South Carolina S 13: Tax Deduction for Employer Contributions to 529 Accounts

Bill Text

2025-2026 Bill 13 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 13

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 AMENDING 
SECTION 59-2-80, RELATING TO TAX FEATURES OF THE SOUTH CAROLINA COLLEGE 
INVESTMENT PROGRAM, SO AS TO ALLOW EMPLOYERS TO MAKE TAX DEDUCTIBLE 
CONTRIBUTIONS TO EMPLOYEE COLLEGE INVESTMENT TRUST ACCOUNTS.

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

SECTION 1. Section 59-2-80(D) of the S.C. Code is amended to read:

 (D)(1)(a) Contributions to each 
investment trust account created under this chapter by a resident of this State 
or a nonresident required to file a State of South Carolina income tax return 
are deductible from South Carolina income subject to tax up to the limit of 
maximum contributions allowed to such accounts under Section 529 of the 
Internal Revenue Code of 1986, as amended, including funds transferred to an 
investment trust account from another qualified plan, as allowable under 
Section 529 of the Internal Revenue Code of 1986, as amended, and to the extent 
that the transferred funds were not permitted a state income tax deduction 
previously under South Carolina law.

 (b) An employer may match deductible 
contributions made by an employee to an investment trust account established 
under this chapter up to one thousand dollars. Contributions made by an 
employer pursuant to this subitem are deductible from the employer's South 
Carolina income subject to tax.

 (2) For purposes of this 
subsection, the term "qualified plan" means any plan qualified under Section 
529 of the Internal Revenue Code of 1986, as amended.

 (3) State income tax deductions 
as provided for in this section may be taken in any taxable year for 
contributions and rollovers made during that taxable year, and up to April 
fifteenth of the succeeding year, or the due date of a taxpayer's state income 
tax return excluding extensions, whichever is longer.

SECTION 2. The 
provisions contained in this act shall apply to each tax year beginning after 
2025.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 11, 2024 at 04:16 PM