Notwithstanding any other provision of law, neither the program nor the fund is liable for income taxes, and neither the program nor the fund is liable for local taxes, fees, or assessments. In addition, contributions to the fund credited to a beneficiary's account entitle the contributor to a deduction for purposes of the state individual income tax, and these contributions must not be included in the South Carolina gross income of the beneficiary or anyone required to support the beneficiary. Furthermore, earnings on the account, tuition waivers, credits or payments for tuition, or any money or payout that the designated beneficiary receives or from which he benefits to the extent that the payments are used for tuition expenses during the same calendar year in which they are received shall not be included in the South Carolina gross income of the beneficiary or anyone required to support the beneficiary.
HISTORY: 1997 Act No. 155, Part II, Section 4A; 2001 Act No. 72, Section 4.
Structure South Carolina Code of Laws
Chapter 4 - South Carolina Tuition Prepayment Program
Section 59-4-10. Short title; purpose.
Section 59-4-50. Undertakings payable solely from fund monies.
Section 59-4-60. Cooperation and assistance from state entities.
Section 59-4-65. Discontinuing fund; contributor refunds and deficiencies.
Section 59-4-70. Annual financial report.
Section 59-4-80. Application of Internal Revenue Service rulings.
Section 59-4-90. Payroll deductions.
Section 59-4-110. New participants prohibited.
Section 59-4-120. Tuition increase above seven percent prohibited for participating institutions.