Subcommittee advances pregnancy‑resource tax credit after debate over oversight and scope

The Senate Finance Committee sales and income tax subcommittee advanced S.32, a bill to create a state tax credit for contributions to qualifying pregnancy resource centers and related life‑affirming nonprofit organizations, after extended testimony from advocacy groups, service providers and opponents.

Grant, the committee staff presenter, summarized the bill: it would allow a tax credit for contributions to organizations exempt under the Internal Revenue Code §501(c)(3) that are pregnancy resource centers or similar entities; the credit would be limited to 50% of the taxpayer’s state tax liability, unused credits could be carried forward up to five years, and an annual aggregate cap would start at $3.5 million and rise to $10 million beginning in tax year 2026. The bill also caps administrative spending by an eligible organization at 20% of contributions and restricts allocations so no more than 25% of credits go to a single organization unless unallocated credits remain after June 1, 2026.

Supporters described services the bill would expand. Kathy Leek, state director for Lifeline Children’s Services, and Catherine Wade, executive director of Life Choices Pregnancy Care Center and chair of the South Carolina Association of Pregnancy Care Centers, described clinical services, material assistance and wraparound programs their centers provide. Wade said the association divides state funds among 15 centers and reported figures for 2022: 10,255 pregnancy tests, 5,130 free ultrasounds and more than $1.6 million in medical services provided by associated centers.

Mark Baumgartner, founder of A Moment of Hope, and other speakers cited volunteer and church‑based support and argued the credit would mobilize private donations to expand services.

Opponents and cautious voices urged stronger oversight and broader inclusion of organizations that provide post‑birth services. Ashley Leto, representing an advocacy organization, asked the committee to slow the bill and review existing state funding and reporting, saying the programs already receive approximately $2.4 million in state budget support and that reporting about that spending has been “lackluster.” Vicki Ringer of Planned Parenthood opposed the bill as written, arguing it gives special treatment to a single type of nonprofit and urged the committee to prioritize investments that expand clinical maternal‑health capacity; Ringer noted South Carolina’s high maternal and infant mortality rankings and said, “I would encourage you to examine how our tax dollars are being used for maternal health.”

Department of Social Services representative Connelly Ann Ragley said the credit could encourage some pregnancy centers to contract more closely with DSS and provide prevention services that reduce future child‑welfare caseloads.

John Mark Porter, a CPA and auditor speaking on behalf of A Moment of Hope, recommended clarifying periodic recertification, making allocation data publicly available, and ensuring the credit size is material enough to influence donor behavior.

After discussion of possible clarifications and with the sponsor’s willingness to work on amendments, the subcommittee moved a favorable report for S.32 and advanced it toward the full committee. The chair said members will “work on those amendments, heading to the full committee” and the motion passed by voice vote.

Votes at a glance: Motion for favorable report passed by voice vote; committee members signaled intent to refine eligibility, reporting and oversight in follow‑up work.