South Carolina S 47: Childcare

Bill Text

2025-2026 Bill 47 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 47

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 12-6-3440, RELATING TO THE TAX CREDIT FOR EMPLOYEE CHILDCARE PROGRAMS, 
SO AS TO INCREASE THE MAXIMUM CREDIT AND TO ALLOW THE CREDIT TO BE APPLIED 
AGAINST OTHER TAXES; AND BY ADDING SECTION 12-6-3595 SO AS TO ALLOW A TAX 
CREDIT FOR INDIVIDUAL TAXPAYERS THAT ARE EMPLOYED FULL-TIME AS A CHILDCARE 
DIRECTOR OR CHILDCARE STAFF PERSON.

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

SECTION 1. Section 12-6-3440(A), (C), and (D) of the S.C. Code is 
amended to read:

 Section 
12-6-3440. (A) A taxpayer who 
employs persons who are residents of this State in any capacity may claim a 
credit against its state income tax, bank tax, or premium 
tax, license tax, or withholding tax liability an 
amount equal to fifty percent of its capital expenditures in this State but no 
more than one hundred thousand 
million dollars for costs incurred in establishing a childcare program 
for its employees' children.

 (C)(1) The taxpayer under subsection (A) 
is allowed as a credit against his state income tax, bank tax, or premium tax, license tax, or 
withholding tax liability an amount not exceeding fifty percent of the 
childcare payments incurred by the taxpayer to operate a childcare program for 
his employees in this State, or made directly to licensed or registered 
independent childcare facilities in the name of and for the benefit of an 
employee in this State of the taxpayer, which employee's children are kept at 
the facility during the employee's working hours. The payment may not exceed 
the amount charged to other children of like age and abilities of individuals 
not employed by the taxpayer. In addition, a taxpayer is allowed to include in 
the amount of the payment for calculation of the credit any administrative cost 
associated with payment to licensed or registered independent childcare 
facilities not to exceed two percent. The credits allowed may not exceed three twelve thousand dollars per child for each participating employee a year.

 (2) 
Where an employee in this State chooses to utilize the provisions of this 
subsection which authorize direct payments to licensed childcare facilities not 
operated by the employer and licensed or registered with 
the Department of Social Services in accordance with Section 63-13-20, 
expenses incurred in organizing and administering the direct payment program in 
the first year are also considered start-up expenses or expenditures for 
establishing a childcare program and qualify for credit allowed by subsection 
(A).

 (3) 
For purposes of the credits allowed by this subsection, the taxpayer is 
required to retain information concerning the childcare facility's federal 
identification number, license or registration number, payment amount, and in 
whose name and for whose benefit the payments were made.

 (D) The credits established by this 
section taken in any one tax year are also limited to an amount not greater 
than fifty percent of a taxpayer's state income tax, bank tax, or premium tax, license tax, or 
withholding tax liability for that year.

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

 Section 
12-6-3595. (A)(1) There is allowed 
a refundable income tax credit to any resident individual taxpayer that is 
employed full-time as a childcare director or childcare staff person at a 
facility that is licensed or registered with the Department of Social Services 
in accordance with Section 63-13-20. The amount of the credit equals the amount 
set forth in subsection (B) based upon the qualifications of the person.

 (2) 
The Department of Social Services shall assist the Department of Revenue in 
administering the credit. The Department of Social Services shall determine 
qualifications eligibility in accordance with the state practitioner registry. 
Both departments may adopt rules and promulgate regulations necessary to 
implement the provisions of this section.

 (B) 
Childcare Director and Childcare Staff Qualification Tax Credit

 Level Four 
Director or Level Four Staff $3,000

 Level Three 
Director or Level Three Staff $2,500

 Level Two 
Director or Level Two Staff $2,000

 Level One 
Director or Level One Staff $1,500

B. Unless 
reauthorized by the General Assembly this section is repealed after December 
31, 2030.

SECTION 3. This act takes effect upon approval 
by the Governor and first applies to tax years beginning after 2024.

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This web page was last updated on December 11, 2024 at 04:35 PM