Tax exemptions, exclusions, and deductions; withdrawals other than qualified withdrawals to be included in gross income
Viewing an earlier, undated versionView current - (A) All property and income of the SCCIP trust fund, as an instrumentality of the State, shall be exempt from all taxation by the State and by its political subdivisions.
- (B) Any interest, dividends, gains, or income accruing on the payments made pursuant to an investment trust agreement under the terms of this chapter or on any account in the SCCIP Trust Fund shall be excluded from the gross income of any such account owner, contributor, or beneficiary for purposes of South Carolina income taxes, to the extent such amounts remain on deposit in the SCCIP Trust Fund or are withdrawn pursuant to a Qualified Withdrawal. The SCCIP Trust Fund and Tuition Prepayment Program under Chapter 4 of this title shall constitute the only programs established pursuant to Section 529 of the Internal Revenue Code of 1986, as amended.
- (C) The earnings portion of any withdrawals from an account that are not Qualified Withdrawals shall be included in the gross income of the resident recipient of the withdrawal for purposes of South Carolina income taxes in the year of the withdrawal.
- (D) Contributions to an investment trust account created under this chapter by a resident of this State or a nonresident required to file a State of South Carolina income tax return for any year are deductible from South Carolina income subject to tax for that year up to the limit of maximum contributions allowed to such accounts under Section 529 of the Internal Revenue Code of 1986, as amended, including funds transferred to an investment trust account from another qualified college investment account, as allowable under Section 529 of the Internal Revenue Code of 1986, as amended, to the extent that the transferred funds were not permitted a state income tax deduction previously under state law. The deduction for funds transferred from another qualified college investment account shall be allowable in the year in which the funds are transferred.