H 3193 Session 111 (1995-1996)
H 3193 General Bill, By P.B. Harris, J.M. Baxley, J. Brown, Inabinett, Kelley,
Neilson, Rhoad, J.S. Shissias, D.C. Waldrop and Wilkes
Similar(S 345)
A Bill to amend Section 12-7-1260, as amended, Code of Laws of South Carolina,
1976, relating to income tax credits for employers for child care programs, so
as to include adult care.
01/10/95 House Introduced and read first time HJ-74
01/10/95 House Referred to Committee on Ways and Means HJ-75
A BILL
TO AMEND SECTION 12-7-1260, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME
TAX CREDITS FOR EMPLOYERS FOR CHILD CARE
PROGRAMS, SO AS TO INCLUDE ADULT CARE.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-7-1260 of the 1976 Code, as last
amended by Act 516 of 1994 is further amended to read:
"Section 12-7-1260. (A) A taxpayer who employs persons
who are residents of this State in any capacity may claim as a credit
against his the taxpayer's state income tax, bank
tax, or premium tax liability an amount equal to fifty percent of
his the taxpayer's capital expenditures in this State
but no more than one hundred thousand dollars for costs incurred in
establishing a child or adult care program for his
the taxpayer's employees. A credit claimed under this
section, but not used or available for use in a taxable year, may be
carried forward for the next ten taxable years from the close of the
tax year in which the expenditures are made until the amount of the
credit is taken.
(B) For purposes of this section, `expenditures for costs incurred
in establishing a child or adult care program' includes, but
is not limited to, expenditures, including mortgage or lease
payments, for playground and classroom equipment, kitchen
appliances, cooking equipment, and real property, including
improvements in this State. The program and operation of the
program must meet the licensing, registration, or certification
standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a
credit against his the taxpayer's state income tax,
bank tax, or premium tax liability an amount not exceeding fifty
percent of the child or adult care payments incurred by the
taxpayer to operate a child or adult care program for
his the taxpayer's employees in this State, or
made directly to licensed or registered independent child care
facilities in the name of and for the benefit of an employee in this
State of the taxpayer, which employee's children or adult family
members are kept at the facility during the employee's working
hours. The payment may not exceed the amount charged to
other for the care of children or adult family
members of like age and abilities of individuals not employed
by the taxpayer. The credits allowed by this subsection may not
exceed a maximum of three thousand dollars for each employee
if the employee receives payments for either child or adult
family member care and six thousand dollars if the employee
receives payments for both.
Where an employee in this State chooses to utilize the provisions
of this subsection which authorize direct payments to licensed child
or adult care facilities not operated by the employer,
expenses attendant to the organization and administration of
such a direct payment program incurred in the first year
also are also considered start-up expenses or
expenditures for establishing a child or adult care program
for purposes of the fifty percent tax credit for start-up expenses
authorized by subsection (A).
(D) For purposes of the credits allowed by subsection
(B)(C), the taxpayer is required to retain
information concerning the child or adult care facility's
federal identification number, license or registration number,
payment amount, and in whose name and for whose benefit the
payments were made. In addition, a taxpayer is allowed to include
in the amount of the payment for calculation of the credit
any administrative cost costs associated with
payment to licensed or registered independent child or adult
care facilities not to exceed two percent.
(E) The credits established by this section taken in any
one tax year also are also limited to an amount not
greater than fifty percent of a taxpayer's state income tax, bank tax,
or premium tax liability for that year."
SECTION 2. The credits allowed by the amendment to Section
12-7-1260 of the 1976 Code in Section 1 of this act only apply to
expenditures made after 1994.
SECTION 3. This act takes effect upon approval by the
Governor.
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