BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 10-43-79 be repealed.
Section 2. That § 10-43-80 be repealed.
Section 3. That § 10-43-81 be repealed.
Section 4. That § 10-43-82 be amended to read as follows:
10-43-82. Any for-profit corporation which seeks to be designated as a QUEST entity shall supply the secretary of state with the necessary information to prove it meets the definition of a QUEST entity as provided by § 10-43-81. Upon receipt of such information, the secretary shall certify the corporation as a QUEST entity. The secretary may not certify any corporation as a QUEST entity after the effective date of this Act.
Section 5. That § 10-43-83 be amended to read as follows:
10-43-83. Any financial institution that has invested in a QUEST entity certified pursuant to § 10-43-82 shall receive a credit towards any tax due from a financial institution or a subsidiary of a holding company of a financial institution pursuant to this chapter. To qualify for such a credit the investment by the financial institution shall have occurred on or before December 31, 1993. The financial institution shall receive a credit equal to eighty percent of the first twenty-five thousand dollars or less of total investments made in 1993. The financial institution shall receive a credit equal to forty percent of that portion of the total investments made in 1993 which is from twenty-five thousand dollars up to and including seventy-five thousand dollars. The financial institution shall receive a credit equal to twenty-five percent of that portion of the total investments made in 1993 which is from seventy-five thousand dollars and up to and including one hundred twenty-five thousand dollars. The financial institution shall receive a credit equal to twenty percent of that
portion of the total investments made in 1993 from one hundred twenty-five thousand dollars up to
and including two hundred thousand dollars. That portion of total investments made in 1993 greater
than two hundred thousand dollars does not qualify for a tax credit pursuant to this section. This
section is repealed effective January 1, 2003.
Section
6.
That
§
10-43-83.1
be amended to read as follows:
10-43-83.1.
Any financial institution that has invested in a QUEST entity certified pursuant to
§
10-43-82 between January 1, 1994, and December 31, 1996, shall receive a credit towards any tax
due from a financial institution or a subsidiary of a holding company of a financial institution
pursuant to chapter 10-43. The financial institution shall receive a credit equal to thirty percent of
the institution's total investment, or a credit of one hundred fifty thousand dollars whichever is the
lesser. This section is repealed effective January 1, 2003.
Section
7.
That
§
10-43-84
be amended to read as follows:
10-43-84.
For any investment made on or before March 31, 1993, a financial institution is
entitled to one hundred percent of the tax credit provided by
§
10-43-83. For any investment made
on or before June 30, 1993, a financial institution is entitled to ninety-eight percent of the tax credit.
For any investment made on or before September 30, 1993, a financial institution is entitled to
ninety-six percent of the tax credit. For any investment made on or before December 31, 1993, a
financial institution is entitled to ninety-four percent of the tax credit. An investment shall be deemed
made when the QUEST entity accepts receipts of the financial institution's investment. This section
is repealed effective January 1, 2003.
Section
8.
That
§
10-43-85
be amended to read as follows:
10-43-85.
Any tax credit received pursuant to
§
§
10-43-83, 10-43-83.1 and 10-43-84 may be
used by a financial institution to off-set any tax owed by the financial institution pursuant to this
chapter over a period of six years from the time of investment. In the first year after an investment
is made no credit may be taken to off-set any tax owed. In the second year, a financial institution
may use ten percent of the total tax credits received to off-set any tax owed. In the third year, a
financial institution may use twenty percent of the total tax credits received to off-set any tax owed.
In the fourth year, a financial institution may use twenty percent of the total tax credits received to
off-set any tax owed. In the fifth year, a financial institution may use twenty percent of the total tax
credits received to off-set any tax owed. In the sixth year, a financial institution may use thirty
percent of the total tax credits received to off-set any tax owed. Any tax credit which is unused in
a particular year may be carried forward to any of the next three years. This section is repealed
effective January 1, 2003.
Section
9.
That
§
10-43-86
be amended to read as follows:
10-43-86.
If a QUEST entity receives an investment from a financial institution, the QUEST
entity shall notify the Department of Revenue of the name of the financial institution, the amount
of the investment and such information the Department of Revenue may require to show proof of
the investment. The department shall compute the tax credit provided by
§
§
10-43-83, 10-43-83.1
and 10-43-84. The department shall authorize and notify the financial institution of any tax credit
it may receive based on its total investments. No tax credit may be used to off-set any tax owed
pursuant to this chapter unless it has first been authorized by the department. This section is repealed
effective January 1, 2003.
Section
10.
That
§
10-43-87
be amended to read as follows:
10-43-87.
No more than two million dollars of tax credits in the aggregate may be authorized
pursuant to
§
§
10-43-86 and 10-39-66. The Department of Revenue shall monitor the total amount
of tax credits authorized and may not authorize any tax credit which would exceed this two million
dollar limit. The Department of Revenue may not authorize any tax credits pursuant to
§
§
10-43-86
and 10-39-66 after the effective date of this Act. This section is repealed effective January 1, 2003.
Section 11. That § 10-39-61 be repealed.
Section 12. That § 10-39-62 be repealed.
Section 13. That § 10-39-63 be repealed.
Section 14. That § 10-39-64 be repealed.
Section 15. That § 10-39-65 be repealed.
Section 16. That § 10-39-66 be repealed.
An Act to limit any future creation of QUEST entities.
|
I certify that the attached Act originated in the
SENATE as
Bill
No.
264
|
Secretary of the Senate
President of the Senate
Secretary of the Senate
____________________________
Speaker of the House
Chief Clerk
File No. ____
Chapter No. ______
Received at this Executive Office this ____ day of _____________ ,
19___ at _____ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 19___
Governor
STATE OF SOUTH DAKOTA,
Filed ____________ , 19___
at _________ o'clock __ M.
Secretary of State
By _________________________
Asst. Secretary of State
