Form Sc Sch.tc 4 - South Carolina New Jobs Credit (Page 4 of 9) in pdf

S corporation, partnership, or LLC. Taxpayers claiming this credit and a corporate tax moratorium may carry forward

unused amounts until after the moratorium period expires.

Definitions

"Taxpayer" means a sole proprietor, partnership, corporation of any classification, LLC, or association taxable as a

business entity that is subject to South Carolina corporate or individual income tax, bank tax, or insurance premium tax.

"New job" means a job created in this State at the time a new facility or an expansion is initially staffed. A new job does

not include a job transferred from one site to another site by the taxpayer or a related person, unless the job is

transferred to a county where a federal facility has reduced its permanent employment by 3,000 or more jobs after

December 31, 1990. Also included are jobs reinstated when the employer has rebuilt the facility after (a) more that 50%

of it was destroyed by accidental fire, natural disaster, or act of God; or (b) an involuntary conversion took place through

condemnation or exercise of eminent domain by the federal government or South Carolina or any of its political

subdivisions, including a legally binding agreement for the purchase of the employer's facility under threat of exercise of

eminent domain. The year of reinstatement is the year of creation of a reinstated job. All reinstated jobs qualify for this

credit. No comparison is required between the number of full-time jobs in the tax year and the number of full-time jobs in

the corresponding period of the prior tax year.

"Full-time" means a job requiring a minimum of 35 hours of an employee's time each week for the entire normal year of

company operations or a job requiring a minimum of 35 hours of an employee's time each week for a year in which the

employee was hired initially for or transferred to the South Carolina facility. Two (2) half-time jobs are considered one (1)

full-time job. A "half-time job" is a job requiring a minimum of 20 hours of an employee's time each week for the entire

normal year of the company's operations or a job requiring a minimum of 20 hours of an employee's time each week for

a year in which the employee was hired initially for or transferred to the South Carolina facility.

"Manufacturing facility" means an establishment where tangible personal property is produced or assembled.

"Processing facility" means an establishment that prepares, treats, or converts tangible personal property into finished

goods or another form of tangible personal property. It can be a business engaged in processing agricultural,

aquacultural, or maricultural products and specifically includes meat, poultry, and any other variety of food processing

operations. It cannot be an establishment where retail sales of tangible personal property are made to retail customers.

"Warehousing facility" means an establishment where tangible personal property is stored. It cannot be an

establishment where retail sales of tangible personal property are made to retail customers.

"Distribution facility" means an establishment where shipments of tangible personal property are processed for

delivery to customers. It cannot be an establishment where retail sales of tangible personal property are made to retail

customers on more than 12 days a year except for a facility which processes customer sales orders by mail, telephone,

or electronic means, if the facility also processes shipments of tangible personal property to customers and if at least

75% of the dollar amount of goods sold through the facility are sold to customers outside of South Carolina. The

limitation does not include retail sales made inside the facility to employees working at the facility.

"Research and development facility" means an establishment engaged in laboratory, scientific, or experimental testing

and development related to new products, new uses for existing products, or improving existing products. It cannot be

an establishment engaged in efficiency surveys, management studies, consumer surveys, economic surveys,

advertising, promotion, banking, or research in connection with literary, historical, or similar projects.

"Corporate office facility" means a corporate headquarters that meets the definition of a "corporate headquarters"

contained in Section 12-6-3410(J)(1). Corporate offices include general contractors licensed by the S.C. Department of

Labor, Licensing and Regulation, even if not a regional or national headquarters.

"Tourism facility" means an establishment used for a theme park, an amusement park, a historical, educational, or

trade museum, a botanical garden, a cultural center, a theater, a motion picture production studio, a convention center,

an arena, an auditorium, or a spectator or participatory sports facility. It can be a similar establishment where

entertainment, education, or recreation is provided to the general public. It can also be a new hotel and motel

construction site if the number of new jobs created by the new hotel or motel will be 20 or more. It does not include any

portion of an establishment where retail merchandise or retail services are sold directly to retail customers.

35573013

Form Sc Sch.tc 4 - South Carolina New Jobs Credit Page 4

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