Roads Bill enacted by the General Assembly includes a state Earned Income Tax Credit, benefitting working families and their young children.
COLUMBIA, SOUTH CAROLINA- The General Assembly has enacted a nonrefundable state Earned Income Tax Credit, benefitting working families. This credit passed through inclusion in H 3516, the South Carolina Infrastructure and Economic Development Reform Act, informally known as the Roads Bill. The EITC was included as part of this overall bill to ensure that the state’s investment in infrastructure would not be borne disproportionately by lower-income working families.
This nonrefundable credit is based on the federal Earned Income Tax Credit (EITC) and will phase in starting in tax year 2017, increasing to 125% of the federal credit over six-years.
The federal Earned Income Tax Credit is a strong work incentive linked to increased family economic self-sufficiency. Vast research highlights the EITC’s impact on improved health, economic, and social outcomes for families, and it is shown to be more impactful the younger a child is when his or her family receives the credit. This has led the federal credit to be expanded under every President’s administration from President Reagan to President Obama.
“While the EITC’s positive economic benefits are well established, our research has shown impressive academic impacts – that persist over decades – when a young child’s family receives more support from the EITC,” said Jamie Moon, President of the Institute for Child Success. Indeed, an increase in the maximum EITC of $1,000 affects a family’s young children by:
Increasing average math achievement;
Increasing the chances of earning a High School Diploma or GED at 19; and
Increases the chances of completing one or more years of college by 19.
The Self-Sufficiency Standard for South Carolina 2016, recently released by the United Way Association of South Carolina, documented how many hard-working families are not financially self-sufficient and stable. The newly passed credit will allow these working families to better meet their needs, fostering safer and more secure environments in which to raise their children.
Because of its positive impacts on children, South Carolina’s Early Childhood Common Agenda’s partners included an expansion of the credit in the 2017 advocacy platform. The three founding members of that coalition - the South Carolina Children’s Trust, the United Way Association of South Carolina, and the Institute for Child Success - are very grateful to the General Assembly for the passage of this meaningful legislation. We also want to thank our many Early Childhood Common Agenda (ECCA) coalition partners, and the other organizations who have worked with us on this effort on behalf of South Carolina’s working families and youngest citizens.
“We have tremendous appreciation for the legislative and policy leaders who looked at the specific recommendations from the Early Childhood Common Agenda, and wove them into some of the most impactful pieces of legislation this year,” said Sue Williams, chief executive officer of Children’s Trust of South Carolina.”
“Today’s children are the basis for our future prosperity,” said Kelly Callahan Cruise, CEO of the United Way Association of South Carolina. “This tax credit ensures that the legislation enacted this week is not just an investment in our roads, but also in our most precious infrastructure – our children and working families.”
Children’s Trust of South Carolina is the only statewide organization focused on the prevention of child abuse, neglect and injury. The organization trains and educates professionals who work directly with families and also funds, supports and monitors proven prevention programs. Children’s Trust is the voice for South Carolina’s children and advocates for strong, well-founded policies that positively impact child well-being. Children's Trust is home to Prevent Child Abuse South Carolina, KIDS COUNT South Carolina and Safe Kids South Carolina. For more information, visit scChildren.org.
The United Way Association of South Carolina is the common voice of the 25 independent, locally-governed United Ways in the Palmetto State working together to create long-lasting opportunities for everyone to have a good life: a quality education that leads to a stable job, enough income to support a family through retirement, and good health. www.uwasc.org
The Institute for Child Success (ICS), is an independent, nonpartisan, nonprofit, research and policy organization dedicated to the success of all young children. Headquartered in Greenville, SC, ICS pursues its mission by: proposing smart public policies, grounded in research; advising governments, nonprofits, foundations, and other stakeholders on strategies to improve outcomes; sharing knowledge, convening stakeholders, embracing solutions, and accelerating impact, and by fostering the next generation of leaders. www.instituteforchildsuccess.org