The bill H. 4174 aims to amend the South Carolina Code of Laws regarding job development credits by updating definitions and designations related to "related persons." Specifically, it revises Section 12-10-30 to clarify that a "related person" includes entities or individuals with relationships to a business as defined by the Internal Revenue Code, as well as any entity owning more than ninety percent of the qualifying business. Notably, the related person is not required to meet certain criteria outlined in Section 12-10-50, which pertains to qualifying businesses.

Additionally, the bill modifies Section 12-10-80 to allow qualifying businesses to designate up to two related persons whose jobs and investments can be counted towards meeting job and capital investment requirements. It specifies that a qualifying business can designate an entity that is at least fifty percent owned by it or one that owns more than ninety percent of the qualifying business. The bill also allows related persons to claim job development credits for jobs they create and to include qualifying expenditures from the qualifying business or other related persons in their claims. This act will take effect upon the Governor's approval and will apply to income tax years starting after 2024.

Statutes affected:
03/06/2025: 12-10-30, 12-10-80
Latest Version: 12-10-30, 12-10-80