Current South Carolina status
South Carolina does not currently have a verified enacted Tri-Share or state employer child-care credit in the sources reviewed; employers can explore private child-care cost-sharing arrangements and should consult a tax professional about conditional federal Section 45F eligibility, while families should use current SCDSS/SC Child Care scholarship information because applications are paused for most applicants and protected-category rules apply.
Verified programs and resources
South Carolina Child Care Scholarship/SC Voucher assistance exists and is administered through SCDSS/Division of Early Care and Education; approved assistance may cover all or part of care and is paid to eligible providers. Current public-facing eligibility information states 85% of SMI for protected categories, with a family-of-four limit of $87,161 annually; applications are paused for most families since December 1, 2025.
South Carolina Child Care Scholarship/SC Voucher assistance exists and is administered through SCDSS/Division of Early Care and Education; approved assistance may cover all or part of care and is paid to eligible providers.
ABC Quality is an official South Carolina child-care quality/provider system referenced by SCDSS and SC Child Care; the reviewed sources do not verify that it is an employer subsidy or that higher ratings create a tax credit.
ABC Quality is an official South Carolina child-care quality/provider system referenced by SCDSS and SC Child Care;
Federal Section 45F
For qualifying 2026 expenditures, the IRS describes a 40% credit for qualified child-care expenditures, or 50% for an eligible small business, plus 10% for qualified resource-and-referral expenditures. Statutory caps, facility, licensing, employee-access, nondiscrimination, tax-liability and no-double-benefit rules apply.
Frequently asked questions
South Carolina does not currently have a verified enacted Tri-Share or state employer child-care credit in the sources reviewed;
Section 45F is not automatic. The IRS says a taxpayer may be eligible only when it pays or incurs qualified child-care or resource-and-referral expenditures and meets the applicable facility, contract, licensing, employee-access, nondiscrimination, and other statutory requirements. Use Form 8882 to claim the credit and consult a tax professional for the employer’s actual arrangement.
State family-assistance and employer-incentive programs have their own enrollment, funding, provider, income, activity, tax, and documentation rules. Check the official agency links on this page before relying on a benefit or availability.
Official sources
Last Updated: September 27, 2026