South Carolina S 131: USC Board of Trustees

Bill Text

2025-2026 Bill 131 Text of Previous Version (Jan. 17, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 131

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 SO AS TO ENACT 
THE "SOUTH CAROLINA JOB CREATION AND COMPETITIVENESS ACT OF 2025"; BY REPEALING 
CHAPTERS 6 AND 20 OF TITLE 12 OF THE SOUTH CAROLINA CODE OF LAWS, RELATING TO 
THE SOUTH CAROLINA INCOME TAX ACT AND CORPORATE LICENSE FEES; BY ADDING CHAPTER 
7 TO TITLE 12, RELATING TO INCOME TAX, TO PROVIDE THAT SOUTH CAROLINA TAXABLE 
INCOME FOR INDIVIDUALS, ESTATES, AND TRUSTS IS EQUAL TO THE THREE AND ONE-HALF 
PERCENT OF THE DIFFERENCE BETWEEN THE FEDERAL TAXABLE INCOME OF THE TAXPAYER 
AND THE STATE STANDARD DEDUCTION, TO PROVIDE FOR THE STATE STANDARD DEDUCTION, 
TO PROVIDE FOR AN EARNED INCOME TAX CREDIT, TO PROVIDE FOR INCOME TAXES PAID TO 
ANOTHER STATE, AND TO PROVIDE FOR THE TECHNICAL ASPECTS OF THE DEPARTMENT OF 
REVENUE IMPLEMENTING THIS CHAPTER; AND BY AMENDING SECTION 12-36-2120, RELATING 
TO EXEMPTIONS FROM SALES TAX, SO AS TO REPEAL CERTAIN EXEMPTIONS.

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

SECTION 1. This act may be cited as the "South Carolina Job Creation and 
Competitiveness Act of 2025".

SECTION 2. Chapter 
6, Title 12 of the S.C. Code is repealed.

SECTION 3. Chapter 
20, Title 12 of the S.C. Code is repealed.

SECTION 4. Title 12 of the S.C. Code is amended by adding:

CHAPTER 7

Income Tax

Article 1

Tax Provisions

 Section 
12-7-10. The Department of Revenue shall administer and enforce the taxes 
imposed by this chapter. The department shall make and publish rules and 
regulations, consistent with this chapter, necessary to enforce its provisions. 
These rules and regulations have the force of law.

 Section 
12-7-20. As used in this chapter:

 (1) "Nonresident 
beneficiary" means a beneficiary other than a resident beneficiary.

 (2) "Nonresident 
estate" means an estate other than a resident estate.

 (3) "Nonresident 
individual" means an individual other than a resident individual or a part year 
resident.

 (4) "Nonresident 
partner" means a partner other than a resident partner.

 (5) "Nonresident 
trust" is a trust other than a resident trust.

 (6) 
"Part year resident" means an individual who is a resident individual 
for only a portion of the tax year.

 (7) 
"Pass through businesses entities" means sole proprietorships, 
partnerships, and "S" corporations, including limited liability 
companies taxed as sole proprietorships, partnerships, or "S" 
corporations.

 (8) 
"Resident beneficiary" means a beneficiary of an estate or trust who 
is a resident individual, resident estate, resident trust, resident 
partnership, or resident corporation.

 (9) 
"Resident estate" means the estate of a decedent who was domiciled in 
this State at death. 

 (10) 
"Resident individual" means an individual domiciled in this State.

 (11) 
"Resident partner" means a partner who is a resident individual, 
resident estate, resident trust, or resident corporation or resident 
partnership during the taxable year.

 (12) 
"Resident trust" means a trust administered in this State. 

 (13) 
"Taxpayer" includes an individual, trust, estate, partnership, 
association, or any other entity subject to the tax imposed by this chapter or 
required to file a return.

 Section 
12-7-30. (A) A tax is imposed at the 
rate of three and one-half percent on the South Carolina taxable income of 
individuals, estates, and trusts and any other entity.

 (B) For 
purposes of Internal Revenue Code Section 641(c), an electing small business 
trust is taxed at the same rate provided for in subsection (A).

 (C) An 
income tax is imposed annually at the same rate provided for in subsection (A) 
on the South Carolina taxable income of an organization described in Internal 
Revenue Code Sections 501 through 528 (Exempt Organizations) and 1381 
(Cooperatives) as computed under Internal Revenue Code Sections 501(b) 
(unrelated business income), 528(d) (taxable income of homeowners' 
associations), and 1382 and 1383 (taxation of cooperatives).

 Section 
12-7-40. (A) South Carolina taxable 
income for individuals is equal to the individual 

taxpayer's federal taxable income as determined 
pursuant to the Internal Revenue Code and the state standard deduction subject 
to the modifications contained in item (1) and (2) of this subsection, Section 
12-7-50, and Section 12-7-60.

 (1) 
The state standard deduction for an individual filing an income tax return 
pursuant to Section 12-7-310(1)(a) is twelve thousand dollars.

 (2) 
The state standard deduction for an individual filing an income tax return 
pursuant to Section 12-7-310(1)(b) is twenty-four thousand dollars.

 (B) 
South Carolina taxable income for all other filers pursuant