S0260 amends South Carolina’s income tax credit for excess property and casualty insurance premiums paid on a taxpayer’s legal residence. Under current law, an individual may claim a credit when insurance premiums exceed 5% of adjusted gross income, and the bill keeps that basic eligibility formula in place.
The main change is to increase the maximum annual credit from $1,250 to $2,000. The bill also preserves the existing rule that any unused credit may be carried forward for up to five succeeding taxable years. If enacted, the change would apply to taxable years beginning after December 31, 2025, and would take effect upon gubernatorial approval.
Impact
The bill would amend Section 12-6-3670 of the South Carolina Code of Laws, increasing the cap on the state income tax credit for excess property and casualty insurance premiums. It would affect individual taxpayers who pay high homeowners or other qualifying property and casualty insurance costs on their primary residence, potentially reducing their state income tax liability or allowing larger carryforwards. The bill does not change the underlying eligibility threshold or the five-year carryforward provision, but it would increase the fiscal value of the credit for qualifying taxpayers beginning with tax years after 2025.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or partisan division. Based on the bill’s structure and caption, the measure appears to be a targeted tax relief proposal for homeowners facing high insurance costs, suggesting a generally favorable policy purpose. The absence of recorded opposition or vote history means sentiment cannot be assessed beyond the bill’s apparent intent.
Contention
The primary policy issue is the cost of expanding the credit cap, which could reduce state revenue and benefit only taxpayers who already qualify under the excess-premium formula. Supporters would likely emphasize relief for homeowners with rising insurance premiums, while potential critics may question whether increasing the cap is the best use of tax policy or whether the benefit is too narrow. Because no discussion transcript is available, specific objections or supporters cannot be identified.
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)
Reducing insurance company premium tax rates and discontinuing remittance and crediting of a portion of the premium tax to the insurance department service regulation fund.