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Current Status Bill Number:View additional legislative information at the LPITS web site.8 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19990112 Primary Sponsor:Giese All Sponsors:Giese, Elliott, Branton, Rankin, Washington, Reese, Setzler Drafted Document Number:l:\council\bills\kgh\15053htc99.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Income tax credits provided for adult care programs; Taxation, Aging History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20000301 Read second time Senate 19990112 Introduced, read first time, 06 SF referred to Committee Senate 19981118 Prefiled, referred to Committee 06 SF Versions of This Bill
TO AMEND SECTION 12-6-3440, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE 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 12-6-3440 of the 1976 Code, as last amended by Act 40 of 1995, is further amended to read:
"Section 12-6-3440. (A) A taxpayer who employs persons who are residents of this State in any capacity may claim as a credit against his the taxpayer's state income tax, bank tax, or premium tax liability an amount equal to fifty percent of his the taxpayer's capital expenditures in this State 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. 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, real property, including improvements in this State, and donations to a nonprofit corporation as defined in Internal Revenue Code Section 501(c)(3) for purposes of establishing a child care program. If credit is taken for donations by a corporation, a deduction to arrive at the net income of the corporation is not allowed. 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 the taxpayer's 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 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 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 in this State chooses to utilize the provisions of this subsection which 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 costs 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 12-6-3440 of the 1976 Code in Section 1 of this act only apply to expenditures made after 1998.
SECTION 3. This act takes effect upon approval by the Governor.
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