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					                                   South Carolina General Assembly
                                       119th Session, 2011-2012

S. 118

STATUS INFORMATION

Joint Resolution
Sponsors: Senators Campsen and Rose
Document Path: l:\council\bills\nbd\11067htc11.docx

Introduced in the Senate on January 11, 2011
Currently residing in the Senate Committee on Finance

Summary: S.C. Economic Recovery Act


HISTORY OF LEGISLATIVE ACTIONS

    Date     Body     Action Description with journal page number
 12/1/2010   Senate   Prefiled
 12/1/2010   Senate   Referred to Committee on Finance
 1/11/2011   Senate   Introduced and read first time (Senate Journal-page 57)
 1/11/2011   Senate   Referred to Committee on Finance (Senate Journal-page 57)

View the latest legislative information at the LPITS web site


VERSIONS OF THIS BILL

12/1/2010
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 9                 A JOINT RESOLUTION
10
11   TO ENACT THE “SOUTH CAROLINA ECONOMIC
12   RECOVERY ACT” BY TEMPORARILY PROVIDING
13   “BONUS” STATE INCOME TAX EXPENSING DEDUCTIONS
14   FOR NEW DEPRECIABLE BUSINESS PROPERTY, BY
15   EXCLUDING FROM SOUTH CAROLINA TAXABLE
16   INCOME NET CAPITAL GAINS ATTRIBUTABLE TO THE
17   SALE OR EXCHANGE OF DEPRECIABLE BUSINESS
18   PROPERTY RECEIVING THAT “BONUS” DEDUCTION, AND
19   BY PROVIDING A TAX CREDIT FOR EMPLOYERS HIRING
20   A NEW FULL-TIME EMPLOYEE WHO WAS FORMERLY
21   UNEMPLOYED,     AND   TO   DEFINE  TERMS    BY
22   APPROPRIATE REFERENCES TO PROVISIONS IN
23   CHAPTER 6, TITLE 12, CODE OF LAWS OF SOUTH
24   CAROLINA, 1976, THE SOUTH CAROLINA INCOME TAX
25   ACT.
26
27   Be it enacted by the General Assembly of the State of South
28   Carolina:
29
30   SECTION 1. This joint resolution may be cited as the “South
31   Carolina Economic Recovery Act”.
32
33   SECTION 2. (A) For purposes of Chapter 6, Title 12 of the 1976
34   Code, the South Carolina Income Tax Act, during the eligibility
35   period, to the extent that a business claiming the maximum
36   deduction allowed in 2011 and 2012 pursuant to Internal Revenue
37   Code Section 179 and the cost of the property giving rise to the
38   Section 179 deduction exceeded the maximum deduction allowed
39   for federal income tax purposes, there is allowed as a deduction
40   from South Carolina taxable income an amount equal to the
41   difference between the total Section 179 deduction claimed for
42   federal income tax purposes and one million dollars. If all or some

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 1   part of this “bonus” deduction remains after the taxpayer’s South
 2   Carolina taxable income for the year is reduced to zero, then the
 3   unused deduction may be carried forward for the succeeding five
 4   taxable years. In the case of “pass-through” businesses, this bonus
 5   deduction passes to the taxpayer in the same manner as the Section
 6   179 deduction.
 7      (B) To the extent there is included in a taxpayer’s South
 8   Carolina taxable income net capital gain attributable to the sale or
 9   exchange of property receiving the bonus deduction allowed
10   pursuant to subsection (A) of this section, then the amount of that
11   net capital gain is not included in the taxpayer’s South Carolina
12   taxable income for the applicable taxable year. Any net capital
13   gain recognized in that taxable year is deemed to be net capital
14   gain attributable to the sale or exchange of the “bonus” receiving
15   property up to the amount of net capital gain resulting solely from
16   the sale or exchange of that property.
17
18   SECTION 3. (A) As used in this section, “creditable employee”
19   means an employee of a taxpayer employer who:
20        (1) is first employed by the employer after the effective date
21   of this joint resolution, and before July 1, 2013;
22        (2) has filed a claim for unemployment compensation in this
23   State and is currently receiving weekly unemployment
24   compensation benefits on that claim for at least four weeks;
25        (3) was unemployed immediately before becoming
26   employed;
27        (4) has no return to work date or promise of future
28   employment;
29        (5) remains employed by the employer for at least four
30   consecutive work weeks and the employment with that employer
31   consists of at least thirty-five hours a week; and
32        (6) executes and provides a notarized affidavit swearing or
33   affirming that the employee is eligible to work in the United States
34   because the person is either a United States citizen or a lawfully
35   present alien according to federal law.
36      (B) An employer who has one or more creditable employees
37   and who provides a notarized affidavit attesting to use of the
38   federal employment verification system now known as “E-Verify”
39   or any future federal employment verification system is eligible to
40   apply for and receive a credit against taxes as provided in
41   subsection (C) of this section. The amount of the credit is one
42   twelfth of four percent of the creditable employee’s current
43   annualized wages, not to exceed eighty-five dollars a month for

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 1   each creditable employee. Eligibility for the credit must be
 2   established as of the time the creditable employee completes thirty
 3   consecutive days of employment and the credit must be claimed
 4   for the taxable year in which the employment was completed.
 5      (C) The credit allowed pursuant to subsection (B) of this
 6   section may be taken against the income taxes imposed pursuant to
 7   Chapter 6, the bank tax imposed pursuant to Chapter 11, the
 8   savings and loan association tax imposed pursuant to Chapter 13,
 9   and the corporate license tax imposed pursuant to Chapter 20, all
10   of Title 12 of the 1976 Code, and insurance premium taxes
11   imposed pursuant to Chapter 7, Title 38 of the 1976 Code.
12      (D) The total amount of any tax credit for a taxable year may
13   not exceed the taxpayer’s tax liability. Any unused tax may be
14   carried over to apply to the taxpayer’s succeeding year’s liability.
15      (E) The tax credit provided for in subsection (B) remains in
16   effect for twenty-four consecutive months for each creditable
17   employee.
18
19   SECTION 4. (A) As used in SECTIONS 2 and 3 of this joint
20   resolution:
21        (1) “eligible period” means the time from the effective date
22   of this joint resolution through December 31, 2012;
23        (2) “Internal Revenue Code” means the Internal Revenue
24   Code of 1986, as defined pursuant to Section 12-6-40 of the 1976
25   Code and includes provisions therein contained in the Small
26   Business Jobs and Credit Act of 2010;
27        (3) “net capital gain” has the meaning provided pursuant to
28   Section 12-6-1150(B)(2) of the 1976 Code.
29      (B) The South Carolina Department of Revenue may
30   promulgate regulations and prescribe procedures to provide for the
31   administration of this joint resolution.
32
33   SECTION 5. This joint resolution takes effect upon approval by
34   the Governor.
35                            ----XX----
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