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 any entity or individual with a relationship to a business as defined by the Internal Revenue Code, as well as any entity that owns more than ninety percent of the qualifying business. Notably, the related person does not need to meet certain requirements typically applicable to qualifying businesses.

Additionally, the bill amends Section 12-10-80 to allow a qualifying business 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 it. The bill also allows related persons to claim job development credits for jobs they create and for qualifying expenditures incurred, treating these as if they were incurred by the qualifying business itself. 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