One Voice Newsletter

Legislative Update – Week 17

Just one week remains in this year’s legislative session, and what a doozy it is shaping up to be as lawmakers have many priorities they still need to tackle before the clock strikes 5:00 p.m. next Thursday (May 14^th).

Congressional Redistricting Takes Center Stage

Following last week’s U.S. Supreme Court decision in Louisiana v. Callais — which threw out Louisiana’s congressional map as an unconstitutional racial gerrymander — the General Assembly seems poised to take a hard look at South Carolina’s own congressional map, despite the June 9^th primary looming.

After direct outreach from the White House to leadership in both chambers, the House voted 87-25 along party lines on Wednesday to amend the Senate-passed sine die resolution (S.883), which dictates what lawmakers can return to Columbia to address after adjourning on May 14^th, to include redistricting. The Senate still needs to sign off on the amended resolution with a two-thirds vote.

In the meantime, the House Judiciary Constitutional Laws Subcommittee is set to take up two redistricting-related bills today (Friday, May 8) — H.5683 (congressional redistricting) and H.5684 (special primary for U.S. House), both sponsored by Representative Luke Rankin (R-Laurens).

This is a developing story and one that is garnering significant attention at the Statehouse. SCMC will continue to monitor developments closely.

Manufacturing Property Tax Relief Heads to Governor’s Desk

One of SCMC’s top priorities this year, the Manufacturing Property Tax Relief Act (S.439), is on its way to the Governor’s desk following passage by the House this week.

The bill raises 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.

Following the bill’s passage, SCMC President and CEO Sara Hazzard released a statement saying, “The passage of the Manufacturing Property Tax Relief Act is a major win for South Carolina’s business community and the more than 780,000 South Carolinians whose jobs are supported by manufacturers.”

Small Business Tax Relief Heads Back to House with Changes

Another one of SCMC’s top priorities is closer to the finish line after the Senate passed the “Small Business Tax Cut Act of 2026” (H.5006) on Thursday.

The bill would exempt the first $10,000 of a small business’s personal property (BPP) from county taxation, ease compliance burdens, and effectively eliminate the tax altogether for small businesses with less than $10,000 in BPP.

The bill was amended by Senate Finance Committee Chairman Harvey Peeler (R-Cherokee) to include the Senate-passed Homestead Exemption Increase (S.768), likely setting up conference committee negotiations with the House who to date has not indicated any plans to take action on the Homestead Exemption bill.

Also on Thursday, the House Ways and Means Committee amended and advanced Senator Shane Massey’s (R-Edgefield) U.I. Tax Code Reform bill (S.688) to make it another vehicle for the “Small Business Tax Cut Act of 2026” (H.5006).

Regulatory Reform Passes Senate

On Wednesday, the Senate passed an amended version of the “Small Business Regulatory Freedom Act” (H.3021), which seeks to reduce the regulatory burden on job creators in our state.

As amended, the bill strengthens the state’s existing regulatory review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance. It also requires proposed regulations with an estimated financial impact of over $10 million to receive joint approval by the House and Senate. Finally, it also ends judicial deference to state agencies in legal disputes.

On the Senate floor, Senator Chip Campsen (R-Charleston) gave a shoutout to SCMC for our work to improve the bill to alleviate concerns from the regulated community. The bill now heads back to the House, before likely going to a conference committee.

Other Notable Actions

• FY2026-27 State Budget (H.5126) – On Wednesday, the House passed its amended version of the state’s $15.3 billion FY2026-27 budget, setting up conference negotiations between the House and Senate that will occur post-Sine Die adjournment. The House included roughly $300 million in one-time dollars for community-related projects. 

• Guarantee Banking Act (H.5538) – This week, the Senate Banking and Insurance (B&I) Committee advanced a bill that would prohibit financial institutions from discriminating against individuals for their political or religious beliefs, or other economic activity. The bill now heads to the Senate floor.

• Sales Tax Exemption for Broadband Equipment (H.5122) – On Thursday, the Senate passed 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. An amendment was adopted to clarify that data centers do not qualify for the exemption. The bill will head back to the House.

• Protecting Children from Chatbots Act (S.896) – This week, the Senate Labor, Commerce and Industry (LCI) Committee advanced an amended version of a bill that would regulate large AI chatbot providers by imposing age verification requirements, parental consent systems, behavioral safeguards, and significant civil liability — including a private right of action — on any operator with 50,000 or more monthly active users, while exempting chatbots used predominantly for commercial customer service, order fulfillment, and account management functions. The bill now heads to the Senate floor.

• Admissions Tax Exemption (H.5093) – This week, the Senate amended and passed a bill to exempt chambers of commerce from the admissions tax. The bill now heads back to the House.

• Workers’ Compensation Fee Schedule Flexibility (H.3874) – This week, the Senate passed 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 back to the House.

• S.C. Drone Regulation and Public Safety Act (H.4679) – This week, the Senate passed a bill to restrict unauthorized drone usage near sensitive sites like military installations and correctional facilities. The bill now heads back to the House.

• Aircraft Property Tax Reduction (S.436) – This week, the House Ways and Means Committee advanced a bill that, as amended, would allow commercial aircraft carriers to enter into fee-in-lieu agreements (FILOTs) approved by the Coordinating Council for Economic Development. The bill now heads to the House floor.

• U.S. Produced Iron and Steel (H. 4709) – This week, the Senate 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 back to the House.

• S.C. STEM Opportunity Act (H.3863) – This week, the Senate passed a bill that would consolidate the state’s existing STEM education organizations into a unified, Clemson-housed coalition backed by a dedicated state fund, with the goal of aligning K-12 and higher education programming with the workforce needs of South Carolina’s business community. The bill now heads back to the House.

Next Week

The Senate is expected to take up the “Small Business Regulatory Freedom Act” (H.3021) on the floor next week. Notable meetings already scheduled for next week include:

• Tuesday – Senate Banking and Insurance (B&I) Subcommittee on the “Guarantee Banking Act” (H.5538) followed by a full committee meeting on Wednesday.

• Tuesday – Senate Transportation Subcommittee on the “Drone Regulation and Public Safety Act (H.4679).