South Carolina General Assembly
110th Session, 1993-1994

Bill 145


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               Senate
Bill Number:                    145
Primary Sponsor:                Rose
Committee Number:               06
Type of Legislation:            GB
Subject:                        Dependent Tax Credit Act
Residing Body:                  Senate
Current Committee:              Finance
Computer Document Number:       JIC/5113HC.93
Introduced Date:                19930112    
Last History Body:              Senate
Last History Date:              19930112    
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Rose
Type of Legislation:            General Bill



History


Bill  Body    Date          Action Description              CMN  Leg Involved
____  ______  ____________  ______________________________  ___  ____________

145   Senate  19930112      Introduced, read first time,    06
                            referred to Committee

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1216 SO AS TO ENACT THE DEPENDENT TAX CREDIT ACT.

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

SECTION 1. This act may be cited as the Dependent Tax Credit Act.

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

"Section 12-7-1216. (A) In the case of an individual, there is allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the dependent tax credit amount for the taxable year.

(B) For the purposes of this section:

(1) The dependent 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 for the year as does not exceed fifteen thousand dollars.

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

(a) fifteen percent for any one qualified dependent of the taxpayer; and

(b) ten percent for each qualified dependent of the taxpayer other than the qualified dependent taken into account under subitem (a).

(3)(a) In the case of a taxpayer whose earned income for the taxable year exceeds twenty-five thousand dollars, the amount determined under subsection (B)(1) must be reduced by an amount equal to the sum of the applicable phaseout percentages of the excess.

(b) For purposes of subitem (a), the applicable phaseout percentage is:

(i) nine percent for any one qualified dependent of the taxpayer; and

(ii) one percent for each qualified dependent of the taxpayer taken into account under subsection (B)(2)(b).

(C) For the purposes of this section, the term `qualified dependent' means an individual:

(1) who is a dependent as defined in Section 152 of the Internal Revenue Code;

(2) who is a child of the taxpayer as defined in Section 151(c)(3) of the Internal Revenue Code; and

(3) who has not attained the age of twelve 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) In the case of an individual who is legally married, this section applies only if a joint return is filed for the taxable year.

(E) 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.

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

SECTION 3. Upon approval by the Governor, this act is effective for taxable years beginning after 1992.

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