The bill S. 50 seeks to amend the South Carolina Code of Laws by introducing Article 42 to Chapter 6, Title 12, which establishes an income tax credit for contributions made to nonprofit scholarship funding organizations that provide grants to eligible students for attending independent and home schools. It outlines the criteria for eligible students and schools, the process for claiming the tax credit, and mandates public disclosure of certain information. The bill also empowers the State Treasurer and the Department of Revenue to enforce these provisions. Notably, it repeals Section 12-6-3790, which previously addressed the educational credit for exceptional needs children's funds.

Under this legislation, individuals can receive a tax credit for contributions to scholarship funding organizations, which must be used for scholarships covering qualifying expenses for eligible students. The bill defines categories of eligible students, including general, disadvantaged, exceptional needs, and home school children, and sets limits on scholarship amounts. It establishes a standard application process for parents to determine eligibility for the ACE scholarship and outlines the responsibilities of scholarship funding organizations, including financial reporting and compliance. The State Treasurer is tasked with publishing an annual list of qualifying organizations and reporting on scholarships issued, while also providing a framework for auditing these organizations and allowing for contestation of revocations through a hearing process. The act will take effect upon the Governor's approval, with implementation targeted for the 2026-2027 school year.

Statutes affected:
12/11/2024: 12-6-3790
Latest Version: 12-6-3790