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H 4174

Job development credits

2025-2026 Regular Session Introduced by Lee Hewitt and 1 co-sponsor

South Carolina broadens and clarifies “related person” for the Job Development Credit, allowing up to two related entities to count their jobs and expenditures toward a qualifying

Referred to Committee on Ways and Means
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Bill Summary · H 4174

Summary — Job Development Credit Amendments (text provided)

Note: The materials you provided include two distinct bills combined into one document — (1) a Massachusetts local bill concerning the Ayer Library (House Docket No. 4661 / H.4174) and (2) a South Carolina statutory amendment concerning the Job Development Credit (amendments to S.C. Code §§12‑10‑30 and 12‑10‑80). The summary below focuses on the Job Development Credit amendments (South Carolina), since the bill title you supplied is “Job development credits.” If you also want a summary of the Ayer Library bill, I can provide that separately.

Purpose / Intent

Amend South Carolina’s Job Development Credit (JDC) statute to (1) broaden and clarify the definition of “related person” and (2) specify which related entities a qualifying business may designate so that jobs and qualifying capital expenditures of those related persons can be counted toward meeting JDC job and investment thresholds and toward claiming credits.

Key provisions

  • Redefines “related person” (S.C. Code §12‑10‑30(19)):

    • Includes entities/persons with relationships defined by Internal Revenue Code sections 267 or 707(b).
    • Explicitly includes any entity that owns more than 90% of the qualifying business.
    • Requires that a related person be a “qualifying business” (per item (7)), but waives certain qualifying requirements:
    • A related person need not meet Section 12‑10‑50(A)(1) requirements.
    • Where the qualifying business claims a withholding-for-retraining credit under §12‑10‑95, the related person need not meet §12‑10‑50(B)(1).

  • Clarifies designation and credit treatment (S.C. Code §12‑10‑80(A)(14)(a)):

    • A qualifying business may designate up to two related persons whose jobs and investments at the project site may be included to satisfy and maintain minimum job and capital investment requirements.
    • A qualifying business may designate either:
    • one entity that is at least 50% owned by the qualifying business, or
    • an entity that owns more than 90% of the qualifying business.
    • Qualified expenditures incurred by a related person may be treated as expenditures of the qualifying business for JDC purposes.
    • Each designated related person may also claim the JDC for jobs it creates and may include qualifying expenditures of the qualifying business or another related person as if made by that related person.

  • Effective date:

    • Takes effect upon gubernatorial approval and first applies to income tax years beginning after 2024.

Who is affected

  • Primary: qualifying businesses participating in South Carolina’s Job Development Credit program and their related entities (as newly defined).
  • Secondary: South Carolina Department of Revenue (administration, audit), state budget (potentially larger or differently structured credit claims), economic development agencies, and local communities where projects are located.

Potential impacts

  • Expands the universe of entities whose jobs and investments can be aggregated — may make it easier for business groups/affiliated entities to meet JDC thresholds.
  • Could increase total credits claimed (revenue impact) or change timing/structure of claims; fiscal effect depends on how businesses use the expanded definitions.
  • Raises administrative considerations: verification of ownership/relationship tests, coordination among designated entities, and audit complexity.
  • May allow more flexible project structuring (parent/subsidiary, majority ownership, or 50%‑owned affiliates) to qualify.

Procedural / timeline notes

  • Statutory text states effective upon governor’s approval; applies to tax years beginning after 2024.
  • The copy you provided includes legislative action dates (e.g., introduced March 6, 2025) and later readings — if you want, I can map the exact legislative status (passed both chambers / awaiting signature) based on the jurisdiction’s legislative record.

If you want a separate concise summary of the Massachusetts Ayer Library bill included in your materials, or a deeper analysis of fiscal impact and likely administrative issues for the JDC changes, tell me which and I’ll prepare it.

Compiled from official sources — confirm details with the bill’s official record.

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