South Carolina H 3368: Income tax on overtime pay

Bill Text

2025-2026 Bill 3368 Text of Previous Version (Mar. 31, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3368

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Amended

March 31, 2026

H. 3368

Introduced by Reps. Long, Forrest, Yow, C. 
Mitchell, Magnuson, Calhoon, J. E. Johnson, Crawford, Erickson, Davis, Bradley, 
Hager, Hartz, McCravy, Ballentine, Bowers, Bailey, Hardee, Guest, Hewitt, 
Jordan, Lowe, McGinnis, Sessions, Caskey, B. Newton, Hiott, Gilliam, Bannister, 
G. M. Smith, Ligon, Bustos, Hartnett, W. Newton, Wooten, Oremus, Pedalino, M. 
M. Smith, Cox, Landing, Robbins, Martin, Brewer, Ford, Teeple, Vaughan, Pope, 
Chapman, Gagnon, Gibson, Whitmire, Rankin, Sanders, Duncan, Wickensimer, 
Haddon, Herbkersman, Lawson, T. Moore, Taylor, Holman and Schuessler 

S. Printed 3/31/26--S.

Read the first time March 11, 2026

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 12-6-1120, RELATING TO MODIFICATIONS TO GROSS INCOME FOR INDIVIDUAL 
INCOME TAX PURPOSES, SO AS TO EXCLUDE OVERTIME PAY AND CERTAIN BONUS PAY FROM 
GROSS INCOME.

 Amend Title To Conform

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-6-40(A)(1)(a) and (c) of the S.C. Code is 
amended to read:

 (a) Except as otherwise provided, 
"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended 
through December 31, 20242025, 
and includes the effective date provisions contained in it.

 (c) 
If Internal Revenue Code sections adopted by this State which expired or 
portions thereof expired on December 31, 20242025, are extended, but otherwise not amended, by 
congressional enactment during 20252026, these sections or portions thereof also are 
extended for South Carolina income tax purposes in the same manner that they 
are extended for federal income tax purposes.

SECTION 2. Title 12 of the S.C. Code is amended by adding:

CHAPTER 5

 Section 
12-5-3830. In any tax year when legislation is subsequently enacted affecting 
a prior tax year, and a taxpayer has already filed an individual income tax 
return for that year, a taxpayer may elect, in lieu of filing an amended 
return, to claim a refundable tax credit on their individual income tax return 
for the next following tax year in the amount of any decrease in tax liability 
between their originally reported tax liability and what that liability would 
have been had the legislation been enacted at the time of filing.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on March 31, 2026 at 04:18 PM