Taxes

2025-2026 Bill 5006: Taxes - 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. 5006
STATUS INFORMATION
General Bill
Sponsors: Reps. B. Newton, Long, Hewitt, M.M. Smith, Gatch, Schuessler, Stavrinakis, Hiott, Pope, Erickson, Hixon, Neese, Wooten, Ligon, Chapman, Forrest, Hartz, Guffey, Ford, Willis, Cox, Sanders, Vaughan, Oremus, Duncan, G.M. Smith, Bowers, Sessions, Bannister, Bailey, Brewer, Weeks, Landing, Moss, Bradley, Lawson, Rankin, Guest, Brittain, Lowe, T. Moore, Ballentine, Robbins, Martin, Caskey, Pedalino, Calhoon, Davis, W. Newton, C. Mitchell, Holman, Hardee, Taylor, Yow, Jordan, Haddon, Wickensimer, Bamberg, King, McDaniel, J.L. Johnson, Cromer, Gilreath and Anderson
Document Path: LC-0396DG26.docx
Introduced in the House on January 22, 2026
Introduced in the Senate on February 12, 2026
Last Amended on May 7, 2026

Currently residing in the House Committee on
Ways and Means
Summary: Taxes
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

1/22/2026

House

Introduced and read first time (
House Journal-page 27
)

1/22/2026

House

Referred to Committee on
Ways and Means
(
House Journal-page 27
)

1/27/2026

House

Member(s) request name added as sponsor: G.M. Smith

1/28/2026

House

Member(s) request name added as sponsor: Bowers,
Sessions, Bannister, Bailey

1/29/2026

House

Member(s) request name added as sponsor: Brewer, Weeks

2/3/2026

House

Member(s) request name added as sponsor: Landing,
Moss, Bradley, Lawson, Rankin, Guest,
Brittain, Lowe, T. Moore, Ballentine,
Robbins, Martin, Caskey, Pedalino, Calhoon,
Davis, W. Newton, C. Mitchell, Holman,
Hardee, Taylor, Yow, Jordan, Haddon, Wickensimer

2/3/2026

House

Committee report: Favorable with amendment
Ways and Means
(
House Journal-page 5
)

2/4/2026

House

Requests for debate-Rep(s). B Newton, McCravy,
Lawson, Frank, Martin, Weeks, Jones, Vaughan (
House Journal-page 19
)

2/4/2026

Scrivener's error corrected

2/10/2026

House

Member(s) request name added as sponsor: Bamberg

2/11/2026

House

Member(s) request name added as sponsor: King,
McDaniel, J.L. Johnson, Cromer, Gilreath, Anderson

2/11/2026

House

Amended (
House Journal-page 19
)

2/11/2026

House

Read second time (
House Journal-page 19
)

2/11/2026

House

Roll call Yeas-103 Nays-0 (
House Journal-page 22
)

2/12/2026

House

Read third time and sent to Senate (
House Journal-page 23
)

2/12/2026

Senate

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

2/12/2026

Senate

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

4/29/2026

Senate

Committee report: Favorable
Finance
(
Senate Journal-page 20
)

5/6/2026

Senate

Amended (
Senate Journal-page 98
)

5/6/2026

Senate

Read second time (
Senate Journal-page 98
)

5/7/2026

Scrivener's error corrected

5/7/2026

Senate

Amended (
Senate Journal-page 22
)

5/7/2026

Senate

Read third time and returned to House with amendments (
Senate Journal-page 22
)

5/7/2026

Senate

Roll call Ayes-46 Nays-0

5/12/2026

House

Debate adjourned (
House Journal-page 115
)

5/13/2026

House

Debate adjourned (
House Journal-page 97
)

5/14/2026

House

Recommitted to Committee on
Ways and Means
(
House Journal-page 108
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
01/22/2026
02/03/2026
02/04/2026
02/11/2026
04/29/2026
05/06/2026
05/07/2026
05/07/2026-A

Indicates Matter Stricken

Indicates New Matter

As Passed By The Senate

May 7, 2026

H. 5006

Introduced by Reps. B. Newton, Long, Hewitt, M.
M. Smith, Gatch, Schuessler, Stavrinakis, Hiott, Pope, Erickson, Hixon, Neese,
Wooten, Ligon, Chapman, Forrest, Hartz, Guffey, Ford, Willis, Cox, Sanders,
Vaughan, Oremus, Duncan, G. M. Smith, Bowers, Sessions, Bannister, Bailey,
Brewer, Weeks, Landing, Moss, Bradley, Lawson, Rankin, Guest, Brittain, Lowe,
T. Moore, Ballentine, Robbins, Martin, Caskey, Pedalino, Calhoon, Davis, W.
Newton, C. Mitchell, Holman, Hardee, Taylor, Yow, Jordan, Haddon, Wickensimer,
Bamberg, King, McDaniel, J. L. Johnson, Cromer, Gilreath and Anderson

