Indicates Matter Stricken

Indicates New Matter

 

Committee Report

May 4, 2023

S. 557

Introduced by Senators M. Johnson, Peeler, Kimbrell, Adams, Rice, Rankin, Reichenbach, Young, Loftis, Climer, Garrett, Alexander and Campsen

 

S. Printed 05/04/23--H.

Read the first time March 30, 2023

 

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The committee on house ways and means

To who was referred a Bill (S. 557) to amend the South Carolina Code of Laws by amending Section 12-6-3477, relating to the Apprentice Income Tax Credit, so as to increase the amount of the credit, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

BRUCE BANNISTER for Committee.

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

 

State Expenditure

This bill expands the current apprenticeship tax credits in Section 12-6-3477. DOR will update the applicable forms during the annual updates to tax forms. Therefore, the bill will not impact expenditures for the agency. However, the agency noted that because the bill is effective upon signature of the Governor, there may be some difficulties in the initial administration of the provisions since the start date is not relative to a tax year.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-6-3477, RELATING TO THE APPRENTICE INCOME TAX CREDIT, SO AS TO INCREASE THE AMOUNT OF THE CREDIT AND THE NUMBER OF YEARS IN WHICH IT MAY BE CLAIMED.

 

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

 

SECTION 1.  Section 12-6-3477 of the S.C. Code is amended to read:

 

    Section 12-6-3477. A taxpayer who employs an apprentice pursuant to an apprentice agreement registered with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor is allowed a credit against an income tax imposed pursuant to this chapter equal to the greater of the cost of the apprenticeship or one thousand dollars for each apprentice employed, but not to exceed four thousand dollars for an apprentice, or six thousand dollars for the youth apprenticeship program. A credit is not allowed unless the apprentice was in the employ of the taxpayer for at least seven full months of the taxable year and a credit is not allowed for an individual apprentice for more than four taxable years; however, if the apprentice completes the apprenticeship and remains an employee of the taxpayer, the taxpayer may claim the one thousand dollar credit for up to three additional taxable years.  Notwithstanding any other provision of this section, the maximum aggregate credit for all taxpayers may not exceed five million dollars in any one tax year. The General Assembly, in the annual general appropriations act, may increase or decrease the maximum aggregate credit amount.  The department shall prescribe a form to claim this credit that provides information to the department sufficient for the proper administration of this credit.  Any unused credit may be carried forward for three years.

 

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

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