Bill

Bill > H4216


SC H4216

SC H4216
Income tax


summary

Introduced
03/25/2025
In Committee
05/07/2025
Crossed Over
05/07/2025
Passed
Dead

Introduced Session

126th General Assembly

Bill Summary

Amend The South Carolina Code Of Laws By Amending Section 12-6-510, Relating To Income Tax Rates For Individuals, Estates, And Trusts, So As To Reduce The Income Tax Rate To A Flat 3.99 Percent And To Set Forth Standards For Additional Reductions; By Amending Section 12-6-50, Relating To Internal Revenue Code Sections Specifically Not Adopted By The State, So As To Not Adopt The Federal Standard Deduction And Itemized Deduction; By Amending Section 12-6-1140, Relating To Income Tax Deductions, So As To Allow For A South Carolina Income Adjusted Deduction (sciad); By Amending Section 12-6-4910, Relating To Persons Required To File A Tax Return, So As To Make A Conforming Change To The Calculation; And By Amending Section 12-6-1720, Relating To Adjustments To The Taxable Income Of Nonresident Individuals, So As To Make A Conforming Change.

AI Summary

This bill proposes significant changes to South Carolina's income tax system, aiming to reduce the top marginal income tax rate for individuals, estates, and trusts to a flat 3.99 percent, with provisions for further reductions based on revenue growth and a substantial surplus. It also specifically disallows the federal standard deduction and itemized deduction, instead introducing a new "South Carolina Income Adjusted Deduction" (SCIAD) with varying amounts based on filing status and subject to income-based phase-outs. The bill also makes conforming changes to requirements for filing tax returns and adjustments for non-resident individuals to reflect these new deductions. Additionally, it includes a provision for a nonrefundable credit equal to 125% of the federal earned income tax credit (EITC), capped at $200, and mandates adjustments to withholding tables to align with these changes, all effective for tax years beginning after 2025.

Committee Categories

Budget and Finance

Sponsors (55)

Bruce Bannister (R)* William Bailey (R),  Nathan Ballentine (R),  Phillip Bowers (R),  Jeff Bradley (R),  Gary Brewer (R),  Case Brittain (R),  Joe Bustos (R),  Paula Calhoon (R),  Micah Caskey (R),  Bobby Cox (R),  Brandon Cox (R),  Heather Crawford (R),  Sylleste Davis (R),  Shannon Erickson (R),  Cal Forrest (R),  Craig Gagnon (R),  Gil Gatch (R),  Doug Gilliam (R),  Val Guest (R),  Brandon Guffey (R),  Bill Hager (R),  Tom Hartnett (R),  Charles Hartz (R),  Bill Herbkersman (R),  Lee Hewitt (R),  Davey Hiott (R),  Bill Hixon (R),  Harriet Holman (R),  Jay Jordan (R),  Kathy Landing (R),  Brian Lawson (R),  Randy Ligon (R),  Steven Long (R),  Phillip Lowe (R),  David Martin (R),  Cody Mitchell (R),  Scott Montgomery (R),  Travis Moore (R),  Dennis Moss (R),  Chris Murphy (R),  Mike Neese (R),  Brandon Newton (R),  Fawn Pedalino (R),  Tommy Pope (R),  Robby Robbins (R),  Carla Schuessler (R),  Heath Sessions (R),  Mark Smith (R),  Murrell Smith (R),  Bill Taylor (R),  James Teeple (R),  David Vaughan (R),  Mark Willis (R),  Richie Yow (R), 

Last Action

Committee report: Favorable Finance (on 01/21/2026)

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