Proposed IRS regulations that attempt to clarify expectations between charitable contributions and tax payments could limit a loophole that made the Exceptional SC scholarship and tax credit program attractive to affluent donors. The Tax Cuts and Jobs Act placed a federal income tax limit of $10,000 on SALT deductions, but many states enacted ways for residents to declare tax payments as gifts claimed as charity deductions. As the TCJA is written, large donations could be claimed as an addition to caps on SALT deductions. Any impacts of the IRS proposals will be sorted out through this fall’s hearings and public comment periods, but the South Carolina donors who gave $12 million to Exceptional SC before Aug. 27 will not be affected.
Generating jobs and recruiting industry in poor, rural regions of South Carolina has been hard, S.C. Commerce Secretary Bobby Hitt recently told a panel of state senators, and some local incentives ultimately aren’t met, but overall the strategies are working and “Somebody has got to take a risk, and I guess that’s been left to me. … I’ll take those risks because I don’t know what else to do.” A state Senate oversight committee has a study that the Commerce Department over the past five years has spent about $65 million per year for businesses to arrive or expand in the state. That’s in addition to a state program that refunded state income taxes paid by workers at about $40 million per year over the past two years if those businesses met benchmarks that included job creation.
Paris-based digital consulting firm Capgemini plans to add 200 workers to its 130 employees in Columbia’s BullStreet District during the next nine months, and a quarter of those openings are filled. The company’s North American CEO says the global firm is attracted to Columbia by the city’s size and that the steady flow of USC graduates can lead to a partnership for a “massive talent pool” of tech innovation workers. With Capgemini’s Advanced Technology Development Center at BullStreet’s First Base Building beside the Columbia Fireflies baseball stadium, the hirings will essentially double the fulltime workforce of the district, which is home to a law firm, credit union and barbecue restaurant. Townhouses and a seniors community are under construction, but BullStreet has yet to announce its first retail development.
The city of Goose Creek’s message of being open for business is being heard and seen. The Berkeley County municipality has spent more than $100,000 in branding over the past two years, and city officials boast #creekrising on social media to show how business owners are getting results once their operating concerns are eased. As of July, the city has collected nearly $500,000 more in business license fees compared to a year earlier, and more than 600 building permits have been issued.
Jeremy Chavis, the owner of Jackson’s Southern Kitchen buffet restaurant, was arrested on charges of not paying more than $213,000 in sales tax, according to the S.C DOR. An investigation states that from May 2014 through December 2017, Chavis under-reported $2.7 million in sales. He could face fines up to $40,000 and 20 years in prison for the four charges of tax evasion.