Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 21, 2024

 

H. 4594

 

Introduced by Reps. Ballentine, Pope, Clyburn, West, Elliott and T. Moore

 

S. Printed 03/21/24--H.

Read the first time January 09, 2024

 

________

 

The committee on House Ways and Means

To whom was referred a Bill (H. 4594) to amend the South Carolina Code of Laws by amending Section 12-6-40, relating to application of federal Internal Revenue Code to state tax laws, so as to update, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

B.W. BANNISTER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

 

State Expenditure

This bill updates South Carolina's conformity to the IRC through December 31, 2023. As there are no federal changes to implement, the bill will not impact expenditures for DOR.

 

State Revenue

This bill updates South Carolina's conformity to the IRC through December 31, 2023, including any expired provisions of the federal code that are extended, but not otherwise amended, by congressional enactment during 2024. Research by DOR did not identify any federal tax laws enacted by Congress that impact South Carolina's conformity through December 31, 2023.  Further, DOR did not identify any expired provisions for 2023 that would impact 2024 if extended. Therefore, this bill will have no impact on revenue.

 

Please note, this analysis is based on the actions taken by Congress and the IRC as of December 31, 2023. This does not include any actions that may be taken by Congress in 2024 that would impact tax year 2023 or prior years.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-6-40, RELATING TO APPLICATION OF FEDERAL INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO UPDATE THE REFERENCE TO THE INTERNAL REVENUE CODE TO THE YEAR 2023 AND TO PROVIDE THAT IF THE INTERNAL REVENUE CODE SECTIONS ADOPTED BY THIS STATE ARE EXTENDED, THEN THESE SECTIONS ALSO ARE EXTENDED FOR SOUTH CAROLINA INCOME TAX PURPOSES.

 

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

 

SECTION 1.  Section 12-6-40(A)(1)(a) and (c) of the S.C. Code is amended to read:

 

           (a) Except as otherwise provided, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through December 31, 20222023, and includes the effective date provisions contained in it.

 

           (c) If Internal Revenue Code sections adopted by this State which expired or portions thereof expired on December 31, 20222023, are extended, but otherwise not amended, by congressional enactment during 20232024, these sections or portions thereof also are extended for South Carolina income tax purposes in the same manner that they are extended for federal income tax purposes.

 

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

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