The "Long-Term Care Tax Credit Act" is a proposed bill in South Carolina that aims to provide individual taxpayers with a state income tax credit of fifteen percent on the total premiums paid for long-term care insurance. This credit is capped at a maximum of two thousand dollars per qualifying individual for each taxable year. The bill specifies that the credit is applicable only to premiums paid for qualified long-term care insurance contracts that cover the taxpayer, their spouse, or dependents for whom they can claim a personal exemption on their federal tax return. Additionally, the bill includes provisions to prevent taxpayers from receiving a double benefit by disallowing credits for payments that have already been deducted or excluded from their income.

The bill also outlines that nonresidents claiming the credit must adjust the amount in accordance with the same rules that apply to personal exemptions and deductions. Taxpayers claiming the credit are required to provide necessary information to demonstrate that the premium payments were not excluded from their gross income for the taxable year. The act will take effect upon the Governor's approval and will apply to taxable years beginning after 2024.

Statutes affected:
01/21/2025: 12-6-3395
Latest Version: 12-6-3395