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S. 878
STATUS INFORMATION
General Bill
Sponsors: Senators Campsen and Knotts
Document Path: l:\s-res\gec\010smal.kmm.doc
Introduced in the Senate on January 8, 2008
Currently residing in the Senate Committee on Finance
Summary: Small Business Tax Credit Reform Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/5/2007 Senate Prefiled
12/5/2007 Senate Referred to Committee on Finance
1/8/2008 Senate Introduced and read first time SJ-41
1/8/2008 Senate Referred to Committee on Finance SJ-41
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO ENACT THE SMALL BUSINESS TAX CREDIT REFORM ACT BY AMENDING SECTION 12-6-3367 OF THE 1976 CODE, RELATING TO A MORATORIUM ON CORPORATE INCOME AND INSURANCE PREMIUM TAXES FOR CERTAIN COMPANIES INVESTING AND CREATING JOBS IN THE STATE, TO PROVIDE THAT A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, OR AN ASSOCIATION TAXABLE AS A BUSINESS ENTITY MAY ALSO CLAIM THE TAX CREDIT, AND BY AMENDING SECTION 12-6-3410, RELATING TO THE CORPORATE INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, TO PROVIDE THAT A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, OR AN ASSOCIATION TAXABLE AS A BUSINESS ENTITY MAY ALSO CLAIM THE TAX CREDIT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be referred to and cited as the "Small Business Tax Credit Reform Act."
SECTION 2. A. Section 12-6-3367(A) of the 1976 Code is amended to read:
"(A) A taxpayer creating and maintaining at least one hundred full-time new jobs, as defined in Section 12-6-3360(M), at a facility of a type identified in Section 12-6-3360(M) may petition, utilizing the procedure in Section 12-6-2320(B), for a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 this chapter or insurance premium taxes imposed pursuant to Title 38 for the ten taxable years beginning the first full taxable year after the taxpayer qualifies and ending either ten years from that year or the year when the taxpayer's number of full-time new jobs falls below one hundred, whichever is earlier. For purposes of insurance premium taxes, the petition pursuant to Section 12-6-2320(B) must be made to and approved by the Director of the Department of Insurance."
B. Section 12-6-3367(C) of the 1976 Code is amended to read:
"(C) During the applicable moratorium period, the moratorium applies to that portion of the taxpayer's corporate income or premium tax that represents the ratio of the taxpayer's new investment in the qualifying county or counties to its total investment in this State."
C. The amendments to Section 12-6-3367 contained in this SECTION do not affect the provisions of Section 3, Act 277 of 2000, as that section relates to the repeal of Section 12-6-3365 of the 1976 Code.
SECTION 3. A. Section 12-6-3410(A) of the 1976 Code is amended to read:
"(A) A corporation establishing a corporate headquarters in this State, or expanding or adding to an existing corporate headquarters, is allowed a credit against any income tax due pursuant to Section 12-6-530 this chapter, or any bank taxes due pursuant to Chapter 11 of this title Section 12-11-20, or any license taxes due pursuant to Chapter 20 of this title. Section 12-20-50 as set forth in this section."
B. Section 12-6-3410(J)(9) of the 1976 Code is amended to read:
"(9) "corporation", "corporate", "company", and "taxpayer" for purposes of this section also include a sole proprietorship, partnership, limited liability company, limited liability partnership, or an association taxable as a business entity. 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 purposes. 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 income tax under Section 12-6-530 or Section 12-20-50 imposed pursuant to this chapter, any license taxes imposed pursuant to Chapter 20 of this title and any 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."
SECTION 4. 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 5. The General Assembly finds that the sections presented in this act constitute one subject as required by Article III, Section 17 of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of tax credits as clearly enumerated in the title.
The General Assembly further finds that a common purpose or relationship exists among the sections, representing a potential plurality but not disunity of topics, notwithstanding that reasonable minds might differ in identifying more than one topic contained in the act.
SECTION 6. This act takes effect upon approval by the Governor.
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