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 certification from the South Carolina Department of Commerce, which will also monitor the investments and manage the allocation of credits on a first-come, first-served basis. 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 specific definitions for community development corporations and financial institutions, detailing their missions and operational guidelines. It also includes provisions for the carry-over of unused credits to subsequent tax years, restrictions on the amount of credits any single entity can receive, and a termination date for the act set for 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.

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