| In 2022, the state commissioned the SC Labor Force Participation Task Force Survey. The survey determined that only 56.4% of eligible adults were working or looking for work in South Carolina, the fourth lowest rate in the country. The survey took a deep dive to determine what the top 10 barriers were preventing South Carolinians from entering the workforce: |
To leverage the full potential of South Carolina’s working-age population, we must address the childcare crisis. Childcare is seen as a two-generation workforce challenge. To get the workforce of today back, we will need to find ways to expand the accessibility and affordability of childcare. We also recognize that a strong foundation in education is the key to a strong future workforce. Supporting adequate childcare options will lead to increased economic mobility and a better overall business climate.
Currently, there is a tax credit available at the state level for companies called the Child Care Tax Credit Program. Companies may claim corporate income tax credits for capital and operating costs associated with establishing and operating a childcare program. The credit can also be claimed for payments made directly to licensed or registered independent childcare facilities for the benefit of an employee. The credit can’t exceed 50% of the taxpayer’s tax liability, but any unused credit can be carried forward for 10 years. According to data from the South Carolina Department of Revenue, the credit is only being utilized by a small number of businesses. (Pre-audit figures.)
- Tax year 2021: credit claimed on 18 returns totaling $23,590
- Tax year 2020: credit claimed on 21 returns totaling $44,670
- Tax year 2019: credit claimed on 33 returns totaling $122,409
- Tax year 2018: credit claimed on 32 returns totaling $262,986
- Tax year 2017: credit claimed on 26 returns totaling $74,537
We want to hear from the business community! Were you aware of the Child Care Tax Credit Program? Is this something your business will look at in the future? Why or why not? Please consider completing this 3-question survey to help us better understand our region’s awareness of this issue.
Your feedback is essential as we begin to have conversations at the state and local levels around childcare solutions. If you have any questions or would like to continue to be a part of the conversation around childcare solutions, please contact bvincett@charlestonchamber.org.
