(Doc Name COUNCIL\BBM\3710C004.BBM.HTC13.DOCX):
EXPLANATION:
Amend the bill, as and if amended, page 525, after line 7, by inserting a new PART appropriately numbered to read::
The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of Laws of South Carolina, 1976, and all supplements to the Code.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3632 SO AS TO ALLOW A REFUNDABLE STATE INDIVIDUAL INCOME TAX CREDIT EQUAL TO FIVE PERCENT OF THE FEDERAL EARNED INCOME TAX CREDIT.
A. Whereas, the federal earned income tax credit (EITC) was established in 1975 to offset the effects of federal payroll taxes on low-income families; and
Whereas, the EITC has been expanded several times since, providing additional assistance to welfare recipients entering the workforce and other workers supporting their families on low wages; and
Whereas, the effectiveness of the federal EITC both in supporting work and in alleviating child poverty has been confirmed by a number of recent studies; and
Whereas, the EITC now lifts more than four million people, roughly half of them children, out of poverty each year; and
Whereas, it is the nation's most effective antipoverty program for working families; and
Whereas, research shows that the credit has contributed to a significant increase in labor force participation among single mothers; and
Whereas, interviews with EITC recipients show that many use their EITC refunds to make the kinds of investments - paying off debt, investing in education, securing decent housing - that enhance economic security and promote economic opportunity; and
Whereas, it is appropriate that the State of South Carolina supplement this outstandingly successful program to raise the income of low-income working families. Now, therefore,
B. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3632. There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 on a full-year resident individual taxpayer an amount equal to five percent of the earned income tax credit (EITC) allowed the taxpayer pursuant to Internal Revenue Code Section 32. If the amount of the credit allowed by this section exceeds the tax imposed on the taxpayer pursuant to Section 12-6-510, the excess must be refunded to the taxpayer.
C. This SECTION takes effect July 1, 2013 and applies for taxable years beginning after 2012. /
Renumber sections to conform.
Amend totals and titles to conform.