Bill > H4174

This bill amends South Carolina's job development credit laws to provide more flexibility for businesses in calculating and claiming tax credits by expanding the definition of "related persons". Specifically, the bill modifies two key sections of the tax code: first, it broadens the definition of "related person" to include entities owning more than 90% of a qualifying business and entities defined under specific Internal Revenue Code sections. Second, it allows a qualifying business to designate up to two related persons whose jobs and investments can be counted towards meeting minimum job and capital investment requirements for tax credit purposes. A qualifying business can now designate an entity that is either at least 50% owned by the qualifying business or an entity that owns more than 90% of the qualifying business. The bill also permits qualified expenditures by related persons to be treated as if they were incurred by the qualifying business, and allows related persons to claim job development credits for jobs they create. These changes take effect upon the Governor's approval and will first apply to income tax years beginning after 2024, providing businesses with more strategic options for claiming job development credits.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4174&session=126&summary=B