H 5477

South Carolina General Assembly
126th Session, 2025-2026
Bill 5477
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS by ENACTing THE
"WORKING FAMILY CHILD TAX CREDIT" BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE
AN INCOME TAX CREDIT FOR CERTAIN INDIVIDUALS WITH QUALIFYING CHILDREN.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  This act may be cited as the "Working Family Child Tax Credit."
SECTION 2.  (A) The General Assembly finds that recent changes to
the state's income tax structure may alter the distribution of tax liability
across income levels.
    (B) The General
Assembly finds that working families, particularly those with lower and
moderate incomes, may bear a disproportionate share of total tax burden due to:
       (1) higher
relative consumption of taxable goods and services; and
       (2) limited
access to deductions and tax planning mechanisms.
    (C) The General
Assembly recognizes that strong families are essential to a stable workforce,
economic mobility, and long-term economic growth in the State.
    (D) It is the
intent of this act to:
       (1) provide
targeted tax relief to working families with qualifying children;
       (2) prevent
unintended increases in effective tax burdens on lower and middle-income
households;
       (3) support
workforce participation and household financial stability; and
       (4) ensure that
the benefits of tax reform are equitably distributed.
    (E) Nothing in
this act may be construed to increase the tax liability of any taxpayer above
what would otherwise be owed under existing law.
SECTION 3.  Article 25, Chapter 6, Title 12 of the S.C. Code is
amended by adding:
    Section
12-6-3830. (A) An individual
taxpayer is allowed a credit against the tax imposed pursuant to Section
12-6-510 for each qualifying child, as defined by the Internal Revenue Service,
equal to:
       (1)
four hundred dollars per qualifying child for a household with a federal
adjusted gross income of less than sixty thousand dollars;
       (2)
three hundred dollars per qualifying child for a household with a federal
adjusted gross income between sixty thousand dollars and one hundred thousand
dollars; and
       (3)
two hundred dollars per qualifying child for a household with a federal
adjusted gross income between one hundred thousand dollars and one hundred
twenty-five thousand dollars.
    (B) If
the credit allowed by this section exceeds the taxpayer's state income tax
liability, then fifty percent of the excess credit must be refunded to the
taxpayer. For taxpayers with a federal adjusted gross income below forty
thousand dollars, seventy-five percent of the excess credit must be refunded to
the taxpayer.
    (C)
The credit provided pursuant to this section may be claimed in addition to the
Earned Income Tax Credit allowed pursuant to Section 12-6-3632.
    (D) Beginning
with tax year 2028, the credit amounts provided in subsection (A) must be
adjusted annually for inflation based on the Consumer Price Index or other
appropriate measure as determined by the Revenue and Fiscal Affairs Office.
    (E)
The department may promulgate regulations to implement the provision of this
section and may require documentation that it considers necessary to administer
the credit.
SECTION 4.  This act takes effect upon approval
by the Governor and first applies to income tax years beginning after 2026.
----XX----
This web page was last updated on March 31, 2026 at 03:03 PM