Bill > H4089

This bill introduces the Boosting Opportunities for Small Startups (BOSS) Act, which provides a graduated corporate income tax exemption and reduction for new small businesses in South Carolina. The act defines eligible businesses as startups or small businesses incorporated or registered in the state by January 1, 2027, with fewer than fifty full-time employees and less than three million dollars in annual gross revenue. Qualified businesses will receive a complete corporate income tax exemption for their first two operational tax years, followed by gradually increasing tax rates over the subsequent three years: 25% of the standard rate in the third year, 50% in the fourth year, 75% in the fifth year, and 100% thereafter. To prevent abuse, the bill includes strict penalties for businesses misrepresenting their status, such as repaying all tax benefits, facing interest and penalties, and being ineligible for future state tax relief programs for ten years. The legislation explicitly excludes businesses that are rebranded existing companies or subsidiaries of large corporations attempting to exploit the tax benefits. The Department of Revenue and Economic Development will evaluate the program's effectiveness and report to the General Assembly by January 1, 2035, with recommendations for potentially extending, amending, or terminating the act. The bill will remain in effect for ten years from its approval and apply to businesses registered before January 1, 2027.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4089&session=126&summary=B