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H. 3348
STATUS INFORMATION
General Bill
Sponsors: Reps. Daning, Robinson, Pope, J.L. Johnson, Jefferson, M.M. Smith, Dillard, Hill, Erickson, Bradley, R. Williams, Gilliard, Murray, Weeks, Brawley, W. Newton and Kirby
Document Path: l:\council\bills\nbd\11013dg21.docx
Companion/Similar bill(s): 3479
Introduced in the House on January 12, 2021
Introduced in the Senate on February 22, 2022
Last Amended on February 17, 2022
Currently residing in the Senate Committee on Finance
Summary: Tax credits
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
12/9/2020 House Prefiled
12/9/2020 House Referred to Committee on Ways and Means
1/12/2021 House Introduced and read first time (House Journal-page 167)
1/12/2021 House Referred to Committee on Ways and Means
(House Journal-page 167)
1/14/2021 House Member(s) request name added as sponsor: J.L.Johnson
4/28/2021 House Member(s) request name added as sponsor: Jefferson,
M.M.Smith, Dillard
1/25/2022 House Member(s) request name added as sponsor: Hill
2/8/2022 House Member(s) request name added as sponsor: Erickson,
Bradley
2/9/2022 House Member(s) request name added as sponsor: R.Williams,
Gilliard, Murray
2/10/2022 House Committee report: Favorable with amendment Ways and
Means (House Journal-page 3)
2/15/2022 House Member(s) request name added as sponsor: Weeks
2/17/2022 House Member(s) request name added as sponsor: Brawley,
W.Newton, Kirby
2/17/2022 House Amended (House Journal-page 39)
2/17/2022 House Read second time (House Journal-page 39)
2/17/2022 House Roll call Yeas-106 Nays-0 (House Journal-page 45)
2/17/2022 House Unanimous consent for third reading on next legislative
day (House Journal-page 46)
2/18/2022 House Read third time and returned to Senate with amendments
(House Journal-page 1)
2/18/2022 Scrivener's error corrected
2/22/2022 Senate Introduced and read first time (Senate Journal-page 6)
2/22/2022 Senate Referred to Committee on Finance (Senate Journal-page 6)
View the latest legislative information at the website
VERSIONS OF THIS BILL
12/9/2020
2/10/2022
2/17/2022
2/18/2022
AMENDED
February 17, 2022
H. 3348
Introduced by Reps. Daning, Robinson, Pope, J.L. Johnson, Jefferson, M.M. Smith, Dillard, Hill, Erickson, Bradley, R. Williams, Gilliard, Murray, Weeks, Brawley, W. Newton and Kirby
S. Printed 2/17/22--H. [SEC 2/18/22 3:14 PM]
Read the first time January 12, 2021.
TO AMEND THE CODE OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-6-3710 AND 12-6-3720 SO AS TO ALLOW A TAX CREDIT TO ANY TAXPAYER THAT EMPLOYS A FORMERLY INCARCERATED INDIVIDUAL IN AN APPRENTICESHIP PROGRAM, OR A VETERAN OF THE ARMED FORCES IN AN APPRENTICESHIP PROGRAM, TO SPECIFY THE TAXES FOR WHICH THE CREDIT MAY BE APPLIED, AND SPECIFY ELIGIBILITY REQUIREMENTS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3710. (A) For tax years beginning after 2021, there is allowed a tax credit for any taxpayer that hires a formerly incarcerated individual, after 2021 but before 2027, as a new employee in a registered apprenticeship program that has been validated by the United States Department of Labor. An employer who has one or more eligible employees is eligible to apply for and receive a credit against the taxes set forth in subsection (B). In the first year in which the credit is earned pursuant to subsection (D), the amount of the credit is three thousand dollars for each eligible employee. If the eligible employee remains employed and otherwise meets the requirements of this section thereafter, the credit is two thousand five hundred dollars in the second year, and one thousand dollars in the third year. The credit may not be claimed beyond the third year.
(B) The credit allowed pursuant to this section may be taken against the income taxes imposed pursuant to this chapter, the bank tax imposed pursuant to Chapter 11 of this title, the savings and loan association tax imposed pursuant to Chapter 13 of this title, the corporate license tax imposed pursuant to Chapter 20 of this title, and insurance premium taxes imposed pursuant to Chapter 7, Title 38.
