Senate panel to debate cutting income taxes

Columbia, SC - COLUMBIA, SC (AP) - A legislative panel is set to debate a bill that would eventually eliminate corporate income taxes in South Carolina.

The bill up for discussion Monday in a Senate Finance subcommittee would phase out corporate income taxes over 10 years, starting in 2013. The state collects about $168 million yearly from the tax. It's the third largest source of state revenue behind sales and individual income taxes.

Senators on the panel have been divided on approving another tax cut during the recession.

The proposal approved by the House last month also would immediately eliminate corporate income taxes for companies that move their headquarters to the state. Other economic incentives in the bill include increasing tax credits for companies that use renewable energy sources.

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