associated with a retail facility site may be allowed as rehabilitation expenses. New construction costs are allowed only to the extent the costs are for construction located within the original dimensions of the abandoned retail facility itself and the construction is equal to or less than the square footage of the retail facility as of the time of abandonment. For expenses associated with a retail facility site to qualify for the credit, the entire retail facility site must be rehabilitated.
(8) 'Notice of Intent to Rehabilitate' means a letter submitted by the taxpayer to the department or the municipality or county as specified in this chapter, indicating the taxpayer's intent to rehabilitate the retail facility site, the location of the retail facility site, the amount of acreage involved in the retail facility site, and the estimated expenses to be incurred in connection with rehabilitation of the retail facility site. The notice also must set forth information as to whether the taxpayer intends to rehabilitate or demolish the retail facility.
Section 12-66-40. (A) Subject to the terms and conditions of this chapter, a taxpayer who rehabilitates a retail facility site is eligible for either:
(1) a credit against real property taxes levied by local taxing entities; or
(2) a credit against income taxes imposed pursuant to Chapter 6, Title 12, or corporate license fees pursuant to Chapter 20, Title 12, or both.
(B) If the taxpayer elects to receive the credit pursuant to subsection (A)(1), the following provisions apply:
(1) The taxpayer shall file a Notice of Intent to Rehabilitate with the municipality, or the county if the retail facility site is located in an unincorporated area, in which the retail facility site is located before incurring its first rehabilitation expenses at the retail facility site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after notice is provided.
(2) Once the Notice of Intent to Rehabilitate has been provided to the county or municipality, the municipality or the county shall first by resolution determine the eligibility of the retail facility site and the proposed rehabilitation expenses for the credit. A proposed rehabilitation of a retail facility site must be approved by a positive majority vote of the local governing body. For purposes of this subsection, 'positive majority vote' is as defined in Section 6-1-300(5). If the county or municipality determines that the retail facility site and the proposed rehabilitation expenses are eligible for the credit, there must be a public hearing and the municipality or county shall approve the retail facility site for the credit by ordinance. Before approving a retail facility site for the credit, the municipality or county shall make a finding that the credit does not violate a covenant, representation, or warranty in any of its tax increment financing transactions or an outstanding general obligation bond issued by the county or municipality.
(3)(a) The amount of the credit is equal to twenty-five percent of the actual rehabilitation expenses made at the retail facility site times the local taxing entity ratio of each local taxing entity that has consented to the credit pursuant to item (4), if the actual rehabilitation expenses incurred in rehabilitating the retail facility site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the retail facility site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed. The ordinance must provide for the credit to be taken as a credit against up to seventy-five percent of the real property taxes due on the retail facility site each year for up to eight years.
(b) The local taxing entity ratio is set as of the time the Notice of Intent to Rehabilitate is filed and remains set for the entire period that the credit may be claimed by the taxpayer.
(4) Not fewer than forty-five days before holding the public hearing required by subsection (B)(2), the governing body of the municipality or county shall give notice to all affected local taxing entities in which the retail facility site is located of its intention to grant a credit against real property taxes for the retail facility site and the amount of estimated credit proposed to be granted based on the estimated rehabilitation expenses. If a local taxing entity does not file an objection to the tax credit with the municipality or county on or before the date of the public hearing, the local taxing entity is considered to have consented to the tax credit.
(5) The credit against real property taxes may be claimed for the property tax year the rehabilitated retail facility site is first placed in service.
(6) The governing body of a county or municipality where the retail facility site is located, by resolution, may reduce the forty thousand square-foot requirement contained in Section 12-64-30(3) to no less than twenty-five thousand square feet.
(C) If the taxpayer elects to receive the credit pursuant to subsection (A)(2), the following provisions apply:
(1) The taxpayer must file with the department a Notice of Intent to Rehabilitate before incurring its first rehabilitation expenses at the retail facility site. Failure to provide the Notice of Intent to Rehabilitate results in qualification of only those rehabilitation expenses incurred after the notice is provided.
(2) The amount of the credit is equal to ten percent of the actual rehabilitation expenses made at the retail facility site if the actual rehabilitation expenses incurred in rehabilitating the retail facility site are between eighty percent and one hundred twenty-five percent of the estimated rehabilitation expenses set forth in the Notice of Intent to Rehabilitate. If the actual rehabilitation expenses exceed one hundred twenty-five percent of the estimated expenses set forth in the Notice of Intent to Rehabilitate, the taxpayer qualifies for the credit based on one hundred twenty-five percent of the estimated expenses as opposed to the actual expenses it incurred in rehabilitating the retail facility site. If the actual rehabilitation expenses are below eighty percent of the estimated rehabilitation expenses, the credit is not allowed.
(3) The entire credit may not be taken for the taxable year in which the retail facility site is placed in service but must be taken in equal installments over an eight-year period beginning with the tax year in which the rehabilitated retail facility site is placed in service. Unused credit may be carried forward for the succeeding five years.
(4) If the taxpayer qualifies for both the credit allowed by this subsection and the credit allowed pursuant to Section 12-6-3535, the taxpayer may claim both credits.
(5) The credit allowed by this subsection is limited in use to fifty percent of either:
(a) the taxpayer's income tax liability for the taxable year if taxpayer claims the credit allowed by this section as a credit against income tax imposed pursuant to Chapter 6; or
(b) the taxpayer's corporate license fees for the taxable year if the taxpayer claims the credit allowed by this section as a credit against license fees imposed pursuant to Chapter 20.
(6)(a) If the taxpayer leases the retail facility site, or part of the retail facility site, the taxpayer may transfer any applicable remaining credit associated with the rehabilitation expenses incurred with respect to that part of the site to the lessee of the site. If a taxpayer sells the retail facility site, or part of the retail facility site, the taxpayer may transfer all, or part of the remaining credit, associated with the rehabilitation expenses incurred with respect to that part of the site to the purchaser of the applicable portion of the retail facility site.
(b) To the extent that the taxpayer transfers the credit, the taxpayer must notify the department of the transfer in the manner the department prescribes.
(7) To the extent that the taxpayer is a partnership or a limited liability company taxed as a partnership, the credit may be passed through to the partners or members and may be allocated among any of its partners or members including, without limitation, an allocation of the entire credit to one partner or member."
B. Chapter 34, Title 6 of the 1976 Code is repealed.
SECTION 39.
A. Section 1-30-25 of the 1976 Code is amended to read:
"Section 1-30-25. Effective on July 1, 1993, the The following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property, and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall must be administered as part of the Department of Commerce to be initially divided into divisions for Aeronautics, Advisory Coordinating Council for Economic Development, State Development, Public Railways, and Savannah Valley Development:
(A) South Carolina Aeronautics Commission, formerly provided for at Section 55-5-10, et seq.;
(B) Coordinating Council for Economic Development, formerly provided for at Section 41-45-30, et seq.;
(C) Savannah Valley Authority, formerly provided for at Section 13-9-10, et seq.;
(D) Department of Commerce, including the South Carolina Film Commission, except that the department must make reasonable rules and promulgate reasonable regulations to ensure that funds made available to film projects through its film commission are budgeted and spent so as to further the following objectives:
(1) stimulation of economic activity to develop the potentialities of the State;
(2) conservation, restoration, and development of the natural and physical, the human and social, and the economic and productive resources of the State;
(3) promotion of a system of transportation for the State, through development and expansion of the highway, railroad, port, waterway, and airport systems;
(4) promotion and correlation of state and local activity in planning public works projects;
(5) promotion of public interest in the development of the State through cooperation with public agencies, private enterprises, and charitable and social institutions;
(6) encouragement of industrial development, private business, commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;
(7) assistance in the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;
(8) assistance in ensuring stability in employment, increasing the opportunities for employment of the citizens of the State, devising ways and means to raise the living standards of the people of the State;
(9) enhancement of the general welfare of the people; and
(10) encouragement and consideration as appropriate so as to consider race, gender, and other demographic factors to ensure nondiscrimination, inclusion, and representation of all segments of the State to the greatest extent possible. Existing divisions or components of the Department of Commerce formerly a part of the State Development Board excluding the South Carolina Film Commission; and
(E) South Carolina Public Railways Commission, formerly provided for at Section 58-19-10, et seq."
B. Section 1-30-80 of the 1976 Code is amended to read:
"Section 1-30-80. (A) Effective on July 1, 1993, the The following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property, and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shallmust be administered as part of the Department of Parks, Recreation and Tourism to include a Parks, Recreation and Tourism Division and Film Division.
Department of Parks, Recreation and Tourism, formerly provided for at Sections 51-1-10, 51-3-10, 51-7-10, 51-9-10 and 51-11-10, et seq.
(B) Effective July 1, 2008, the South Carolina Film Commission of the Department of Commerce is transferred to the Department of Parks, Recreation and Tourism and becomes a separate division of the Department of Parks, Recreation and Tourism.
(2) The South Carolina Film Commission as established in this section as a division of the Department of Parks Recreation and Tourism and transferred to it shall ensure that funds made available to film projects through the film commission are budgeted and spent so as to further the following objectives:
(a) stimulation of economic activity to develop the potentialities of the State;
(b) conservation, restoration, and development of the natural and physical, the human and social, and the economic and productive resources of the State;
(c) promotion of a system of transportation for the State, through development and expansion of the highway, railroad, port, waterway, and airport systems;
(d) promotion and correlation of state and local activity in planning public works projects;
(e) promotion of public interest in the development of the State through cooperation with public agencies, private enterprises, and charitable and social institutions;
(f) encouragement of industrial development, private business, commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;
(g) assistance in the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;
(h) assistance in ensuring stability in employment, increasing the opportunities for employment of the citizens of the State, devising ways and means to raise the living standards of the people of the State;
(i) enhancement of the general welfare of the people; and
(j) encouragement and consideration as appropriate so as to consider race, gender, and other demographic factors to ensure nondiscrimination, inclusion, and representation of all segments of the State to the greatest extent possible."
C. (A) Where the provisions of this part transfer the South Carolina Film Commission from the Department of Commerce to the Department of Parks, Recreation and Tourism, the employees, authorized appropriations, and assets and liabilities of the South Carolina Film Commission are also transferred to and become part of the Department of Parks, Recreation and Tourism. All classified or unclassified personnel employed by the South Carolina Film Commission on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Parks, Recreation and Tourism, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.
(B) Regulations promulgated by the South Carolina Film Commission are continued and are considered to be promulgated by the Film Commission as a division of the Department of Parks, Recreation and Tourism.
(C) The Code Commissioner is directed to change or correct all references to the South Carolina Film Commission to reflect its transfer to the Department of Parks, Recreation and Tourism. References to the name of the South Carolina Film Commission in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references."
D. Title 12 of the 1976 Code is amended by adding:
Section 12-64-10. This chapter may be cited as the 'South Carolina Motion Picture Incentive Act of 2008'.
Section 12-64-20. (1) 'Base investment' means the aggregate funds actually invested and expended by a production company as qualified production expenditures incurred in this State that are directly used in state-certified production or productions.
(2) 'Company' means a corporation, partnership, limited liability company, or other business entity.
(3) 'Department' means the South Carolina Department of Parks, Recreation and Tourism, including the South Carolina Film Commission.
(4) 'Direct use expenditure' means an expenditure in a qualified production activity. A production company may only claim production expenditures that are directly used in a qualified production activity. In determining whether an expenditure is directly used in a qualified production activity, the South Carolina Film Commission will consider the proximity of the expenditure to the activity as well as the causal relationship between the expenditure and the activity.
(5) 'Director' means the director of the Department of Parks, Recreation and Tourism.
(6) 'Live sporting event' means a scheduled sporting competition, game, or race that is not originated by a production company, but originated solely by an amateur, collegiate, or professional organization, institution, or association for live or tape-delayed television or satellite broadcast. The term does not include commercial advertising, an episodic television series, a television pilot, music video, motion picture, or documentary production where any sporting events are presented through archived historical footage or similar footage depicting either live sporting events that originated more than thirty days before the time of usage.
(7) 'Multimarket commercial distribution' means commercial distribution which extends to markets outside the State of South Carolina.
