It was another busy week in Columbia as several bills that the Chamber is following were discussed.

H.3348 Update

Yesterday, H.3348, a bipartisan bill filed by Representatives Joe Daning and Leola Robinson-Simpson which allows businesses to receive a state tax credit for hiring veterans or former non-violent offenders, passed the House on Thursday and moves to the Senate next week. The tax credit mirrors an existing federal tax credit and is limited to the first three years of release of a non-violent offender or honorable discharge from the military.

ARPA Funding

Both the House and Senate passed their own version of the ARPA funding recommendations this week. The Senate plan includes $453 million for SCDOT project acceleration including major interstate widenings throughout the state, $400 million for broadband and $900 million for water and sewer projects. The House version includes $453 million for SCDOT, $100 million for flooding, $400 million for broadband and $800 million for water and sewer projects. The bill is likely headed to a conference committee to work out the differences.

S.1031

Yesterday, a Senate Judiciary Subcommittee held their first hearing on bill S.1031 that increases the qualifications for Register of Deeds across the state and allows for the fair and legal process for removing an individual from office if the officeholder does not fulfill the duties of their role. The Chamber supports this legislation.

Income Tax Reduction

Finally, the House and Senate announced plans for an income tax reduction this week. The Senate plan announced by Finance Chairman Harvey Peeler would provide over $2 billion in tax relief this year and over $11 billion over the next decade. The plan would cut the state’s top income tax rate from 7% to 5.7% in year one and also eliminates taxes on military retirement income. It would reduce manufacturing property taxes by 33% and includes an additional one-time $1 billion tax rebate to working South Carolinians.

The House plan introduced on Tuesday with Governor McMaster and Republican leaders would reduce the tax rate for the 4%, 5% and 6% brackets to 3% and lower the current 7% bracket to 6.5%. South Carolina’s highest tax bracket of 7% is higher than neighboring states, with Georgia’s highest rate of 5.75% and North Carolina’s of 5.25%. We will, of course, be following these bills closely over the next few months.