We can’t believe another week is in the books! The SCMC team has been hard at work, and we’re excited to share some big news.
This week brought significant progress on one of our top priorities, income tax reform. The bill passed the Senate and will now return to the House.
SCMC President and CEO Sara Hazza celebrated this week’s income tax reform victory, saying in a statement, “The Senate’s passage of income tax reform marks an important step forward for South Carolina. This is a win for South Carolina families and businesses, as it will modernize our current system, improve our state’s competitiveness, and spur economic growth.”
Stay tuned as there is much more good news to come!
In This Issue
- Legislative Recap – Week 7
- SCMC to Hold Trade and Tariff Webinar
- SCMC Updates & Announcements
- Upcoming Events
Legislative Recap – Week 7
It was a strong week at the Statehouse for the business agenda, with SCMC priorities like income tax reform, UI tax reform, infrastructure modernization, and more, all receiving considerable attention.
Senate Passes Income Tax Reform Bill
The Senate passed H. 4216, the South Carolina Income Tax Reform bill. The bill as amended:
- Delivers $309 million in income tax relief in year one.
- Reduces the top income tax rate from 6% to 5.21%.
- Shifts South Carolina’s income tax base from federal taxable income to adjusted gross income (AGI).
- Includes a long-term mechanism to reduce the top rate by $200 million annually.
The bill was sent back to the full House who must decide whether to concur with the Senate changes or not.
Bill to Rein in Deceptive Lawyer Advertising Advances
On Thursday, the Senate Labor, Commerce and Industry (LCI) Committee advanced a bill (S.821) by Senators Sean Bennett (R-Dorchester) and Ross Turner (R-Greenville) that would define and prohibit false, deceptive, or misleading attorney advertising. The bill now heads to the Senate floor.
Senate Subcommittee Advances DOT Modernization Bill
On Thursday, a Senate Transportation subcommittee, after working through multiple amendments, advanced its Department of Transportation (DOT) Modernization bill (S.831).
The legislation seeks to streamline the delivery of infrastructure projects across South Carolina by shifting certain federal environmental review duties to the DOT, modernizing its procurement process, giving more authority to the DOT and its Secretary, establishing a Coordinating Council for Transportation & Mobility, among other provisions, and also expands tolling authority. The bill was amended to strip out any new fees and now heads to the full Senate Transportation Committee.
Other Notable Actions
- Pharmacy Reimbursement Mandates (S.342) – On Wednesday, a Senate Banking & Insurance (B&I) subcommittee advanced a bill that would set minimum reimbursement rates for how pharmacy benefit managers (PBMs) pay pharmacies and pharmacists for dispensing prescription drugs or performing pharmacy services. It is estimated that the bill could increase costs for employers by $330 million annually. The bill now heads to the full B&I Committee.
- Limits on SNAP Eligible Foods (S.777) – On Wednesday, a Senate Family and Veterans’ Services (FVS) subcommittee advanced a bill that would prohibit the use of SNAP benefits to buy candy, energy drinks, soft drinks, and other sweetened beverages at authorized retailers. The bill now heads to the full FVS Committee.
- Abandoned Buildings Tax Credit (S.853) – This week, the Senate passed a bill that clarifies eligibility rules for these tax credits in response to a S.C. Department of Revenue (DOR) ruling released earlier this year. Attempts to restrict data centers from utilizing the credit were defeated. The bill now heads to the House Ways and Means Committee.
- U.S. Produced Iron and Steel (H. 4709) – This week, the House passed a bill that requires public works contracts to include provisions mandating that iron and steel products permanently incorporated into projects be produced in the United States, with limited exceptions. The bill now heads to the Senate Finance Committee.
- Workers’ Compensation Fee Schedule Flexibility (H.3874) – On Wednesday, a House Labor, Commerce and Industry (LCI) subcommittee advanced a bill that would give the Workers’ Compensation Commission broader authority to establish and adjust medical fee schedules for medical services provided by practitioners. The bill now heads to the full LCI Committee.
