S.C. Code § 12-6-50

Current through 2024 Act No. 225.

Section 12-6-50 - Internal Revenue Code sections specifically not adopted by State

For purposes of this title and all other titles that provide for taxes administered by the department, except as otherwise specifically provided, the following Internal Revenue Code sections are specifically not adopted by this State:

(1) Sections 1(a) through 1(e), 3, 11, and 1201 relating to federal tax rates;

(2) Sections 22 through 54, 515, 853, 901 through 908, and 960 relating to tax credits;

(3) Sections 55 through 59A relating to minimum taxes;

(4) Sections 78, 85(c), 86, 87, 168(k), 168(l), 168(m), 168(n), 196, and 280C relating to dividends received from certain foreign corporations by domestic corporations, unemployment compensation, taxation of social security and certain railroad retirement benefits, the alcohol fuel credit, bonus depreciation, deductions for certain unused business credits, and certain expenses for which credits are allowable;

(5) Sections 72(m)(5)(B), 72(f), 72(o), 72(q), and 72(t) relating to penalty taxes on certain retirement plan distributions;

(5A) Section 108(i) relating to the deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument;

(5B) Section 163(e)(5)(F) relating to original issue discount on certain high yield obligations, Section 163(j) relating to limitation on business interest expense, and Section 381(c)(20) and 382(d)(3) relating to carryover of limited business interest;

(6) Section 172(b)(1) relating to net operating loss carrybacks;

(7) Reserved;

(8) Sections 531 through 564 relating to certain special taxes on corporations;

(9) Sections 581, 582, and 585 through 596 relating to the taxation of banking institutions;

(10) Sections 665 through 668 relating to taxation of certain accumulation distributions from trusts;

(11) Sections 801 through 848 relating to taxation of insurance companies;

(12) Sections 250, 267A, and 861 through 909, 912, 931 through 940, and 944 through 989 relating to the taxation of foreign income;

(13) Reserved;

(14) Sections 1400 through 1494, except 1400Z;

(15) Sections 1501 through 1505 relating to consolidated tax returns;

(16) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Sections 6015 and 6701, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910 and Section 12-54-55. However, Section 6654(d)(1)(D) relating to estimated tax payments for qualified individuals as defined in that item is not adopted;

(17) Section 68 relating to the reduction on itemized deductions and Section 151(d)(3) relating to the reduction on the personal exemption for:

(a) a joint return or surviving spouse with an adjusted gross income exceeding three hundred thousand dollars or the same adjusted gross income adjusted for inflation pursuant to Section 68, whichever is higher;

(b) a head of household with an adjusted gross income exceeding two hundred seventy-five thousand dollars or the same adjusted gross income adjusted for inflation pursuant to Section 68, whichever is higher; and

(c) an individual who is not married and who is not a surviving spouse or head of household with an adjusted gross income exceeding two hundred fifty thousand dollars or the same adjusted gross income adjusted for inflation pursuant to Section 68, whichever is higher;

(18) Section 118(b)(2) relating to any contribution by any governmental entity or civic group, other than a contribution made by a shareholder as such;

(19) Section 199A relating to qualified business income;

(20) Section 162(r) relating to FDIC premiums.

S.C. Code § 12-6-50

Amended by 2018 S.C. Acts, Act No. 266 (HB 5341),s 3, eff. 10/3/2018.

Amended by 2018 S.C. Acts, Act No. 265 (SB 1043),s 4, eff. 10/3/2018.

Amended by 2013 S.C. Acts, Act No. 10SB 261, s 3, eff. 4/9/2013.

Amended by 2012 S.C. Acts, Act No. 126 (HB 3583), s 3, eff. 3/13/2012.

Amended by 2010 S.C. Acts, Act No. 142 (SB 1174), s 3, eff. 3/31/2010.

Amended by 2009 S.C. Acts, Act No. 16 (HB 3721), s 2, eff. 5/7/2009.

2007 Act No. 116, Section 44.A, eff 6/28/2007, applicable to tax years beginning after December 31, 2005; 2007 Act No. 110, Section 38.A, eff 6/21/2007, applicable to tax years beginning after December 31, 2005; 2005 Act No. 161, Section 4, eff 6/9/2005; 2005 Act No. 145, Section 8, eff 6/7/2005; 2003 Act No. 69, Section 3.E.2, eff 6/18/2003; 2001 Act No. 89, Section 7, eff 7/20/2001, applicable to taxable years beginning after December 31, 2000; 1999 Act No. 114, Section 4; 1996 Act No. 431, Section 3; 1995 Act No. 76, Section 1.

