Effective for taxable years beginning after 1994 the General Assembly enacted legislation to allow an income tax credit for hiring employees terminated from employment as a result of the closing or realignment of a federal military installation. Effective for taxable years after 1995, the General Assembly has amended this legislation to allow an income tax credit for hiring employees terminated from employment as a result of an applicable federal facility reducing its employment by three thousand or more jobs after December 31, 1990. Also, the credit is ten percent times an increased qualified wage base of up to $10,000. To obtain the credit the status of "terminated employees" must be certified by the South Carolina Employment Security Commission. See definitions for required location of work activity and for explanation of the terms used in the credit.
Qualified wages for a qualified terminated employee for a taxable year may not exceed $10,000. Qualified wages for a qualified terminated employee are only those wages paid for services rendered during the one year beginning with the day the individual first works for an employer after becoming a certified terminated employee.