(8) 'Payroll' means salary or wages, subject to South Carolina income tax withholdings. In the case of a person or persons represented by a loan out company or a personal service company and paid by a payroll service company, all payments qualify under Section 12-8-550.
(9) 'Production company' means a company which has been approved by the department and primarily engages in qualified production activities. 'Production company' does not mean or include any form of business owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on any tax obligation of the State, or a loan made or guaranteed by the State until such time as the tax obligation or loan is satisfied.
(10) 'Qualified production activities' means the production of new film, video, or digital projects produced in this State and approved by the department such as feature films, pilots, movies for television, commercial advertisement, and music videos. The term 'qualified production activities' does not include the production of television coverage of news and live sporting events or a production produced by a production company if records, as required by 18 USC 2257, are to be maintained by that motion picture production company with respect to any performer portrayed in that single media or multimedia program.
For purposes of this definition, in the case of an episodic television series, an entire season of episodes is considered one production. The rebate is computed based on all of the production company's qualifying expenses incurred with respect to the production of the entire season's episodes.
(11) 'Qualified production expenditures' means preproduction, production and postproduction expenditures incurred in this State that are directly used in a qualified production activity, including without limitation the following from a South Carolina supplier: set construction and operation; wardrobes, make-up, accessories, and related services; costs associated with photography and sound synchronization, lighting and related services and materials; editing and related services; rental of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or tape editing, transfers of film to tape or digital format, sound mixing, computer graphics services, and special effects services; total aggregate payroll; airfare, if the flight is directly related to production activities in South Carolina and purchased through a South Carolina travel agency or travel company; insurance costs if purchased through a South Carolina based insurance agency; and other direct costs of producing the project in accordance with generally accepted entertainment industry practices. The term must not include postproduction expenditures for marketing and distribution.
(12) 'Resident' means an individual who is domiciled in this State and who is liable for South Carolina income and property taxes.
(13) 'South Carolina supplier' means an entity, including, but not limited to, a limited liability company, a single member limited liability company, a corporation, an 'S' corporation, a partnership or a sole proprietorship that:
(a) has at least one full-time employee within the State;
(b) has a physical location in the State that consists of more than a post office box or drop box and that maintains normal business and has a South Carolina telephone number;
(c) has registered to pay South Carolina income taxes and withholding taxes, and if applicable, South Carolina sales tax; and
(d) has registered to do business, if required, with the South Carolina Secretary of State.
Section 12-64-30. (A) For the purposes of the recruitment and development of qualified production activities in South Carolina, the General Assembly shall appropriate to the department an amount equal to twenty-six percent of the general fund portion of admissions tax collected by the State for the previous fiscal year. Rebates payable pursuant to Section 12-64-40 may not exceed in total ten million dollars annually from the general fund of the State, and this ten million dollars is in addition to amounts made available as a percentage of admissions tax revenues.
(B) The department shall utilize funds to rebate direct use expenditures for qualified production activities or qualified production expenses as provided pursuant to Sections 12-64-40 and 12-64-60 when these expenditures equal or exceed a base investment of one million dollars in twelve consecutive months.
(C)(1) An application for the rebates provided for by this chapter must be accepted only from production companies that report an anticipated base investment in the State in the aggregate equal to or exceeding one million dollars in a twelve-month period.
(2) The application must be approved by the department.
(D) The department shall use up to seven percent of these funds for marketing for the following purposes:
(1) to allow for assistance with recruitment or infrastructure development of the film industry, or
(2) marketing, or
(3) ally support, or
(4) special events.
(E)(1) The rebate provided in this section is available to the production company at the end of all qualified production activity. The production company shall apply to the South Carolina Film Commission for a certificate of completion once qualified production activity in South Carolina is complete. The production company shall provide any information the South Carolina Film Commission considers necessary to determine if the one million dollar base investment requirement has been met.
(2) A production company may claim the rebate by filing a request for a rebate with the South Carolina Film Commission once the certificate of completion is obtained. To claim the rebate, the production company and all companies described in Section 12-64-40(B)(1)(b) or (c) must be current with respect to all taxes or loans due and owing the State or political subdivisions at the time of the filing of the request for the rebate. If the production company or company described in Section 12-64-40(B)(1)(b) or (c) is not current with respect to all taxes due and owing the State or political subdivisions, the production company may be barred from claiming the rebate until the taxes and loans have been paid in full.
(3) The production company shall attach to its request for the rebate a copy of the certificate of completion and a copy of all assignments of the rebate, if applicable.
(F) A production company claiming a rebate pursuant to this section, and all companies described in Section 12-64-40(B)(1)(b) or (c), shall make payroll books and records of all expenditures available for inspection to the South Carolina Film Commission at the times requested by the South Carolina Film Commission. Each production company claiming the rebate, at the time of filing, shall provide a report to the South Carolina Film Commission that includes the project's name, the name of each employee that worked on the project, the social security number for each employee, the beginning and ending date of employment, the number of days the employee worked, a job description for each employee, the total gross wages for each employee, the South Carolina taxable wages subject to withholding for each employee, and other information considered necessary by the South Carolina Film Commission. The report also must contain the total amount of withholding attributable to all employees that worked on the project in South Carolina.
(G) A production company claiming a rebate pursuant to Section 12-64-60 shall make records of all expenditures available for inspection to the South Carolina Film Commission at the times requested by the South Carolina Film Commission. Each production company claiming the rebate shall provide a report, as prescribed by the South Carolina Film Commission, at the time of filing.
(H) For purposes of this section, and as an exception to Section 12-54-240, a production company and a company described in Section 12-64-40(B)(1)(b) or (c) agree that the department and the Department of Revenue may provide information concerning the request for the rebate and the certificate of completion among the respective taxpayers and the respective agencies.
(I) The allocations to production companies contemplated by this chapter must be made by the department. The South Carolina Film Commission may prescribe policies and procedures necessary to administer the application and award of the rebate.
(J) The rebates paid to a production company are not income and not subject to tax pursuant to Chapter 6 of this title.
(K) The department shall report annually on the use of all funds pursuant to this section. The report is a public record pursuant to the Freedom of Information Act, Chapter 4 of Title 30, and must be posted annually on the department's web site by December thirty-first for the previous fiscal year.
Section 12-64-40. (A) The department may rebate to a production company a portion of the South Carolina payroll of the employment of persons subject to South Carolina income tax withholdings in connection with production of qualified production activities. The rebate is an amount up to twenty percent of the total aggregate South Carolina payroll. Up to an additional ten percent rebate may be paid for all South Carolina residents who are paid a minimum of eighteen dollars an hour. For purposes of this section, total aggregate payroll does not include the portion of the salary of an employee whose salary is greater than one million dollars for each qualified production activity.
(B)(1) For purposes of this section, an employee is an individual directly involved in the qualified production activity in South Carolina and who is an employee of a:
(a) production company;
(b) personal service corporation retained by a production company to provide persons used directly in the qualified production activity in South Carolina; or
(c) payroll services or loan out company that is retained by a production company to provide employees who work directly in the qualified production activity in South Carolina.
(2) For his wages to qualify for the rebate, the employee must be certified by the South Carolina Film Commission as a qualifying employee and the employee is liable for South Carolina income tax withholding. In the case of a person or persons represented by a loan out company or a personal service company and paid by a payroll service company, all payments qualify pursuant to Section 12-8-550.
(C) The rebate applies with respect to an employee described in subsection (B)(1)(b) or (c) of this section only if, before the rebate is applied for, the personal services corporation, payroll services company, or loan out company is approved and certified by the South Carolina Film Commission, and makes an irrevocable assignment of its rebate to the production company that produced the qualified production activity. The assignment must be made on a form provided by the South Carolina Film Commission which must include a waiver of confidentiality pursuant to Section 12-54-240. Upon assignment, the rebate may be paid only to the production company. A personal services corporation, payroll services company, or loan out company which is a subcontractor to another entity which has made or does make the irrevocable assignment is not required to make the assignment to execute the form. However, a subcontractor is not entitled to a rebate unless, before the start of the physical production in South Carolina, the subcontractor has notified the South Carolina Film Commission and the production company that it does not intend to assign its rebate.
Section 12-64-50. At the time the production company is certified by the department, it may make, with the approval of the department, an irrevocable assignment of future payments attributable to the rebates made pursuant to Section 12-64-30 to a designated trustee. The assignment must specify the exact dollar amount being assigned to the designated trustee. For purposes of this chapter, 'designated trustee' means the single financier or financial institution designated by the production company to receive all assignments of payments made pursuant to this chapter and to the terms of an agreement entered into by the production company. If a production company elects to assign payments to the designated trustee, the election must be made on a form provided by the department, including a waiver of confidentiality pursuant to Section 12-54-240, and the payments may be paid only to the designated trustee. The production company shall file an application for the assignment with the department before applying for the rebate.
Section 12-64-60. (A)(1) The department may rebate to a production company an amount up to thirty percent of the qualified production expenditures made by the production company in this State.
(2) This subsection does not apply to payroll paid for production company employees subject to Section 12-64-40 or money paid to the companies described in Section 12-64-40(B)(1)(b) or (c).
(B) An additional one percent of the general fund portion of admissions tax collected by this State for the previous fiscal year must be appropriated to the department for the exclusive use of the South Carolina Film Commission for the promotion of collaborative production and educational efforts between institutions of higher learning in South Carolina and qualified production activities. These appropriations must be appropriated annually by September first to the department for the exclusive use of the South Carolina Film Commission. The South Carolina Film Commission may prescribe procedures necessary to administer this section. Unexpended funds from this appropriation carry forward to the next and succeeding fiscal years and must be used for the same purpose.
Section 12-64-70. (A) An additional one percent of the general fund portion of admissions tax collected by this State for the previous year must be allocated to the South Carolina Film Commission for the development and funding of a trainee wage reimbursement program, apprenticeship programs, and other qualified production activity training programs for South Carolina residents. These appropriations must be appropriated annually to the department in the general appropriations act and must be made available annually by September first to the department for the exclusive use of the South Carolina Film Commission. Unexpended funds from this source may be carried over to the next and succeeding fiscal years and must be used for the same purpose. The South Carolina Film Commission may develop these programs in conjunction with South Carolina universities and colleges that have academic departments instructing students in qualified production activities and must take into account industry best practices. The South Carolina Film Commission shall offer a fifty percent reimbursement of wages for on-the-job training of South Carolina residents in advanced crew positions for up to 1,040 hours a year. To be eligible and to be pre-approved by the South Carolina Film Commission, participants in the program must:
(1) be a South Carolina resident;
(2) be certified as a qualified production activity trainee by the South Carolina Film Commission;
(3) employed by a qualified production activity in South Carolina.
(B) After approval by the South Carolina Film Commission, the department may provide for reimbursement of fifty percent of payroll paid to the personnel for whom information is submitted in accordance with the South Carolina Film Commission's policies and procedures.
(C) This section does not apply to production company employees receiving rebates pursuant to Section 12-64-40.
(D) The South Carolina Film Commission may prescribe procedures necessary to administer this section.
(E) The provisions of this section are effective only for the five consecutive state fiscal years beginning July 1, 2009.
Section 12-64-80. (A)(1) Upon a determination by the director of the General Services Division of the State Budget and Control Board of the underutilization of state property by a state agency, the South Carolina Film Commission may negotiate below-market rates for temporary use, no more than twelve months, of space for the underutilized property. The negotiations and temporary use are exempt from the provisions of the South Carolina Consolidated Procurement Code. State-owned or political subdivision-owned properties may recoup all costs they expend on behalf of and at the direction of the production company at normal and customary rates incurred by the state agency. State-owned or political subdivision-owned properties also may recoup costs required to repair damage caused by the production company to real or personal property of the state agency or political subdivision at normal and customary rates incurred by the state agency.
(2) The state agency that owns the property determined to be underutilized may appeal within three business days that determination of underutilization to the State Budget and Control Board.
