S 162 Session 112 (1997-1998)
S 0162 General Bill, By Giese, Bryan, Courson, Elliott, Holland, Jackson,
Lander, McGill, Mescher, Passailaigue, Reese, Setzler and Wilson
Similar(H 3307)
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.
01/14/97 Senate Introduced and read first time SJ-143
01/14/97 Senate Referred to Committee on Finance SJ-143
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 40 of 1995, 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, real property, including improvements in this
State, and donations to a nonprofit corporation as defined in Internal
Revenue Code Section 501(c)(3) for purposes of establishing a child
care program. If credit is taken for donations by a corporation, a
deduction to arrive at the net income of the corporation is not
allowed. 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 1996.
SECTION 3. This act takes effect upon approval by the Governor.
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