[Effective for taxable years beginning after June 30, 2001.]

1. (A) A taxpayer that claims a federal income tax credit pursuant to Section 41 of the Internal Revenue Code for increasing research activities for the taxable year is allowed a credit against any tax due pursuant to Section 12-6-530 or Section 12-20-50 equal to five percent of the taxpayer's qualified expenditures for research and development made in South Carolina. For the purposes of this credit, qualified research and development expenditures have the same meaning as provided for in Section 41 of the Internal Revenue Code.
2. (B) The credit taken in any one taxable year pursuant to this section may not exceed fifty percent of the taxpayer's remaining tax liability after all other credits have been applied. Any unused credit may be carried over to the immediately succeeding taxable years, except that the credit carry-over may not be used for a taxable year that begins on or after ten years from the date of the qualified expenditure.