S 0270 General Bill, By M.F. Mullinax
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-7-1290 so as to provide a tax credit for a taxpayer with a business of
 twenty-five or fewer employees for whom he provides health insurance.

   10/29/90  Senate Prefiled
   10/29/90  Senate Referred to Committee on Finance
   01/08/91  Senate Introduced and read first time SJ-96
   01/08/91  Senate Referred to Committee on Finance SJ-96

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1290 SO AS TO PROVIDE A TAX CREDIT FOR A TAXPAYER WITH A BUSINESS OF TWENTY-FIVE OR FEWER EMPLOYEES FOR WHOM HE PROVIDES HEALTH INSURANCE.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 12-7-1290. (A) For South Carolina income tax purposes, a taxpayer with a business of twenty-five or fewer employees for whom he provides health insurance may claim as a credit against a tax imposed under this chapter an amount equal to twenty-five dollars a month for each employee and his dependents covered by the insurance or twenty-five percent of the amount paid or incurred a month for the insurance by the employer during the taxable year, whichever is greater.

(B) To qualify for the credit an eligible employer shall pay or incur at least seventy-five percent of the monthly premium for health insurance for eligible employees who elect to have that insurance or at least seventy-five percent a month toward health insurance for an eligible employee's dependent, or both, and for which the employee does not pay more than twenty-five percent. At least annually, the employer shall make participation in the health insurance coverage available to all eligible employees and to all newly hired employees within sixty days of employment. Nothing in this section requires an eligible employer to pay for dependent health insurance in order to qualify for the credit. An employer may provide additional health benefits to an employee at his or the employer's expense.

(C) If a taxpayer claims a credit pursuant to this section, he shall add to his South Carolina taxable income the amount deducted for the expenses of employee health insurance on his federal income tax return."

SECTION 2. This act, upon approval by the Governor, is effective for taxable years beginning after 1991.