Bill > S0856

This bill establishes a new tax credit for individuals and businesses in South Carolina that invest in or donate to certified community development corporations (CDCs) or community development financial institutions (CDFIs). Taxpayers can receive a credit of 33% of their investment or 50% of their cash donation, provided they obtain a certificate from the South Carolina Department of Commerce confirming the entity's status and the credit's availability within annual and overall state limits. These limits are set at $15 million in total for all taxpayers and all years, and $3 million for all taxpayers in a single year, with specific allocations and preferences for smaller, rural-based CDCs and CDFIs during certain periods of the year. The Department of Commerce will manage the credit authorization on a first-come, first-served basis, and any unused credit can be carried over for up to three years. The bill defines CDCs as nonprofit organizations focused on improving low-income communities through economic development, and CDFIs as organizations providing credit, capital, or development services to underserved businesses and individuals, with specific criteria for their mission, accountability, and service reach. This program is set to terminate on June 30, 2031, unless reauthorized by the General Assembly, and will apply to credits earned and certificates issued after 2025.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0856&session=126&summary=B