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 Section 12-6-532. This section defines "startups" as newly established businesses operating for no more than 24 months and "small businesses" as those employing fewer than 50 full-time employees and generating less than $3 million in annual revenue. Eligible businesses that meet specific criteria, including being incorporated or registered in South Carolina by January 1, 2027, can receive a corporate income tax exemption for their first two years of operation. After this period, the tax liability gradually increases over the next three years.

The bill also outlines penalties for businesses that misrepresent their status to qualify for the tax benefits, including the termination of benefits and repayment of any received tax advantages. Additionally, certain entities, such as those previously registered under a different name or large corporations attempting to exploit the provisions, are explicitly excluded from eligibility. The Department of Revenue and the Department of Economic Development are tasked with evaluating the effectiveness of the act by January 1, 2035, assessing its impact on job creation and economic growth. The act will take effect upon the Governor's approval and will remain in effect for ten years, subject to review.

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