Bill H. 3420 seeks to amend the South Carolina Code of Laws by introducing Section 12-6-3791, which establishes an income tax credit for contributions made to nonprofit scholarship funding organizations that provide grants to students attending eligible independent and home schools, particularly focusing on exceptional needs children, disadvantaged children, and PACE Scholarship children. The bill outlines the eligibility criteria for these organizations and schools, the process for claiming the tax credit, and the enforcement responsibilities of the State Treasurer and the Department of Revenue. Notably, it repeals Section 12-6-3790, which previously addressed the educational credit for exceptional needs children's funds.

The legislation specifies tax credit limits for contributions made on behalf of the targeted student groups and includes provisions for grant administration, documentation requirements, and oversight by the State Treasurer. It mandates transparency by requiring organizations to disclose grant information and eligibility criteria while ensuring that the educational programs of eligible schools remain unregulated by state agencies. Additionally, the bill requires the State Treasurer to publish a list of qualifying organizations annually and report on their activities to legislative leaders and the Governor. It also establishes a process for revoking an organization's participation in the program for non-compliance and allows for the transfer of funds between nonprofit scholarship organizations. The act will take effect upon the Governor's approval and applies to income tax years starting after 2024.

Statutes affected:
12/05/2024: 12-6-3791, 12-6-3790
Latest Version: 12-6-3791, 12-6-3790