Current Status Introducing Body:Senate Bill Number:666 Primary Sponsor:Land Committee Number:30 Type of Legislation:GB Subject:Income tax deductions Residing Body:House Current Committee:Ways and Means Computer Document Number:JIC/5739HC.93 Introduced Date:19930413 Date of Last Amendment:19940120 Last History Body:House Last History Date:19940126 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Land Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
666 House 19940126 Introduced, read first time, 30
referred to Committee
666 Senate 19940125 Read third time, sent to House
666 Senate 19940120 Amended, read second time,
ordered to third reading with
notice of general amendments
666 Senate 19940119 Committee Report: Favorable 06
with amendment
666 Senate 19930413 Introduced, read first time, 06
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
COMMITTEE AMENDMENT ADOPTED
January 20, 1994
S. 666
S. Printed 1/20/94--S.
Read the first time April 13, 1993.
TO AMEND SECTION 12-7-435, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO CLARIFY THE RETIREMENT INCOME EXCLUSION FOR SURVIVING SPOUSES; TO AMEND SECTION 12-7-437, RELATING TO THE DEDUCTION FROM TAXABLE INCOME OF A PORTION OF NET LONG-TERM CAPITAL GAIN, SO AS TO PROVIDE THAT THE DEDUCTION APPLIES TO NET CAPITAL GAIN; TO AMEND SECTION 12-7-1120, RELATING TO ALLOCATION OF INCOME, SO AS TO CLARIFY THE ALLOCATION OF DIVIDENDS OF SUBCHAPTER S CORPORATIONS; TO AMEND SECTION 12-7-1260, RELATING TO THE EMPLOYER'S CAPITAL EXPENDITURE CHILD CARE CREDIT, SO AS TO LIMIT THE CREDIT TO EMPLOYERS OF SOUTH CAROLINA RESIDENTS AND TO CAPITAL EXPENDITURES MADE IN THIS STATE; TO AMEND SECTION 12-7-1640, AS AMENDED, RELATING TO THE TIME FOR FILING INCOME TAX RETURNS, SO AS TO PROVIDE THAT ANY TAX DUE MUST BE PAID AT THE TIME THE RETURN IS FILED WITHOUT REGARD TO ANY EXTENSION; AND TO AMEND SECTION 12-7-2419, RELATING TO THE ELDERCARE TRUST FUND CHECKOFF, SO AS TO CLARIFY THAT THE CHECKOFF APPLIES ONLY TO INDIVIDUAL INCOME TAX RETURNS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-435(k)(5) of the 1976 Code, as added by Act 171 of 1991, is amended to read:
"(5) The deduction allowed by this item extends to the taxpayer's surviving spouse and, to the extent the surviving spouse receives retirement income attributable to the deceased spouse, applies in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed."
SECTION 2. Subsections (A), (B), and (C) of Section 12-7-1260 of the 1976 Code, as added by Act 189 of 1989, are amended to read:
"(A) A taxpayer who employs persons who are residents of this State 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 in this State but no more than one hundred thousand dollars for costs incurred in establishing a child care program for his employees. 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 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 in this State. 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 care payments incurred by the taxpayer to operate a child care program for his employees in this State, or made directly to licensed or registered independent child care facilities in the name of and for the benefit of an employee in this State of the taxpayer, which employee's children are kept at the facility during the employee's working hours. The payment may not exceed the amount charged to other children 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.
Where an employee in this State chooses to utilize the provisions of this subsection which authorize direct payments to licensed child 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 are also considered start-up expenses or expenditures for establishing a child care program for purposes of the fifty percent tax credit for start-up expenses authorized by subsection (A)."
SECTION 3. Section 12-7-1640 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding at the end:
"Any tax shown to be due on a return required pursuant to this chapter must be paid at the time the return is filed, without regard to any extension of time granted for filing the return."
SECTION 4. Section 12-7-2419 of the 1976 Code, as added by Act 501 of 1992, is amended to read:
"Section 12-7-2419. (A) Each taxpayer individual required to file a state income tax return who desires to contribute to the Eldercare Trust Fund of South Carolina as created by Section 43-21-160 may designate the contribution on the appropriate state individual income tax form. The contribution may not decrease the income tax liability of any taxpayer and may be made by reducing the income tax refund of any taxpayer by the amount designated or by accepting additional payment from the taxpayer by the amount designated, whichever is appropriate.
(B) All South Carolina individual income tax return forms must contain a designation for a contribution to the Eldercare Trust Fund of South Carolina. The instructions accompanying income tax forms must contain a description of the purpose for which the Eldercare Trust Fund was established and the use of monies from the income tax contribution. Contributions of other amounts may be made directly to the Eldercare Trust Fund.
(C) Taxpayers who are entitled to refunds shall have the refunds reduced by the amount designated by the taxpayer. The commission department shall determine annually the total amount so designated, plus the amount received in excess payments and shall report the total amount to the South Carolina Commission on Aging Division on Aging, Office of the Governor. The commission department shall transfer the total amount to the Eldercare Trust Fund at the earliest possible time.
(D) The incremental cost of administration of the contribution must be paid by the trust fund from amounts received pursuant to this section."
SECTION 5. This act takes effect upon approval by the Governor.