Indicates Matter Stricken

Indicates New Matter

 

Amended

March 31, 2026

 

H. 3368

 

Introduced by Reps. Long, Forrest, Yow, C. Mitchell, Magnuson, Calhoon, J. E. Johnson, Crawford, Erickson, Davis, Bradley, Hager, Hartz, McCravy, Ballentine, Bowers, Bailey, Hardee, Guest, Hewitt, Jordan, Lowe, McGinnis, Sessions, Caskey, B. Newton, Hiott, Gilliam, Bannister, G. M. Smith, Ligon, Bustos, Hartnett, W. Newton, Wooten, Oremus, Pedalino, M. M. Smith, Cox, Landing, Robbins, Martin, Brewer, Ford, Teeple, Vaughan, Pope, Chapman, Gagnon, Gibson, Whitmire, Rankin, Sanders, Duncan, Wickensimer, Haddon, Herbkersman, Lawson, T. Moore, Taylor, Holman and Schuessler

 

S. Printed 3/31/26--S.

Read the first time March 11, 2026

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-6-1120, RELATING TO MODIFICATIONS TO GROSS INCOME FOR INDIVIDUAL INCOME TAX PURPOSES, SO AS TO EXCLUDE OVERTIME PAY AND CERTAIN BONUS PAY FROM GROSS INCOME.

    Amend Title To Conform

 

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, 20242025, 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, 20242025, are extended, but otherwise not amended, by congressional enactment during 20252026, 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.  Title 12 of the S.C. Code is amended by adding:

 

CHAPTER 5

 

    Section 12-5-3830. In any tax year when legislation is subsequently enacted affecting a prior tax year, and a taxpayer has already filed an individual income tax return for that year, a taxpayer may elect, in lieu of filing an amended return, to claim a refundable tax credit on their individual income tax return for the next following tax year in the amount of any decrease in tax liability between their originally reported tax liability and what that liability would have been had the legislation been enacted at the time of filing.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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