South Carolina has expanded the corporate headquarters credit so that it also applies to the individual income tax, and references to “corporation” are replaced with references to “taxpayer.” The law is also amended to specify that a taxpayer, or taxpayer’s business unit, doing business solely in South Carolina does not qualify as a headquarters.
Qualifying jobs are now required to have gross wages equal to or greater than twice the per capita income of the state, and the employees must be provided with a benefits package that includes healthcare. Research and development jobs are eliminated as qualifying jobs. For purposes of the additional headquarters credit for the cost of tangible personal property, the law is amended to remove the requirement for 75 new jobs.
Recycling facility credit. The recycling facility credit is amended to lower the required investment from $300 million to $150 million. The credit is also expanded to apply to fabrication of products, in addition to manufacturing, and the definition of “postconsumer waste material” is expanded to include used batteries, solar panels, turbines, and related structures.
Job development credit. The law is amended to allow certain remote employees to count for purposes of the job development credit, applicable to income tax years beginning after 2020. However, according to the bill’s fiscal impact summary, this conforms to changes in practice in response to the pandemic and will not affect the total number of credits. In addition, the law is revised to allow certain taxpayers to get reimbursed for lease expenditures before meeting the minimum job and capital requirements in the revitalization agreement.
Job retraining credit. Qualifying industries under the job retraining credit are expanded to include warehousing and distribution. In addition, retraining programs are expanded to include upskilling, management development, or recertification in production-related competencies. The continuous employment requirement is changed from a minimum of two years to one year. The law also amends the provision stating that the credit does not apply to employees who are subject to a revitalization agreement. As amended, the provision specifies that retraining credits cannot be claimed for certain employees for which the company is eligible to claim job development credits.
Broadband grant subtraction. For taxable years beginning on or after January 1, 2023, and prior to January 1, 2029, a subtraction from taxable income is allowed for any grant or subgrant under the Broadband Equity, Access, and Deployment Program established pursuant to 47 U.S.C. 1702, or the American Rescue Plan Act of 2021, Public Law 117-2, received for the purpose of making investments in broadband infrastructure, but only to the extent that the grant or subgrant is included in the corporation’s taxable income, as defined under the Internal Revenue Code.
H.B. 4087, Laws 2024, effective July 3, 2024, applicable to income tax years beginning after 2023, except as noted
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