S 0439 {Rat #137, Act #122 of 2026} General Bill, By Peeler, Turner, Davis, Bennett, 
Verdin, Alexander, Grooms, Kimbrell, Johnson, Jackson, Sutton, Cromer, Climer, 
Adams, Zell and Young
 AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-37-220,
 RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO INCREASE THE MAXIMUM
 REIMBURSEMENT AMOUNT FOR THE EXEMPTION ON CERTAIN MANUFACTURING PROPERTY. -
 RATIFIED TITLE

   3/11/2025  Senate Introduced and read first time
   3/11/2025  Senate Referred to Committee on Finance
   4/29/2025  Senate Committee report: Favorable Finance (Senate Journal-page 14)
   5/1/2025  Senate Read second time (Senate Journal-page 54)
   5/1/2025  Senate Roll call Ayes-40  Nays-0 (Senate Journal-page 54)
   5/6/2025  Senate Read third time and sent to House (Senate Journal-page 38)
   5/6/2025  House  Introduced and read first time (House Journal-page 234)
   5/6/2025  House  Referred to Committee on Ways and Means (House Journal-page 234)
   4/28/2026  House  Committee report: Favorable Ways and Means (House Journal-page 5)
   4/29/2026  House  Debate adjourned
   4/30/2026  House  Debate adjourned until Tues., 5-5-26 (House Journal-page 87)
   5/5/2026  House  Read second time (House Journal-page 26)
   5/5/2026  House  Roll call Yeas-104  Nays-0 (House Journal-page 26)
   5/6/2026  House  Read third time and enrolled (House Journal-page 33)
   5/14/2026         Ratified R 137
   5/15/2026         Signed By Governor
   5/26/2026         Effective date See Act for Effective Date
   5/26/2026         Act No. 122

S 439 General Bill, By Peeler, Turner, Davis, Bennett, Verdin, Alexander, Grooms, Kimbrell, Johnson, Jackson, Sutton, Cromer, Climer, Adams, Zell and Young

(A122, R137, S439)

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO INCREASE THE MAXIMUM REIMBURSEMENT AMOUNT FOR THE EXEMPTION ON CERTAIN MANUFACTURING PROPERTY.

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

Manufacturing property tax exemption

SECTION 1.    Section 12-37-220(B)(52) of the S.C. Code is amended to read:

(52)(a)(i) 42.8571 percent of the property tax value of manufacturing property assessed for property tax purposes pursuant to Section 12-43-220(a)(1). The exemption allowed by this item does not apply to property owned or leased by a public utility, as defined in Section 58-3-5, that is regulated by the Public Service Commission, regardless of whether the property is used for manufacturing. For purposes of this item, if the exemption is applied to real property, then it must be applied to the property tax value as it may be adjusted downward to reflect the limit imposed pursuant to Section 6, Article X of the South Carolina Constitution, 1895;

(ii) to the extent any such monies are refunded or otherwise credited under this item to a public utility that is regulated by the Public Service Commission, regardless of whether the property is used for manufacturing, any such refund or credits must be flowed through to customers as a reduction in rates, as appropriate.

(b) The revenue loss resulting from the exemption allowed by this item must be reimbursed and allocated to the political subdivisions of this State, including school districts, in the same manner as the Trust Fund for Tax Relief, not to exceed three hundred million dollars per year. In calculating estimated state individual and corporate income tax revenues for a fiscal year, the Board of Economic Advisors shall deduct amounts sufficient to account for the reimbursement required by this item.

(c) Notwithstanding the exemption allowed by this item, in any year in which reimbursements are projected by the Revenue and Fiscal Affairs Office to exceed the reimbursement cap in subitem (b), the exemption amount shall be proportionally reduced so as not to exceed the reimbursement cap.

(d) Notwithstanding any other provision of law, property exempted from property taxes in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Section 15, Article X of the Constitution of this State.

Time effective

SECTION 2.    This act takes effect upon approval by the Governor and first applies to property tax years beginning after 2024.

Ratified the 14th day of May, 2026.

Approved the 15th day of May, 2026.

This web page was last updated on June 11, 2026 at 2:09 PM