South Carolina would allow refundable child-care tax credits after 2026

An individual may claim a refundable South Carolina income tax credit for child and dependent care expenses. The provision covers individuals claiming the South Carolina income tax credit for child and dependent care expenses. The credit follows the federal calculation in Internal Revenue Code Section 21, with a seven percent applicable percentage that is not reduced. Only expenses directly tied to South Carolina gross income qualify. A nonresident cannot claim the credit if the nonresident's home state does not give South Carolina residents a similar credit. The provision would apply to income tax years beginning after 2026, if the Governor approves the act.