Bill > S0064

This bill amends South Carolina tax law to create a new income tax deduction for military retirees and first responders. The bill defines "first responders" as public safety workers like law enforcement officers and firefighters who are members of the South Carolina Police Officers Retirement System, explicitly excluding magistrates, judges, and coroners. "Retirement income" is defined as taxable income from qualified military or first responder retirement plans, including for surviving spouses. Specifically, the bill allows individual taxpayers to fully deduct their military or first responder retirement income from their South Carolina taxable income. The bill also includes provisions for surviving spouses to apply the same deduction that would have been available to their deceased spouse. Additionally, the bill modifies existing tax code to specify how this new deduction interacts with other retirement income deductions, ensuring that taxpayers who claim this new deduction will have their other potential retirement income deductions proportionally reduced. The tax deduction will take effect after 2025, applying to tax years beginning in 2026 and thereafter, providing a significant tax benefit to military veterans and first responders in the state.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=64&session=126&summary=B