South Carolina S 64: Income Tax Deduction

Bill Text

2025-2026 Bill 64 Text of Previous Version (Jan. 17, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 64

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 ALLOW A SOUTH CAROLINA INCOME TAX DEDUCTION OF ALL MILITARY 
RETIREMENT OR FIRST RESPONDER RETIREMENT INCOME; AND BY AMENDING SECTION 12-6-1170, 
RELATING TO RETIREMENT INCOME DEDUCTION FROM TAXABLE INCOME FOR INDIVIDUALS, SO 
AS TO MAKE A CONFORMING CHANGE.

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

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

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

 (1) 
"First responder" means a person who is paid from public funds to serve as a 
law enforcement officer, firefighter, or peace officer, who is trained to 
respond to an emergency, and whose public service and public employer are of 
the type that qualify the person to be a member in the South Carolina Police 
Officers Retirement System, or otherwise would qualify the person to be a 
member if the State of South Carolina was the employer. First responder does 
not include magistrates, judges, or coroners.

 (2) 
"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 a qualified military 
retirement plan or qualified first responder retirement plan. For purposes of a 
surviving spouse, "military retirement income" also includes a retirement 
benefit plan and dependent indemnity compensation related to the deceased 
spouse's military service.

 (B) 
An individual taxpayer who has military retirement income or first responder 
retirement income each year may deduct all military retirement income and first 
responder retirement income that is included in South Carolina taxable income.

 (C) A 
surviving spouse receiving military retirement income or first responder 
retirement income that is attributable to the deceased spouse shall apply this 
deduction in the same manner that the deduction applied to the deceased spouse.

 (D) 
The department may require the taxpayer to provide information necessary for 
proper administration of this section.

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 cumulative 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 January 17, 2025 at 02:28 PM