EARNED INCOME TAX CREDIT (EITC)
Rate (Non-Refundable): 125% of the federal credit
Eligibility Requirements: All South Carolina taxpayers who qualify for the federal credit are automatically eligible.
Latest Legislative Action:
- In 2017, as part of a package of tax bills, lawmakers passed House Bill 3516 providing a nonrefundable state EITC at 125% of the federal credit. The credit was phased in over six years in equal installments of 20.83% beginning in 2018 until it reached 125% in the 2023 tax year.
- Sen. Marlon Kimpson (D) introduced a bill during the 2017 legislative session that would create an EITC worth 20% of the federal credit.
- During the 2015 legislative session, a bill was introduced that would have created a state EITC at 10% of the federal credit and increased the rate by 2.5% per year until it reached 20%. However, the measure never advanced out of committee.
CHILD TAX CREDIT (CTC)
South Carolina does not currently offer a state-level CTC.
CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)
Rate (Fully-Refundable): 7% of child care expenses eligible for the federal CDCTC.1 The maximum credit allowed is $210 for one child or $420 for two or more children.
Eligibility: All South Carolina taxpayers who qualify for the federal credit are automatically eligible, except for spouses filing separately; they are ineligible for any state CDCTC.
Notes: Since the state doesn’t vary this percentage inversely with income, this credit doesn’t target the most relief to lower-income filers.
- 2015 SC 1040 Instructions, South Carolina Department of Revenue