SC S0825

Expands the state earned income tax credit (EITC) by adding a refundable credit equal to 10% of the federal EITC (up to $400) for taxpayers with dependents and income under $80,000, and increases the child/dependent care credit to 25% of federal amounts with a $1,200 maximum per return.

Exempts baby formula, diapers, baby wipes, breastfeeding equipment, prenatal vitamins, and blood pressure cuffs from state sales tax effective January 1, 2026.

Creates multiple employer tax credits including up to $1,500 per hired nonviolent ex-felon, $2,500 per hired veteran or military spouse, up to $5,000 per employee for small businesses voluntarily providing FMLA leave, and credits for employers providing childcare (75-100% of eligible expenses up to $500,000 annually).

Establishes a $2,000 tax credit for households with a deployed active-duty service member, a $1,000 refundable credit for unpaid primary caregivers of elderly or disabled individuals, and refundable credits ($750-$1,500) for residents living and working in designated community jobs priority zones.

Creates the Office of Family Protection within the Department of Administration, a Joint Legislative Committee on Prescription Drug Affordability, a statewide Working Families Tax Credit portal, a Workplace Flexibility Grant Program for small employers, and an Unpaid Primary Caregiver Registry with associated financial assistance programs.