The bill H. 4164 proposes to amend the South Carolina Code of Laws by adding Section 12-6-3531, which establishes a tax credit for taxpayers who invest in community development corporations or community development financial institutions. Specifically, taxpayers can claim a credit of thirty-three percent of their investments, and for cash donations to certified entities, a credit of fifty percent is available. To qualify for these credits, taxpayers must obtain a certification from the South Carolina Department of Commerce, which ensures that the investment is made in a certified entity and that the total credits do not exceed specified annual limits. The bill also sets an aggregate cap of fifteen million dollars for all taxpayers and three million dollars for any single taxable year.

Additionally, the bill outlines the administration of these tax credits, including a first-come, first-served authorization process by the Department of Commerce and restrictions on the amount any single entity can receive. It also allows for the carry-over of unused credits to future tax years, with certain limitations. The provisions of this act are set to expire on June 30, 2030, unless reauthorized by the General Assembly. The act will take effect upon the Governor's approval and will apply to credits earned and certificates issued after 2024, while prior credits must adhere to the regulations in place before the new section was enacted.

Statutes affected:
03/06/2025: 12-6-3531
Latest Version: 12-6-3531