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 entity is recognized as a community development corporation or financial institution. The total amount of credits is capped at fifteen million dollars for all taxpayers across all taxable years, with a limit of three million dollars for any single taxable year.

Additionally, the bill outlines the distribution and management of these tax credits, including a first-come, first-served authorization process by the Department of Commerce and specific allocations for small, rural-based community development corporations. It also stipulates that if the credit exceeds a taxpayer's state tax liability, the excess can be carried over to subsequent years, with certain limitations. The provisions of this act are set to expire on June 30, 2030, unless reauthorized by the General Assembly, and the act will take effect upon the Governor's approval, applying to credits earned and certificates issued after 2024.

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