The bill H. 3492 proposes an amendment to Section 12-6-3632 of the South Carolina Code of Laws, which pertains to the earned income tax credit (EITC). The amendment allows for a portion of the EITC to be refundable. Specifically, it states that while taxpayers can claim a nonrefundable credit equal to 125% of the federal EITC, if this credit exceeds the taxpayer's state income tax liability, then 25% of the excess credit will be refunded to the taxpayer.

This change aims to provide additional financial relief to full-year resident individual taxpayers by allowing them to receive a refund on a portion of their earned income tax credit, thereby enhancing the benefits of the EITC in South Carolina. The bill will take effect upon approval by the Governor and will apply to tax years beginning after 2024.

Statutes affected:
12/05/2024: 12-6-3632
Latest Version: 12-6-3632