South Carolina S 306: Tuition Tax Credits

Bill Text

2025-2026 Bill 306 Text of Previous Version (Feb. 04, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 306

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 ADDING SECTION 
12-6-3830 SO AS TO PROVIDE THAT A TAXPAYER WHOSE CHILD ATTENDS A QUALIFYING 
PRIVATE SCHOOL, PAROCHIAL SCHOOL, OR HOME SCHOOL FOR GRADES K-12 IS ENTITLED TO 
A TAX CREDIT.

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

SECTION 1. Chapter 6, Title 12 of the S.C. Code is amended by 
adding:

 Section 
12-6-3830. (A) A taxpayer whose 
child attends a qualifying private school, parochial school, or home school for 
grades K-12 is entitled to a tax credit against income taxes imposed pursuant 
to this chapter equal to:

 (1) 
for taxable year 2025, two thousand dollars or the cost of tuition, whichever 
is less, for each child;

 (2) 
for taxable year 2026, four thousand dollars or the cost of tuition, whichever 
is less, for each child;

 (3) 
for taxable year 2027, six thousand dollars or the cost of tuition, whichever 
is less, for each child; and

 (4) 
for taxable year 2027 and for each taxable year thereafter, eight thousand five 
hundred dollars or the cost of tuition, whichever is less, for each child. The 
tax credit is refundable beginning in tax year 2027.

 (B) 
In order to be a qualifying school, the school must:

 (1) 
provide an affidavit attesting that it is a K-12 school;

 (2) 
provide the school's address;

 (3) 
provide that it is able to enroll students;

 (4) 
provide that it will educate students according to the expectations of the 
student's family;

 (5) 
make an annual financial statement available to students' families; and

 (6) 
have an Employer Identification Number (EIN), or, for purposes of a home 
school, the school must be registered as required by the State.

 (C) A 
taxpayer who claims an income tax credit pursuant to this section may not claim 
the exceptional needs tax credit pursuant to Section 12-6-3790 in the same 
income tax year.

 (D) 
In order to claim the tax credit cost of tuition for each student, the taxpayer 
must provide proof of tuition payment in a form prescribed by the Department of 
Revenue.

 (E) A 
taxpayer is not eligible for the credit described in this section if his child 
attended a public school for more than forty-four days in the current income 
tax year.

 (F) A 
taxpayer who fraudulently claims the credit described in this section is guilty 
of tax fraud and must be prosecuted as provided by law.

 (G) A 
parent may assert a violation of this section as a claim or defense in a 
judicial or administrative proceeding and obtain compensatory damages, 
injunctive relief, declaratory relief, attorney's fees, court costs, and any 
other appropriate relief.

 (1) 
A parent is required to bring a claim for a violation of this section no later 
than three years after the day the cause of action accrues.

 (2) 
An award of noneconomic damages may not exceed one hundred thousand dollars for 
each claimant unless the jury or court determines that the defendant was 
grossly negligent, wilful, wanton, or reckless, and such conduct was the 
proximate cause of the claimant's noneconomic damages, or if the defendant has 
engaged in fraud or misrepresentation related to the claim, or if the defendant 
altered or destroyed medical records with the purpose of avoiding a claim or 
liability to the claimant.

 (3) 
The provisions of this section do not limit the amount of compensation for 
economic damages suffered by a claimant.

 (H) 
The Attorney General may bring an action to enforce compliance with this 
section. Nothing in this section may be construed to deny, impair, or otherwise 
affect any right or authority of the Attorney General, the State, or any 
agency, officer, or employee of the State to institute or intervene in any 
proceeding.

 (I) 
The Treasurer shall prescribe the form and manner to be an approved private 
school or parochial school and issue eligibility certificates. The parent shall 
provide the eligibility certificate to the department. By October first of each 
year, the Treasurer shall publish on its website a list of all qualifying 
private schools and parochial schools to include their names, addresses, 
telephone numbers, and, if available, website addresses and applicable audits.

 (J) 
For each student that leaves a public school to attend a qualifying private 
school, parochial school, or home school for grades K-12 who is a child of a 
taxpayer claiming the tax credit pursuant to this section, the department shall 
reduce:

 (1) 
for school year 2025-2026 State Aid to Classrooms by two thousand dollars;

 (2) 
for school year 2026-2027, State Aid to Classrooms by four thousand dollars;

 (3) 
for school year 2027-2028, State Aid t