The Senate Finance sales and income tax subcommittee advanced S.32, a proposal to create a state tax credit for donations to pregnancy resource centers and related life‑affirming organizations, after a lengthy hearing that produced both strong support and sharp concerns about oversight and the types of services eligible for the credit.

Committee staff described S.32 as creating a credit for contributions to eligible charitable organizations that are tax‑exempt under federal law (501(c)(3)) and that qualify as pregnancy resource centers. The bill requires centers to certify that no more than 20% of contributions are used for administrative purposes, to file IRS filings with the secretary of state, and to provide certain services specified in the bill. The credit would be claimed on a Department of Revenue form and could not exceed 50% of a taxpayer’s total state tax liability; unused credits may be carried forward up to five years. Aggregate allocations are capped at $3.5 million in the bill’s first year and $10 million in calendar years beginning in 2026, and no more than 25% of credits may be allocated to a single organization unless unallocated credits remain after June 1, 2026.

Supporters described direct services pregnancy centers provide. Catherine Wade, executive director of Life Choices Pregnancy Care Center and chair of the South Carolina Association of Pregnancy Care Centers, cited 2022 aggregate numbers from the association’s 15 centers: more than $1.6 million in medical services valued at market rates, 10,255 pregnancy tests, 5,130 free ultrasounds, material assistance and education programs, and distributions of diapers and supplies. Kathy Leek, state director for Lifeline Children’s Services, urged expanding the statutory language so that organizations providing wrap‑around services (foster care prevention, adoption, housing support) are clearly eligible.

Opponents and skeptics raised accountability and public‑health concerns. Ashley Leto urged the committee to "slow down" and scrutinize how existing state funds (testimony cited a $2.4 million line item in the state budget) have been used before diverting tax revenue to the credit. Vicki Ringer, speaking for Planned Parenthood, opposed the proposal and argued that the state already provides tax deductions for charitable contributions and that the new credit would be a special subsidy to one category of nonprofit; Ringer also cited state maternal and infant mortality statistics and argued the state should prioritize expanding medical services and health‑system capacity.

Several witnesses and the Department of Social Services said the credit could encourage some centers to become more formally connected to DSS work and to provide services that prevent family crises; Connolly Ann Ragley of DSS said she hoped the credit would be a catalyst for centers to coordinate with DSS and possibly become licensed service providers.

Committeemembers discussed possible clarifications and a "perfecting" amendment. At one point a motion to carry the bill over was made and then withdrawn; instead the subcommittee voted to give S.32 a favorable report and send it to the full committee so members could continue to work on clarifying language. Sponsor representatives agreed to work with senators on refinements to reporting, certification and eligible‑service definitions.

The transcript records voice votes and the chair’s announcement that the measure will go forward to the full committee; the hearing did not include a roll‑call tally. Supporters urged amendments to broaden eligibility to other life‑affirming service providers and to ensure the credit funds services that reach vulnerable families; opponents urged stronger oversight, public reporting of how state funds are used, and consideration of broader health‑system investments.