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. The legislation outlines the criteria for eligible students, including categories such as general, disadvantaged, exceptional needs, and home school children, and specifies the process for claiming the tax credit. It also mandates public disclosure of certain information and grants enforcement authority to the State Treasurer and the Department of Revenue. Notably, the bill repeals Section 12-6-3790, which previously addressed the educational credit for exceptional needs children's funds.

Under the proposed framework, individuals can receive tax credits for contributions to scholarship funding organizations, which must be used for qualifying expenses for eligible students. The State Treasurer is responsible for creating a standard application process for parents to establish their child's eligibility for the ACE scholarship and for publishing an annual list of qualifying organizations. The bill includes provisions for oversight, accountability, and auditing of these organizations, allowing for revocation of participation in cases of noncompliance. Additionally, it ensures that if any part of the act is found unconstitutional, the remaining sections will remain valid, with the act set to take effect upon the Governor's approval, targeting implementation for the 2026-2027 school year.

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