Current Status Bill Number:3624 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970311 Primary Sponsor:Harrell All Sponsors:Harrell Drafted Document Number:dka\4059mm.97 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Income tax credit, family independence payments, employment of person receiving; Taxation, Social Services
Body Date Action Description Com Leg Involved
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House 19970311 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND SECTION 12-6-3470, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME TAX CREDIT FOR EMPLOYMENT OF A PERSON WHO RECEIVED FINANCIAL ASSISTANCE THROUGH AID TO FAMILIES WITH DEPENDENT CHILDREN, SO AS TO SUBSTITUTE "FAMILY INDEPENDENCE PAYMENTS" FOR REFERENCES TO AID TO FAMILIES WITH DEPENDENT CHILDREN; TO PROVIDE THE PROCESS FOR VERIFICATION OF ELIGIBILITY BY THE DEPARTMENT OF SOCIAL SERVICES; AND TO DEFINE "FAMILY INDEPENDENCE PAYMENTS".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-3470 of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"Section 12-6-3470. (A) A taxpayer who employs a person who received Aid to Families with Dependent Children payments within this State for three months before becoming employed family independence payments within this State for the ninety days immediately before his date of employment is eligible for an income tax credit of:
(1) twenty percent of the wages paid to the employee for each full month of employment for the first twelve months of employment;
(2) fifteen percent of the wages paid to the employee for each full month of employment during the second twelve months of employment;
(3) ten percent of the wages paid to the employee for each full month during the third twelve months of employment.
The maximum aggregate credit that may be claimed in a tax year for a single employee under this subsection and Section 12-6-3360 is five thousand five hundred dollars.
(B) In addition to the credits provided for in subsection (A) and Section 12-6-3360, a taxpayer who employs a person who received AFDC payments within this State for three months before becoming employed family independence payments within this State for the ninety days immediately before his date of employment and employs that person to work full time in a least developed county, as defined in Section 12-6-3360, is allowed a credit in an amount equal to one hundred seventy-five dollars for each full month during the first thirty-six months of employment.
(C) The income tax credit provided by subsection (A) is not allowed unless the taxpayer also makes available full individual or participating family health care coverage for the benefit of each qualified employee for which the credit is earned.
(D) The Department of Social Services and the South Carolina Employment Security Commission must make information available to employers interested in hiring AFDC family independence payment recipients and must provide documentation to employers verifying a person's status as an AFDC recipient a family independence payment recipient. An employer shall request documentation as to AFDC eligibility of an employee from the South Carolina Employment Security Commission Department of Social Services in writing within five days of employment by the fifteenth day of the first month after the end of the taxable year of the employer in which the family independence payment recipient was hired. The commission Department of Social Services has sixty days in which to either issue or deny this documentation.
(E) For purposes of this section, 'family independence payments' means financial assistance under Part A, Title IV, the Social Security Act.
(F) No The income tax credit provided for in subsection (A) may not be taken under this section if the position filled by the former AFDC family independence payment recipient was made available due to the termination or forced resignation of an employee for the purpose of obtaining the tax credit. Nothing in this section creates a private cause of action which does not otherwise exist at law.
(F)(G) A credit claimed under this section but not used in a taxable year may be carried forward fifteen years from the taxable year in which the credit is earned."
SECTION 2. This act takes effect upon approval by the Governor.