ANNOUNCEMENT 13 Jun 2013In June 2013, a US state government announced a targeted tax change.
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The governor of South Carolina signed into law on June 13, 2013 a bill (variously designated as A81, R102, and H3557) that is intended to incentivize the use of South Carolina ports through the extension of tax credits to businesses that increase their volume of exports and imports passing through these facilities.
More specifically, the new law amends existing statutes to provide as follows: "A taxpayer engaged in any of the following: manufacturing, warehousing, freight forwarding, freight handling, goods processing, cross docking, transloading, wholesaling of goods, or distribution, exported or imported through port facilities in South Carolina and which increases its port cargo volume at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume is eligible to claim an income tax credit or a credit against employee withholding in the amount determined by the Coordinating Council for Economic Development (council)."
The law further provides that the maximum amount of tax credits allowed to all qualifying taxpayers may not exceed $8 million for each calendar year, that the credits may be claimed against certain taxes, and that the council has sole discretion in allocating the credits. Among the factors that the council is to consider are (a) the amount of base year port cargo volume; (b) the total and percentage increase in port cargo volume; and (c) factors related to the economic benefit of the State or other factors.