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H. 4663
STATUS INFORMATION
General Bill
Sponsors: Reps. Duncan, Harrell, M.A. Pitts, Merrill, Hinson, Hardwick, Bowers, Hosey, Scarborough and Viers
Document Path: l:\council\bills\agm\18136mm06.doc
Introduced in the House on February 15, 2006
Currently residing in the House Committee on Ways and Means
Summary: Pre-kindergarten scholarship granting organization
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/15/2006 House Introduced and read first time HJ-37 2/15/2006 House Referred to Committee on Ways and Means HJ-37
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3587 SO AS TO PROVIDE FOR A CREDIT AGAINST THE STATE CORPORATE INCOME OR INSURANCE PREMIUM TAX OR LICENSE FEE FOR A CONTRIBUTION TO A PRE-KINDERGARTEN SCHOLARSHIP GRANTING ORGANIZATION, INCLUDING THE PARAMETERS OF THE CREDIT ELIGIBILITY AND DEFINITIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3587. (A) For purposes of this section:
(1) 'Pre-kindergarten program' means a program of instruction for three-year-old or four-year-old students, or both, which uses a curriculum as required by the State Department of Education and which meets the standards established for hours of instructional and developmental activities each day and for days of each school year.
(2) 'Pre-kindergarten scholarship program' means a program to provide tuition to eligible pre-kindergarten students to attend a pre-kindergarten program operated by or in conjunction with a public, private, or independently operated school located in this State and using a curriculum approved by the State Department of Education, which program includes an application and review process for the purpose of making awards to eligible pre-kindergarten students and which awards scholarships to eligible pre-kindergarten students without limited availability to any one school.
(3) 'Pre-kindergarten scholarship granting organization' is a nonprofit entity, pursuant to Section 501(c)(3) of the Internal Revenue Code, whose principal purpose is to contribute funds, by expending or otherwise irrevocably encumbering funds for distribution during the current or next succeeding fiscal year of the organization, to a pre-kindergarten scholarship program.
(B)(1) A corporate taxpayer is allowed a credit against the taxpayer's liability for taxes imposed pursuant to Chapter 6 of this title or Chapter 7 of Title 38 or for license fees imposed pursuant to Chapter 20 of this title for a contribution to a pre-kindergarten scholarship granting organization.
(2) The credit may be claimed only by the taxpayer who made the contribution; except that, if the credit is earned by a member of a controlled group of corporations, the credit may be used and applied by that member and by another member of the controlled group of corporations.
(3) The credit claimed pursuant to this section may not exceed fifty percent of the taxpayer's liability for taxes or fees due pursuant to Chapters 6 or 20 of this title or Chapter 7 of Title 38. Before taking advantage of this credit, a taxpayer must add back to his taxable income computation a deduction, if any, to which the taxpayer is also entitled.
(4) The credit granted may not exceed one-hundred thousand dollars for each taxpayer annually and may not exceed five million dollars in the aggregate for all taxpayers claiming the credit in one taxable year. Credits must be granted in the order they are claimed, up to the maximum amounts.
(5) A credit must be used in the year of contribution and unused credit must not be carried over and is not refundable or transferable.
(C) A contribution to a pre-kindergarten scholarship granting organization that qualifies for the credit provided in this section must be used only for the purpose of providing scholarships to eligible students.
(D) An eligible student is a pre-kindergarten age student who is enrolled in a pre-kindergarten program, or is being taught at home pursuant to Article 1, Chapter 65, Title 59, and is a member of a household with an annual taxable household income of fifty thousand dollars or less.
(E)(1) The Department of Revenue shall adopt rules or promulgate regulations establishing the information it requires for an organization to qualify as a pre-kindergarten scholarship granting organization, contributions to which are eligible for the credit provided by this section, at a minimum information sufficient for the confirmation of its 501(c)(3) status pursuant to the Internal Revenue Code, and the organization shall certify to the department that it qualifies as a pre-kindergarten scholarship granting organization.
(2) The Department of Revenue shall publish and disseminate to the public a list of qualified pre-kindergarten scholarship granting organizations. The department also shall include these organizations in an annual report to the General Assembly, as well as the total amounts of scholarships awarded and credits claimed."
SECTION 2. This act takes effect upon approval by the Governor and takes effect upon the implementation of a statewide pre-kindergarten program.
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