Bill > H3492

This bill amends South Carolina's tax code to modify the state's Earned Income Tax Credit (EITC), which is a tax benefit designed to help low to moderate-income working individuals and families. Currently, the credit is set at 125% of the federal EITC and is primarily nonrefundable, meaning taxpayers can only use it to reduce their tax liability. The proposed change makes a portion of the excess credit refundable, specifically allowing taxpayers to receive 25% of any credit amount that exceeds their state income tax liability as a direct cash refund. This modification would provide additional financial support to eligible taxpayers by enabling them to receive a partial refund if their credit is larger than their tax bill. The bill specifies that these changes will take effect upon the Governor's approval and will first apply to tax years beginning after 2024, giving state tax authorities time to implement the new provisions and update their systems accordingly.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=3492&session=126&summary=B