A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-10-30, RELATING TO DEFINITIONS FOR THE JOB DEVELOPMENT CREDIT, SO AS TO FURTHER DEFINE "RELATED PERSON"; AND BY AMENDING SECTION 12-10-80, RELATING TO THE JOB DEVELOPMENT CREDIT, SO AS TO SPECIFY RELATED PERSONS THAT MAY BE DESIGNATED AS SUCH BY A QUALIFYING BUSINESS.

 

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

 

SECTION 1.  Section 12-10-30(19) of the S.C. Code is amended to read:

 

    (19) "Related person" includes any entity or person that bears a relationship to a business as provided in Internal Revenue Code Section 267 or 707(b). "Related person" also includes any entity which owns more than ninety percent of the qualifying business. The related person must be a "qualifying business" as defined in item (7), except that the related person does not have to meet the requirements of Section 12-10-50(A)(1) or, in case the qualifying business qualifies for the credit against withholding for retraining pursuant to Section 12-10-95 of this chapter, the related person does not have to meet the requirements of Section 12-10-50(B)(1).

 

SECTION 2.  Section 12-10-80(A)(14)(a) of the S.C. Code is amended to read:

 

           (a) For purposes of this chapter, a qualifying business may designate up to two related persons whose jobs and investments located at the project may be included to determine whether the qualifying business has met and maintained the minimum job requirement and minimum capital investment requirement. A qualifying business may designate one entity which is at least fifty percent owned by the qualifying business or an entity which owns more than ninety percent of the qualifying business. Qualified expenditures described in subsection (C) incurred by a related person may be treated as though such qualifying expenditures were incurred by the qualifying business for purposes of claiming the job development credit and each related person may claim the job development credit for the jobs created by such related person and include any qualifying expenditures of the qualifying business or another related person for purposes of claiming the job development credit as if created and made by the related person.

 

SECTION 3.  This act takes effect upon approval by the Governor and first applies to income tax years beginning after 2024.

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