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 create this program under Article 7 of Chapter 5, Title 11 of the South Carolina Code of Laws. It 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. The bill also defines key terms related to the program, such as "account owner," "qualified withdrawal," and "nonqualified withdrawal."

Additionally, the bill amends Section 12-6-1140 to allow for deductions from individual taxable income for contributions made to the Insurance Savings Program and any earnings accrued therein. It specifies that contributions and earnings will be exempt from state income tax as long as they remain on deposit and are withdrawn according to qualified withdrawal criteria. The bill emphasizes that the program does not create any guarantees regarding the return of principal or interest, 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 approval by the Governor.

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