Bill > H4164

This bill establishes a tax credit program for investments in community development corporations (CDCs) and community development financial institutions (CDFIs) in South Carolina. Taxpayers can claim a tax credit of 33% for investments in these organizations, with a higher 50% credit for cash donations. The total annual tax credits are capped at $15 million statewide, with no more than $3 million allowed in a single tax year. The Department of Commerce will manage these credits on a first-come, first-served basis, with 25% of annual credits reserved for small, rural-based CDCs during the first three quarters of the year. To qualify, these organizations must be non-profit entities with a primary mission of developing and improving low-income communities, providing economic opportunities, small business support, and financial services to underserved populations. The bill defines specific criteria for CDCs and CDFIs, including restrictions on fund allocation and governance. Taxpayers can carry forward unused credits for up to three years, and banks can invest up to 10% of their capital in these organizations. The tax credit program will expire on June 30, 2030, unless reauthorized by the General Assembly, and will first apply to credits earned and certificates issued after 2024.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4164&session=126&summary=B