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TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS ALLOWED FROM SOUTH CAROLINA TAXABLE INCOME OF AN INDIVIDUAL, SO AS TO ALLOW A STATE INDIVIDUAL INCOME TAX DEDUCTION EQUAL TO FIFTEEN PERCENT OF THE TOTAL AMOUNT OF PREMIUMS PAID BY A TAXPAYER PURSUANT TO A LONG-TERM CARE INSURANCE CONTRACT, UP TO THREE HUNDRED FIFTY DOLLARS FOR EACH TAXABLE YEAR FOR EACH CONTRACT, AND TO PROHIBIT A DOUBLE BENEFIT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1140 of the 1976 Code, as last amended by Act 278 of 2004, is further amended by adding an appropriately numbered item at the end to read:
"( )(a) A deduction equal to fifteen percent of the premium costs the individual paid during the taxable year on a qualified contract for long-term care insurance, as defined in Section 38-72-40(1), that offers coverage to the individual, his spouse, or a dependent for whom he was allowed to deduct a personal exemption on his federal individual income tax return for the taxable year. The deduction allowed by this item may not exceed three hundred fifty dollars for each qualifying individual covered by one or more qualified long-term care insurance contracts for which a deduction is claimed. A nonresident who claims the deduction allowed by this section shall reduce the amount of the deduction in the same manner as nonresident individuals reduce personal exemptions and applicable standard deduction or itemized deductions pursuant to Section 12-6-1720(2).
(b) A deduction is not allowed for payments that are deducted or excluded from the taxpayer's income for the taxable year, whether the deduction or exclusion was due to a South Carolina modification pursuant to Article 9 of this chapter or was due to an exclusion or deduction which resulted in a reduction of the taxpayer's federal taxable income.
(c) A taxpayer who claims the deduction allowed by this item shall provide information required by the department to demonstrate that the amount paid for premiums for which the deduction is claimed was not excluded from the taxpayer's gross income for the taxable year."
SECTION 2. Upon approval by the Governor, the act is effective for taxable years beginning after 2004.
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