South Carolina H 4174: Job development credits

Bill Text

2025-2026 Bill 4174 Text of Previous Version (Mar. 06, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4174

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 12-10-30, RELATING TO DEFINITIONS FOR THE JOB DEVELOPMENT CREDIT, SO AS 
TO FURTHER DEFINE "RELATED PERSON"; AND BY AMENDING SECTION 12-10-80, RELATING 
TO THE JOB DEVELOPMENT CREDIT, SO AS TO SPECIFY RELATED PERSONS THAT MAY BE 
DESIGNATED AS SUCH BY A QUALIFYING BUSINESS.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-10-30(19) of the S.C. Code is amended to read:

 (19) "Related person" includes any 
entity or person that bears a relationship to a business as provided in 
Internal Revenue Code Section 267 or 707(b). "Related 
person" also includes any entity which owns more than ninety percent of the 
qualifying business. The related person must be a "qualifying business" 
as defined in item (7), except that the related person does not have to meet 
the requirements of Section 12-10-50(A)(1) or, in case the qualifying business 
qualifies for the credit against withholding for retraining pursuant to Section 
12-10-95 of this chapter, the related person does not have to meet the 
requirements of Section 12-10-50(B)(1).

SECTION 2. Section 12-10-80(A)(14)(a) of the S.C. Code is amended 
to read:

 (a) For purposes of this chapter, a 
qualifying business may designate up to two related persons whose jobs and 
investments located at the project may be included to determine whether the 
qualifying business has met and maintained the minimum job requirement and 
minimum capital investment requirement. A qualifying 
business may designate one entity which is at least fifty percent owned by the 
qualifying business or an entity which owns more than ninety percent of the 
qualifying business. Qualified expenditures described in subsection (C) 
incurred by a related person may be treated as though such qualifying 
expenditures were incurred by the qualifying business for purposes of claiming 
the job development credit and each related person may claim the job development 
credit for the jobs created by such related person and include any qualifying 
expenditures of the qualifying business or another related person for purposes 
of claiming the job development credit as if created and made by the related 
person.

SECTION 3. This act takes effect upon approval 
by the Governor and first applies to income tax years beginning after 2024.

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This web page was last updated on March 06, 2025 at 12:20 PM