South Carolina H 3417: Income tax deduction

Bill Text

2025-2026 Bill 3417 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3417

Indicates Matter Stricken
Indicates New Matter

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

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 
12-6-1172 SO AS TO EXEMPT THE RETIREMENT INCOME OF TEACHERS; AND BY AMENDING 
SECTION 12-6-1170, RELATING TO RETIREMENT INCOME DEDUCTION, SO AS TO MAKE CONFORMING 
CHANGES.

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

SECTION 1. Article 9, Chapter 6, Title 12 of the S.C. Code is 
amended by adding:

 Section 
12-6-1172. (A) As used in this 
section:

 (1) 
"Retirement income" means the total of all otherwise taxable income not subject 
to a penalty for premature distribution received by the taxpayer or the 
taxpayer's surviving spouse in a taxable year from any state retirement plan or 
a private pension plan. For purposes of a surviving spouse, "retirement income" 
also includes a retirement benefit plan and dependent indemnity compensation 
related to the deceased spouse's state service.

 (2) 
"Teacher" means a person teaching in this State in a public or private K-12 
school.

 (B) 
An individual taxpayer, who served as a teacher, each year may deduct all state 
employee or private pension plan retirement income that is included in South 
Carolina taxable income.

SECTION 2. Section 12-6-1170(C) of the S.C. Code is amended to 
read:

 (C)(1) Notwithstanding any other 
provision of this section, if a taxpayer claims a deduction pursuant to Section 
12-6-1171 or Section 12-6-1172, then the deduction 
allowed by this section must be reduced by the amount the taxpayer deducts 
pursuant to Section 12-6-1171 or Section 12-6-1172; 
however, this subsection does not apply if the deduction claimed pursuant to 
Section 12-6-1171 or Section 12-6-1172 is claimed 
by a surviving spouse.

 (2) 
In the case of married taxpayers who file a joint federal income tax return, 
the reduction required by item (1) applies to each individual separately, so 
that the reduction only applies to the amount the individual claiming the 
deduction pursuant to Section 12-6-1171 or Section 
12-6-1172 otherwise could have claimed pursuant to this section if the 
individual had not filed a joint return.

SECTION 3. This act takes effect upon approval 
by the Governor and first applies to tax years beginning after 2025.

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This web page was last updated on December 06, 2024 at 11:47 AM