The South Carolina Economic Impact Zone Community Development Act of 1995 established an income tax credit for qualified manufacturing and production facilities. The credit is designed to encourage capital investment in the state through the formation of new businesses and the retention and expansion of existing businesses. Known as the "investment tax credit", the credit was initially limited to businesses making qualified investments in 27 designated counties in South Carolina, but has been expanded statewide.
The credit applies for qualified manufacturing and ...
Beginning in 2018, certain employers will be liable for a new 40% federal excise tax on the value of excess benefits provided through their health plans. Health plans providing high cost benefits are referred as "Cadillac" plans, and the new federal excise tax on high cost plans has come to be known as the "Cadillac tax".
Under the Cadillac tax, if the aggregate cost of "applicable employer-sponsored coverage" provided to an employee exceeds a statutory dollar limit (revised annually), the excess is subject to a 40% excise tax.
In a prior post, I reviewed who is liable for and who must ...
Internal Revenue Code Sec. 1411, passed by Congress in 2012, introduced a new tax on passive income that went into effect on Jan. 1, 2013, the tax on "net investment income" (NII).
The new tax was created to help pay for health care reforms that were enacted in 2010. The rate is 3.8% of the lower of net investment income or the amount of modified adjusted gross income (MAGI) over specific thresholds. Modified adjusted gross income is adjusted gross income increased by the foreign earned income exclusion (but also adjusted for certain deductions related to the foreign earned income). For ...
South Carolina provides an income tax credit to a taxpayer who invests in motion picture related projects. Specifically, the state provides a credit equal to 20% of the cash invested by a person in a company that: (1) develops or produces a qualified South Carolina motion picture project or (2) constructs, converts, or equips a motion picture production facility or post-production facility in South Carolina. Key requirements of each credit are:
- Motion Picture Project Credit
- The credit is earned when cash only is spent. This credit, when combined with a taxpayer's other South ...
South Carolina provides a tax credit to corporations against the state corporate income, or state corporate license fees, equal to 20% of the qualifying costs of establishing a corporate headquarters in South Carolina, or expanding or adding to an existing corporate headquarters. The credit is made up of two parts, the real property costs and the personal property costs. Key Features of the credit are:
- A corporation may qualify for only the real property portion of the credit, or may qualify for both the real and personal property portions of the credit.
- Any unused credit may be carried ...
Update: As of June 16, 2016 all community development tax credits have been claimed.
South Carolina provides valuable tax incentives to people who support Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs). A 33% credit is provided for each dollar invested in or donated to a certified CDC or CDFI. S.C. Code § 12-6-3530. This credit is commonly referred to as the community development tax credit.
The community development tax credit was enacted in 2000 and is scheduled to sunset on June 30, 2020. A total of $5 million in credits are ...
Is a revocable trust for you? There are a number of factors for you and your attorney to consider. One considerations is the most efficient and cost-effective way to transfer assets at death to your beneficiaries. In many cases, the revocable trust is the most efficient path. A well-drafted revocable trust agreement should provide greater flexibility in carrying out the wishes of the decedent and protecting the interests of the beneficiaries.
The transfer of assets owned by someone at his death occurs through a court-supervised process generally referred to as "probate" or "estate ...
Beginning in 2018, certain employers will be liable for a new 40% federal excise tax on the value of excessive benefits provided through their health plans. Health plans providing high cost benefits are referred to as "Cadillac" plans, and the new federal excise tax on high cost plans has come to be known as the "Cadillac tax".
- Background.
The Cadillac tax (found in Section 4980I of the Internal Revenue Code - the "Code") was adopted as part of the 2010 Patient Protection and Affordable Care Act. The Cadillac tax is intended to provide employers with an incentive to restrain the growth of ...
Individuals and businesses seeking to sell trade or investment property may have taxable capital gains or other income from the sale. Section 1031 of the Internal Revenue Code provides an opportunity to instead exchange this property for other property of a "like kind", and to defer, postpone, or even exclude altogether (at death) this tax.
Like all tax rules, Section 1031 contains important definitions and terms, which must be considered in understanding how this tax mechanism works.
3 Property Rule - An Exchangor may identify as Replacement Property like-kind property of any ...
South Carolina offers a statutory incentive to new and expanding businesses that create jobs in our state. The Job Tax Credit ("JTC"), codified in S.C. Code Ann. § 12-6-3360, permits certain businesses to reduce their corporate income tax liability annually by a maximum of 50%. Any unused credit may be carried forward for up to 15 years. There are three types of JTCs: (1) the "traditional" annual job tax credit, (2) the "annual" small business job tax credit, and (3) the "accelerated" small business job tax credit. This blog will address the "traditional" JTC only.
To qualify for JTC, a ...