[This section is repealed upon certification that remaining investments of private sector limited partners have been liquidated. See Editor's Note at the beginning of this Chapter.]

(A) The "Fund" means the Palmetto Seed Capital Fund Limited Partnership, a limited partnership, established and operated as described in Section 41-44-60.

(B) The "corporation" means the corporate general partner of the fund.

(C) "Qualified investment" means qualified stock or a qualified interest which stock or interest is purchased solely for cash.

(D) "Qualified stock" means a share or shares of stock in the Corporation if the stock, when purchased by the taxpayer, is authorized but unissued.

(E) "Qualified interest" means, in the case of the Corporation, a general partnership interest in the Fund, and in the case of all other persons, a limited partnership interest in the Fund.

(F) Reserved.

(G) Reserved.

(H) "Seed capital" means investments in either the common stock, preferred stock, or bonds convertible to either common or preferred stock, or options, warrants, or rights to receive any of the foregoing or any other similar investment in a South Carolina business.

(I) "South Carolina business" means a corporation, general partnership, limited partnership, joint venture, trust, proprietorship or any other similar entity or organization which is either established and operating or will be established to operate in South Carolina.

(J) "Pre-start-up business" means a South Carolina business which is in the process of developing a product or service and prior to such time as the product or service is offered for sale in the ordinary course of business.

(K) "Start-up business" means a South Carolina business which is in the first thirty-six months of providing goods or services in the ordinary course of business or any South Carolina business which qualified as a start-up business by this definition at the time it entered the fund's seed capital portfolio.

(L) "Less Developed Area" has the same meaning as set forth in Section 12-6-3360.

HISTORY: 1988 Act No. 643, Section 2, eff June 7, 1988; 1989 Act No. 3, Section 1, eff February 15, 1989; 1990 Act No. 505, Section 2, with subsection (B) eff May 29, 1990, and subsection (F) eff January 1, 1990; 1995 Act No. 76, Section 17, eff for taxable years beginning after 1995.

Editor's Note

1988 Act No. 643, Section 1, as amended by 1990 Act No. 505, Section 1, provides as follows:

"The purpose of this act is to establish the Palmetto Seed Capital Fund Limited Partnership whose purposes will include but are not limited to increasing the rate of capital formation, stimulating new growth-oriented business formations, creating new jobs for South Carolina; developing new technology, enhancing tax revenue for the State, and supplementing conventional business financing."

1990 Act No. 505, Section 7, provides as follows:

"The provisions of Section 41-44-10(F), Section 41-44-90, and Section 41-44-100 of the 1976 Code, as amended by this act, which make the tax credit provisions of Chapter 44 of Title 41 applicable to insurance premium taxes apply to insurance premium taxes which accrue on and after January 1, 1990."

Effect of Amendment

The 1989 amendment rewrote the definition of "Start-up business" in subsection (K).

The 1990 amendment, in subsection (B), revised the definition of corporation and, in subsection (F), revised the definition of tax liability.

The 1995 amendment, in subsections (F) and (G), substituted "Reserved" for the existing material and in subsection (L), substituted "Section 12-6-3360" for "Section 12-7-616(a)".