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 bill introduces new legal language to define key terms related to the program, such as "account owner," "insurance savings account," and "qualified withdrawal," and outlines the responsibilities of the State Treasurer in administering the program. The Treasurer will have the authority to engage program managers, develop marketing strategies, and ensure compliance with the provisions of the article.

Additionally, the bill amends Section 12-6-1140 of the South Carolina Code to allow 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specifies that earnings from these accounts will not be subject to state income tax if they remain on deposit and are withdrawn as qualified withdrawals. However, any non-qualified withdrawals will be subject to taxation. The bill emphasizes that the program does not create any guarantees regarding the return of principal or interest on the accounts, and it establishes two trust funds to manage the program's finances. The act will take effect upon the Governor's approval.

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