(C) The total amount of the tax credit for a taxable year may not exceed the taxpayer's tax liability. Any unused credit may not be carried over to apply to the taxpayer's succeeding year's liability.
(D)(1) The tax credit is earned in the year in which the formerly incarcerated individual first completes the twelfth consecutive month of employment with the taxpayer. The credit is earned in the same manner and on the same schedule in the second and third year of employment.
(2) The tax credit allowed by this section only may be claimed for an eligible individual once, regardless of the employer. The department shall consult with the Department of Commerce, Apprenticeship Carolina of the South Carolina Technical College System, and any other agency or entity necessary to establish a process by which employers are aware of an individual's eligibility for the credit allowed by this section.
(E) Notwithstanding any other provision of this section, the credit allowed by this section only may be claimed if the formerly incarcerated individual is hired by the employer, after 2021 but before 2027, as a new employee in the registered apprenticeship program. If the individual is hired before 2027, then the employer may claim the credit for each year the individual is eligible and on the same schedule as provided in this section.
(F) The department may prescribe forms and promulgate regulations necessary to implement the provisions of this section, including requiring the necessary documentation to prove eligibility.
(G) Nothing in this section may be construed to allow an employer to claim this credit for a formerly incarcerated individual if the individual was hired before 2022.
(H) For purposes of this section:
(1) 'Full-time' has the same meaning as provided in Section 12-6-3360.
(2) 'Incarcerated individual' means an individual that, within three years of being hired in a qualifying apprenticeship program, was held in a state or county prison, jail, or detention center for at least ninety consecutive days, but does not include an individual incarcerated for a violent crime set forth in Section 16-1-60, unless such individual received a pardon for the offense or unless the only disqualifying violent crime resulted in a sentence of ten years or less under Section 44-53-370(E) or Section 44-53-375(C).
Section 12-6-3720. (A) For tax years beginning after 2021, there is allowed a tax credit for any taxpayer that hires a veteran of the Armed Forces of the United States, after 2021 but before 2027, as a new employee in a registered apprenticeship program that has been validated by the United States Department of Labor. An employer who has one or more eligible employees is eligible to apply for and receive a credit against the taxes set forth in subsection (B). In the first year in which the credit is earned pursuant to subsection (D), the amount of the credit is three thousand dollars for each eligible employee. If the eligible employee remains employed and otherwise meets the requirements of this section thereafter, the credit is two thousand five hundred dollars in the second year, and one thousand dollars in the third year. The credit may not be claimed beyond the third year.
(B) The credit allowed pursuant to this section may be taken against the income taxes imposed pursuant to this chapter, the bank tax imposed pursuant to Chapter 11 of this title, the savings and loan association tax imposed pursuant to Chapter 13 of this title, the corporate license tax imposed pursuant to Chapter 20 of this title, and insurance premium taxes imposed pursuant to Chapter 7, Title 38.
(C) The total amount of the tax credit for a taxable year may not exceed the taxpayer's tax liability. Any unused credit may not be carried over to apply to the taxpayer's succeeding year's liability.
(D)(1) The tax credit is earned in the year in which the veteran first completes the twelfth consecutive month of employment with the taxpayer. The credit is earned in the same manner and on the same schedule in the second and third year of employment.
(2) The tax credit allowed by this section only may be claimed for an eligible individual once, regardless of the employer. The department shall consult with the Department of Commerce, Apprenticeship Carolina of the South Carolina Technical College System, and any other agency or department necessary to establish a process by which employers are aware of an individual's eligibility for the credit allowed by this section.
(E) Notwithstanding any other provision of this section, the credit allowed by this section only may be claimed if the veteran is hired, after 2021 but before 2027, by the employer as a new employee in the registered apprenticeship program. If the individual is employed before 2027, then the employer may claim the credit for each year the individual is eligible and on the same schedule as provided in this section.
(F) The department may prescribe forms and promulgate regulations necessary to implement the provisions of this section, including requiring the necessary documentation to prove eligibility.
(G) Nothing in this section may be construed to allow an employer to claim this credit for a veteran if the veteran was hired before the effective date of this section.
(H) For purposes of this section:
(1) 'Full-time' has the same meaning as provided in Section 12-6-3360.
(2) 'Veteran' means a person who served on active duty in the armed forces of the United States and who, within three years of being hired in a qualifying apprenticeship program, was honorably discharged or released from such service due to a service-connected disability."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on February 22, 2022 at 3:53 PM