2005 Act No. 145, Section 42, provides as follows:

"Notwithstanding the ratification of another act during the 2004-2005 Session of the General Assembly affecting the sections of the 1976 Code amended in Sections 7, 8, 9, and 10 of this act, the ratification of this act is deemed to be the last action of the General Assembly regarding those code sections."

2013 Act No. 10, Section 3.B., provides as follows:

"B. From existing funds, the Department of Revenue shall create and distribute the forms and worksheets necessary to aid taxpayers in utilizing the provisions of this SECTION [amending Section 12-6-50]."

2018 Act No. 265, Section 4.C, provides as follows:

"C. This SECTION takes effect upon approval by the Governor and first applies to tax years beginning after 2017."

2018 Act No. 266, Sections 1, 3.B, 7, 8, and 9, provide as follows:

"SECTION 1. This act may be referred to as the 'South Carolina Taxpayer Protection and Relief Act'."

"[3.]B. The Department of Revenue shall make and publish rules and promulgate regulations to effectively administer the provisions of this SECTION."

"SECTION 7. The Department of Revenue shall take actions necessary to implement the provisions of this act and take the appropriate actions to educate taxpayers of the amendments contained within this act, especially those, if any, that impact filing requirements or determination of taxable income.

"SECTION 8. By January 15, 2025, the Department of Revenue, in coordination with the Revenue and Fiscal Affairs Office, shall deliver a report to the General Assembly that specifies the many provisions of the Tax Cuts and Jobs Act of 2017 that expire after tax year 2025.

"SECTION 9. Except where specified otherwise, this act takes effect upon approval by the Governor and first applies to tax years beginning after 2017."

2020 Act No. 147, Sections 2.A., 3.B., provide as follows:

"SECTION 2.A. For tax year 2020, to the extent loans under the paycheck protection program in Section 1102 of Public Law 116-136, Title 1 are forgiven and excluded from gross income for federal income tax purposes under Section 1106 of Public Law 116-136, Title 1, those loans are excluded for South Carolina income tax purposes. Further, to the extent the federal government allows the deduction of expenses associated with the forgiven paycheck protection program loans, these expenses will be allowed as a deduction for South Carolina income tax purposes."

"[SECTION 3.]B. Notwithstanding any other provision of law, for purposes of any law that provides for taxes administered by the Department of Revenue, the State specifically does not adopt the provisions of Section 204(a) of the Taxpayer Certainty and Disaster Tax Relief Act of 2019 as it pertains to individuals. In administering taxes, the Department of Revenue shall account for the nonadoption set forth in this section."

2021 Act No. 87, Section 2, provides as follows:

"SECTION 2. (A) The following amendments in the Coronavirus Aid, Relief, and Economic Security Act (CARES) of 2020, P.L. 116-136 (March 27, 2020) are specifically not adopted by this State:

"(1) Internal Revenue Code (IRC) Section 62(a)(22) relating to the $300 charitable deduction allowed in 2020 for persons who claim the standard deduction;

"(2) Section 2205(a), (b), and (c) of the CARES Act relating to the modification of limitations on individual and corporate cash charitable contributions for 2020 and relating to the increase in limits on charitable contributions of food inventory for 2020;

"(3) IRC Section 172(a) relating to the modification of the income limitations allowed for the use of net operating losses in tax years 2018, 2019, and 2020;

"(4) IRC Section 461(l) relating to the modification of the limitation on losses allowed for noncorporate taxpayers in tax years 2018, 2019, and 2020.

"(B) The following amendments in the Consolidated Appropriations Act of 2021, P.L. 116-260 (December 27, 2020) are specifically not adopted by this State:

"(1) Amendment to Division N Section 275 relating to the allowance of personal protective equipment expenses for the educator expense deduction under IRC Section 62(a)(2)(D)(ii);

"(2) IRC Section 274(n) relating to the temporary allowance of the full business deduction for business meals that are paid or incurred after December 30, 2020, and before January 1, 2023;

"(3) IRC Section 170(p) relating to the $300 or $600 charitable deduction allowed in 2021 for persons taking the standard deduction;

"(4) Amendment to CARES Act Section 2205 relating to the temporary extension of the modification of limitations on individual and corporate cash charitable contributions and the increase in limits on charitable contributions of food inventory to tax year 2021;

"(5) Amendments to the Taxpayer Certainty and Disaster Tax Relief Act of 2020, P.L. 116-260 Division EE Section 304 relating to the special rules for qualified disaster relief for charitable contributions and special rules for qualified disaster-related personal casualty losses."

Code Commissioner's Note

At the direction of the Code Commissioner, the amendments to the section by 2018 Act No. 265 and 2018 Act No. 266 were read together, as the acts were simultaneously passed by the General Assembly.