(B) The State or its political subdivisions may not charge a location or facility fee for properties they own to a production company if the properties are used for ten or fewer days as a location or facility in the production of a qualified production activity, but only properties used directly in filming and not as support locations are covered by this provision. A property may be used for a total of only thirty days without location or facility fees in a calendar year. The production company may be on site no longer than ten days within a thirty-day period without a location or facility fee charge. State-owned or political subdivision-owned properties may recoup all costs they expend on behalf and at the direction of the production company at the normal and customary rates incurred by the state agency or political subdivision. State-owned or political subdivision-owned properties also may recoup a location or facility fee, after the first ten days, not to exceed two thousand five hundred dollars a day. State-owned or political subdivision-owned properties also may recoup costs required to repair damage caused by the production company to real or personal property of the state agency or political subdivision at the normal and customary rates incurred by the state agency or political subdivision. The production company shall reimburse all location or facility costs to the state agency or political subdivision within twenty-one calendar days of completion of production activities on site. The production company may use the publicly-owned property only on the days agreed to and approved by the state agency or political subdivision.
Section 12-64-90. The South Carolina Film Commission may form a South Carolina Film Foundation to solicit donations for the recruitment and development of qualified production activities in furtherance of the purposes of this chapter.
Section 12-64-100. The end credit roll of a qualified production activity that utilizes a South Carolina tax credit or rebate must recognize the State of South Carolina with the following statement as a condition of receiving incentive funding under this section, when appropriate, at no cost to the State. The recognition must at a minimum include placement in the end credits of 'Filmed in South Carolina - www.FilmSC.com' with size and placement commensurate to other logos included in the end credits or, if no logos are used, the statement 'Filmed in South Carolina - www.FilmSC.com' or a similar statement approved by the South Carolina Film Commission before the placement. The State of South Carolina reserves the right to refuse the use of South Carolina's name in the credits of a production produced in the State.
Section 12-64-110. To the extent not already provided, the South Carolina Film Commission may prescribe rules and procedures and promulgate regulations to carry out the intent and purposes of this chapter."
E. Chapter 62, Title 12 of the 1976 Code is repealed.
F. The repeal or amendment by this SECTION 39 of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this SECTION 39, all laws repealed or amended by this SECTION 39 must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this SECTION 39, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
G. Except as otherwise stated, this SECTION 39 takes effect July 1, 2008. However, the apprentice program and its funding as provided in Section 12-64-70 of the 1976 Code as contained in part II, subsection D. of this SECTION 39 takes effect July 1, 2009.
SECTION 40. (A) In addition to the exemptions allowed from the admissions license tax imposed pursuant to Section 12-21-2420 of the 1976 Code, there is also exempt from that tax for five years beginning July 1, 2008, paid admissions to a motorsports entertainment complex.
(B) For purposes of the exemption allowed by this section, a motorsports entertainment complex means a closed-course motorsports facility, and its ancillary grounds and facilities, that satisfies all of the following:
(1) has at least sixty thousand fixed seats for race patrons;
(2) has at least three scheduled days of motorsports events each calendar year that are sanctioned by one of the following sanctioning bodies: American Motorcycle Association (AMA), Auto Racing Club of America (ARA), Championship Auto Racing Teams (CART), Grand American Road Racing Association (GRAND AM), Indy Racing League (IRL), National Association for Stock Car Auto Racing (NASCAR), National Hot Rod Association (NHRA), Professional Sports Car Racing (PSCR), Sports Car Club of America (SCCA), United States Auto Club (USAC), or successor organization or another nationally or internationally recognized governing body of motorsports that establishes an annual schedule of motorsports events and grants rights to conduct the events, that has established and administers regulations governing all participants involved in the events and all persons conducting the events, and that requires certain liability assurances including insurance;
(3) serves food and beverages at the motorsports entertainment complex during motorsports events each calendar year through concession outlets which are staffed by individuals who represent or are members of one or more nonprofit civic or charitable organizations that directly benefit from the concession outlets' sales;
(4) engages in tourism promotion; and
(5) has permanent exhibitions of motorsports history, events, or vehicles within the motorsports entertainment complex.
SECTION 41.A. Subsections (F), (J), and (O) of Section 4-12-30 of the 1976 Code, as last amended by Act 69 of 2003, are further amended to read:
"(F) With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:
(1)(a) If a sponsor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property.
(b) Property is disposed of only when it is scrapped or sold, or it is removed from the project. If it is removed from the project, it becomes subject to ad valorem property taxes to the extent the property remains in this State.
(c) If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property.
(2) Any property which is placed in service as a replacement for property which is subject to the fee payment may become part of the fee payment, as provided in this item:
(a) Replacement property does not have to serve the same function as the property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property it is replacing. More than one piece of replacement property can replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments, as provided in Section 4-12-20 regardless of whether or not the property is replaced. Replacement property is entitled to the fee payment for the period of time remaining on the fee period for the property which it is replacing.
(b) The new replacement property which qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis and is reported as a new investment in the year the replacement is made to the extent that the basis of the replacement property does not exceed the original income tax basis of the property being replaced. Replacements made during the investment period are subject to the fee payment for the full exemption period. Replacements made after the investment period are subject to the fee payment for the remaining exemption period as though the property was placed in service the last year of the investment period. The fee is calculated using the millage rate and assessment ratio provided for the original fee property. The fee payment for replacement property must be based on subsection (D)(2)(a) or (D)(2)(b), if the sponsor originally used this method.
(c) In order to qualify as replacement property, title to the replacement property must be held by the county.
(d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the time period allowed for investments, as provided by subsection (C)(2), is subject to the payments required by Section 4-12-20 if the county has title to the property, or to ad valorem property taxes if the sponsor has title to the property.
(e) Statues of limitations including, but not limited to, Section 12-54-85(A) prohibiting the county from correcting the improper reporting of replacement property and collecting any sums due as a result of the improper reporting are suspended for this purpose.
(J)(1) Property which has been previously subject to property taxes in South Carolina or a fee in lieu of tax agreement pursuant to this chapter, Section 4-29-67, or Chapter 44 of Title 12 does not qualify for the fee except as provided in this subsection:
(a) land, excluding improvements on the land, on which a new project is to be located may qualify for the fee even if it has previously been subject to South Carolina property taxes or a fee in lieu of tax agreement;
(b) property which has been subject to South Carolina property taxes, but which has never been placed in service in South Carolina, may qualify for the fee; and
(c) transfer of property subject to an existing fee in lieu of tax arrangement as provided pursuant to Section 12-44-170, mutatis mutandis.
(2) Repairs, alterations, or modifications to real or personal property which are not subject to a fee are not eligible for a fee, even if they are capitalized expenditures, except for modifications to existing real property improvements which constitute an expansion of the improvements.
(3) Project expenditures which are incurred within the applicable time period provided in subsection (I) by an entity whose investments are not being computed in the level of investment for purposes of subsection (B)(3) or (D)(4) qualify as investment expenditures subject to the fee in subsection (D)(2) if:
(a) the expenditures are part of the original cost of the property which is transferred, within the applicable time period provided in subsection (I), to one or more sponsors and whose investments are being computed in the level of investment for purposes of subsection (B) or (C);
(b) the property would have qualified for the fee in subsection (D)(2) if it had been initially acquired by the sponsor rather than the transferor entity;
(c) the income tax basis of the property immediately before the transfer must equal the income tax basis of the property immediately after the transfer. However, to the extent income tax basis of the property immediately after the transfer unintentionally exceeds the income tax basis of the property immediately before the transfer, the excess shall be subject to payments under Section 4-12-20; and
(d) the county agrees to any inclusion in the fee of the property described in subsection (J)(3).
(O)(1) The sponsor shall file the returns, contracts, and other information which may be required by the department.
(2) Fee payments and returns showing investments and calculating fee payments are due at the same time as property tax payments and property tax returns would be due if the property were owned by the sponsor obligated to make the fee payments and file the returns.
(3) Failure to make a timely fee payment and file required returns shall result in penalties being assessed as if the payment or return were a property tax payment or return.
(4) The department may issue the rulings and promulgate regulations it determines necessary or appropriate to carry out the purpose of this section.
(5) The provisions of Chapters 4 and 54 of Title 12 applicable to property taxes shall apply to this section; and, for purposes of such application, the fee is considered a property tax. Sections 12-54-80 and 12-54-155 do not apply to this section.
(6) If a sponsor fails to make the fee or lease payments as provided by the agreements between the sponsor and the county, upon ninety days' notice, the county may terminate the fee and lease agreement and sell the property to which the county has title free from any claim by the sponsor.
(7) Within thirty days of the date of execution of an inducement or lease agreement, the sponsor shall file a copy of the agreement must be filed with the department and the county auditors and the county assessors for the county or counties in which the project is located. If the project is located in an industrial development park, the sponsor shall file the agreements must be filed with the auditors and assessors for all counties participating in the industrial development park. In no event may the taxpayer continue to receive the benefit of the property tax exemption and the fee agreement after the termination date. Failure of the sponsor to file copies of the agreement with the parties and within the time provided subjects the sponsor to a civil penalty of one thousand dollars which must be paid to the county treasurer and credited to the county general fund.
(8) The department, for good cause, may allow additional time for filing of returns required under this chapter. The request for an extension may be granted only if the request is filed with the department on or before the date the return is due. However, the extension must not exceed sixty days from the date the return is due. The department shall develop applicable forms and procedures for handling and processing extension requests. An extension may not be granted to a sponsor who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period.
(9) To the extent a form or a return is filed with the department, the sponsor must file a copy of the form or return with the county auditor, assessor, and the treasurer of the county or counties in which the project is located. To the extent requested, the county auditor of the county in which the project is physically located shall make these forms and returns available to any county auditor of a county participating in an industrial development park in which the project is located."
B. Subsections (F), (K), and (S) of Section 4-29-67 of the 1976 Code, as last amended by Act 69 of 2003, are further amended to read:
"(F) With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:
(1) If a sponsor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property. Property is disposed of only when it is scrapped or sold or removed from the project. If it is removed from the project, it becomes subject to ad valorem property taxes to the extent it remains in the State. If the sponsor used any method to compute the fee other than that provided in subsection (D)(2)(a), the fee on the property which was disposed of must be recomputed in accordance with subsection (D)(2)(a) and to the extent the amount that would have been paid pursuant to subsection (D)(2)(a) exceeds the fee actually paid by the sponsor, the sponsor must pay the difference with the next fee payment due after the property is disposed of, regardless of whether or not the property is replaced. If the sponsor used the method provided in subsection (D)(2)(c), the millage rate provided in subsection (D)(2)(c) must be used to calculate the amount which would have been paid pursuant to subsection (D)(2)(a). If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property.
(2) Property placed in service as a replacement for property that is subject to the fee payment may become part of the fee payment as provided in this item:
(a) Replacement property may have a function that differs from the property it is replacing. Replacement property is considered to replace the oldest real or personal property subject to the fee and disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property it replaces. More than one piece of replacement property may replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property it replaces, the excess amount is subject to payments as provided in Section 4-29-60. Replacement property is entitled to the fee payment for the period of time remaining on the twenty-year fee period for the property it replaces.
(b) The new replacement property that qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis, and is reported as a new investment in the year the replacement is made to the extent that the basis of the replacement property does not exceed the original income tax basis of the property being replaced. Replacements made during the investment period are subject to the fee payment for the full exemption period. Replacements made after the investment period are subject to the fee payment for the remaining exemption period as though the property was placed in service the last year of the investment period. The fee is calculated using the millage rate and assessment ratio provided on the original fee property. The fee payment for replacement property must be based on subsection (D)(2)(a) or (c) if the investor originally used that method, without regard to present value.
(c) To qualify as replacement property, title to the replacement property must be held by the county.
(d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the time period allowed for investments as provided by subsection (C)(2), is subject to the payments required by Section 4-29-60 if the county has title to the property or ad valorem property taxes, if the sponsor has title to the property.
(e) Statues of limitations including, but not limited to, Section 12-54-85(A) prohibiting the county from correcting the improper reporting of replacement property and collecting any sums due as a result of the improper reporting are suspended for this purpose.
