A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE FOR AN INCOME TAX CREDIT FOR DISABLED VETERANS.
Summary
H3943 would create a new South Carolina income tax credit for veterans who have a disability rating from the U.S. Department of Veterans Affairs. The credit is nonrefundable and is calculated by multiplying the veteran’s disability rating percentage by the veteran’s South Carolina income tax liability, with a maximum annual credit of $5,000.
The bill also authorizes the Department of Revenue to require documentation needed to administer the credit. The credit would apply beginning with tax years after 2024 and would take effect upon the Governor’s approval.
Impact
If enacted, the bill would add Section 12-6-3830 to the South Carolina Code and expand the state income tax code to include a targeted benefit for disabled veterans. Because the credit is nonrefundable, it can reduce tax liability to zero but would not generate a refund beyond taxes owed. The measure would affect disabled veterans with qualifying VA disability ratings and would require the Department of Revenue to implement verification procedures and administer the new credit.
Sentiment
Based on the bill text and available context, the measure appears generally favorable and supportive of disabled veterans, with no recorded committee debate or vote history provided. The caption and structure indicate a straightforward tax benefit proposal, and there is no evidence in the supplied materials of organized opposition or amendments. Overall, the bill reads as a veterans’ tax relief measure likely intended to receive sympathetic consideration.
Contention
No committee transcripts or vote records were provided, so no specific points of contention are documented. Potential issues that could arise from the bill’s design include the fiscal cost of the credit to state revenues, the fairness of tying the credit to both disability rating and income tax liability, and the administrative burden of verifying VA disability documentation. However, these concerns are not reflected in the supplied legislative history.