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 bill sets specific annual caps on tax credits, including $25 million for exceptional needs students and $40 million for PACE Scholarship children, and outlines the 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 relates to the educational credit for exceptional needs children's funds.

Additionally, the bill mandates that the State Treasurer publish a list of qualifying nonprofit scholarship funding organizations annually and report to legislative leaders and the Governor on various aspects of scholarship funding. It grants the State Treasurer the authority to request audits of these organizations and outlines the process for revoking an organization's participation in the scholarship program if non-compliance is found. The bill also allows for the transfer of funds between nonprofit scholarship organizations under certain conditions and specifies that it will take effect upon the Governor's approval, applying 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