South Carolina Business Law Blog

Introduction In South Carolina there are several programs designed to benefit those businesses owned and controlled by “disadvantaged” individuals.   The key to obtaining certification or designation under all these programs is a demonstration that a qualified individual “owns” and “controls” the business.   While those terms certainly appear straightforward, there are pitfalls for those businesses who do not understand the application process, the applicable rules, and their purposes. Background and Benefits of Certification Both federal and state law encourage the participation of businesses owned by certain groups in government contracts.   On the federal level, these businesses are called Disadvantaged Business Enterprises (DBEs), and on the state level they are called Minority Business Enterprises (MBEs).  (There are other flavors of certification as well, but this post addresses the most common). Federal Law and DBEs: Participation in Federal Projects T

Governor Sanford has signed a bill recently passed by the SC General Assembly making several notable changes to the SC Textiles Communities Revitalization Act ("Act"). The Act provides tax credits for expenditures related to the rehabilitation of buildings in South Carolina previously used as textile manufacturing facilities. The amendments address several concerns raised by tax credit investors and others in the tax credit industry. Most notably, it makes the credits easier to specially allocate among partners in a partnership or limited liability company, adds transition rules for projects that were acquired or commenced prior to previous amendments in 2008, and allows the credits to be used against SC insurance premium taxes. The text of the bill (S728)is available here . Thanks to Chris Rogers for bringing this legislation to the Blog's attention.