A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-3531 SO AS TO ALLOW A TAX CREDIT TO A TAXPAYER THAT INVESTS IN A COMMUNITY DEVELOPMENT CORPORATION OR IN A COMMUNITY FINANCIAL INSTITUTION.
Impact
The legislation, if enacted, is anticipated to significantly impact local economic development strategies by encouraging investments in underserved areas. With a total credit limit of fifteen million dollars across all taxpayers, the legislation aims to create a structured approach to tax credits, ensuring that funds are directed towards fostering growth in community-centric organizations. Additionally, the provisions restrict the distribution of credits to promote fairness and to ensure that small, rural-based organizations are prioritized in the distribution, particularly during the initial three quarters of the tax year.
Summary
House Bill 4164 aims to amend the South Carolina Code of Laws by introducing a tax credit for taxpayers who invest in community development corporations (CDCs) or community development financial institutions (CDFIs). The bill proposes a tax credit of thirty-three percent for amounts invested, and a fifty percent credit for cash donations made to certified entities. This incentivizes financial support for organizations focused primarily on economic enhancement in low-income and rural communities. The South Carolina Department of Commerce plays a crucial role in certifying these entities, ensuring they meet the necessary criteria to qualify for the credits.
Contention
Notable discussions around HB 4164 include concerns regarding the potential limit on the effectiveness of the credits, given the aggregate cap on available tax credits could restrict access for larger investments. Critics argue that while the intent is to bolster community initiatives, the structured limits might hinder extensive projects from receiving necessary funding. Furthermore, some stakeholders raise queries about how effectively the Department of Commerce can monitor and facilitate the investment process, considering the complexities associated with managing such a tax incentive scheme.
Expiration
The bill also includes a sunset clause stipulating that the provisions will terminate on June 30, 2030, unless reauthorized, which necessitates ongoing legislative review and potential modifications to enhance its efficacy. This expiration date highlights the legislative intent to assess the impacts of the bill and ensure that it continues to serve its purpose effectively.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.