Sc Sch Tc-4sa - Accelerated Small Business Jobs Credit (Page 7 of 15) in pdf

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 than 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.

Annualizing. To determine if the 120% wage threshold is met, gross wages paid for each new job created in the tax year are

annualized. For example, assume a new full-time job created in X County in July 1, 2011 pays a gross wage of $20,000 for the 6

month period July 1, 2011 through December 31, 2011. The annualized salary is $40,000.

The threshold for each full-time job is computed using the following formula:

Full-time job annualized:

Gross wages

12 months

Months worked in tax year

Part-time job annualized:

Gross wages

12 months

40 hours

Months worked in tax year

Half-time hours worked per week

"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.

Sc Sch Tc-4sa - Accelerated Small Business Jobs Credit Page 7

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