A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-6-3380, RELATING TO THE INCOME TAX CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES, SO AS TO MAKE THE CREDIT REFUNDABLE AND TO DELETE A PROVISION THAT OTHERWISE REDUCES THE AMOUNT OF THE CREDIT.

 

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

 

SECTION 1.  Section 12-6-3380 of the S.C. Code is amended to read:

 

    Section 12-6-3380. An individual may claim an a refundable income tax credit for child and dependent care expenses. The credit is computed as provided in Internal Revenue Code Section 21, except that the term "applicable percentage" means seven percent and is not reduced, and the credit is refundable, and only expenses that are directly attributable to items of South Carolina gross income qualify for the credit.

    If a nonresident taxpayer is a resident of a state which does not allow a resident of this State credit for child and dependent care expenses, the nonresident taxpayer is not allowed credit on the South Carolina income tax return for child and dependent care expenses.

 

SECTION 2.  This act takes effect upon approval by the Governor and first applies to income tax years beginning after 2026.

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