South Carolina H 5477: Glenda Bigby

Bill Text

2025-2026 Bill 5477 Text of Previous Version (Mar. 31, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5477

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 ENACTing THE 
"WORKING FAMILY CHILD TAX CREDIT" BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE 
AN INCOME TAX CREDIT FOR CERTAIN INDIVIDUALS WITH QUALIFYING CHILDREN.

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

SECTION 1. This act may be cited as the "Working Family Child Tax Credit."

SECTION 2. (A) The General Assembly finds that recent changes to 
the state's income tax structure may alter the distribution of tax liability 
across income levels. 

 (B) The General 
Assembly finds that working families, particularly those with lower and 
moderate incomes, may bear a disproportionate share of total tax burden due to: 

 (1) higher 
relative consumption of taxable goods and services; and

 (2) limited 
access to deductions and tax planning mechanisms.

 (C) The General 
Assembly recognizes that strong families are essential to a stable workforce, 
economic mobility, and long-term economic growth in the State.

 (D) It is the 
intent of this act to:

 (1) provide 
targeted tax relief to working families with qualifying children;

 (2) prevent 
unintended increases in effective tax burdens on lower and middle-income 
households;

 (3) support 
workforce participation and household financial stability; and

 (4) ensure that 
the benefits of tax reform are equitably distributed.

 (E) Nothing in 
this act may be construed to increase the tax liability of any taxpayer above 
what would otherwise be owed under existing law.

SECTION 3. Article 25, Chapter 6, Title 12 of the S.C. Code is 
amended by adding:

 Section 
12-6-3830. (A) An individual 
taxpayer is allowed a credit against the tax imposed pursuant to Section 
12-6-510 for each qualifying child, as defined by the Internal Revenue Service, 
equal to:

 (1) 
four hundred dollars per qualifying child for a household with a federal 
adjusted gross income of less than sixty thousand dollars;

 (2) 
three hundred dollars per qualifying child for a household with a federal 
adjusted gross income between sixty thousand dollars and one hundred thousand 
dollars; and

 (3) 
two hundred dollars per qualifying child for a household with a federal 
adjusted gross income between one hundred thousand dollars and one hundred 
twenty-five thousand dollars.

 (B) If 
the credit allowed by this section exceeds the taxpayer's state income tax 
liability, then fifty percent of the excess credit must be refunded to the 
taxpayer. For taxpayers with a federal adjusted gross income below forty 
thousand dollars, seventy-five percent of the excess credit must be refunded to 
the taxpayer.

 (C) 
The credit provided pursuant to this section may be claimed in addition to the 
Earned Income Tax Credit allowed pursuant to Section 12-6-3632.

 (D) Beginning 
with tax year 2028, the credit amounts provided in subsection (A) must be 
adjusted annually for inflation based on the Consumer Price Index or other 
appropriate measure as determined by the Revenue and Fiscal Affairs Office.

 (E) 
The department may promulgate regulations to implement the provision of this 
section and may require documentation that it considers necessary to administer 
the credit.

SECTION 4. This act takes effect upon approval 
by the Governor and first applies to income tax years beginning after 2026.

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This web page was last updated on March 31, 2026 at 03:03 PM