Active 2026 Legislation
South Carolina Child Care Cost-Sharing & 2026 Legislation
South Carolina's SB 770 (Tri-Share pilot) and SB 825 (25% refundable employer credit) are active in the 2026 legislature. Employers can act now with a Duo-Share while legislation advances.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
βοΈ How the Cost Split Works
Employer Pays
~33%
of total tuition
South Carolina Pays
~33%
state match
Parent Pays
~33%
of total tuition
π The South Carolina Savings Stack
Stack available South Carolina programs with the Federal 45F Tax Credit for maximum employer savings.
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| State Program Benefit | Varies by program | Varies by program |
| Federal 45F Credit (2026) | 50% Tax Credit | 40% Tax Credit |
| Net Employer Cost | Significantly Reduced | Significantly Reduced |
π° Real-World Employer Savings
| Cost Component | Without Program | With State + 45F Stack |
|---|---|---|
| Annual child care cost (per employee) | $12,000 | $12,000 |
| State Program Benefit | $0 | Varies |
| Employee Share | $0 | Reduced |
| Employer Share | $12,000 | Reduced |
| Federal 45F Credit (50% of employer share) | $0 | Significant savings |
| Net Employer Cost | $12,000 | Significantly Lower |
π Available Programs & Incentives
South Carolina HB 3209 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $200K/yr)
Eligibility: All South Carolina employers with qualifying child care expenses
South Carolina Child Care Assistance Program (CCAP)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
Federal Section 45F Credit
Federal Tax Credit
Up to 50% of employer costs (max $600K/yr)
Eligibility: All U.S. employers with qualifying child care expenses
ABC Quality Rating System
State Program
Quality ratings for child care providers
Eligibility: Licensed South Carolina child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split β employer covers 25β75%
Eligibility: Any South Carolina employer, no state program required
π Geographic Coverage
Major Cities Served
County Coverage
All 46 South Carolina counties are eligible for SB 770 and SB 825 refundable employer tax credit. Contact DSS for enrollment β note the voucher pause warning.
β Frequently Asked Questions
HB 3209 created a 50% employer tax credit on contributions toward employee child care costs, up to $200,000 per employer per year. This credit can be stacked with the Federal Section 45F Credit.
Yes β South Carolina employers can stack the HB 3209 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Columbia, Charleston, Greenville, and Rock Hill have the highest employer participation rates. The HB 3209 credit is available statewide to all South Carolina employers.
South Carolina does not have a formal Tri-Share program. However, HB 3209 creates a strong employer incentive. We recommend a Duo-Share model β contact us for a free consultation.
South Carolina's Child Care Assistance Program (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact SCDSS for current income thresholds.
ABC Quality is South Carolina's quality rating and improvement system for child care providers. Higher-rated providers receive additional funding and are preferred partners for employer child care programs.
Contact the South Carolina Department of Revenue at dor.sc.gov for guidance on claiming HB 3209 credits.
π References & Sources
Last Updated: March 1, 2026