Eastman Kodak Co. v. South Carolina Tax Commission

Chandler, Justice:

We granted rehearing to reconsider our decision reported at Op. No. 23606 (S.C. filed March 30, 1992) Davis Adv. Sh. No. 9 at 12). The original opinion is withdrawn, and this amended opinion is substituted.

Kodak appeals an Order affirming the Tax Commission’s denial of deductions derived from transactions known as “safe harbor leases.”

We reverse.

FACTS

Kodak is a multinational corporation doing business in South Carolina. In computing its 1985 South Carolina income tax, Kodak used an apportionment formula whereby its sales, payroll, and property in South Carolina were divided…