South Carolina S 32: Pregnancy Care Tax Credit

Bill Text

2025-2026 Bill 32 Text of Previous Version (Apr. 02, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 32

Indicates Matter Stricken
Indicates New Matter

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

Committee Report

April 2, 2026

S. 32

Introduced 
by Senators Grooms, Leber, Rice, Reichenbach, Climer, Garrett, Jackson and Zell

S. Printed 4/2/26--H.

Read the first time April 23, 2025

________

The committee on House Ways and 
Means

To whom was referred a Bill (S. 32) to amend 
the South Carolina Code of Laws so as to enact the "Pregnancy Resource Act"; by 
adding Section 12-6-3383 so as to provide for a tax credit for voluntary, etc., 
respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

B.W. BANNISTER for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill creates an income tax credit for 
taxpayers who make cash contributions to 501(c)(3) charities that are a 
pregnancy resource center, a crisis pregnancy center, maternity home, or 
residential program for human trafficking victims. The bill limits the 
aggregate amount of the tax credit allocated in a calendar year to $3,500,000. 
Additionally, the bill specifies that no more than 25 percent of the aggregate 
amount of tax credits may be allocated to a single charitable organization. 
However, any credits not allocated before June 1, 2026, may be allocated 
without regard to the 25 percent limit in the same calendar year.

The bill requires each eligible charitable 
organization to provide DOR with a written certification confirming that it 
meets all eligibility criteria. In order to be recertified, the eligible 
charitable organization must provide the department with the number and total 
amount of voluntary cash contributions in the previous tax year as well as a 
copy of a compilation, review, or compliance audit of the organization's financial 
statements relating to the grants received, conducted by a certified public 
accounting firm. Additionally, DOR is required to compile a list of eligible 
charitable organizations and make the list publicly available.

The bill will have a minimal expenditure 
impact on DOR as the agency will be able to develop forms and guidance for this 
tax credit as well as manage the additional requirements with existing staff 
and resources.

State Revenue

This bill creates an income tax credit for 
taxpayers who make cash contributions to 501(c)(3) charities that are a 
pregnancy resource center, a crisis pregnancy center, maternity home, or 
residential program for human trafficking victims. The amount of the tax credit 
that can be claimed by a taxpayer is equal to the dollar contributions to the 
charitable organizations and is limited to 50 percent of the taxpayer's total 
tax liability for the tax year. Further, the bill limits the aggregate amount 
of the tax credit allocated in a calendar year to $3,500,000. Additionally, the 
bill specifies that no more than 25 percent of the aggregate amount of tax 
credits may be allocated to a single charitable organization, with the 
exception of credits that are not allocated before June 1, 2026, which are 
allowed to be allocated without regard to the 25 percent restriction in the 
same calendar year. The bill also allows unused tax credits to be carried 
forward for five consecutive years from the close of the tax year in which the 
credits are earned. The credit is repealed on December 31, 2030, except that 
any credits earned before the repeal may be claimed for the allowable 
carryforward period. The bill takes effect upon approval by the Governor and 
first applies to tax year 2025.

Based upon filings with the Secretary of 
State of non-profit charitable organizations that self-identify as a pregnancy 
resource center, a crisis pregnancy center, maternity home, or residential 
program for human trafficking victims, there were approximately 30 such organizations 
headquartered in the state. Annual reported contributions totaled approximately 
$14,743,000 based on filings from either 2022 or 2023. Also, there were 14 
additional potentially qualifying charitable organizations headquartered out of 
state that may also receive contributions from SC taxpayers. Based on these 
data, we expect the contributions eligible for the new tax credit may reach the 
annual cap of $3,500,000. Therefore, the bill will reduce General Fund revenue 
from individual and corporate income taxes by up to $3,500,000 beginning in FY 
2026-27 and annually thereafter until FY 2030-31, after which the credit is 
repealed. However, taxpayers may carry forward the credit for five years, which 
may affect the timing of the revenue impact.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE