S.C. Code Ann. § 12-10-80 – Job development credits

(A) A business that qualifies pursuant to Section 12-10-50 and has met the minimum job requirement and minimum capital investment provided for in the revitalization agreement may claim job development credits as determined by this section.
1. (1) A business may claim job development credits against its withholding on its quarterly state withholding tax return for the amount of job development credits allowable pursuant to this section.
2. (2) A business that is current with respect to its withholding tax and other tax due and owing the State and that has maintained its minimum employment and investment levels identified in the revitalization agreement may claim the credit on a quarterly basis beginning with the first quarter after the council's certification to the department that the minimum employment and capital investment levels were met for the entire quarter.
3. (3) A qualifying business may receive its initial job development credit only after the council has certified to the department that the qualifying business has met the required minimum employment and capital investment levels.
4. (4) To be eligible to apply to the council to claim a job development credit, a qualifying business shall create at least ten new, full-time jobs, as defined in Section 12-6-3360(M), at the project described in the revitalization agreement within five years of the effective date of the agreement.
5. (5) A qualifying business is eligible to claim a job development credit pursuant to the revitalization agreement for not more than fifteen years.
6. (6) To the extent any return of an overpayment of withholding that results from claiming job development credits is not used as permitted by subsection (C) or (D), it must be treated as misappropriated employee withholding.
7. (7) Except as provided in subsection (D), job development credits may not be claimed for purposes of this section with regard to an employee whose job was created in this State before the taxable year of the qualifying business in which it enters into a preliminary revitalization agreement.
8. (8) If a qualifying business claims job development credits pursuant to this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business claiming job development credits pursuant to this section shall file with the council and the department the information and documentation requested by the council or department respecting employee withholding, the job development credit, and the use of any overpayment of withholding resulting from the claiming of a job development credit according to the revitalization agreement.
9. (9) Each qualifying business claiming in excess of ten thousand dollars in a calendar year must furnish an audited report prepared by an independent certified public accountant that itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown.
10. (10) Each qualifying business claiming ten thousand dollars or less in any calendar year must furnish a report prepared by the company that itemizes the sources and uses of the funds. This report must be filed with the council and the department no later than June thirtieth following the calendar year in which the job development credits are claimed, except when a qualifying business obtains the written approval by the council for an extension of that date. Extensions may be granted only for good cause shown.
11. (11) An employer may not claim an amount that results in an employee's receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would receive otherwise in the absence of this chapter.
(B)
1. (1) The maximum job development credit a qualifying business may claim for new employees is limited to the lesser of withholding tax paid to the State on a quarterly basis or the sum of the following amounts:
  1. (a) two percent of the gross wages of each new employee who earns 6.74 dollars or more an hour but less than 8.99 dollars an hour;
  2. (b) three percent of the gross wages of each new employee who earns 8.99 dollars or more an hour but less than 11.23 dollars an hour;
  3. (c) four percent of the gross wages of each new employee who earns 11.23 dollars or more an hour but less than 16.85 dollars an hour; and
  4. (d) five percent of the gross wages of each new employee who earns 16.85 dollars or more an hour.
2. (2) The hourly gross wage figures in item (1) must be adjusted annually by an inflation factor determined by the State Budget and Control Board. The amount that may be claimed by a qualifying business is limited by subsection (C) and the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits pursuant to subsection (C) for qualifying businesses making a significant capital investment as defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4).
(C) To claim a job development credit, the qualifying business must incur qualified expenditures at the project or for utility or transportation improvements that serve the project. To be qualified, the expenditures must be:
1. (1) incurred during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement;
2. (2) authorized by the revitalization agreement; and
3. (3) used for any of the following purposes:
  1. (a) training costs and facilities;
  2. (b) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;
  3. (c) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;
  4. (d) fixed transportation facilities including highway, rail, water, and air;
  5. (e) construction or improvements of real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;
  6. (f) employee relocation expenses associated with new or expanded technology intensive facilities as defined in Section 12-6-3360(M)(14);
  7. (g) financing the costs of a purpose described in items (a) through (f).
    1. (1) one hundred percent of the maximum job development credits may be claimed by businesses located in counties designated as "least developed";
    2. (2) eighty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as "under developed";
    3. (3) seventy percent of the maximum job development credits may be claimed by businesses located in counties designated as "moderately developed"; or
    4. (4) fifty-five percent of the maximum job development credits may be claimed by businesses located in counties designated as "developed".
      The county designation of the county in which the project is located at the time the qualifying business enters into a preliminary revitalization agreement with the council remains in effect for the entire period of the revitalization agreement, except as to additional jobs created pursuant to an amendment to a revitalization agreement entered into before June 1, 1997, as provided in Section 12-10-60. In that case the county designation on the date of the amendment remains in effect for the remaining period of the revitalization agreement as to any additional jobs created after the effective date of the amendment. This item does not apply to a business whose application for job development fees or credits pursuant to Section 12-10-81 has been approved by council before the effective date of this act.
      The council shall certify to the department the maximum job development credit for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development credit and the job development credit actually claimed to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85.
    The amount of job development credits a qualifying business may claim for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360(B) as follows:
(D) Subject to the conditions in this section, a qualifying business in this State may negotiate with the council to claim a job development credit for retraining according to the procedure in subsection (A) in an amount equal to five hundred dollars a year for each production and technology employee being retrained, where this retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. This retraining must be approved and performed by the appropriate technical college under the jurisdiction of the State Board for Technical and Comprehensive Education. The technical college may provide the retraining program delivery directly or contract with other training entities to accomplish the required training outcomes. In addition to the yearly limits, the amount claimed as a job development credit for retraining may not exceed two thousand dollars over five years for each production employee being retrained. Additionally, the qualifying business must match on a dollar-for-dollar basis the amount claimed as a job development credit for retraining. The total amount claimed as job development credits for retraining and all of the matching funds of the qualifying business must be paid to the technical college that provides the training to defray the cost of the training program. Training cost in excess of the job development credits for retraining and matching funds is the responsibility of the qualifying business based on negotiations with the technical college.
(E) Any job development credit of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. If an employee is terminated, the qualifying business immediately must cease to claim job development credits.
(F) The statute of limitations provided by Section 12-54-85 is suspended until the end of the five-year period described in item (4) of subsection (A) with respect to state withholding taxes pursuant to this section for a business subject to this section.
(G) For purposes of the job development credit allowed by this section, an employee is a person whose job was created in this State.
(H) Job development credits may not be claimed by a governmental employer who employs persons at a closed or realigned military installation as defined in Section 12-10-88(E).