The proposed bill, H. 4299, seeks to establish the "Insurance Savings Program" in South Carolina, which will allow individuals to create savings accounts specifically for paying insurance policy deductibles on real property and for making renovations that enhance the insurability of their properties. The program aims to reduce insurance premiums and deductibles for participants. The bill outlines the roles and responsibilities of the State Treasurer in administering the program, including the authority to engage program managers, develop marketing strategies, and ensure compliance with regulations. It also defines key terms related to the program, such as "account owner," "qualified withdrawal," and "program manager."

Additionally, the bill amends Section 12-6-1140 of the South Carolina Code to allow for deductions from individual taxable income for contributions made to the Insurance Savings Program and any earnings accrued therein. It specifies that earnings from these accounts will not be subject to state income tax if they are not withdrawn as non-qualified distributions. The bill emphasizes that the program does not create any guarantees regarding the return of principal or interest on accounts, and it establishes two funds: the Insurance Savings Program Trust Fund and the Insurance Savings Expense Fund, to manage the financial aspects of the program. The act will take effect upon the Governor's approval.

Statutes affected:
04/03/2025: 12-6-1140
Latest Version: 12-6-1140