One Voice Newsletter

General Assembly to Return Next Week

Members of the 126th South Carolina General Assembly will return to Columbia next Tuesday to begin the final year of the two-year legislative session. As the unified voice for business and industry, SCMC enters this session focused on advancing policies that strengthen South Carolina’s competitiveness, grow jobs, and support employers across the state.

New Faces at the State House

The upcoming session will begin with several new faces at the State House following a series of special elections held this fall. Lee Bright (R–Spartanburg) has reclaimed his seat representing Senate District 12 after the retirement of Sen. Roger Nutt. In the House of Representatives, Dianne Mitchell (R–Greenville) will represent District 21 following the departure of Rep. Bobby Cox, John Lastinger (R–Lexington) will represent District 88 after the resignation of Rep. RJ May, and Greg Ford (R–Dorchester) will likely fill House District 98 (automatic recount underway), previously represented by Rep. Chris Murphy.

Key Pro-Business Legislation Still in Play

Several notable pro-business bills introduced during the previous session remain eligible for consideration this year:

• Income Tax Reform (H.4216)

  This House-passed bill is designed to make South Carolina even more competitive in attracting jobs and investment. Now pending in the Senate Finance Committee, the legislation would:

  • Deliver $125 million in income tax relief
  • Immediately reduce the top income tax rate from 6% to 5.39% for filers with more than $30,000 in taxable income.
  • Set a 1.99% rate for filers with taxable income below $30,000.
  • Reduce the top rate annually by $200 million until the rate reaches 1.99%, contingent on annual revenue growth of at least 5%. With sustained growth, the rate would ultimately phase out to 0%.
  • Shift the state’s income tax calculation from federal taxable income to adjusted gross income (AGI).

   

• Manufacturing Property Tax Exemption Cap Increase (S.439)

  This Senate-passed bill would raise the manufacturing property tax exemption cap established in the Comprehensive Tax Cut Act of 2022 from $170 million to $300 million.The original cap helped reduce the manufacturing property tax rate from 9% to 6%, provided county revenue losses did not exceed $170 million. Increasing the cap is critical to ensuring small and mid-sized manufacturers are not subjected to property tax increases in the coming years.

  The bill is currently in the House Ways and Means Committee. A similar proviso was included in the FY2025–26 state budget.

• Small Business Regulatory Freedom Act (H.3021)

  This House-passed bill seeks to reduce regulatory burdens on job creators by requiring agencies to eliminate two regulations for every new one proposed, ending judicial deference to state agencies in legal disputes, establishing a regulatory “shot clock,” and implementing other reforms.The bill is pending in the Senate Judiciary Committee.
• Additional Tort Reform (S.244 / H.3497)

  These bills include further reforms aimed at improving fairness and balance in South Carolina’s civil justice system. Provisions address issues such as loopholes affecting homebuilders and medical providers, admissibility of seatbelt usage in lawsuits, venue shopping in John Doe cases, and abusive time-limited settlement demands.Both bills currently reside in the House Judiciary Committee.
• RetrainSC Credit Modernization (S.359)

  This legislation would increase the job retraining credit from $1,000 to $2,000 per employee per year and remove restrictions on cross-training.
• Childcare Tax Credit Modernization (S.47)

  This bill aims to modernize South Carolina’s existing childcare tax credit by increasing credit amounts and allowing employers to claim the credit against withholding taxes.The bill is currently in the Senate Finance Committee.
• Maximum Unemployment Benefits (H.3477)

  This legislation would link the duration of unemployment benefits to the statewide unemployment rate, encouraging faster re-employment during periods of low unemployment while helping address workforce shortages.The bill is pending in the House Ways and Means Committee.

   

Pre-Filed Legislation to Watch

In December, lawmakers pre-filed 327 bills covering a wide range of topics. Notable pre-filed legislation includes:

• US Produced Iron and Steel (S.687)

  A bill introduced by Sen. Larry Grooms (R-Berkeley) 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.

   

• DEW UI Tax Code (S.688)

  This bill, sponsored by Sen. Shane Massey (R-Edgefield), proposes significant changes to the Unemployment Trust Fund, including adjustments to the benefit ratio lookback period, solvency targets, penalties for delinquent reporting, and interest on unpaid contributions.

   

• JMSC Reform (S.696/H.4755)

  The bills propose comprehensive reform to the Judicial Merit Selection Commission and the process for screening and electing judges and justices. The Senate bill is sponsored by Sen. Wes Climer (R-York), and the House bill is sponsored by Rep. Gil Gatch (R-Dorchester).

   

• Commercial Data Center Water Usage Report (S.724)

  This bill, sponsored by Sen. Allen Blackmon (R-Lancaster) requires certain commercial data centers to report annual water usage to the Department of Environmental Services. The data centers required to complete the reporting would have peak demand of 100 megawatts or greater that consume at least three million gallons of water per month.

   

• SC Clear Air Act (H.4624)

  This bill, sponsored by Rep. Thomas Gilreath (R-Anderson), makes intentional emissions intended to affect weather, temperature, or sunlight intensity unlawful and outlines penalties for doing so.

   

• Time-Limited Settlement Demands (H.4670)

  This bill, sponsored by Rep. Weston Newton (R-Beaufort) establishes requirements for settlement demands related to personal injury, property damage, or wrongful death claims.

   

• DEW Communication Requirements (H.4744)

  This bill, sponsored by Rep. Travis Moore (R-Spartanburg), aims to streamline processes at the Department of Employment and Workforce (DEW) by authorizing the Department to send certain communications electronically rather than by mail.

   

• School Safety and Hazard Buffers Act (H.4785)

  This bill, sponsored by Rep. David Martin (R-York) enacts the “School Safety and Hazard Buffers Act.” It would require a minimum setback distance between schools and new or expanding industrial, advanced manufacturing, or hazardous material facilities.

   

• Pharmacy Benefits Requirement (H.4791)

  This bill by Rep. Heath Sessions (R-York) addresses pharmacy regulations and pharmacy benefit manager (PBM) reimbursement practices.

   

• Insurance Rate Reduction and Policyholder Protection Act (H.4817)

  Sponsored by Rep. Gary Brewer (R-Charleston) is a product of the Insurance Rate Review Ad Hoc Committee’s in the off-session. It is aimed at effectively lowering insurance rates and enhancing consumer protections by expanding the Department of Insurance’s authority, combatting fraud, regulating contractor practices, incentivizing property mitigation and resilience, protecting consumers from unfair rate practices, and providing tax relief and grants to reduce disaster-related insurance costs.

• Business Speaks: January 14, 2026
• SC Automotive Summit: February 10-12, 2026
• SC Safety & Environmental Summit: March 9-11, 2026