The bill H. 3420 seeks to amend the South Carolina Code of Laws by introducing a new 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 legislation outlines eligibility criteria for schools and organizations, the process for claiming the tax credit, and the enforcement responsibilities of the State Treasurer and the Department of Revenue. Notably, it repeals the existing Section 12-6-3790, which pertains to the educational credit for exceptional needs children's funds.

The bill specifies that individuals can receive tax credits for their contributions, with annual limits set for different categories of students. It mandates the State Treasurer to publish a list of qualifying organizations and report on scholarship funding activities, including the number and total amount of grants issued. Additionally, the bill provides a framework for revoking an organization's participation in the scholarship 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 will apply to income tax years starting after 2024, with specific tax credit limits established for various categories of children.

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