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S. 538
STATUS INFORMATION
General Bill
Sponsors: Senator Short
Document Path: l:\council\bills\ggs\22759mm07.doc
Introduced in the Senate on March 7, 2007
Currently residing in the Senate Committee on Finance
Summary: Job tax credit
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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3/7/2007 Senate Introduced and read first time SJ-9
3/7/2007 Senate Referred to Committee on Finance SJ-9
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JOB TAX CREDIT, SO AS TO REDESIGNATE COUNTIES AS LEAST DEVELOPED, MODERATELY DEVELOPED, AND DEVELOPED BASED ON THE PREVIOUS TWELVE MONTHS' AVERAGE UNEMPLOYMENT RATE AND TO ADJUST THE AMOUNT OF THE CREDIT FOR EACH NEW FULL-TIME JOB CREATED IN COUNTIES OF EACH DESIGNATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-3360(B), as last amended by Act 390 of 2006, and (C), as last amended by Act 386 of 2006, is further amended to read:
"(B) The department shall rank and designate the state's counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The county designations are effective for taxable years that begin in the following calendar year. The counties are ranked using the last three completed calendar years of per capita income data and the last thirty-six most recent twelve months of unemployment rate data that are available on November first, with equal weight given to unemployment rate and per capita income as follows: .
(1)(a) The twelve Those counties with a combination of the highest having an average unemployment rate and lowest per capita income are of seven and one-half percent or greater must be designated distressed counties. Notwithstanding any other provision of law, no more than twelve counties may be designated or classified as distressed and notwithstanding any other provision of this section, a county may be designated as distressed only by virtue of the criteria provided in this subitem as least developed.
(b) A category with the same criteria as provided in subitem (a) of this item is designated least developed county which consists of underdeveloped counties otherwise eligible for this category.
(2) The twelve Those counties with a combination of the next highest having an average unemployment rate and next lowest per capita income are of six percent or greater, but less than seven and one-half percent, must be designated underdeveloped counties as moderately developed.
(3) The eleven Those counties with a combination of the next highest having an average unemployment rate and the next lowest per capita income are of less than six percent must be designated moderately as developed counties.
(4) The eleven counties with a combination of the lowest unemployment rate and the highest per capita income are designated developed counties.
(5)(a) A county, any portion of which is located within twenty-five miles of the boundaries of an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), shall receive the next increased credit designation for five years beginning with the year in which the military installation or federal facility became an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), with the additional requirement that the military installation must have reduced employment on the installation of at least three thousand employees.
(b) In addition to the designation in subitem (a), a county in which an applicable military installation or applicable federal facility is located is allowed an additional increased credit designation for five years beginning with the year the installation or facility meets the requirements.
(c) Notwithstanding the designations in Section 12-6-3360, Laurens, Cherokee, and Union Counties shall qualify for the next increased credit designation.
(d) In a county where less than five percent of the work force is in manufacturing, the credit allowed is one tier higher than the credit for which the county would otherwise qualify.
(e) For a job created in a county that is not traversed by an interstate highway, the credit allowed is one tier higher than the credit for which jobs created in the county would otherwise qualify. This subitem does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this item.
(f) In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one-tier-higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section.
(g) In a county which is at least one thousand square miles in size and which has had an unemployment rate greater than the state average for the past ten years and an average per capita income lower than the average state per capita income for the past ten years, and which is not included in any of the county classifications contained in subitems (a) through (f) of this item, the credit allowed is two tiers higher than the credit for which the county otherwise would qualify.
(h) In a county in which one employer has lost at least 1,500 jobs in calendar year 2006, the credit allowed is three tiers higher than the credit for which the county would otherwise qualify. The three-tier-higher credit allowed by this subsection is allowed for taxable years beginning in 2007 and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section.
(C)(1) Subject to the conditions provided in subsection (N) of this section, a job tax credit is allowed for five years beginning in year two after the creation of the job for each new full-time job created if the minimum level of new jobs is maintained. The credit is available to taxpayers that increase employment by ten or more full-time jobs, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ten. The amount of the initial job credit is as follows:
(a) Eight thousand dollars for each new full-time job created in distressed least developed counties.
(b) Four Five thousand five hundred dollars for each new full-time job created in least moderately developed counties.
(c) Three thousand five hundred dollars for each new full-time job created in under developed counties.
(d) Two thousand five hundred dollars for each new full-time job created in moderately developed counties.
(e) One thousand five hundred dollars for each new full-time job created in developed counties.
(2)(a) Subject to the conditions provided in subsection (N) of this section, a job tax credit is allowed for five years beginning in year two after the creation of the job for each new full-time job created if the minimum level of new jobs is maintained. The credit is available to taxpayers with ninety-nine or fewer employees that increase employment by two or more full-time jobs, and may be received only if the gross wages of the full-time jobs created pursuant to this section amount to a minimum of one hundred twenty percent of the county's or state's average per capita income, whichever is lower. No credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of two. The amount of the initial job credit is as described in (C)(1).
(b) If the taxpayer with ninety-nine or fewer employees increases employment by two or more full-time jobs but the gross wages do not amount to a minimum one hundred twenty percent of the county's or state's average per capita income, whichever is lower, then the amount of the initial job credit is as follows:
(i) Four thousand dollars for each new full-time job created in distressed least developed counties.
(ii) Two thousand two five hundred fifty dollars for each new full-time job created in least moderately developed counties.
(iii) One thousand seven hundred fifty dollars for each new full-time job created in under developed counties.
(iv) One thousand two hundred fifty dollars for each new full-time job created in moderately developed counties.
(v) Seven hundred fifty dollars for each new full-time job created in developed counties."
SECTION 2. This act takes effect upon approval by the Governor and applies to county designations for tax years beginning after 2007.
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