FOR IMMEDIATE RELEASE

For More Information
Speaker Bobby Harrell
(803) 734-3125

House Approves Economic Development Legislation, Ends Corporate Income Tax

COLUMBIA, S.C. – The South Carolina House of Representatives, led by House Speaker Bobby Harrell and Majority Leader Kenny Bingham, has approved an economic development package that includes elimination of the state corporate income tax.

The economic development bill was the House Republican Caucus’ No. 1 priority for 2010.

"We landed a giant by bringing Boeing to South Carolina, and after the dust settles from the biggest win our state has ever seen, many asked ‘Where do we go from here?’" Speaker Harrell said.  "This plan takes the next step in making South Carolina more competitive in job creation."

Last fall, Speaker Harrell created an economic development group to examine the best ways to make business more competitive and to suggest legislative solutions to the General Assembly.  This group’s work and recommendations were drafted into the legislation approved today.

The biggest new provision in the legislation is the elimination of the state corporate income tax. If approved by the Senate, the corporate income tax would be phased out over 10 years, and South Carolina would be the fifth state (along with Wyoming, South Dakota, Washington, and Nevada) to eliminate the tax.

“This is a tax reform that will allow businesses to put their money back into expansion and job creation,” said Majority Leader Bingham. “The income tax repeal will take a while to phase in, but it will provide fuel as our state economy continues to recover.”

Other major recommendations included in the bill are the restoration of the governor’s Closing Fund and various improvements to our economic incentive tools and technical changes to the law. 

“The House Republicans are focused on improving the business climate here in South Carolina,” said Bruce Bannister, the House Assistant Majority Leader. “This legislation and the Tort Reform legislation we approved earlier this week are two major steps toward attracting more BMWs, Michelins, and Boeings, as well as providing our hard-working small businesses the resources they need to become the next great corporation.”