The bill, titled the "Working Family Child Tax Credit," aims to provide targeted income tax relief to working families in South Carolina with qualifying children. It introduces a new section, 12-6-3830, to the South Carolina Code of Laws, which establishes a tax credit based on the taxpayer's federal adjusted gross income. Specifically, families earning less than $60,000 can receive a credit of $400 per qualifying child, while those earning between $60,000 and $100,000 can receive $300, and families earning between $100,000 and $125,000 can receive $200. Additionally, if the credit exceeds the taxpayer's state income tax liability, a portion of the excess credit will be refunded, with higher refund rates for lower-income households.

The bill also includes provisions for annual adjustments to the credit amounts starting in tax year 2028, based on inflation measures. It emphasizes that the implementation of this tax credit should not increase the tax liability of any taxpayer beyond what is currently owed under existing law. The act is set to take effect upon the Governor's approval and will first apply to income tax years beginning after 2026.

Statutes affected:
03/31/2026: 12-6-3830
Latest Version: 12-6-3830