2023 South Carolina Legislative Session: Economic Development
Though the General Assembly technically adjourned Sine Die until next January, legislators returned sooner than expected, with Governor Henry McMaster calling them back into session to address legislation regarding abortion access and the budget. Since there was no Sine Die resolution dictating what can be discussed before 2024, House and Senate can take up any matter pending on the calendar, opening the door for additional bills to be considered and committee meetings. Throughout the session, both chambers considered legislation impacting economic development projects and programs that impact South Carolina’s current or future economic opportunities.
Below is a summary of this legislation, including its status.
PROJECT-SPECIFIC INCENTIVE LEGISLATION
House Bill 3604: Used to appropriate $1.2 billion of the State's Contingency Reserve Fund balance and $86 million of FY2022-23 excess revenue to finance the guarantees made by SCDOC to Scout Motors. It guaranteed improvements include a bridge to support rail spur construction; land acquisition; required site improvements and mitigation; road access and improvements; soil stabilization; a training center; water and wastewater infrastructure; and anything else recommended by SCDOC.
STATUS: Signed by the Governor on March 20, 2023
House Bill 3604: Used to appropriate $1.2 billion of the State's Contingency Reserve Fund balance and $86 million of FY2022-23 excess revenue to finance the guarantees made by SCDOC to Scout Motors. The legislation guaranteed improvements include a bridge to support rail spur construction; land acquisition; required site improvements and mitigation; road access and improvements; soil stabilization; a training center; water and wastewater infrastructure; and anything else recommended by SCDOC.
STATUS: Signed by the Governor on March 20, 2023
ALIEN LAND OWNERSHIP
Senate Bill 576: The “Alien Land Ownership Bill” would prohibit a citizen of a foreign adversary or a corporation controlled by a foreign adversary from acquiring any interest in real property in South Carolina. The intent of the legislation would extend the prohibition to Chinese citizens and corporations; exceptions are provided for dual citizens and provided grandfathering clauses for existing ownership and expansions under terms approved by the Secretary of Commerce and Governor.
STATUS: Passed by the South Carolina Senate on March 23, 2023, the House Ways & Means Committee addressed the bill before Sine Die adjournment.
TAX CREDIT BILLS
House Bill 3824: Adds equipment used for the distribution, dispensing, or storage of electricity to an existing income tax credit related to alternative fuels at a new or existing fuel distribution or dispensing facility
STATUS: Passed by the House, the bill is now in Senate Finance Committee
House Bill 3121: Allows a tax credit for people who offer their property for recreational trail use with a maximum credit of $1M and a sunset of 5 years
STATUS: Passed by the House, the bill is now in Senate Finance Committee
Senate Bill 557: Increases apprenticeship tax credit to $4000 from $1000 per apprentice or $6000 for a youth apprentice.
STATUS: House amended to include language dealing with the Enterprise Zone Act (H.4087) and sent it back to the Senate for concurrence
House Bill 3811: Increases the SC Research Authority’s Industry Partnership Fund tax credit from $9M to $12M for tax years after 2022
STATUS: Received second reading in the House on Sine Die
House Bill 4087: Streamlines the corporate income tax credit and jobs tax credits requirements. It also includes a change to the Recycling Facilities tax credit language. The bill reduces the qualifying investment amount from $300 million to $100 million. It adds “batteries, solar panels, and turbines” to the definition of post-consumer waste materials used by qualified facilities in their finished products. This legislation was prompted by the recruitment of a large battery recycling company with plans to make SC its North American headquarters.
STATUS: Passed by the House, the bill now heads to the Senate for potential consideration.
Senate Bill 739: Sponsored by Senator Nikki Setzler (D-Lexington), this bill allocates additional dollars for the SC Housing Tax Credit - introduced in response to escalating building costs and increasing interest rates.
STATUS: Signed by the Governor on May 19, 2023
PERMITTING
House Bill 3209: Approved by the legislature at the end of the 2023 session, the legislation temporarily extends certain state and local permitting approvals related to land development in light of extended economic impacts of the COVID-19 pandemic - retroactive approval of permits extends back to January 1, 2020.
STATUS: Signed by the Governor on May 19, 2023
RENEWABLE ENERGY
House Bill 3989: This would set up a process through the PSC by which solar farms could be sited and established.
STATUS: On the final week of the regular session, the House voted to adjourn debate on the bill until January 9, 2024.
House Bill 3948: Allows the solar tax credit to be used for commercial properties, private colleges, manufacturers, and hospitals, but not for solar farms; removes the current 20KW cap
STATUS: Passed by the House, the bill is now in Senate Finance Committee
WORKFORCE DEVELOPMENT AND HOUSING
House Bill 3726: sponsored by Speaker Murrell Smith, the bill will streamline the State’s workforce development initiatives into one agency, the SC Department of Employment and Workforce, and it creates a new division that is dedicated to this effort - the Governor will appoint Division Director with the consent of the SC Senate
STATUS: Signed by the Governor on May 19, 2023
Senate Bill 284: Allows local government to use accommodations taxes for workforce housing; prohibits explicit use of hospitality taxes for this purpose; 7-year sunset and caps local government at 15% as the percentage of local accommodation taxes that can be used for workforce housing.
STATUS: Signed by the Governor on May 19, 2023
TAXES
Senate Bill 298 Would restrict the Department of Revenue’s ability to require forced unitary combined income tax returns.
STATUS: The Senate passed the bill on March 30th, but a House Ways & Means Subcommittee adjourned debate on the matter, which continued debate until the 2024 regular session.
SCDHEC RESTRUCTURING
House Bill 399: A bill sponsored by Senator Harvey Peeler restructures DHEC into two State agencies, environmental and public health.
STATUS: Signed by the Governor on May 19, 2023
About Maynard Nexsen
Maynard Nexsen is a full-service law firm with more than 550 attorneys in 24 offices from coast to coast across the United States. Maynard Nexsen formed in 2023 when two successful, client-centered firms combined to form a powerful national team. Maynard Nexsen’s list of clients spans a wide range of industry sectors and includes both public and private companies.
