The proposed 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. The bill outlines eligibility criteria for students and schools, the process for claiming the tax credit, and mandates public disclosure of certain information. It also empowers the State Treasurer and the Department of Revenue to enforce the provisions of the credit. Notably, the bill repeals Section 12-6-3790, which previously addressed the educational credit for exceptional needs children's funds.

In addition to defining key terms such as "disadvantaged child" and "eligible school," the bill limits the tax credit to contributions made without designating specific beneficiaries and sets caps on the total amount of tax credits available for different categories of eligible students. It establishes a structured application process for parents to determine their child's eligibility for the ACE scholarship and outlines the responsibilities of scholarship funding organizations. The legislation emphasizes transparency and accountability by requiring the State Treasurer to publish an annual list of qualifying organizations and report on scholarships issued, while also providing a framework for auditing these organizations. The bill is set to take effect upon the Governor's approval, with implementation targeted for the beginning of the 2026-2027 school year.

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