South Carolina S 34: Income Tax

Bill Text

2025-2026 Bill 34 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 34

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 2-65-70, RELATING TO THE RECOVERY OF INDIRECT COSTS, SO AS TO PROVIDE 
THAT CERTAIN PROVISIONS DO NOT APPLY TO NONRESEARCH GRANTS FOR PUBLIC INSTITUTIONS 
OF HIGHER LEARNING THAT SUPPORT THE MISSION OF ANOTHER STATE AGENCY, 
INSTITUTION, OR UNIT OF GOVERNMENT.

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

SECTION 1. Section 2-65-70 of the S.C. Code is amended to read:

 Section 
2-65-70. (A) All agencies receiving 
federal grants or contracts shall recover the maximum allowable indirect costs 
on those projects, subject to applicable federal laws and regulations. All 
indirect cost recoveries must be credited to the general fund of the State, 
with the exception of recoveries from research and student aid grants and 
contracts. Further, after January 1, 1999, federal grants and contracts whose 
annual award is two hundred thousand dollars or less are exempted also from 
this cost recovery requirement.

 (1) 
Each agency receiving grants or contracts to which indirect costs may be 
charged must have an approved indirect cost rate or cost allocation plan. 
Agencies shall prepare the indirect cost proposals and submit them to the board 
for review. The board shall submit the proposals to the appropriate federal 
agencies, negotiate the agreements, and transmit approved agreements to the 
state agencies. The board, upon request, also shall provide a report on the 
proposals to the House Ways and Means Committee or the Senate Finance 
Committee, or both.

 (2) 
The board annually shall prepare the Statewide Cost Allocation Plan for 
allocation of central service costs to federal and other programs. The board 
shall ensure that state agencies recover costs approved in the plan through 
federal grants and contracts, subject to federal laws and regulations.

 (3) 
The State Comptroller General shall assist the board in ensuring compliance 
with this section.

 (B) If 
it is determined to be in the best interest of the State and the agency 
receiving the federal funds, the requirements of this section may be waived; 
except that indirect cost waivers may not be granted for unanticipated federal 
projects authorized pursuant to Section 2-65-30 of this chapter. Requests for 
indirect cost waivers for continuing federal projects must be made by the 
applicant agency as a part of its budget request and must be reviewed in 
accordance with the provisions of Section 2-65-20 of this chapter.

 (C) For a public institution of higher 
learning, the requirements of subsection (A) do not apply to the first five 
hundred thousand dollars of a nonresearch grant when the grant directly 
supports the mission of another state agency, institution, or unit of government. 
Each public institution of higher learning shall provide a report to the 
Chairman of the House Ways and Means Committee, the Chairman of the Senate 
Finance Committee, and the Chairman of the State Fiscal Accountability 
Authority by September thirtieth of each year detailing the utilization of this 
subsection in the previous fiscal year.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 11, 2024 at 04:27 PM