S 0146 General Bill, By M.T. Rose
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 12-7-1217 so as to enact the Earned Income Tax Credit for Parents Act.

   01/12/93  Senate Introduced and read first time SJ-65
   01/12/93  Senate Referred to Committee on Finance SJ-65

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1217 SO AS TO ENACT THE EARNED INCOME TAX CREDIT FOR PARENTS ACT.

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

SECTION 1. This act may be cited as the Earned Income Tax Credit for Parents Act.

SECTION 2. Article 10, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-1217. (A) In the case of an individual there is allowed as a refundable credit an amount equal to the earned income tax credit amount for the taxable year.

(B) For the purposes of this section:

(1) The earned income tax credit amount for the taxable year is an amount equal to the sum of the applicable credit percentages of so much of the taxpayer's earned income as does not exceed twelve thousand five hundred dollars.

(2) For the purposes of item (1) the applicable credit percentage is:

(a) four percent if the taxpayer has one or more dependent children; and

(b) an additional four percent if a dependent child of the taxpayer is under age five at the end of the taxable year; and

(c) an additional four percent if the taxpayer is lawfully married to a qualified dependent spouse.

(3) In the case of any taxpayer whose earned income for the taxable year exceeds sixteen thousand dollars, the amount determined under item (2) may be reduced by an amount equal to the sum equal to one dollar for each ten dollars of income in excess of sixteen thousand dollars.

(C) For the purposes of this section, the term `qualified dependent child' means an individual who is a dependent of the taxpayer as defined in Section 152 of the Internal Revenue Code, who is a child of the taxpayer, as defined in Section 151(c)(3) of the Internal Revenue Code, and who has not attained the age of eighteen years at the close of the calendar year in which the taxable year of the taxpayer begins.

The term does not include a dependent of an individual receiving aid or assistance under Part A or Part E of Title IV of the Social Security Act.

(D) For purposes of this section the term `qualified dependent spouse' means an individual who is:

(1) lawfully married to the taxpayer,

(2) who does not work outside the house.

The taxpayer shall receive no credit for a qualified dependent spouse unless a credit is received for a qualified dependent child.

(E) In the case of an individual who is legally married, this section applies only if a joint return is filed for the taxable year.

(F) Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit is allowed under this section in the case of a taxable year covering a period of less than twelve months.

(G) The amount of the credit allowed by this section shall be determined under tables prescribed by the commission."

SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 1992.