Subcommittee advances pregnancy resource tax credit after extended testimony and calls for oversight

The subcommittee voted to forward S.32, a bill creating a nonrefundable tax credit for donations to certified pregnancy resource centers and related organizations, after more than an hour of public testimony that included providers, advocates, critics and state agency officials.

S.32 would permit taxpayers to claim a credit for qualified contributions to eligible charitable organizations that are exempt from federal income tax under 501(c)(3) and certified as a pregnancy resource center or related pregnancy care organization. The bill requires certification that no more than 20% of contributions are used for administrative purposes and that applicants file IRS filings with the secretary of state. The credit cannot exceed 50% of a taxpayer’s total state tax liability; unused credits may be carried forward for up to five years. The secretary of state and the Department of Revenue would allocate credits based on certified contribution amounts and the bill caps aggregate credits at $3.5 million in the first year and $10 million beginning in tax year 2026. No single organization may receive more than 25% of allocated credits unless credits remain unallocated by June 1, 2026.

Supporters including South Carolina Citizens for Life, Lifeline Children’s Services, Life Choices Pregnancy Care Center, A Moment of Hope and other providers said the tax credit would increase private donations and expand services. Catherine Wade, executive director of Life Choices and chair of the South Carolina Association of Pregnancy Care Centers, described an association of 15 centers that used state grants to expand medical and support services: she reported 2022 aggregate figures including 10,255 pregnancy tests, 5,130 ultrasounds, 6,164 STI tests and roughly $1.66 million in medical services provided. Lifeline’s Kathy Leek and other speakers asked the committee to clarify that organizations offering wraparound services beyond initial pregnancy care be eligible.

Planned Parenthood’s Vicki Ringer urged rejection, saying the state should prioritize investments that expand obstetric care access and maternal‑health capacity rather than carve out a tax credit for a narrow set of nonprofits. Ringer noted South Carolina’s high maternal and infant mortality rankings and argued the state already provides funding to some centers (about $2.4 million cited by witnesses) and that tax credits would divert additional revenue. Department of Social Services representative Connelly Ann Ragley said the tax credit could encourage some centers to partner with DSS and become licensed service providers, which she described as potentially beneficial if properly overseen.

Senators asked staff and the sponsor to consider clarifying language on eligible organizations, reporting and recertification procedures. After discussion, a motion to move a favorable report passed; members said they would work on perfecting amendments before the bill reaches full committee.