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 organization and that the total credits do not exceed specified annual limits. The bill 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 allocation process and specific limitations on the amount any single organization can receive. It also includes provisions for monitoring investments and allows taxpayers to carry over any excess credits to future tax years, subject to certain conditions. The act is set to expire on June 30, 2030, unless reauthorized by the General Assembly, and 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