"The governor is studying the bill on its merits," was about all that Sanford spokesman Will Folks would say in response to questions about the fate of the bill.

Folks did add the governor has until January to make up his mind.

Sanford's lack of action has created a stir.

"The bill is aimed at the entire state," said state Rep. Converse Chellis, a Republican from Dorchester who sponsored the bill in the House.

Chellis believes Sanford is unwilling to sign the bill because the governor feels it is would be too costly for the cash-strapped state and unfairly support just Giant Cement and Georgetown Steel.

Terry Kinder, president at Giant, said that's not the intent of the bill.

"The bill is about economic development and not penalizing companies for investing in South Carolina," he said.

"This is a major deal for Georgetown County, a major deal," said state Rep. Vida Miller, D-Pawleys Island, a district next to Georgetown.

The bill, which passed on the last day of the legislative session, does not name Georgetown Steel or Giant Cement, but it does describe companies that fit their description.

It says that tax credits would be made available by the state when a company purchases the assets of a bankrupt company and hires 500 or more people. Chellis said that any company that fits that description would be eligible for the credits.

Midcoast Industries purchased the bankrupt Georgetown mill from GS Industries in June 2000 for an undisclosed amount. The mill, which has undergone several rounds of layoffs, still employs more than 600 workers.

The bill would allow the new owner of the steel mill, Midcoast, the same tax break it would receive as if it had opened the plant. Under current incentivesavailable to "least-developed" counties like Georgetown, companies can take up to $4,500 in tax credits for every job created for five years, or up to a maximum of 50 percent of corporate income taxes owed in a year, according to the state Department of Revenue.

Chellis said that if Georgetown Steel were to shut down, it would cripple the city. The steel industry is being hurt by foreign steel coming into this country. "All this bill does is give them a chance to compete" against foreign competitors, he said. Another part of the bill deals with franchise fees, or what the state calls corporate license fees.

Along with state income and property taxes, companies in South Carolina pay a franchise fee on their capital investments. The bill would allow a company to deduct its capital investment in the state in an amount equal to the capital received from its parent company. The investment must exceed $100 million and be used to finance an expansion. The expansion must be completed within three years.

Giant Cement announced in June 2002 it would spend more than $100 million on an expansion at its Harleyville plant, which employs more than 200 workers.

The plant, which makes cement that is bagged and sold to builders, is putting in a sophisticated production line that will replace aging facilities. A new finish mill also will be installed.

Chellis said that with the new equipment, the plant will be able to increase its productivity, which will in turn mean more money to the state in the form of taxes paid on the cement products sold to builders.

"The state could get back several hundred thousands of dollars in taxes because of this investment," Chellis said.

Chellis said Giant has been paying about $100,000 in corporate license fees for years and will continue paying them. But he said its fees would double if the capital investment deduction isn't allowed.

The Board of Economic Advisors, which has reviewed the bill, said that there would be no impact on state or local general fund revenues if Sanford signs the bill.

"It won't impact the state budget. It won't affect revenue," Chellis said.

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