February 2006
Client News
Steven Mungo Inducted
into Hall of Fame
 Steven
W. Mungo of The Mungo Homes
was recently inducted into the South Carolina Housing Hall of
Fame at the annual Circle of Excellence Banquet, which is sponsored
by the Hones Builders Association of South Carolina.
The Mungo
family is the first to have three members inducted into the
Hall of Fame. Steven joins his father Michael J. Mungo,
who was inducted in 1996, and his brother, Stewart Mungo, who
was inducted in 2000. Steven’s award was presented by
his brother.
NEWS FROM BP&S
Katherine
Williams Holmes
Katherine has
been named chair of SC Association of CPA’s “Young CPA’s” Committee
for 2006.
Chris Stormer
Chris has been
asked to develop and teach a "webinar" on “Revenue Assurance”
for the US Telephone Association. Date and time of the
broadcast to be announced. We’ll keep you informed.
TECHNICAL ISSUES
South Carolina Issues Guidance on Job Tax Credit
Courtesy
of RIA
The South Carolina Department
of Revenue has issued a revenue ruling that provides guidance
to small businesses seeking to claim the credit for creation
of new jobs provided under S.C. Code Ann. § 12-5-3360 for the
first time under amendments made to the credit during the 2005
legislative session. ( South Carolina Revenue Ruling 05-17,
12/13/2005 .)
Credit against tax.
S.C. Code Ann. § 12-5-3360 provides a credit
against corporate and personal income tax and insurance premium
tax to companies operating manufacturing, tourism, processing,
warehousing, distribution, research and development, corporate
office and qualifying service-related facilities, and qualifying
technology intensive facilities in the state. Taxpayer eligible
for the credit include corporations, sole proprietorships, partnerships,
S corporations, and limited liability companies.
Expanded credit.
In 2005, the credit was expanded to make it available
to most types of small businesses, a small business being defined
as a company with 99 employees or less, by reducing the required
monthly average increase in new, full-time jobs to two from
the previous 10 for most types of qualifying businesses. The
ruling is designed to provide small businesses claiming the
credit for the first time a general overview of requirements
for claiming the credit and provide examples of how the various
calculations are made.
Guidance provided.
The ruling provides a chart summarizing the types
of small businesses that may qualify for the credit, along with
monthly average job creation requirements for each county ranking
(distressed; least developed; underdeveloped, moderately developed
and developed). The ruling also contains an overview of the
types of jobs qualifying for the credit; information and examples
for computing the monthly average increase in new, full-time
jobs; and information on the county rankings used to determine
the amount of the credit.
There are also explanations of the “basic” credit
amount, “additional” credit amount, and caps or maximum credits;
a definitions of “gross wages” and an explanation of how the
amount of credit is determined for both full and part-time jobs.
The ruling explains the 120% “gross wages” rules, per capita
income requirements, how and when the credit may be claimed,
and carryforwards. Examples are provided to illustrate application
of the rules and the various calculations.
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"Bauknight Pietras & Stormer, P.A. boasts a total staff of approximately 40 professionals and staff, a client base which includes a 20% market share of Columbia's largest privately-owned businesses."
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