Bill > S0250

This bill introduces a new state tax credit for long-term care insurance premiums in South Carolina, allowing individual taxpayers to claim a credit equal to 15% of the premiums paid for qualified long-term care insurance contracts, with a maximum credit of $2,000 per qualifying individual. The credit can be claimed for insurance covering the taxpayer, their spouse, or a dependent for whom they can claim a personal exemption on their federal tax return. The credit cannot exceed the taxpayer's state income tax liability and is subject to specific restrictions: the premiums cannot have been previously deducted or excluded from the taxpayer's income, and nonresident taxpayers will have their credit proportionally reduced. Taxpayers must provide documentation to the department demonstrating that the premium payments were not already excluded from their gross income. The bill will take effect upon the Governor's approval and will apply to taxable years beginning after 2024, providing a financial incentive for South Carolina residents to invest in long-term care insurance and potentially helping to offset the rising costs of such coverage.