The bill H. 4174 aims to amend the South Carolina Code of Laws regarding job development credits by refining the definitions and criteria for "related persons." Specifically, it modifies Section 12-10-30 to clarify that a "related person" includes entities or individuals with relationships to a business as outlined in 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 typically applicable to qualifying businesses, thereby broadening the scope of entities that can be considered for job development credits.

Additionally, the bill amends 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 it. This change enables related persons to claim job development credits for jobs they create and to include qualifying expenditures from the qualifying business or other related persons, enhancing the potential for tax credits associated with job creation and investment in South Carolina. The 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