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SC Bill Seeks Tax Credit For Employer-Sponsored Hazard Pay

By Jaqueline McCool · September 16, 2020, 2:42 PM EDT

South Carolina would allow employers to claim a tax credit for hazard compensation paid to frontline employees during a state of emergency under a bill introduced in the state House of Representatives.

H.B. 5581, introduced Tuesday by Rep. Wendell Gilliard, D-Charleston, would allow employers to claim an income tax credit for up to 50% of the hazard compensation paid to employees working directly with the public during a state of emergency.

The credit would apply to hazard compensation paid during a public health emergency or state of emergency, including the novel coronavirus pandemic, and could be claimed for tax years after 2019 and before 2022. The credit could be carried forward for up to five years, according to the bill.

If enacted, the credit would take immediate effect.

--Editing by Tim Ruel.

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