H 3021 Session 110 (1993-1994)
H 3021 General Bill, By P.B. Harris, Neilson, T.F. Rogers and D.C. Waldrop
Similar(S 115)
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.
01/12/93 House Introduced and read first time HJ-22
01/12/93 House Referred to Committee on Ways and Means HJ-22
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 the
taxpayer's employees. As used in this section, an adult is a
person 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 the taxpayer's
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 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 chooses to utilize the provisions of this
subsection which authorizes 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 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 1993.
SECTION 3. This act takes effect upon approval by the Governor.
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