S. Printed 5/7/26--S.

Read the first time February 12, 2026

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT
THE "STATE OF SOUTH CAROLINA SMALL BUSINESS TAX CUT OF 2026"; BY AMENDING
SECTION
12-37-220
, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT THE
FIRST TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL
PROPERTY OWNED BY A SMALL BUSINESS; BY AMENDING SECTION
12-37-900
, RELATING TO
PROPERTY TAX RETURNS, SO AS TO PROVIDE THAT A TAXPAYER IS NOT REQUIRED TO
RETURN BUSINESS PERSONAL PROPERTY FOR TAXATION IF THE TAXPAYER HAS LESS THAN
TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY; BY
ADDING SECTION
12-37-980
SO AS TO REQUIRE THAT ALL BUSINESS PERSONAL PROPERTY
REQUIRED TO BE RETURNED FOR TAXATION TO BE RETURNED TO THE DEPARTMENT OF
REVENUE; BY AMENDING SECTION
12-20-50
, RELATING TO THE LICENSE TAX ON
CORPORATIONS, SO AS TO PROVIDE THAT, UNDER CERTAIN CIRCUMSTANCES, THE FEE DOES
NOT APPLY TO ANY PORTION OF THE FIRST FIFTY MILLION DOLLARS OF CERTAIN CAPITAL
STOCK AND PAID-IN OR CAPITAL SURPLUS; AND BY AMENDING SECTION
33-44-409
,
RELATING TO STANDARDS OF CONDUCT OF A CORPORATE OFFICER, SO AS TO PROVIDE AN
EXCEPTION TO REFRAINING FROM COMPETING.

Amend Title To Conform

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

S
ECTION 1.
This act may be cited as the "State of South Carolina Small Business Tax
Cut of 2026."

S
ECTION
2.A.
S
ection
12-37-220
(B) of the S.C. Code is
amended by adding:

(
54) the first ten thousand dollars
of the net depreciated value of business personal property owned by a small
business. For purposes of this item, "small business" means a commercial
retail service, industry entity, or nonprofit corporation, including affiliates,
that: (a) the business' ownership is comprised of taxpayers who pay income
taxes in this State; (b) is independently owned and operated; and (c) employs
fewer than one hundred full-time employees or has gross annual sales of less
than ten million dollars.

B
. This
SECTION takes effect upon approval by the Governor and first applies to
property tax years beginning after 2026.

S
ECTION
3.A.
S
ection
12-37-900
of the S.C. Code is amended
to read:

S
ection
12-37-900
.
(
A)
Every person required by law to list property shall,
annually, between the first day of January and the first day of March, make out
and deliver to the assessor of the county in which the property is by law to be
returned for taxation a statement, verified by his oath, of all the real estate
which has been sold or transferred since the last listing of property for which
he was responsible and to whom, and of all real property possessed by him, or
under his control, on the thirty-first day of December next preceding, either
as owner, agent, parent, spouse, guardian, executor, administrator, trustee,
receiver, officer, partner, factor, or holder with the value thereof, on such
thirty-first day of December, at the place of return, estimating according to the
rules prescribed by law.

(
B)
A manufacturer not
under a fee agreement is not required to return personal property for ad
valorem tax purposes if the property remains in this State at a manufacturing
facility that has not been operational for one fiscal year and the personal
property has not been used in operations for one fiscal year. The personal
property is not required to be returned until the personal property becomes
operational in a manufacturing process or until the property has not been
returned for ad valorem tax purposes for four years, whichever is earlier. A
manufacturer must continue to list the personal property annually and designate
on the listing that the personal property is not subject to tax pursuant to
this section.

(
C)
(
1) Notwithstanding any other
provision of this section, a taxpayer that meets the application requirements
of item (2) is not required to pay business personal property taxes if the
taxpayer has less than ten thousand dollars of net depreciated value of business
personal property.

