South Carolina General Assembly
116th Session, 2005-2006

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H. 3926

STATUS INFORMATION

General Bill
Sponsors: Reps. Taylor, Altman, Davenport and Rice
Document Path: l:\council\bills\pt\2504sj05.doc

Introduced in the House on April 13, 2005
Currently residing in the House Committee on Ways and Means

Summary: Education Tax Deduction Act

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   4/13/2005  House   Introduced and read first time HJ-60
   4/13/2005  House   Referred to Committee on Ways and Means HJ-60

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/13/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO ENACT THE "SOUTH CAROLINA EDUCATION TAX DEDUCTION ACT" BY ADDING CHAPTER 18 TO TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO PROVIDE A TAX DEDUCTION FOR EACH STUDENT WHO TRANSFERS TO AN INDEPENDENT SCHOOL OR FOR HOME SCHOOLING A STUDENT, AND TO PROVIDE FOR REPORTING AND ACCOUNTABILITY OF THE IMPLEMENTATION OF THIS CHAPTER; AND TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM INDIVIDUAL TAXABLE INCOME, SO AS TO PROVIDE FOR A DEDUCTION FOR EACH STUDENT WHO TRANSFERS TO AN INDEPENDENT SCHOOL OR FOR HOME SCHOOLING A STUDENT AND PROVIDE FOR THE CALCULATION OF THE AMOUNT OF THE DEDUCTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Title 12 of the 1976 Code is amended by adding:

"CHAPTER 18

South Carolina Education Tax Deduction Act

Section 12-18-10.    This chapter may be cited as the 'South Carolina Education Tax Deduction Act'.

Section 12-18-20.    As used in this chapter, unless otherwise required by the context:

(1)    'Department' means the South Carolina Department of Revenue.

(2)    'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(3)    'Public school' means a public school as defined in Section 59-1-120.

(4)    'Qualifying student' means an individual:

(a)    who is:

(i)    enrolled at an independent school as a full-time student, as determined by the school; or

(ii)    taught at home pursuant to Article 1, Chapter 65, Title 59; and

(b)    who is in kindergarten through grade twelve.

(5)    'School' means a public school or independent school.

(6)    'State' means the government of the State of South Carolina.

Section 12-18-30.    The department may promulgate regulations to aid in the performance of its duties pursuant to this chapter.

Section 12-18-40.    Each qualifying student shall receive an income tax deduction pursuant to Section 12-6-1140. If the student transfers in the middle of a tax year, the student shall receive a pro rata deduction based on the amount of time the student attends the independent school or is home schooled."

SECTION    2.    Section 12-6-1140 of the 1976 Code, as last amended by Act 278 of 2004, is further amended by adding an appropriately numbered item at the end to read:

"( )    a deduction calculated as provided in this item for each qualifying student as defined in Section 12-18-20. The board of Economic Advisors annually shall estimate a maximum deduction that may be permitted pursuant to this section for a taxable year based on an individual income tax revenue loss of three million one hundred thousand dollars attributable to this deduction and shall certify that maximum deduction to the Department of Revenue and for the applicable taxable year, the maximum deduction amount must not exceed the lesser of the certified estimate or three thousand dollars."

SECTION    3.    If a section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, this holding does not affect the constitutionality or the validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    4.    This act takes effect upon approval by the Governor and the tax credits provided for in Section 1 begin with tax year 2006.

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