New Bills Introduced
Notable bills introduced this week include:
- RetrainSC Credit Expansion (H.5243) – This bill by Rep. Brandon Newton (R-Lancaster) would increase the job retraining credit from $1,000 to $2,000 per employee per year and eliminate restrictions on cross-training. The bill was referred to the House Ways and Means Committee.
- Alcohol Server Training Deadline (H.5261) – This joint resolution from Rep. Weston Newton (R-Beaufort) would extend the deadline for restaurants and bars to comply with the new alcohol server training requirements prescribed in Act 42 of 2025 – the Tort Reform and Liquor Liability Law – to May 1st. The joint resolution passed the House this week and now heads to the Senate.
- H1B Visas (H.5273) – This bill by Rep. Steven Long (R-Spartanburg) would bar companies from receiving state incentives, tax breaks, grants, FILOT agreements, or state contracts if more than 2% of their workforce are H-1B visa holders. The bill was referred to the House Ways and Means Committee.
- E-Verify Penalties (H.5279) – This bill by Rep. Steven Long (R-Spartanburg) would increase penalties for private employers who violate state employment citizenship verification requirements, raising fines and other sanctions for hiring unauthorized workers. The bill was referred to the House Labor, Commerce and Industry (LCI) Committee.
- Data Center Moratorium (H.5286) – This joint resolution by Rep. Steven Long (R-Spartanburg) would enact a two-year moratorium on new data center construction in the state. The joint resolution was referred to the House Ways and Means Committee.
Next Week
Notable committee meetings already scheduled for next week include:
SCMC to Hold Trade and Tariff Webinar
Join SCMC on Thursday, March 12 from 10-11 a.m. as we continue our educational webinar series with an in-depth look at the latest on U.S. tariff policy and what’s next following last week’s U.S. Supreme Court tariff ruling.
Pete Mento, a director with Baker Tilly’s global trade management services, will lead a candid discussion on the current state of U.S. tariffs, their impact on global trade, the risks and opportunities ahead, and how companies can prepare. Register now.
SCMC Updates & Announcements
Manufacturing Madness Heats Up
The popular vote round for the more than 120 South Carolina-made products nominated in Manufacturing Madness has officially closed, with thousands of ballots cast. Now, the excitement shifts to the unveiling of the bracket and the top 16 voting round. Voting opens Monday at 8:00 a.m. and runs through Thursday, March 5, at 5:00 p.m. Join the madness by casting one vote per day at
scmanufacturingmadness.com.
Nominations Open for SCMC Small Business of the Year Award
Nominations for the SCMC Small Business of the Year Award are now open! The winner will be honored during Small Business Day at the Statehouse on April 30. Nominate South Carolina’s top small business today.
HBCU STEM Spotlight: Cristal Carroll
This week, SCMC highlighted the latest success story from our HBCU STEM Program, which connects students from South Carolina’s Historically Black Colleges and Universities with the state’s STEM workforce through hands-on experiences and professional engagement.
Cristal Carrol, a senior physics major at South Carolina State University, is our newest standout, preparing to launch her career in STEM after two years in the program.
Learn more about the program, Cristal, and how you can get involved on our website.
Dominion Energy Expands Rebates for Small Businesses
Dominion Energy is offering limited-time bonus incentives to help eligible small business customers invest in energy-efficient improvements that can reduce electricity and deliver savings.
For more information about the program visit DominionEnergy.com/SmallBizSC, email EnergyExperts@SC.DominionEnergyAccount.com, or call 877-784-7234.
We Want to Hear From You: SCMC Educational Webinar Series
We want to hear from you! As a member of SCMC, your company has access to programs, services, and resources designed specifically for South Carolina’s manufacturing and business community.
One of the many benefits included in your SCMC membership is our educational webinar series, led by trusted industry leaders and subject-matter experts. If there’s a topic you’d like covered or a speaker you’d recommend, please share your ideas with us by contacting
Mallory.Granger@myscmc.org.
Upcoming Events
Women’s Leadership Symposium | March 5, 2026
South Carolina Safety and Environmental Summit | March 9-11, 2026
Trade and Tariff Webinar with Pete Mento | March 12, 2026
Spotlight on Agriculture and Forestry | March 17, 2026
