The "Boosting Opportunities for Small Startups (BOSS) Act" aims to provide tax relief for small businesses in South Carolina by amending the state code to include new exemptions from the corporate income tax. Specifically, the bill introduces Section 12-6-532, which defines "startups" and "small businesses" and outlines eligibility criteria for tax exemptions. To qualify, a business must be newly established, generate less than three million dollars in gross annual revenue, and employ fewer than fifty full-time employees. Eligible businesses will be exempt from state corporate income tax for the first two years of operation, with a gradual increase in tax liability in subsequent years.

The bill also includes provisions to prevent abuse of the tax exemptions, such as penalties for businesses misrepresenting their status and exclusions for certain entities, including those that were previously registered under a different name. Additionally, the Department of Revenue and the Department of Economic Development are tasked with evaluating the effectiveness of the act and reporting to the General Assembly by January 1, 2035. The act will take effect upon the Governor's approval and will apply to businesses incorporated or registered before January 1, 2027, remaining in effect for ten years before review.

Statutes affected:
02/25/2025: 12-6-532
Latest Version: 12-6-532