Income tax on overtime pay

2025-2026 Bill 3368: Income tax on overtime pay - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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This Bill
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Indicates Matter Stricken
Indicates New Matter
H. 3368
STATUS INFORMATION
General Bill
Sponsors: 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, B.L. 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
Document Path: LC-0052DG25.docx
Introduced in the House on January 14, 2025
Introduced in the Senate on March 11, 2026
Last Amended on March 31, 2026

Currently residing in the Senate
Summary: Income tax on overtime pay
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/5/2024

House

Prefiled

12/5/2024

House

Referred to Committee on
Ways and Means

1/14/2025

House

Introduced and read first time (
House Journal-page 182
)

1/14/2025

House

Referred to Committee on
Ways and Means
(
House Journal-page 182
)

3/3/2026

House

Member(s) request name added as sponsor: Yow, C.
Mitchell

3/4/2026

House

Committee report: Favorable with amendment
Ways and Means
(
House Journal-page 2
)

3/5/2026

House

Member(s) request name added as sponsor: Magnuson

3/5/2026

House

Special order, set for consideration following
final dispostion of H. 4216

3/9/2026

House

Member(s) request name added as sponsor: 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, Schuessler, 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

3/10/2026

House

Amended

3/10/2026

House

Read second time

3/10/2026

House

Roll call Yeas-121 Nays-0

3/11/2026

House

Read third time and sent to Senate (
House Journal-page 34
)

3/11/2026

Senate

Introduced and read first time (
Senate Journal-page 5
)

3/11/2026

Senate

Referred to Committee on
Finance
(
Senate Journal-page 5
)

3/18/2026

Senate

Committee report: Favorable
Finance
(
Senate Journal-page 8
)

3/31/2026

Senate

Amended (
Senate Journal-page 45
)

3/31/2026

Senate

Second Reading Failed (
Senate Journal-page 45
)

3/31/2026

Senate

Roll call Ayes-16 Nays-27 (
Senate Journal-page 45
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/05/2024
03/04/2026
03/10/2026
03/18/2026
03/31/2026

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

________

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

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
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,
2024
2025
,
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,
2024
2025
, are extended, but otherwise not amended, by
congressional enactment during
2025
2026
, 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.

S
ECTION 2.
T
itle 12 of the S.C. Code is amended by adding:

CHAPTER 5

S
ection
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.

S
ECTION 3. This act takes effect upon approval
by the Governor.

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This web page was last updated on March 31, 2026 at 4:18 PM