(K)(1) Property previously subject to property taxes in South Carolina or a fee in lieu of tax agreement pursuant to this section, Chapter 12 of this title, or Chapter 44 of Title 12, does not qualify for the fee except as provided in this subsection:
(a) land, excluding improvements on it, on which a new project is located may qualify for the fee even if it has previously been subject to South Carolina property taxes or a fee in lieu of tax agreement;
(b) property that has been subject previously to South Carolina property taxes, but has never been placed in service in South Carolina, may qualify for the fee; and
(c) property placed in service in South Carolina and subject to South Carolina property taxes or a fee in lieu of tax agreement that is purchased in a transaction other than between any of the entities specified in Section 267(b) of the Internal Revenue Code, as defined pursuant to Chapter 6 of Title 12 as of the time of the transfer, may qualify for the fee if the sponsor invests at least an additional forty-five million dollars in the project;
(d) transfer of property subject to an existing fee in lieu of tax arrangement as provided pursuant to Section 12-44-170, mutatis mutandis.
(2) Repairs, alterations, or modifications to real or personal property which are not subject to a fee are not eligible for a fee, even if they are capitalized expenditures, except for modifications to existing real property improvements constituting an expansion of the improvements.
(S)(1) The sponsor shall file the returns, contracts, and other information that may be required by the department.
(2) Fee payments, and returns showing investments and calculating fee payments, are due at the same time as property tax payments and property tax returns would be due if the property were owned by the sponsor obligated to make the fee payments and file such returns.
(3) Failure to make a timely fee payment and file required returns results in penalties being assessed as if the payment or return were a property tax payment or return.
(4) The department may issue rulings and promulgate regulations necessary or appropriate to carry out the purpose of this section.
(5) The provisions of Chapters 4 and 54 of Title 12, applicable to property taxes, apply to this section, and, for purposes of that application, the fee is considered a property tax. Sections 12-54-20, 12-54-80, and 12-54-155 do not apply to this section.
(6) Within thirty days of the date of execution of an inducement or lease agreement, the sponsor shall file a copy of the agreement must be filed with the department, and the county auditor, and the county assessor for every the county in which the project is located. If the project is located in an industrial development park, the sponsor shall file the agreements must be filed with the auditors and assessors for all counties participating in the industrial development park. In no event may the taxpayer continue to receive the benefit of the property tax exemption and the fee agreement after the termination date. Failure of the sponsor to file copies of the agreement with the parties and within the time provided subjects the sponsor to a civil penalty of one thousand dollars which must be paid to the county treasurer and credited to the county general fund.
(7) The department, for good cause, may allow additional time for filing of returns required under this section. The request for an extension may be granted only if the request is filed with the department on or before the date the return is due. However, the extension must not exceed sixty days from the date the return is due. The department shall develop applicable forms and procedures for handling and processing extension requests. An extension may not be granted to a sponsor who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period.
(8) To the extent a form or return is filed with the department, the sponsor must file a copy of the form or return with the county auditor, assessor, and treasurer of the county or counties in which the project is physically located. To the extent requested, the county auditor of the county in which the project is physically located shall make these forms and returns available to any county auditor of a county participating in an industrial development park in which the project is located."
C. Section 12-6-3410(J)(9) of the 1976 Code, as last amended by Act 335 of 2006, is further amended to read:
"(9) 'corporation', 'corporate', 'company', and 'taxpayer' for purposes of this section also include a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act regardless of whether the limited liability company is treated as a partnership or as a corporation for South Carolina income tax purposessole proprietorship, partnership, limited liability company, limited liability partnership, or an association taxable as a business entity. If treated as a partnership, a limited liability company that qualifies for a credit under this section passes the credit through to its members in proportion to their interests in the limited liability company. Each member's share of the credit is nonrefundable but is allowed as a credit against any tax under Section 12-6-530 or Section 12-20-50 and bank taxes imposed pursuant to Chapter 11 of this title. Each member may carry any unused credit forward as provided in subsection (F). The limited liability company may not carry forward a credit that passes through to its members."
D. Section 12-44-30(20) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(20) 'Termination date' means the date that is the last day of a property tax year that is the nineteenth year following the first property tax year in which an applicable piece of economic development property is placed in service.; provided, however, thatHowever, the sponsor may apply to the county prior to the termination date for an extension of the termination date beyond the nineteenth year for up to ten years. The county council of the county shall approve an extension by resolution upon a finding of substantial public benefit. A copy of the resolution must be delivered to the department within thirty days of the date the resolution was adopted. With respect to a fee agreement involving an enhanced investment, the termination date is the last day of a property tax year that is the twenty-ninth year following the first property tax year in which an applicable piece of economic development property is placed in service. If the fee agreement is terminated in accordance with Section 12-44-140, the termination date is the date the agreement is terminated. In no event may the taxpayer continue to receive the benefit of the property tax exemption and the fee agreement after the termination date."
E. Section 12-44-50(B)(2) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(2) If the sponsor used an alternative payment method as provided in subsection (A)(3), the fee applicable to the item of property which was disposed of must be recomputed in accordance with subsection (A)(1) and, to the extent that the amount which would have been paid with respect to this item under subsection (A)(1) exceeds the fee actually paid by the sponsor, the sponsor shall pay the difference with the next annual fee payment due after the item of property is disposed of, regardless of whether or not the property is replaced. This amount is subject to interest as provided in Section 12-54-25."
F. Section 12-44-60 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-44-60. (A) The fee agreement may provide that property which is placed in service as a replacement for economic development property may become economic development property. This replacement property is not required to serve the same function as the economic development property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies as economic development property only to the extent of the original income tax basis of the economic development property which is being disposed of in the same property tax year. More than one piece of replacement property can replace a single piece of economic development property.
(B) To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the economic development property which it is replacing, the excess amount is subject to annual payments calculated as if the exemption for economic development property were not allowed. Replacement property is entitled to the fee payment for the period of time remaining during the exemption period for the economic development property which it is replacing.
(C) The new replacement property which qualifies for the fee provided in Section 12-44-50 is recorded using its income tax basis, and is reported as a new investment in the year the replacement is made to the extent that the basis of the replacement property does not exceed the original income tax basis of the property being replaced. Replacements made during the investment period are subject to the fee payment for the full exemption period. Replacements made after the investment period are subject to the fee payment for the remaining exemption period as though the property was placed in service the last year of the investment period. theThe fee is calculated using the millage rate and assessment ratio provided on the original economic development property. The fee payment for replacement property must be based on Section 12-44-50(A)(3) if the sponsor originally used an alternative payment method.
(D) Statutes of limitations, including, but not limited to, Section 12-54-85(A) prohibiting the county from correcting the improper reporting of replacement property and collecting any sums due as a result of the improper reporting are suspended for this purpose."
G. Section 12-44-90(G) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(G) Within thirty days of the date of execution of a fee agreement, the sponsor shall file a copy of the fee agreement must be filed with the department, the county assessor, and the county auditor for the county in which the project is located. If the project is located in an industrial development park, the sponsor shall file the fee agreement must be filed with the auditors and assessors for all counties participating in the industrial development park. Failure of the sponsor to file copies of the fee agreement with the parties and within the time provided subjects the sponsor to a civil penalty of one thousand dollars which must be paid to the county treasurer and credited to the county general fund."
H. Section 12-44-110 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-44-110. Property which previously has been subject to property taxes in South Carolina or a fee in lieu of tax agreement pursuant to this chapter, or Chapter 12 or 29 of Title 4 does not qualify as economic development property, except that:
(1) land, excluding existing improvements on the land, on which a new project is to be located may qualify as economic development property even if it previously has been subject to property taxes in this State or a fee in lieu of tax agreement;
(2) property which has been subject to property taxes in this State, but which has never been placed in service in this State, may qualify as economic development property;
(3) property which previously has been placed in service in this State and previously has been subject to property taxes or a fee in lieu of tax agreement in this State which is purchased in a transaction other than between any of the entities specified in Section 267(b) of the Internal Revenue Code, as defined under Chapter 6 of Title 12 as of the time of the transfer, may qualify as economic development property if the sponsor invests at least an additional forty-five million dollars at the project;
(4) repairs, alterations, or modifications to real or personal property, which is not economic development property, are not eligible to be economic development property, even if they are capitalized expenditures, except for modifications which constitute an expansion to existing real property improvements;
(5) transfers of property pursuant to Section 12-44-170 may qualify as economic development property."
SECTION 42.A. Section 12-6-3600 of the 1976 Code, as last amended by Act 83 of 2007, is further amended to read:
"Section 12-6-3600. (A)(1) For taxable years beginning after 2006, and before 2014, there is allowed a credit against the tax imposed pursuant to this chapter for any corn-based ethanol or soy-based biodiesel facility which is in production at the rate of at least twenty-five percent of its name plate design capacity for the production of corn-based ethanol or soy-based biodiesel, before denaturing, on or before December 31, 2009. The credit equals twenty cents a gallon of corn-based ethanol or soy-based biodiesel produced and is allowed for sixty months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2014. The credit only may be claimed if the corn-based ethanol or soy-based biodiesel facility maintains an average production rate of at least twenty-five percent of its name plate design capacity for at least six months after the first month for which it is eligible to receive the credit taxpayer is eligible to claim the credit after the facility has six consecutive months of operation at an average production rate of at least twenty-five percent of its name plate design capacity. In the first taxable year in which the taxpayer is eligible to claim the credit, the taxpayer may claim the credit for the first six months it met the requirements in addition to qualifying production during its current taxable year.
(B)(2) For taxable years beginning after 2006, and before 2014, there is allowed a credit against the tax imposed pursuant to this chapter for an ethanol facility using a feedstock other than corn or a biodiesel facility using a feedstock other than soy oil which is in production at the minimum rates provided pursuant to this subsection the rate of at least twenty-five percent of its name plate design capacity for the production of ethanol or biodiesel, before denaturing, on or before December 31, 2009. The credit equals thirty cents a gallon of noncorn ethanol or nonsoy oil biodiesel produced and is allowed for up to sixty months beginning with the first month for which the facility is eligible to receive the credit and ending no later than December 31, 2014. The credit is continued only if the ethanol or biodiesel facility maintains the average minimum production rates provided pursuant to this subsection of its name plate design capacity for at least six months after the first month for which it is eligible to receive the credit. The taxpayer is eligible to claim the credit after the facility has six consecutive months of operation at an average production rate of at least twenty-five percent of its name plate design capacity. In the first taxable year in which the taxpayer is eligible to claim the credit, the taxpayer may claim the credit for the first six months it met the requirements in addition to qualifying production during its current taxable year.
(3) Unused credit may be carried forward for ten years.
(C)(B) As used in this section:
(1) 'Ethanol facility' means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol derived from renewable and sustainable bioproducts used as a substitute for gasoline fuel.
(2) 'Biodiesel facility' means a plant or facility primarily engaged in the production of plant- or animal-based fuels used as a substitute for diesel fuel.
(3) 'Name plate design capacity' means the original designed capacity of an ethanol or biodiesel facility. Capacity may be specified as bushels of grain ground or gallons of ethanol or biodiesel produced a year.
(D)(C)(1) Pursuant to this chapter, beginning Beginning January 1, 2014, an ethanol or biodiesel facility must receive a credit against the tax imposed by this chapter in the amount of seven and one-half cents a gallon of ethanol or biodiesel, before denaturing, for new production for a period not to exceed thirty-six consecutive months.
(2) For purposes of this subsection, 'new production' means production which results from a new facility, a facility which has not received credits before 2014, or the expansion of the capacity of an existing facility by at least two million gallons first placed into service after 2014, as certified by the design engineer of the facility to the Department of Revenue State Energy Office.
(3) For expansion of the capacity of an existing facility, 'new production' means annual production in excess of twelve times the monthly average of the highest three months of ethanol or biodiesel production at an ethanol or biodiesel facility during the twenty-four-month period immediately preceding certification of the facility by the design engineer.
(4) Credits are not allowed pursuant to this subsection for expansion of the capacity of an existing facility until production is in excess of twelve times the three-month average amount determined pursuant to this subsection during any twelve-consecutive month period beginning no sooner than January 1, 2014.
(5) The amount of a credit granted pursuant to this section based on new production must be approved by the Department of Revenue State Energy Office based on the ethanol or biodiesel production records as may be necessary to reasonably determine the level of new production.
