S 321 Session 109 (1991-1992)
S 0321 General Bill, By I.E. Lourie, Giese and Passailaigue
A Bill to amend Section 12-7-1260, Code of Laws of South Carolina, 1976,
relating to income tax credits for employers for child care programs, so as to
include adult care.
11/26/90 Senate Prefiled
11/26/90 Senate Referred to Committee on Finance
01/08/91 Senate Introduced and read first time SJ-110
01/08/91 Senate Referred to Committee on Finance SJ-110
A BILL
TO AMEND SECTION 12-7-1260, 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 added by
Section 43, Part II, Act 189 of 1989, is amended to read:
"Section 12-7-1260. (A) A taxpayer who employs persons
in any capacity may claim as a credit against his state income tax, bank
tax, or premium tax liability an amount equal to fifty percent of his
capital expenditures but no more than one hundred thousand dollars for
costs incurred in establishing a child or adult care program for
his employees. As used in this section, adults include persons
eighteen years of age or older related by blood or marriage to an
employee. 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. 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 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 employees, or made directly to licensed or
registered independent child or adult care facilities in the name
of and for the benefit of an employee 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 he receives payments for either child or adult family member care
and six thousand dollars if he receives payments for both.
Where an employee chooses to utilize the provisions of this
subsection which authorizes 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 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 1990.
SECTION 3. This act takes effect upon approval by the Governor.
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