We are proud of our advocacy efforts. They make a positive difference in Columbia for each of our members, and we can’t wait to watch these efforts translate into policy wins for the business community this year. As many of you saw during last week’s tremendously successful legislative kickoff event – Business Speaks – our advocacy is informed and boosted by the engagement our members have with key policymakers and with each other.
That’s why we are so excited about the slate of events we are planning for the year.
Next up on the calendar?
The South Carolina Automotive Summit on February 10–12. This event is not just another conference. It is the premier gathering for the innovators, decision-makers, and disruptors shaping the automotive industry in South Carolina and beyond. The Summit features a packed agenda with insights from leaders representing South Carolina’s top automotive manufacturers, along with remarks from Governor Henry McMaster and the debut of a new manufacturing economic impact study. The program will explore the issues shaping the future of the automotive sector, including EV transition and electrification, mobility trends, workforce development, trade and tariffs, and supply chain challenges.
Whether you’re an executive, supplier, educator, or service provider, this event delivers unmatched insights, connections, and opportunities to keep you ahead of this rapidly evolving industry.
We hope to see you there! For more information or to sign up for the Summit, visit the event website.
Legislative Recap – Week 2
Week two of this year’s legislative session is officially in the books. Lawmakers in both the House and Senate spent most of the week in subcommittee and full committee hearings.
Tax Bills Advance
Tax legislation continues to move, with the Senate Finance Committee advancing the House-passed Income Tax Reform bill (H.4216) to the Senate floor on Tuesday. The bill reduces the top income tax rate from 6% to 5.39%, shifts South Carolina’s income tax base from federal taxable income to adjusted gross income (AGI), and includes a long-term mechanism to reduce the top rate by $200 million annually. This is an SCMC priority.
Also advanced by the Senate Finance Committee was the Homestead Exemption bill (S.768), which was amended to increase the homestead exemption for property taxes on residents 65 and older from $50,000 to $150,000 and implement a five-year residency requirement. The topic of comprehensive tax reform will likely take center stage when both bills come up on the Senate floor.
Meanwhile, this week the House Economic Development and Utility Modernization Ad Hoc Committee unveiled the “State of South Carolina Small Business Tax Cut of 2026” (H.5006). The bill, which is an SCMC priority, would exempt the first $10,000 of a small business’s personal property (BPP) from county taxation while small businesses with less than $10,000 would no longer have to pay this tax. Additionally, the bill simplifies and eases the compliance burden of BPP taxes by requiring all filings to go to the Department of Revenue (DOR). The bill defines a small business as a business independently owned and operated with fewer than 100 employees or gross annual sales of less than $10 million.
Other Notable Actions
DOT Modernization (S. 831)
A Senate Transportation Committee subcommittee took testimony on a bill filed this week by Committee Chairman Larry Grooms (R-Berkeley) that would streamline the delivery of infrastructure projects across South Carolina by shifting certain federal environmental review duties to the DOT, modernizing its procurement process, and establishing a Coordinating Council for Transportation & Mobility, among other provisions. The bill would also increase transportation funding by allowing for tolling, increasing the EV fee, and imposing new congestion-related charges tied to residential development. This was the first meeting in a series of meetings that the subcommittee plans to hold. The House SCDOT Modernization Ad Hoc Committee did not meet this week as it works to finalize its proposal.
UI Tax System (S. 688)
A Senate Labor, Commerce and Industry (LCI) subcommittee discussed Sen. Shane Massey’s (R-Edgefield) proposal 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. While no action was taken, the subcommittee also discussed ensuring every business in UI tax classes 1–20 pays into the UI system. More meetings are expected.
Small Business Regulatory Freedom Act (H. 3021)
A Senate Judiciary subcommittee took testimony on a bill that 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. More meetings are expected to be held.
Judicial Reform (H. 4755)
A House Judiciary subcommittee advanced a bill that seeks to reduce legislative influence on the Judicial Merit Selection Commission (JMSC), which screens and recommends judges for the General Assembly to vote on. The bill heads to the full House Judiciary Committee.
Insurance Rate Reduction and Policyholder Protection Act (H. 4817)
A House Labor, Commerce and Industry (LCI) subcommittee took additional testimony on a bill 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. Another meeting is expected to be held next week.
U.S. Produced Iron and Steel (H. 4709)
A House Labor, Commerce and Industry (LCI) subcommittee advanced a bill which 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 heads to the full House LCI Committee.
Next Week
This weekend’s looming winter storm could impact next week’s legislative session, and Governor Henry McMaster is slated to give his final “State of the State” address on Wednesday evening.
SCMC Advocacy Network
SCMC has launched a new advocacy network to keep the business community informed and engaged on key issues at the State House. By signing up, you’ll receive timely policy updates and calls to action by email and text, making it easy to engage with policymakers and support policies that help South Carolina businesses grow and compete. Sign up to receive advocacy alerts here.
SCMC Updates & Announcements
Governor Declares State of Emergency
Governor Henry McMaster issued Executive Order 2026-02 declaring a State of Emergency in preparation for the winter storm expected to impact South Carolina this weekend.
SCDOT Names New Chairman
Max Metcalf, Manager of Government and Community Relations at BMW Manufacturing Co., has been named Chairman of the South Carolina Department of Transportation Commission.
Industry Recruitment in 2025
The South Carolina Department of Commerce announced that industry recruitment reached $9.12 billion in 2025.
SCMC Safety Awards
Applications are being accepted for SCMC’s Safety Awards. Winners will be honored at the South Carolina Safety and Environmental Summit on March 11, 2026. Apply now.