(E)(D)(1) The credits described in this section are allowed only for ethanol or biodiesel produced at a plant in this State at which all fermentation, distillation, and dehydration takes place. Credit is not allowed for ethanol or biodiesel produced or sold for use in the production of distilled spirits.
(2) Not more than twenty-five million gallons of ethanol or biodiesel produced annually at an ethanol or biodiesel facility is eligible for the credits in subsections (A) and (C)(B) of this section, and the credits only may be claimed by a producer for the periods specified in subsections (A) and (C)(B) of this section.
(3) Not more than ten million gallons of ethanol or biodiesel produced during a twelve-consecutive month period at an ethanol or biodiesel facility is eligible for the credit described in subsection (D)(C) of this section, and the credit only may be claimed by a producer for the periods specified in subsection (D)(C) of this section.
(4) Not more than one hundred twenty-five million gallons of ethanol or biodiesel produced at an ethanol or biodiesel facility by the end of the sixty-month period set forth in subsection (A) or (C)(B) of this section is eligible for the credit under the subsection. An ethanol or biodiesel facility which receives a credit for ethanol or biodiesel produced under subsection (A) or (C)(B) of this section may not receive a credit pursuant to subsection (D)(C) of this section until its eligibility to receive a credit under subsection (A) or (C)(B) of this section has been completed.
(F)(E) The Department of Revenue State Energy Office shall prescribe an application form and procedures for claiming credits under this section.
(G)(F) For purposes of ascertaining the correctness of any application for claiming a the credit allowed pursuant to this section, the Department of Revenue State Energy Office or the department may examine or cause to have examined, by any agent or representative designated for that purpose, any books, papers, records, or memoranda bearing upon these matters.
(H)(G) Notwithstanding the credit amount allowed by this section, for a fiscal calendar year all claims made pursuant to this section must not exceed eight hundred thousand dollars and must apply proportionately to all eligible claimants.
(H)(1) To obtain the amount of capped credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office by January thirty-first for all gallons of qualifying fuel produced in the previous calendar year and the State Energy Office must notify the taxpayer that it qualifies for the credit and the amount of credit allocated to such taxpayer by March first of that year. A taxpayer may claim the capped credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided.
(2) For the state's fiscal year beginning July 1, 2008, the capped credit is to be determined based on an eighteen-month period beginning July 1, 2008 through December 31, 2009. Applications are to be made by January 31, 2010 for the previous eighteen-month period commencing July 1, 2008 and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year which contains December 31, 2009.
(3) To the extent the caps on the credit contained in this section are repealed in legislation enacted prior or subsequent to this section, the elimination of such caps shall be seen as the last expression of the legislature and to the extent any language in this act conflicts with that repeal, it shall be considered null and void."
B. Section 12-6-3610 of the 1976 Code, as last amended by Act 83 of 2007, is further amended to read:
"Section 12-6-3610. (A) As used in this section, "renewable fuel" means liquid nonpetroleum based fuels that can be placed in motor vehicle fuel tanks and used as a fuel in a highway vehicle. It includes all forms of fuel commonly or commercially known or sold as biodiesel and ethanol.
(B)(1) A taxpayer that purchases or constructs and installs and places in service in this State property that is used for distribution or dispensing renewable fuel specified in this subsection, at a new or existing commercial fuel distribution or dispensing facility is allowed a credit equal to twenty-five percent of the cost to the taxpayer of purchasing, constructing, and installing the property against the taxpayer's liability for a tax imposed pursuant to this chapter.
(2) Eligible property includes pumps, storage tanks, and related equipment that is directly and exclusively used for distribution, dispensing, or storing renewable fuel. A taxpayer is qualified for a tax credit provided pursuant to this subsection if the equipment used to store, distribute, or dispense renewable fuel is labeled for this purpose and clearly identified as associated with renewable fuel.
(3) The entire credit may not be taken for the taxable year in which the property is placed in service but must be taken in three equal annual installments beginning with the taxable year in which the property is placed in service. If, in one of the years in which the installment of a credit accrues, property directly and exclusively used for distributing, dispensing, or storing renewable fuel is disposed of or taken out of service and is not replaced, so that the facility no longer distributes, dispenses, or stores renewable fuel, the credit expires and the taxpayer may not take any remaining installment of the credit.
(4) The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.
(2)(5) For purposes of this subsection, 'renewable fuel' means E70 or greater ethanol fuel dispensed at the retail level for use in motor vehicles and pure ethanol or biodiesel fuel dispensed by a distributor or facility that blends these nonpetroleum liquids with gasoline fuel or diesel fuel for use in motor vehicles.
(C)(B)(1) A taxpayer that constructs and places in service in this State a commercial facility for the production of renewable fuel is allowed a credit equal to twenty-five percent of the cost to the taxpayer of constructing or renovating a building and equipping the facility for the purpose of producing renewable fuel. Production of renewable fuel includes intermediate steps such as milling, crushing, and handling of feedstock and the distillation and manufacturing of the final product.
(2) The entire credit may not be taken for the taxable year in which the facility is placed in service but must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service. If, in one of the years in which the installment of a credit accrues, the facility with respect to which the credit was claimed is disposed of or taken out of service, the credit expires and the taxpayer may not take any remaining installment of the credit. A taxpayer's total credit in all years, for all expenditures allowed pursuant to this subsection, must not exceed one million dollars.
(3) The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.
(4) As used in this subsection, 'renewable fuel' means liquid petroleum based fuels that may be placed in motor vehicle fuel tanks and used as a fuel in a highway vehicle. It includes all forms of fuel commonly or commercially known or sold as biodiesel and ethanol.
(D)(5) A taxpayer that claims any other credit allowed under this article with respect to the costs of constructing and installing a facility may not take the credit allowed in this section with respect to the same costs.
(E)(C)(1) Notwithstanding the credit amounts allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed one hundred fifty thousand dollars and must apply proportionately to all eligible claimants. To obtain the amount of credit available to a taxpayer, the taxpayer must submit a request for credit to the State Energy Office by January thirty-first for all qualifying property or a qualifying facility, as applicable, placed in service in the previous calendar year and the State Energy Office must notify the taxpayer that it qualifies for the credit and the amount of credit allocated to such taxpayer by March first of that year. A taxpayer may claim the credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided.
(2) For the state's fiscal year beginning July 1, 2008, the credit is to be determined based on an eighteen-month period beginning July 1, 2008 through December 31, 2009. Applications are to be made by January 31, 2010 for the previous eighteen-month period commencing July 1, 2008 and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year which contains December 31, 2009."
C. Section 12-6-3620 of the 1976 Code, as last amended by Act 110 of 2007, is further amended to read:
"Section 12-6-3620. [For taxable years beginning after 2007, this section reads as follows:]
(A) For taxable years beginning after 2007, there is allowed a credit against the income tax imposed pursuant to Section 12-6-530 or license fees imposed pursuant to Section 12-20-50, or both, for twenty-five percent of the costs incurred by a taxpayer for the purchase and installation of equipment used to create heat, power, steam, electricity, or another form of energy for commercial use from a fuel consisting of no less than ninety percent biomass resource. Costs incurred by a taxpayer and qualifying for the credit allowed by this section must be certified by the State Energy Office, in consultation with the Department of Agriculture and the South Carolina Institute for Energy Studies. The State Energy Office may consult with the Department of Agriculture and the South Carolina Institute for Energy Studies on standards for certifying the costs. The credit may be claimed in the year in which the equipment is placed in service and may be claimed for all expenditures incurred for the purchase and installation of the equipment.
(B) A taxpayer's credit utilization in any one year, for all expenditures allowed pursuant to this section, must not exceed taxpayer may use up to six hundred fifty thousand dollars of credit for a single taxable year. The tax credit allowed by this section may not exceed the liability of the taxpayer for the taxes imposed pursuant to Sections 12-6-530 and 12-20-50. Unused is nonrefundable but unused credits may be carried forward for fifteen years.
(C) For purposes of this section:
(1) 'Biomass resource' means wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials, not including fossil fuels.
(2) 'Commercial use' means a use intended for the purpose of generating a profit.
(3) If the facility equipment ceases to use biomass resources as its primary fuel source before the entire credit has been utilized, it the taxpayer is ineligible to utilize any remaining credit until it resumes using biomass resources as its primary fuel source (at least ninety percent). The fifteen-year carry forward period must is not be extended due to periods of noncompliance.
(D) Notwithstanding the credit amount allowed pursuant to this section, for a fiscal calendar year all claims made pursuant to this section must not exceed six hundred fifty thousand dollars and must apply proportionately to all eligible claimants.
(E)(1) To obtain the amount of capped credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office by January thirty-first for all qualifying equipment placed in service in the previous calendar year and the State Energy Office must notify the taxpayer that it qualifies for the credit and the amount of credit allocated to such taxpayer by March first of that year. A taxpayer may claim the capped credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided.
(2) For the state's fiscal year beginning July 1, 2008, the capped credit is to be determined based on an eighteen-month period beginning July 1, 2008 through December 31, 2009. Applications are to be made by January 31, 2010 for the previous eighteen-month period commencing July 1, 2008 and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year which contains December 31, 2009.
(3) To the extent the caps on the credit contained in this section are repealed in legislation enacted prior or subsequent to this section, the elimination of such caps shall be seen as the last expression of the legislature and to the extent any language in this act conflicts with that repeal, it shall be considered null and void."
D. Section 12-6-3631 of the 1976 Code, as added by Act 83 of 2007, is amended to read:
"Section 12-6-3631. (A) For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to this chapter for qualified expenditures for research and development.
(B) For purposes of this section:
(1) 'Qualified expenditures for research and development' include means expenditures to develop feedstocks and processes for cellulosic ethanol and for algae-derived biodiesel, including:
(a) enzymes and catalysts involving cellulosic ethanol and algae-derived biodiesel;
(b) best and most cost efficient feedstocks for South Carolina; or
(c) product and development, including cellulosic ethanol or algae-derived biodiesel products.
(2) 'Cellulosic ethanol' means fuel from ligno-cellulosic materials, including wood chips, corn stover, and switchgrass.
(C) The credit is equal to twenty-five percent of qualified expenditures for research and development. A taxpayer's total credit in all years, for all expenditures allowed pursuant to this section, must not exceed one hundred thousand dollars. Unused credits may be carried forward for five years after the tax year in which a qualified expenditure was made. The credit is nonrefundable.
(D) The amount of the credit provided by this section to a taxpayer must be invested by the taxpayer in demonstration projects on or research and development of:
(1) enzymes and catalysts;
(2) best and most cost efficient feedstocks for South Carolina; and
(3) product development.
(E) Expenditures qualifying for a tax credit allowed by this section and investments made by a taxpayer pursuant to subsection (D) must be certified by the State Energy Office, in consultation. The State Energy Office may consult with the Department of Agriculture and the South Carolina Institute for Energy Studies on standards for certification.
(F)(E) Notwithstanding the credit amount allowed pursuant to this section, for a fiscal calendar year all claims made pursuant to this section must not exceed one hundred thousand dollars and must apply proportionately to all eligible claimants.
(F)(1) To obtain the amount of capped credit available to a taxpayer, each taxpayer must submit a request for credit to the State Energy Office by January thirty-first for qualifying research expenses incurred in the previous calendar year and the State Energy Office must notify the taxpayer that the submitted expenditures qualify for the credit and the amount of credit allocated to such taxpayer by March first of that year. A taxpayer may claim the capped credit for its taxable year which contains the December thirty-first of the previous calendar year. The department may require a copy of the form issued by the State Energy Office be attached to the return or otherwise provided.
(2) For the state's fiscal year beginning July 1, 2008, the capped credit is to be determined based on an eighteen-month period beginning July 1, 2008 through December 31, 2009. Applications are to be made by January 31, 2010 for the previous eighteen-month period commencing July 1, 2008 and ending December 31, 2009. A taxpayer allocated a credit for this eighteen-month period may claim the credit for its tax year which contains December 31, 2009.
(3) To the extent the caps on the credit contained in this section are repealed in legislation enacted prior or subsequent to this section, the elimination of such caps shall be seen as the last expression of the legislature and to the extent any language in this act conflicts with that repeal, it shall be considered null and void."
