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H. 4000

STATUS INFORMATION

General Bill
Sponsors: Reps. Vaughn, Haskins, Koon, Davenport, Delleney, M.A. Pitts, Stille and Tripp
Document Path: l:\council\bills\gjk\20506sd03.doc

Introduced in the House on April 10, 2003
Currently residing in the House Committee on Ways and Means

Summary: Income tax credit; for school tuition organizations

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   4/10/2003  House   Introduced and read first time HJ-42
   4/10/2003  House   Referred to Committee on Ways and Means HJ-42

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/10/2003

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3565 SO AS TO PROVIDE FOR AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO SCHOOL TUITION ORGANIZATIONS WHICH PROVIDE EDUCATIONAL SCHOLARSHIPS TO STUDENTS OF GOVERNMENTAL AND NONGOVERNMENTAL SCHOOLS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3565.    (A)    A credit is allowed against a taxpayer's state income tax liability for the amount of voluntary cash contributions made by the taxpayer during the taxable year to a school tuition organization, but not exceeding:

(1)    two hundred dollars in any taxable year for a single individual or a head of household;

(2)    five hundred dollars in any taxable year for a married couple filing a joint return. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.

(B)    If the allowable tax credit exceeds the income taxes otherwise due on the claimant's income, or if there are no such taxes due, the taxpayer may carry forward the amount of the claim not used to offset these taxes for not more than five consecutive taxable years' income tax liability.

(C)    The credit allowed by this section is in lieu of any deduction pursuant to Section 170 of the Internal Revenue Code and taken for state tax purposes.

(D)    Specific designations to specific schools are permitted under this section. However, the tax credit is not allowed if the taxpayer designates the taxpayer's donation to the school tuition organization for the direct benefit of any dependent of the taxpayer.

(E)    For purposes of this section:

(1)    'qualified school' means a nongovernmental or governmental school including a community or magnet school at the preschool, elementary, secondary, college, or university level, which is located in this State that does not discriminate on the basis of race, color, handicap, or national origin, that satisfies the requirements prescribed by law for such a school, and that has existed as a school for at least three years;

(2)    'school tuition organization' means a charitable organization in this State that is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and that allocates at least ninety percent of its annual revenue for educational scholarships or tuition grants to children to allow them to attend any qualified school of their parents' choice. In addition, to qualify as a school tuition organization the charitable organization shall provide educational scholarships or tuition grants to students without limiting availability to only students of one school.

(F)    The provisions of this section apply with respect to cash contributions made on or after January 1, 2003."

SECTION    2.    This act takes effect upon approval by the Governor.

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