The General Assembly enacted legislation which provides an income tax credit to a taxpayer who invests in the Palmetto Seed Capital Corporation. The Palmetto Seed Capital Corporation was established to increase the rate of capital formation, to stimulate new growth-oriented business formation, to create new jobs, and to supplement conventional business financing.
If the amount of the credit exceeds the tax liability, the excess may be carried over for credit against your income taxes in the next ten succeeding taxable years until the total amount of the tax credit has been taken.
If a qualified investment is redeemed by the Palmetto Seed Capital Corporation or the Palmetto Seed Capital Fund Limited Partnership within five years of the date it is purchased, the credit is disallowed and any credit previously claimed and allowed must be paid to the Department of Revenue with the appropriate return of the taxpayer for the period in which the redemption occurred.
The total amount of credits allowed for all taxpayers on all taxable years may not exceed in the aggregate, five million dollars. The credit will be allowed to taxpayers who purchase these qualified investments based on the date of purchase until the funds are exhausted.