SC H5477

Creates a refundable child tax credit for South Carolina families with qualifying children: $400 per child for households earning under $60,000; $300 per child for income between $60,000-$100,000; $200 per child for income between $100,000-$125,000

Provides partial refundability when the credit exceeds tax liability: 50% of excess credit refunded for most taxpayers, increased to 75% for households earning below $40,000

Credit can be claimed in addition to the state Earned Income Tax Credit (Section 12-6-3632)

Credit amounts will be adjusted annually for inflation beginning in tax year 2028, based on the Consumer Price Index

Takes effect upon Governor's approval and applies to tax years beginning after 2026