South Carolina H 3493: A HOUSE RESOLUTION TO RECOGNIZE AND CELEBRATE THE COASTAL CAROLINA UNIVERSITY BASEBALL TEAM FOR WINNING THE 2016 COLLEGE WORLD SERIES AND CAPTURING ITS FIRST NCAA BASEBALL TITLE AND TO CONGRATULATE THE PLAYERS AND COACHES ON A FABULOUS SEASON.

Bill Text

2025-2026 Bill 3493 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3493

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 ADDING SECTION 
12-6-3805 SO AS TO PROVIDE A TAX CREDIT FOR A TAXPAYER THAT CONTRACTS WITH A 
SMALL BUSINESS WHICH NECESSITATES THE SMALL BUSINESS HIRING ADDITIONAL FULL-TIME 
EMPLOYEES.

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

SECTION 1. Article 25, Chapter 6, Title 12 of the S.C. Code is 
amended by adding:

 Section 
12-6-3805. (A)(1) There is allowed 
an income tax credit to any taxpayer that contracts with a small business 
headquartered in this State to complete projects or perform services if the 
contract of the small business results in the small business hiring additional 
full-time employees to perform the services. A 
contract must be for a duration of no less than three years to qualify for the 
credit. In the first year in which the credit is earned pursuant to subsection 
(D), the amount of the credit is three thousand dollars for each additional 
employee. If the employee remains employed and otherwise meets the requirements 
of this section thereafter, the credit is two thousand five hundred dollars in 
the second year, and one thousand dollars in the third year. The credit may not 
be claimed beyond the third year.

 (2) The 
taxpayer only qualifies for the credit if the average annual receipts of the 
taxpayer exceed the maximum amount in order to be considered a small business.

 (B) The 
credit allowed pursuant to this section may be taken against the income taxes 
imposed pursuant to this chapter, the bank tax imposed pursuant to Chapter 11 
of this title, the savings and loan association tax imposed pursuant to Chapter 
13 of this title, the corporate license tax imposed pursuant to Chapter 20 of 
this title, and insurance premium taxes imposed pursuant to Chapter 7, Title 
38.

 (C)(1) The total amount of the tax 
credit for a taxable year may not exceed the taxpayer's tax liability. Any 
unused credit may be carried forward for the next three tax years.

 (2) 
A taxpayer may not claim the credit for more than twenty employees in the first 
three years after entering into the contract, and the taxpayer may not claim 
this credit in any year for any employee after the first three years after 
entering into the contract. However, nothing in this item may be construed to 
restrict credits upon entering into a new contract or renewing a qualifying 
contract except that the credits could only be earned on additional full-time 
employees that supplement, and not supplant, employees for which a credit was 
previously claimed under the previous contract.

 (D) 
The tax credit is earned in the year in which the additional employee of the 
small business first completes the twelfth consecutive month of employment with 
the small business. The credit is earned in the same manner and on the same 
schedule in the second and third year of employment. If the contract is 
terminated before the twelfth consecutive month of employment, then the credit 
may not be claimed.

 (E) The 
department may prescribe forms and promulgate regulations necessary to 
implement the provisions of this section, including requiring the contract and 
other necessary documentation to prove eligibility which must include a 
statement from the small business that the additional employees were hired as a 
result of the taxpayer's engagement with the small business.

 (F) For 
the purposes of this section:

 (1) "Full-time 
employee" has the same meaning as provided in Section 12-3-3360.

 (2) "Small 
business" has the same meaning as defined by the Small Business Administration 
and the North American Industry Classification System (NAICS). The 
determination of whether a business qualifies as a small business occurs at the 
time immediately prior to the hiring that resulted in the tax credit.

SECTION 2. This act takes effect upon approval 
by the Governor and applies to employees hired after the Governor's approval.

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