A bill

to amend the South Carolina Code of Laws by adding Section 12-6-3361 so as to allow a small business an income tax credit equal to twenty percent of its costs in the first five years of the small business' existence, and to provide limitations.

Be it enacted by the General Assembly of the State of South Carolina:

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

Section 12-6-3361.In addition to any other tax credit allowed by law, in the first five tax years of its existence, a small business may claim an income tax credit equal to twenty percent of its costs, not to exceed ten thousand dollars in a tax year. However, the ten thousand dollar limit must be increased by one thousand dollars for each additional person it employs as a full-time employee. The small business may carry forward the credit for five years after the tax year in which the credit was earned. The department shall adopt rules and set forth guidelines to administer the credit and may require any documentation it requires necessary to determine eligibility. For purposes of this section, "small business" has the same meaning as defined by the Small Business Administration and the North American Industry Classification System (NAICS).

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

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