SECTION 43.A. Section 12-14-80 of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"Section 12-14-80. (A) There is allowed an economic impact zone an investment tax credit pursuant to Section 12-14-60 for qualifying investments made by a manufacturer which for any taxable year in which the taxpayer places in service qualified manufacturing and productive equipment and which taxpayer:
(1) is engaged in this State in at least one economic impact zone, as defined in Section 12-14-30(1), in an activity or activities listed under the North American Industry Classification System Manual (NAICS) Section 326;
(2) is employing five thousand or more full-time workers in this State and having a total capital investment in this State of not less than two billion dollars; and
(3) has invested commits to invest five hundred million dollars in capital investment in this State between January 1, 2006, and July 1, 2011.
(B) For purposes of this section, 'qualified manufacturing and productive equipment property' means property that satisfies the requirements of Section 21-14-60(B)(1)(a), (b), and (c).
(C) The amount of the credit allowed by this section is equal to the aggregate amount computed based on Section 12-14-60(A)(2).
(B)(D) A taxpayer that qualifies for the tax credit allowed by this section may claim the credit earned pursuant to this section and credits earned pursuant to Section 12-6-3360 in the manner provided pursuant to Sections 12-6-3360 and 12-14-60, or as a credit in an amount equal to not more than fifty percent of the employee's withholding on the taxpayer's quarterly withholding tax returns. The taxpayer must elect to take the credit either as an income tax or a withholding tax credit but not both. A taxpayer must first take the credits as an income tax credit in a year in which the taxpayer has a corporate income tax liability. The withholding tax credit may be taken only when the taxpayer has used the maximum investment tax credit allowed against the corporate income tax for that year. The withholding credit may only be taken for qualifying investments made or placed in service after July 1, 2007. To claim the credit against the employee's withholding, the taxpayer must be in compliance with its withholding tax and other taxes due to the State. allowed by this section in addition to the credit allowed by Section 12-6-3360 as a credit against withholding taxes imposed by Chapter 8 of this title. The taxpayer must first apply the credit allowed by this section and Section 12-6-3360 against income tax liability. To the extent that the taxpayer has unused credit pursuant to this section for the taxable year after the application of the credits allowed by this section and Section 12-6-3360 against income tax liability, the taxpayer may claim the excess credit as a credit against withholding taxes on its four quarterly withholding tax returns for the taxpayer's taxable year; except that the credit claimed against withholding tax may not exceed fifty percent of the withholding tax shown as due on the return before the application of other credits including other credits pursuant to Sections 12-10-80 or 12-10-81. For the period July 1, 2007, to June 30, 2008, a taxpayer using this section may not reduce its state withholding tax to less than the withholding tax remitted for the period June 30, 2006, to July 1, 2007.
(E) Unused credits allowed pursuant to this section may be carried forward for use in a subsequent tax year. During the first ten years of each tax credit carryforward, the credit may not reduce a taxpayer's state income tax liability by more than fifty percent, and for a subsequent year the credit carryforward may not reduce a taxpayer's state income tax liability by more than twenty-five percent. Investment tax credit carryforwards pursuant to this section and credit carryforwards pursuant to Section 12-6-3360 must first be used as a credit against income taxes for that year. Any excess may be used pursuant to subsection (D) as a credit against withholding taxes; except that the limitations of subsection (D) apply each year and the Economic Impact Zone tax credit carryforwards that existed on the effective date of Act 83 of 2007 may not be used to reduce withholding tax liabilities pursuant to this section.
(F) The amount of credit used against withholding taxes must reduce the amount of credit that may be used against income tax liability. The amount of credit used against withholding taxes must reduce the amount of credit that may be used against income taxes.
(G) If the taxpayer disposes of or removes qualified manufacturing and productive equipment property from the State during any taxable year and before the end of applicable recovery period for such property as determined under Section 168(e) of the Internal Revenue Code, then the income tax due pursuant to this chapter for the current taxable year must be increased by an amount of any credit claimed in prior years with respect to that property, determined by assuming the credit is earned ratably over the useful life of the property and recapturing pro rata the unearned portion of the credit. This recapture applies to credit previously claimed as a credit against income taxes pursuant to this chapter or withholding tax pursuant to Chapter 8.
(H) For South Carolina income tax purposes, the basis of the qualified manufacturing and productive equipment property must be reduced by the amount of any credit claimed with respect to the property, whether claimed as a credit against income taxes or withholding. If a taxpayer is required to recapture the credit in accordance with subsection (G), the taxpayer may increase the basis of the property by the amount of basis reduction attributable to claiming the credit in prior years. The basis must be increased in the year in which the credit is recaptured.
(I) A credit must not be taken pursuant to this section for capital investments placed in service outside of an Economic Impact Zone until the taxpayer has invested two hundred million dollars of the five hundred million-dollar investment requirement described in subsection (A)(3), and the taxpayer files a statement with the department stating that it (i) commits to invest a total of five hundred million dollars in this State between January 1, 2006, and July 1, 2011; and (ii) shall refund any credit received with interest at the rate provided for underpayments of tax if it fails to meet the requirement of (A)(3). This statement and proof of qualification must be filed with the notice required in subsection (J). Credit is not allowed pursuant to this section for property placed in service before June 30, 2007. For credit claimed before the investment of the full five hundred million dollars, the company claiming the credit must execute a waiver of the statute of limitations pursuant to Section 12-54-85, allowing the department to assess the tax for a period commencing with the date that the return on which the credit is claimed is filed and ending three years after the company notifies the department that the full five hundred million dollar investment has been made. A waiver of the statute of limitations must accompany the return on which the credit is claimed.
(J) The taxpayer shall notify the department before taking any credits pursuant to this section. Taxpayer shall state it has met the requirements of subsection (A). Additionally, in a taxable year after the year of qualification for credit pursuant to this section, the taxpayer shall include with its tax return for that year (i) a statement that the taxpayer has continued to meet the requirements of subsections (A)(1) and (A)(2); (ii) the reconciliation required in subsection (D); and (iii) any statement and support for subsection (I)."
B. This section takes effect July 1, 2007, and applies for capital investments placed in service outside of an economic impact zone after June 30, 2007, and for quarterly state withholding returns due on and after that date, provided that for the period July 1, 2007, to June 30, 2008, a taxpayer using this section may not reduce its state withholding tax to less than the withholding tax remitted for the period June 30, 2006, to July 1, 2007.
SECTION 44.A. Section 12-28-110(55) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(55) 'Motor fuel subject to the user fee' means gasoline, fuel grade ethanol, diesel fuel, kerosene, blended fuel, substitute fuel, and blends of them and any other substance blended with them."
B. Section 12-28-310(A) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(A) Subject to the exemptions provided in this chapter, a user fee of sixteen cents a gallon is imposed on:
(1) all gasoline, fuel grade ethanol, gasohol, or blended fuels containing gasoline that are used or consumed for any purpose in this State; and
(2) all diesel fuel, substitute fuels, or alternative fuels, or blended fuels containing diesel fuel that are used or consumed in this State in producing or generating power for propelling motor vehicles."
C. Section 12-28-710(9) of the 1976 Code is amended to read:
"(9) kerosene and diesel fuel used as heating oil or in trains or used in equipment not licensed as a motor vehicle for nonhighway purposes other than as a purpose expressly exempted under another provision. This exemption does not apply to a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's mobile use on the highways;"
D. Section 12-28-790(A) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(A) To claim a refund under pursuant to Sections 12-28-720 through 12-28-780 and 12-28-960, a person shall present to the department a statement that contains a written verification that the claim is made under penalties of perjury and lists the total amount of motor fuel subject to the user fee purchased and used for exempt purposes or subject to the tare allowance. The claim must be filed not more than three years after the date the motor fuel subject to the user fee was purchased. The statement must show that payment for the purchase has been made and the amount of the user fee paid on the purchase has been remitted to the seller."
E. Section 12-28-905 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-905. (A) Except as otherwise provided in this chapter, the user fee imposed by Section 12-28-310 on motor fuel subject to the user fee measured by gallons imported from another state must be paid by the licensed occasional importer who has imported the nonexempt motor fuel subject to the user fee within three business days of the earlier of the time the nonexempt motor fuel subject to the user fee was entered into the State or the time a valid import verification number required by Section 12-28-1125 was assigned by the department under regulations the department promulgates. However, if the supplier has made a blanket election to pre-collect the user fee under Section 12-28-910(B), he is jointly liable with the importer for the user fee and shall remit the user fee to the department on behalf of the importer under the same terms as a supplier payment under Section 12-28-915, and no import verification number is required.
(B) Except as otherwise provided in this section, the user fee imposed by Section 12-28-310 on motor fuel subject to the user fee measured by gallons imported from another state must be paid by the licensed bonded importer who has imported the nonexempt motor fuel subject to the user fee during a month before the twenty-second day of the following month unless the day falls upon a weekend or state or banking holiday, in which case the liability is due the next succeeding business day, if before the time of import the. The importer obtains must obtain a valid import verification number as required by Section 12-28-1125, assigned by the department under pursuant to regulations promulgated by the department. However, if the supplier has made a blanket election to pre-collect the user fee under pursuant to Section 12-28-910(B), he is jointly liable with the importer for the user fee and shall remit the user fee to the department on behalf of the importer under the same terms as a supplier payment under pursuant to Section 12-28-915, and no an import verification number is not required."
F. Section 12-28-925 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-925. Each supplier and bonded importer who sells motor fuel subject to the user fee shall collect from the purchaser the motor fuel user fee imposed under pursuant to Section 12-28-310. At the election of an eligible purchaser evidenced by a written statement from the department as to the purchaser eligibility status as determined under pursuant to Section 12-28-930, the seller may not require a payment of motor fuel user fees on transport truckloads from the purchaser sooner than one business day before the date on which the user fee is required to be remitted by the supplier or bonded importer under pursuant to Section 12-28-915. This election is subject to a condition that the eligible purchaser's remittances of all amounts of user fees due the seller must be paid by electronic funds transfer. Failure of a supplier or bonded importer to comply with the requirements of this section may result in suspension or revocation of the license in accordance with Section 12-28-1180(B). The eligible purchaser's election under pursuant to this subsection may be terminated by the seller if the eligible purchaser does not make timely payments to the seller as required by this section."
G. Section 12-28-975 of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"Section 12-28-975. (A) If an exporter diverts motor fuel subject to the user fee removed from a terminal in this State from an intended destination outside South Carolina as shown on the terminal-issued shipping papers to a destination within this State, the exporter, in addition to compliance with the notification provided for by Section 12-28-780 1525, shall notify and pay the user fee imposed by Section 12-28-310 to the State upon the same terms and conditions as if the exporter were an occasional importer licensed under Section 12-28-905(A) without deduction for the allowances provided by Section 12-28-960.
(B) If an exporter removes from a bulk plant in this State motor fuel subject to the user fee as to which the user fee imposed by this chapter previously has been paid or accrued, the exporter may apply for and the State shall issue a refund of the user fee upon a showing of proof of export satisfactory to the department in conformity with Section 12-28-720, net of the allowances provided by Section 12-28-960.
(C) If an a licensed or unlicensed importer diverts motor fuel subject to the user fee from a destination outside this State to a destination inside this State after having removed the product from a terminal location outside South Carolina, the importer, in addition to compliance with the notification provided for by Section 12-28-1525, shall notify the State and shall pay the user fee imposed by this chapter to South Carolina upon the same terms and conditions as if the unlicensed importer were a licensed occasional importer subject to Section 12-28-905(A) within three business days of the earlier of the time the nonexempt motor fuel subject to the user fee was entered into the State or the time the valid import verification number required by Section 12-28-1125 was assigned by the department pursuant to regulations the department promulgates without deduction for the allowances provided by Section 12-28-960.
(D) All licensed importers otherwise shall report and pay user fees on diversions into this State of imported motor fuel subject to the user fee under Section 12-28-905(A) or (B) in accordance with the regulations applicable to that license class. No Section 12-28-960 allowances may be deducted with respect to diverted shipments. An importer who has purchased the product from a licensed supplier, by mutual agreement with the supplier, may permit the supplier to assume the importer's liability and adjust the importer's user fees payable to the supplier.
