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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3575 SO AS TO ALLOW A TAX CREDIT OF FIFTY PERCENT OF THE TOTAL AMOUNT OF PREMIUMS PAID BY A TAXPAYER PURSUANT TO AN INDIVIDUAL POLICY FOR HEALTH INSURANCE COVERAGE, UP TO THREE THOUSAND DOLLARS FOR EACH TAXABLE YEAR FOR EACH COVERED INDIVIDUAL, AND TO PROHIBIT A DOUBLE BENEFIT.
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 12-6-3575. (A) An individual taxpayer may claim as a nonrefundable credit against the income tax imposed pursuant to 12-6-510 an amount equal to fifty percent of the premium costs the individual paid during the taxable year for health insurance coverage as defined in Section 38-71-670(6), that offers coverage to the individual, his spouse, or a person he was eligible to claim as a dependent on his federal income tax return, or any combination of these people, for the taxable year. The credit allowed by this section may not exceed three thousand dollars for each qualifying individual covered by a policy for which a credit is claimed. A nonresident who claims the credit allowed by this section shall reduce the amount of the credit in the same manner as nonresident individuals reduce personal exemptions and applicable standard deduction or itemized deductions pursuant to Section 12-6-1720(2).
(B) A credit is not allowed for premium payments that are deducted or excluded from the taxpayer's income for the taxable year, whether the deduction or exclusion was due to a South Carolina modification pursuant to Article 9 of this chapter or was due to an exclusion or deduction which resulted in a reduction of the taxpayer's federal taxable income.
(C) A taxpayer who claims the credit allowed by this section shall provide information required by the department to demonstrate that the amount paid for premiums for which the credit is claimed was not excluded from the taxpayer's gross income for the taxable year."
SECTION 2. Upon approval by the Governor, this act is effective for taxable years beginning after 2004.
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