South Carolina H5794 amends the income tax credit for child and dependent care expenses to make it refundable.

South Carolina H5794 amends Section 12-6-3380 of the South Carolina Code to make the income tax credit for child and dependent care expenses refundable. The credit is computed using the Internal Revenue Code Section 21 formula, with a seven percent applicable percentage. The credit applies to expenses directly attributable to South Carolina gross income and is effective beginning after 2026. Nonresident taxpayers from states that do not allow a credit for child and dependent care expenses are not eligible for the credit on their South Carolina income tax return.

South Carolina H5794 amends the income tax credit for child and dependent care expenses to make it refundable.

South Carolina H5794 amends Section 12-6-3380 of the South Carolina Code to make the income tax credit for child and dependent care expenses refundable. The credit is computed using the Internal Revenue Code Section 21 formula, with a seven percent applicable percentage. The credit applies to expenses directly attributable to South Carolina gross income and is effective beginning after 2026. Nonresident taxpayers from states that do not allow a credit for child and dependent care expenses are not eligible for the credit on their South Carolina income tax return.