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Current Status Bill Number:View additional legislative information at the LPITS web site.196 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20010124 Primary Sponsor:Giese All Sponsors:Giese Drafted Document Number:l:\council\bills\pt\1054htc01.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Income tax credits for employers for adult care programs; Aging, Taxation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20010124 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTION 12-6-3440, 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 is amended to read:
"Section 12-6-3440. (A) A taxpayer who employs persons who are residents of this State in any capacity may claim a credit against its state income tax, bank tax, or premium tax liability an amount equal to fifty percent of its 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 its employees' children or adult family members.
(B) For purposes of this section, 'expenditures for costs incurred in establishing a child or adult care program' include, but are 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 or adult 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)(1) The taxpayer under subsection (A) 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 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 or adult 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. In addition, a taxpayer is allowed to include in the amount of the payment for calculation of the credit any administrative cost associated with payment to licensed or registered independent child or adult care facilities not to exceed two percent. The credits allowed may not exceed three thousand dollars for each participating employee a year if the employee receives payments for either child or adult family member care and six thousand dollars if the employee receives payments for both.
(2) 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 incurred in organizing and administering the direct payment program in the first year are also are considered start-up expenses or expenditures for establishing a child or adult care program and qualify for credit allowed by subsection (A).
(3) For purposes of the credits allowed by this subsection, 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.
(D) The credits established by this section taken in any one tax year 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.
(E) 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."
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 2000.
SECTION 3. This act takes effect upon approval by the Governor.
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