One Voice Newsletter

Legislative Update – Week 12

Week 12 was another busy week at the Statehouse. With an upcoming furlough week for the House and perfunctory session in the Senate, both chambers worked diligently to clear bills off their calendars in preparation for the final five-week sprint to the finish line of this year’s session when they return the week of April 13.

Filing Closes for House Races

Filing for all 124 seats in the House of Representatives up for re-election this year, closed on Monday at noon with a total of 308 candidates filing for office.

Six incumbents chose not to run again (Reps. D. Hiott, J.L. Johnson, R. McCabe, M.M. Smith, B. Taylor, and S. Wetmore), creating open races in Districts 4 (Pickens), 52 (Kershaw & Richland), 86 (Aiken & Lexington), 96 (Lexington), 99 (Berkeley), and 115 (Charleston).

Thirty-five incumbents will face a challenge in the June 9 statewide primary, while there will be a contested general election in 104/124 districts.

Learn more about those who filed here.

Tax Conformity Fails on Senate Floor

On Tuesday, a bill (H.3368) that would have conformed South Carolina to the Internal Revenue Code (IRC) for tax year 2025, thereby capturing all of the personal and business tax provisions of the One Big Beautiful Bill Act (OBBBA), failed on the Senate floor by a vote of 16-27.

The bill, which carried a roughly $290 million price tag, is likely dead for the year.

Due to the uncertainty around the passage of conformity legislation this year, last week, the Department of Revenue (DOR) announced that it was automatically extending the tax filing due date for all 2025 South Carolina Individual Income Tax returns to October 15, 2026.

DOT Modernization Bills Continue Moving

On Wednesday, the House Ways and Means Committee advanced two bills (S.831/H.5071) that seek to modernize the Department of Transportation (DOT) and streamline the delivery of infrastructure projects across South Carolina.

Both bills:

• Give DOT greater ability to enter into public-private partnerships.

• Expand DOT’s tolling authority.

• Transfer National Environmental Protection Act (NEPA) authority for permitting to DOT from the Federal Highway Administration.

• Include provisions to allow counties and cities to take ownership of roads from the state.

• Provide greater oversight over county transportation committees.

• Make the DOT Secretary a cabinet position appointed by the Governor.

• Transfer development of the statewide transportation plan and budget approval from the DOT commission to department leadership.

• Increase the electric vehicle (EV) registration fee from $120 biennially to $400 biennially.

Both bills now head to the House floor.

Senate Continues Data Center Discussions

Bills to regulate data centers remain a major point of discussion in the Senate.

A Senate Agriculture and Natural Resources Subcommittee met again this week to discuss a potential comprehensive amendment to the “Data Center Development Act” (S.867). The proposal would take the bill from a state-administered permitting framework with a dedicated office at the Department of Environmental Services (DES) to a local government-controlled siting regime with stricter water efficiency standards, mandatory long-term utility contracts, and significantly expanded local authority over data center development. The Senate Judiciary subcommittee will meet again next Wednesday.

A Senate Judiciary Subcommittee also held an additional meeting this week to discuss the “Data Center Siting Act” (S.902) receiving further testimony from stakeholders. No action was ultimately taken.

Other Notable Actions

• U.I. Tax Code Reform (S.688) – On Wednesday, the Senate passed a bill to modify the unemployment insurance (UI) tax system by adjusting the benefit ratio lookback period from 12 to 20 weeks, reducing the solvency target for the Unemployment Trust Fund to return tax dollars back to employers, and modifying penalties for delinquent reporting to alleviate the strain on business. The bill now heads to the House.

• Sales Tax Exemption for Broadband Equipment (H.5122) – On Wednesday, the House Ways and Means Committee advanced a bill that would exempt equipment and related purchases by broadband and communications service providers, when used in producing or distributing internet access and communications services, from the state sales tax. The bill now heads to the House floor.

• Insurance Rate Reduction and Policy Holder Protection Act (H.4817) – On Wednesday, the House passed a bill that aims at reducing insurance rates, combating fraud, and increasing policyholder protections. The bill now heads to the Senate.

• Foreign Adversary Land Ownership Restrictions (H.3408) – On Tuesday, a House Judiciary Subcommittee advanced a bill that, as amended, would prohibit foreign adversarial nations, as defined by the U.S. Secretary of Commerce, from acquiring any agricultural land in the state on or after July 1, 2026. The bill now heads to the full House Judiciary Committee.

• Aircraft Property Tax Reduction (S.436) – On Tuesday, a Senate Finance Subcommittee advanced a bill that, as amended, would allow commercial aircraft to enter into fee-in-lieu agreements (FILOTs) approved by the Coordinating Council for Economic Development. The bill now heads to the full Senate Finance Committee.

• S.C. Drone Regulation and Public Safety Act (H.4679) – This week, the House Judiciary Committee advanced a bill establishing a statewide framework for drone operations, with protections for critical infrastructure, public safety, and private property. The bill requires FAA compliance, restricts unauthorized flights near sensitive sites and large events, and creates penalties for misuse. It also preempts most local ordinances. The bill now heads to the House floor.

New Bills Introduced

• S.C. Headquarters Relocation and Growth Fund (H.5471) – This bill by Rep. Bruce Bannister (R-Greenville) would create the South Carolina Headquarters Relocation and Growth Fund, a trust administered by the Coordinating Council for Economic Development to provide grants to businesses that establish or expand a corporate or regional headquarters in the state. Funds could be used for employee relocation, office construction, IT infrastructure, workforce training, and public infrastructure improvements directly supporting the project site.

• Guarantee Banking Act (S.1069) – This bill, introduced by President Thomas Alexander (R-Oconee), would create the “Guarantee Banking Act,” which prohibits financial institutions from discriminating against individuals and promotes fairness and transparency in banking. Specifically, the bill includes definitions related to banking practices and establishes a cause of action for civil remedies in the event of a violation.

Next Week

The House will be out of town all week on furlough while the Senate will be in perfunctory session as the Senate Finance Committee meets to work through its version of the state’s FY2026-27 budget.