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Bill

Bill

H 5477

Working Family Child Tax Credit

2025-2026 Regular Session Introduced by Heather Bauer and 6 co-sponsors

South Carolina bill creating a state child tax credit to reduce income tax for working families with dependent children, expanding financial support for parents.

Referred to Committee on Ways and Means
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Bill Summary · H 5477

Legislative bill overview

H 5477 proposes to establish a Working Family Child Tax Credit in South Carolina, providing tax relief to eligible working families with dependent children. The bill aims to reduce the tax burden on lower and middle-income families by allowing them to claim a credit against their state income tax liability based on the number of qualifying children in their household.

Why is this important

Child tax credits directly increase disposable income for working families, potentially improving economic security and reducing childhood poverty. In South Carolina, where many families balance work with childcare costs, this credit could meaningfully affect household budgets and economic participation, particularly for single-income and dual-income working households.

Potential points of contention

  • Fiscal impact and state budget implications: The credit's cost to the state treasury depends on eligibility parameters, credit amounts, and phase-out thresholds, which could be significant if broadly available
  • Eligibility criteria and scope: Debate may arise over income limits, number of qualifying children, age thresholds, and whether federal tax credit claims should be required—affecting who benefits
  • Implementation and compliance: Questions about how the credit integrates with existing tax systems, verification of eligibility, and potential fraud prevention measures

Compiled from official sources — confirm details with the bill’s official record.

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