(E) If a monthly report is filed or the amount due is remitted later than the time required by this chapter, the user fee remitter shall pay to the department all of the motor fuel user fee the remitter collected from the sale of motor fuel subject to the user fee during the user fee period in addition to penalties and interest.
(F)(E) If there is a legal diversion from a destination in this State to another state, Section 12-28-1525 applies, and an unlicensed exporter diverting the product shall apply for a refund from this State in conformity with Sections 12-28-710(A)(3) and 12-28-720 less the Section 12-28-960 allowance,; except that a supplier may take a credit for diversions directed by that supplier for his own account, and the exporter, by mutual agreement with his supplier, may assign his claim to the supplier for which the supplier may take a credit."
H. Section 12-28-990 of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"Section 12-28-990. (A) A person (i) blending materials including blendstocks, additives, fuel grade ethanol, and renewable fuels on which the user fee has not been paid, with motor fuels subject to the user fee for which the user fee has been paid or accrued; or (ii) manufacturing or otherwise producing fuel grade ethanol, a substitute fuel or diesel fuel, unless dye was added in a manner that conforms to federal requirements established by the Internal Revenue Code and regulations exempting the product from the motor fuel tax pursuant to Section 12-28-710(11) shall remit the user fee imposed by this chapter.
(B) A fuel vendor subject to the user fee under subsection (A)(i) shall remit the user fee with the report required pursuant to Section 12-28-1390(B)(C).
(C) A person other than a fuel vendor liable for the user fee payable pursuant to subsection (A) shall remit the user fee directly to the department within thirty days of the blending or manufacturing event in accordance with procedures established by the department subject to the user fee under subsection (A) shall remit the user fee with the report required pursuant to Section 12-28-1396.
(D) A person subject to the user fee payable pursuant to subsection (A) must be licensed by the department as a blender or a manufacturer."
I. Section 12-28-1125(A) and (C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) Each person who wishes to cause motor fuel subject to the user fee to be delivered into this State on his behalf, for his own account, or for resale to a purchaser in this State, from another state in a fuel transport truck or in a pipeline or barge shipment or railcar into storage facilities other than a qualified terminal, shall apply and obtain an occasional importer's license or a bonded importer's license, at the discretion of the applicant.
(C) A person desiring to import motor fuel subject to the user fee to a destination in this State from another specific terminal source state, and who has not entered into an agreement to prepay this state's motor fuel user fee to the supplier or permissive supplier with respect to the imports, shall obtain a valid:
(1) occasional importer's license under subsection (A) for the fee of five hundred dollars; or
(2) bonded importer's license under pursuant to subsection (A) for the fee of two thousand one hundred dollars subject to the special two million dollar bonding requirements of Section 12-28-1155(B)(A)."
J. Section 12-28-1130 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1130. Each person who is an importer of motor fuel subject to the user fee into this State by a tank wagon operating out of or controlling a bulk plant in another state, if the destination of that tank wagon is within twenty-five miles of the borders of South Carolina, shall make application for and obtain a license from the department before engaging in import activities. However, registration as a tank wagon operator-importer does not constitute authorization of the persons to acquire nonexempt motor fuel free of the user fee imposed by this chapter at a terminal either within or outside this State for direct delivery to a location in South Carolina. A person who possesses a valid importer's license is eligible as a tank wagon operator-importer without issuance of a separate license if the importer also operates one or more bulk plants outside this State. The fee for a tank wagon operator-importer license is fifty dollars. Operators of tank wagons delivering products into this State more than twenty-five miles from the border shall apply for an importer's license under Section 12-28-1125."
K. Section 12-28-1139 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1139. (A) Each person who is liable for the user fee imposed by Sections Section 12-28-970 and 12-28-990(C) who is not licensed under pursuant to Sections 12-28-1100 through 12-28-1135 shall obtain a miscellaneous fuel user fee license. There is no registration fee for this license.
(B) Each person who is liable for the user fee imposed by Section 12-28-990(A)(i) shall obtain a vendor/blender license. There is no registration fee for this license.
(C) Each person who is liable for the user fee imposed by Section 12-28-990(A)(ii) shall obtain a manufacturer license. There is no registration fee for this license."
L. Section 12-28-1155(B) and (D) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(B) Suppliers and bonded importers shall post a bond of not less than two million dollars, except that with respect to a person registered under the Internal Revenue Section 4101 as a taxable fuel registrant, the bond may be reduced to a one-million dollar minimum. An applicant, alternatively, may show proof of financial responsibility in lieu instead of posting of bond. Proof of five million dollars net worth constitutes is evidence of financial responsibility in the absence of circumstances indicating the department is otherwise at risk with respect to collection of its user fees from the applicant.
(D) Fuel vendors defined in Section 12-28-1135, other than persons required to be licensed under provisions other than in those sections, and miscellaneous fuel user fee licensees defined in Section 12-28-1139, are exempt from the bonding requirements of this section. Exempt from the bonding requirements of this section are:
(1) fuel vendors defined in Section 12-28-1135, other than persons required to be licensed pursuant to provisions other than in those sections;
(2) miscellaneous fuel user fee licenses defined in Section 12-28-1139; and
(3) manufacturers defined in Section 12-28-990(A) who manufacture fewer than sixteen gallons in a calendar year."
M. Section 12-28-1300(C)(13) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(13) corrections made by the supplier pursuant to Section 12-28-1525 for changes in destination state which affect the supplier's or his customer's user fee liability to this State;"
N. Section 12-28-1310(A) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) Each licensed bonded importer shall file with the department monthly a verified sworn statement of operations within this State including:
(1) gallons subject to the user fee with fee prepaid to a supplier upon removal from an out-of-state terminal;
(2) gallons subject to the user fee with user fee remittance by the bonded importer according to Section 12-28-905(B) sorted by source state, supplier, terminal, or by bulk plant, or production facility;
(3) other information with respect to the source and means of transportation of nonexempt motor fuel subject to the user fee as the department in its discretion may require on forms it prescribes and furnishes other information which the department in its discretion determines is reasonably required."
O. Section 12-28-1370(A) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(A) A person licensed as a transporter in this State engaged in interstate commerce transport of motor fuels subject to the user fee shall file monthly reports with the department, on forms prescribed and furnished by the department, concerning the amount of motor fuel subject to the user fee transported from a point outside this State to a point inside South Carolina, from a point inside this State to a point outside South Carolina, or between two points in this State."
P. Section 12-28-1390(C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(C) A fuel vendor making sales of K-1 kerosene or other blendstocks not subject to the user fee for blending with diesel fuel or gasoline subject to the user fee or which sells K-1 kerosene, other motor fuel, or blendstocks not subject to the user fee for use as motor fuel subject to the user fee shall remit monthly a report on or before the last twenty-second day of the following month and remit with the report any user fee payable pursuant to this section or Section 12-28-990."
Q. Article 13, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-1396. A person other than a fuel vendor liable for the user fee in accordance with Section 12-28-990 shall report and remit the user fee on a form prescribed by the department on or before the twenty-second day of the month following the month in which the blending, manufacturing, or production occurred.
Section 12-28-1397. The department, at its discretion, may require reports and payment of the user fee for other than monthly periods."
R. Section 12-28-1535(A) and (C) of the 1976 code, as last amended by Act 69 of 2003, is further amended to read:
"(A) Except as expressly provided in subsection (B), no a person may not sell, use, deliver, or store in this State, or import for sale, use, delivery, or storage in this State, motor fuel subject to the user fee as to which the user fee imposed by Section 12-28-310 previously has not been paid directly to the department as required by this chapter or paid to or accrued by a licensed supplier or permissive supplier at the time of removal from a terminal or a license importer, if all the conditions of Section 12-28-1545 applicable to lawful import by the importer have been met.
(C) A person who violates this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days subject to a civil penalty of five hundred dollars for each occurrence and is liable for all applicable fees imposed by this chapter including penalty and interest."
S. Section 12-28-1540 (A) and (E) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) Except as provided in subsections (C) and (D), no a person may not operate a transport truck that is engaged in the shipment of motor fuel subject to the user fee on the public highways of this State without having on board a shipping paper generated at the point of origin or a terminal-issued shipping paper bearing, in addition to the requirements of Section 12-28-1505, a notation indicating, with respect to:
(1) diesel fuel acquired under claim of exempt use, a statement indicating the fuel is 'DYED DIESEL FUEL, NONFEE USE ONLY, PENALTY FOR USE SUBJECT TO THE USER FEE' for the load or the appropriate portion of the load;
(2) any other motor fuel subject to the user fee, a notation indicating: '(supplier manufacturer, or importer name) responsible (state name) motor fuel user fee' or any other annotation acceptable to the department which otherwise indicates that the user fee imposed by this chapter, or by the destination state, has been paid to the supplier with respect to the entire load or the appropriate portion of it.
(E) A person who knowingly violates any part of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days subject to a civil penalty of five hundred dollars for each occurrence."
T. Section 12-28-1545 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1545. (A) If a licensed importer acquires motor fuel subject to the user fee destined for this State which has neither been dyed in accordance with the Internal Revenue Code and the regulations issued under it, nor user fees paid to or accrued by the a supplier at the time of removal from the out-of-state terminal, a licensed importer and transporter operating on his behalf shall meet all of the following conditions before entering motor fuel onto the highways of this State by loaded transport truck:
(1) the importer or the transporter obtains an import verification number from the department not sooner than twenty-four hours before entering this State.
(2) the import verification number is set out prominently and indelibly on the face of each copy of the terminal-issued shipping paper carried on board the transport truck.
(3) the terminal origin and the importer's name and address also are set out prominently on the face of each copy of the terminal-issued shipping paper.
(4) the terminal-issued shipping paper data otherwise required by this chapter are present; and
(5) all user fees imposed by this chapter with respect to previously requested import verification number activity on the account of the importer or the transporter are remitted timely.
(B) A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than three years, or both subject to a civil penalty of five hundred dollars for each occurrence and liable for all applicable fees imposed by this chapter including penalty and interest.
(C) The department, its appointee, or its representative may seize, confiscate, and dispose of motor fuel which is not accompanied by a required shipping paper."
U. Section 12-28-1720(B) of the 1976 code, as last amended by Act 69 of 2003, is further amended to read:
"(B) A person who fails or refuses to pay over to the State the user fee on motor fuel subject to the user fee at the time required in this chapter or who fraudulently withholds, appropriates, or otherwise uses the money or any portion of it belonging to the State is guilty of a misdemeanor and, upon conviction, must be fined as provided in Section 12-54-40(d)(1) 12-54-43(G)(1)."
V. Section 12-28-1730(G) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(G) An importer or transporter who knowingly imports undyed motor fuel subject to the user fee in a transport truck without a valid importer license or supplier license and an import verification number or a shipping paper showing on its face, as required under by this chapter, that this state's motor fuel user fee is not due is subject to a civil penalty of ten thousand dollars for each occurrence and is liable for all applicable fees imposed by this chapter including penalty and interest and at the discretion of the department. This subsection does not apply to persons transporting motor fuel subject to the user fee through this State in interstate commerce."
W. Section 12-28-1305 of the 1976 code is hereby repealed.
SECTION 45.A. Chapter 59, Title 12 of the 1976 Code is amended by adding:
"Section 12-59-85. After land has been bid in by the county auditor and before it has been conveyed to the county's forfeited land commission, the forfeited land commission or a majority of its members may refuse to accept title to the property if the commission determines that to accept title would be against the interest of the public."
B. Section 12-37-220(B) of the 1976 Code, as last amended by Act 116 of 2007, is further amended by adding an appropriately numbered item at the end to read:
"( ) A mobile home with a fair market value of less than two thousand five hundred dollars."
C. Section 12-37-714(2) of the 1976 Code, as added by Act 386 of 2006, is amended to read:
"(2) A boat, including its motor if the motor is separately taxed, which is not currently taxed in this State and is not used exclusively in interstate commerce, is subject to property tax in this State if it is present within this State for sixty one hundred eighty consecutive days or for ninety two hundred seventy days in the aggregate in a property tax year. Upon written request by a tax official, the owner must provide documentation or logs relating to the whereabouts of the boat in question. Failure to produce requested documents creates a rebuttable presumption that the boat in question is taxable within this State."
