Bill > H4603

This bill establishes a voluntary tax credit program for small businesses in South Carolina that choose to pay their non-exempt employees a livable wage, as defined by the MIT Living Wage Calculator. Specifically, the bill creates a tax credit for qualified employers (businesses with fewer than 50 employees) that pay wages at or above the local livable wage, with the credit amount gradually declining over four years: 100% in the first year, 75% in the second, 50% in the third, and 25% in the fourth year. To be eligible, employers must maintain or increase their employee headcount, pay all non-exempt employees the livable wage, submit annual payroll verification, and remain current on state tax obligations. The Department of Revenue will oversee the program, publish an annual summary report on participation and impact, and protect individual employer payroll data from public disclosure. The bill recognizes that small businesses employ a significant portion of South Carolina's workforce and aims to support them by providing a financial incentive to increase wages without mandating a wage increase. The tax credit program will be in effect from 2026 to 2035, with unused credits able to be carried forward for two years.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4603&session=126&summary=B