H 3758 General Bill, By Bauer, Knotts, Whatley, Koon, Harrell, Altman, Bailey, 
Barfield, Breeland, J. Brown, Clyburn, Cobb-Hunter, Dantzler, Gourdine, 
J. Hines, Inabinett, Lloyd, Lourie, Mack, McCraw, McKay, J.H. Neal, Phillips, 
Pinckney, Riser, Scott, J. Smith, R. Smith and Whipper
 A BILL TO AMEND SECTION 12-6-1170, AS AMENDED, RELATING TO THE DEDUCTION FOR
 STATE INCOME TAX PURPOSES ALLOWED FROM THE TAXABLE INCOME OF INDIVIDUALS OF
 RETIREMENT INCOME AND THE DEDUCTION ALLOWED PERSONS WHO HAVE ATTAINED THE AGE
 OF SIXTY-FIVE YEARS, SO AS TO INCREASE THE ELEVEN THOUSAND FIVE HUNDRED DOLLAR
 DEDUCTION TO FIFTY THOUSAND DOLLARS FOR PERSONS WHO HAVE ATTAINED THE AGE OF
 SEVENTY-FIVE YEARS AND TO EXTEND THIS INCREASED DEDUCTION OVER SEVEN YEARS TO
 PERSONS WHO HAVE ATTAINED AGE SIXTY-EIGHT.

   03/23/99  House  Introduced and read first time HJ-3
   03/23/99  House  Referred to Committee on Ways and Means HJ-4

TO AMEND SECTION 12-6-1170, AS AMENDED, RELATING TO THE DEDUCTION FOR STATE INCOME TAX PURPOSES ALLOWED FROM THE TAXABLE INCOME OF INDIVIDUALS OF RETIREMENT INCOME AND THE DEDUCTION ALLOWED PERSONS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS, SO AS TO INCREASE THE ELEVEN THOUSAND FIVE HUNDRED DOLLAR DEDUCTION TO FIFTY THOUSAND DOLLARS FOR PERSONS WHO HAVE ATTAINED THE AGE OF SEVENTY-FIVE YEARS AND TO EXTEND THIS INCREASED DEDUCTION OVER SEVEN YEARS TO PERSONS WHO HAVE ATTAINED AGE SIXTY-EIGHT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-6-1170(B) of the 1976 Code, as amended by Act 419 of 1998, is further amended to read:

"(B)(1) Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, the resident individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed eleven thousand five hundred dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) not including amounts deducted as a surviving spouse. If married taxpayers eligible for this deduction file a joint federal income tax return, then the maximum deduction allowed is eleven thousand five hundred dollars in the case when only one spouse has attained the age of sixty-five years and twenty-three thousand dollars when both spouses have attained such age.

(2) The amounts allowed to be deducted by a resident individual taxpayer pursuant to item (1) of this subsection is fifty thousand dollars based on the age the taxpayer attains during the taxable year as follows:

Eligible Age Taxable Year

75 1999

74 2000

73 2001

72 2002

71 2003

70 2004

69 2005

68 after 2005

The additional exemption allowed by this item applies in the same manner as the exemption allowed pursuant to item (1) of this subsection."

SECTION 2. This act takes effect upon approval by the Governor.