D. Section 12-37-2725 of the 1976 Code, as last amended by Act 51 of 2003, is further amended to read:
"Section 12-34-2725. When the title to a licensed vehicle is transferred, or the owner of the vehicle becomes a legal resident of another state and registers the vehicle in the new state of residence, the license plate and registration certificate may be returned for cancellation. The license plate and registration certificate must be delivered to the auditor of the county of the vehicle's registration and tax payment. A request for cancellation must be made in writing to the auditor upon forms approved by the Department of Motor Vehicles. The auditor, upon receipt of the license plate, registration certificate, and the request for cancellation, shall order and the treasurer shall issue a credit or refund of property taxes paid by the transferor on the vehicle. A receipt form 5051 issued by the Department of Motor Vehicles substitutes for the license plate and registration certificate otherwise required. The amount of the refund or credit is that proportion of the tax paid that is equal to that proportion of the complete months remaining in that tax year. The auditor, within five days thereafter after that, shall deliver the license plate, registration certificate, and the written request for cancellation to the Department of Motor Vehicles. Upon receipt, the Department of Motor Vehicles shall cancel the license plate and registration certificate and may not reissue the same them."
E. Section 12-39-220 of the 1976 Code is amended to read:
"Section 12-39-220. If the county auditor shall at any time discover assessor discovers that any real estate or a new structure or personal property, duly returned and appraised for taxation, has been omitted from the duplicate, he shall immediately shall charge it on the duplicate with the taxes of the current year and the simple taxes of each preceding year it may have escaped taxation. And if allowed pursuant to Section 12-54-85. If the owner of any the real estate or, new structure thereon, or personal property subject to taxation, has not reported it for taxation, according to the requirements of this chapter, and it has not been appraised for taxation, the auditor shall assessor, upon discovery thereof of that, shall appraise it and, upon making return of such the appraisement, shall charge it upon the duplicate, with the taxes of the then current year and the taxes of each preceding year it may have escaped taxation allowed pursuant to Section 12-54-85, with twenty per cent penalty upon such the taxes of preceding years. And if any If real estate shall have has been omitted in any a return, the auditor assessor of the county shall appraise it immediately for taxation, file such the appraisement in his office and charge it with the taxes of the current year and the simple taxes of preceding years it may have escaped taxation allowed pursuant to Section 12-54-85."
F. Section 12-51-50 of the 1976 code, as last amended by Act 399 of 2000, is further amended to read:
"Section 12-51-50. The property duly advertised must be sold, by the person officially charged with the collection of delinquent taxes, at public auction at the courthouse or other convenient place within the county, if designated and advertised, on a legal sales the advertised date during regular hours for legal tender payable in full by cash, cashier's check, certified check, or money order on the date of the sale. If the defaulting taxpayer or the grantee of record of the property has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the delinquent taxes, assessments, penalties, and costs, further items may must not be sold."
G. Section 12-51-70 of the 1976 Code is amended to read:
"Section 12-51-70. In case If the successful bidder fails to remit in legal tender within the time specified, the person officially charged with the collection of delinquent taxes shall cancel that bid and duly readvertise the same property for sale, in the same manner, on a subsequent delinquent tax sale date. The defaulting bidder is liable for no more than three hundred one thousand dollars damages upon default, which may be collected by suit by the person officially charged with the collection of delinquent taxes in the name of the taxing authority."
H. Section 12-54-85(C) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(C) Taxes may be determined and assessed after the thirty-six month limitation if:
(1) there is fraudulent intent to evade the taxes;
(2) the taxpayer failed to file a return or document as required by law;
(3) there is a twenty percent understatement of the total of all taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later. For the purpose of this item, the total of all taxes required to be shown on the return is the total of all taxes required to be shown on the return before any reduction for estimated payments, withholding payments, other prepayments, or discount allowed for timely filing of the return and payment of the tax due, but that amount must be reduced by another credit that may be claimed on the return;
(4) the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section; or
(5) the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty.; or
(6) the property has been omitted pursuant to Section 12-39-220. In this case, the taxes may be assessed at any time within the seventy-two months from the date the taxes would have been due."
SECTION 46.A. Section 61-6-20(2) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:
"(2) 'Bona fide engaged primarily and substantially in the preparation and serving of meals' means a business which has been issued a Grade A retail establishment food permit prior to issuance of a license under Article 5 of this chapter, and in addition that provides facilities for seating not less fewer than forty persons simultaneously at tables for the service of meals and that:
(a) is equipped with a kitchen that is utilized for the cooking, preparation, and serving of meals;
(b) has readily available to its guests and patrons either menus with the listings of various meals offered for service or a listing of available meals and foods, posted in a conspicuous place readily discernible by the guest or patrons;
(c) prepares for service to customers hot meals at least once each day the business establishment chooses to be open; and
(d) if the establishment advertises, a substantial portion of its advertising is devoted to its food service."
B. Section 61-6-1610 of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding an appropriately lettered subsection at the end to read:
"( ) For purposes of this section:
(1) 'Kitchen' means a separate and distinct area of the business establishment that is used solely for the preparation, serving, and disposal of solid foods that make up meals. The area must be adequately equipped for the cooking, serving, and storage of solid foods and must include a least twenty-one cubic feet of refrigerated space for food and a stove.
(2) 'Meal' means an assortment of various prepared foods available to guests on the licensed premises during the normal mealtimes that occur when the licensed business establishment is open to the public. Sandwiches, boiled eggs, sausages, and other snacks prepared off the licensed premises but sold there are not a meal.
(3) 'Primarily' means that the serving of the meals by a business establishment is a regular and substantial source of business to the licensed establishment, that meals are served upon the demand of guests and patrons during the normal mealtimes that occur when the licensed business establishment is open to the public, and that an adequate supply of food is present on the licensed premises to meet the demand."
C. Section 61-6-1610(A) of the 1076 Code, as last amended by Act 139 of 2005, is further amended to read:
"(A) Except on Sunday, it is lawful to sell and consume alcoholic liquors sold by the drink in a business establishment between the hours of ten o'clock in the morning and two o'clock the following morning if the establishment meets the following requirements:
(1) the business is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging; and
(2) the business has a license from the department authorizing the sale and consumption of alcoholic liquors by the drink, which is displayed conspicuously on the main entrance to the premises and clearly visible from the outside."
D. Section 61-6-2010(A) of the 1976 Code, as last amended by Act 139 of 2005, is further amended to read:
"(A) In addition to the provisions of Section 61-6-2000, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors by the drink. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department must also offer the option of an annual fifty-two week temporary permit for a nonrefundable fee of three thousand dollars per year. However, the optional fifty-two week permit must not extend beyond the expiration date of the biennial license issued pursuant to this chapter. If the expiration date is less than fifty-two weeks from the date of the application for the optional fifty-two week permit, the department must prorate the three thousand dollar fee on a monthly basis. The department in its sole discretion shall specify the terms and conditions of the permit. If it is determined that a fifty-two week temporary permit is issued for a location that is not within an authorized jurisdiction as provided by this section, the department must issue to the licensee upon surrender of the license a refund prorated on a monthly basis."
SECTION 47. Section 12-6-40(A)(1)(a) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(a) Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 2006 2007, and includes the effective date provisions contained in it."
SECTION 48. Section 12-6-1120(4) of the 1976 Code is amended to read:
"(4) South Carolina gross income is determined without application of Internal Revenue Code Sections 78 (Gross-up of Dividends received from Certain Foreign Corporations), 86 (Social Security and Tier 1 Railroad Retirement Benefits), and 87 (Alcohol Fuel Credit). South Carolina gross income does not include Tier II Railroad Retirement benefits."
SECTION 49. Section 12-28-955 of the 1976 Code is amended to read:
"Section 12-28-955. (A) Every supplier and permissive supplier who properly remits user fees under this chapter is allowed to retain one-tenth percent of the user fee imposed by this chapter and collected and remitted by that supplier in accordance with this chapter to cover the cost of administration including reporting, audit compliance, dye injection, and shipping paper preparation. A transporter licensed to distribute motor fuel in this State is eligible for reimbursement of its initial expenses and for recurring administrative costs to comply with Department of Revenue electronic reporting requirements. A transporter is entitled to a one-time reimbursement of its initial expenses not to exceed two thousand dollars. In addition, a transporter is entitled to an annual reimbursement of its administrative costs equal to three dollars for each one hundred thousand gallons, or fraction of it, of motor fuel transported based on a monthly average not to exceed twelve hundred dollars for each year.
(B) To be reimbursed for expenses or administrative costs, a transporter must be certified with the Department of Revenue for submission of electronic reports.
(C) The initial expenses eligible for reimbursement pursuant to this section may be reimbursed no earlier than January 2009. A certified transporter must submit a request for reimbursement on forms developed by the department.
(D) The annual administrative costs may be reimbursed beginning with costs incurred in calendar year 2008. A certified transporter must submit a request for reimbursement on forms developed by the department. The request may be submitted after the close of the calendar year."
SECTION 50. Section 12-44-30(18) of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:
"(18) 'Sponsor' means one or more entities which sign the fee agreement with the county and makes make the minimum investment, subject to the provisions of Section 12-44-40, each of which makes the minimum investment as provided in Section 12-44-30(13) (14) and also includes a sponsor affiliate unless the context clearly indicates otherwise. If a project consists of a manufacturing, research and development, corporate office, or distribution facility, as those terms are defined in Section 12-6-3360(M), each sponsor or sponsor affiliate is not required to invest the minimum investment if the total investment at the project exceeds ten million dollars."
SECTION 51. Chapter 45, Title 12 of the 1976 Code is amended by adding:
"Section 12-45-17. (A) A person serving as the county tax collector shall complete satisfactorily a minimum of eighteen hours of annual continuing education courses that the department establishes or causes to be established. The content, cost, and dates of the courses must be determined by the department.
(B) The department, for reasonable cause, may excuse a person serving as the county tax collector from attending these courses for any year.
(C) The provisions of this section do not apply to a county treasurer who is also the county tax collector and completes satisfactorily the requirements of Section 12-45-15."
SECTION 52. Section 12-54-70(a) of the 1976 Code, as last amended by Act 116 of 2007, is further amended to read:
"(a) The department may allow further an extension of time for the filing of returns or remitting of tax due required by the provisions of law administered by the department. The request for an extension must be filed with the department on or before the day the return of the tax is due. Except as otherwise provided in this section, the department may allow an extension of time not to exceed up to six months or if applicable, the extended time period allowed to file the taxpayer's corresponding federal return. A tentative return is required reflecting one hundred percent of the anticipated tax to be paid for the taxable period, to be accompanied by a remittance for the tentative tax liability. Interest at the rate provided in Section 12-54-25, calculated from the date the tax was originally due, must be added to the balance due whenever an extension to file or to remit tax due is granted."
SECTION 53. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 54. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 55. 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 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."/
SECTION 56. Section 12-21-3970 of the 1976 Code is amended to read:
"Section 12-21-3970. For each licensed nonprofit organization the promoter manages, operates, or conducts bingo, the promoter must shall purchase a promoter's license as provided in Section 12-21-3950 before managing, operating, or conducting bingo. No promoter is permitted more than five licenses. This license must be prominently displayed at the location where bingo is conducted."
SECTION 57. Article 3, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-340. (A) A terminal, as defined in Section 12-28-110(56), located within the State must offer for sale a petroleum product that is not already pre-blended with ethanol and that is suitable for subsequent blending of the product with ethanol.
(B) A person or entity must not take any action to deny a distributor, as defined in Section 12-28-110(17), or retailer, as defined in Section 12-28-110(52), who is doing business in this State and who has registered with the Internal Revenue Service on Form 637(M) from being the blender of record afforded them by the acceptance by the Internal Revenue Service of Form 637(M)."
SECTION 58. Unless otherwise provided herein, this act takes effect upon approval by the Governor.
This web page was last updated on Monday, October 10, 2011 at 1:40 P.M.