(
2) To claim the exemption allowed by
item (1), a taxpayer must annually certify, under penalty of perjury, to the
department in a manner prescribed by the department that the taxpayer has less
than ten thousand dollars of net depreciated value of business personal
property. The form prescribed by the department must contain a conspicuous
notation citing the State of South Carolina Small Business Tax Cut of 2026 as
the source of the exemption.

B
. This
SECTION takes effect upon approval by the Governor and first applies to
property tax years beginning after 2026.

S
ECTION
4.A.
A
rticle 5, Chapter 37, Title 12 of the S.C.
Code is amended by adding:

S
ection
12-37-980
. Notwithstanding any other provision of law, all business personal
property required to be returned for ad valorem taxation must be returned to
the Department of Revenue. The property is subject to the tax imposed by the
taxing jurisdiction in which the property is situated.

B
. This
SECTION takes effect upon approval by the Governor and first applies to
property tax years beginning after 2026.

S
ECTION
5.A.
S
ection
12-20-50
of the S.C. Code is amended
by adding:

(
D)
(
1) A corporation subject to the
provisions of this section whose corporate headquarters, as defined in Section
12-6-3410
, is in South Carolina may exclude the first fifty million dollars of
equity contributions from a qualifying entity from its paid-in or capital
surplus subject to the annual license fee. To qualify for this exclusion, the
corporation must obtain a certificate from the South Carolina Research
Authority certifying that the exclusions result from equity contributions from
a qualifying entity.

(
2)
For purposes of this subsection, a qualifying entity includes:

(
a)
a venture capital fund as defined pursuant to 17 C.F.R. Section 275.203(1) 1;

(
b)
an angel or accredited investor, as defined pursuant to 17 C.F.R. Section
230.501; and

(
c)
a private investment firm that does not solicit capital from investors,
excluding another qualifying entity or the general public, and meets one of the
exemptions outlined in the Investment Company Act of 1940.

(
3)
A corporation claiming this exclusion must:

(
a)
submit an annual report to the department that contains the name of each
qualifying entity, the date of the equity contribution, the manner in which the
qualifying entity meets the requirements of item (2), the amount of the paid-in
or capital surplus for each year that is attributable to each qualifying
entity, and any other information that the department may require; and

(
b)
keep detailed books and records, including segregating out equity contributions
attributable to each qualifying entity and retaining information concerning the
information required to be provided in subitem (a).

B
.This SECTION
takes effect upon approval by the Governor and first applies to the tax year
beginning after July 1, 2026.

S
ECTION
6.A.
A
rticle 3, Chapter 37, Title 12 of the S.C.
Code is amended by adding:

S
ection
12-37-253
.
(
A) Any eligible person
may claim an exemption from county, municipal, school, and special assessment
real property taxes equal to an amount of the fair market value on the person's
dwelling place as set forth in subsection (C). A person may not claim this
exemption and the exemption set forth in Section
12-37-250
and a person must be
eligible for this exemption to claim the exemption set forth in Section
12-37-250
. For purposes of eligibility, application, and reimbursement, this
exemption must be administered in the same manner as the exemption allowed
pursuant to Section
12-37-250
, including the application of other laws affecting
the exemption allowed pursuant to Section
12-37-250
, mutatis mutandis. For a
person eligible for this exemption pursuant to subsection (B)(1), the previous
application for the exemption allowed pursuant to Section
12-37-250
must be
considered the application for this exemption.

(
B) A
person becomes eligible for this additional exemption:

(
1)
if the person was eligible to claim the exemption pursuant to Section
12-37-250

in Property Tax Year 2025 and otherwise qualifies;

(
2)
(
a) when the person meets the
requirements of Section
12-37-250
(A)(1)(i), (ii), or (iii); and

(
b)
when the person has been a resident of this State for at least five entire
property tax years and filed an individual income tax return for at least five
tax years in this State at any time before the application; or

(
3)
(
a) when the person meets the
requirements of Section
12-37-250
(A)(1)(i), (ii), or (iii); and

(
b)
when the person has been a resident of this State for at least ten entire property
tax years and filed an individual income tax return for at least ten tax years
in this State at any time before the application.

(
C) A
person who qualifies for this exemption pursuant to item (B)(1) or (B)(3)
qualifies for a one hundred fifty thousand dollar exemption. A person who
qualifies for this exemption pursuant to item (B)(2) qualifies for a
seventy-five thousand dollar exemption. The exemption amounts set forth in this
subsection are not cumulative and may not be combined.

(
D)
By ordinance, a governing body of a county may increase the exemption allowed
by this section; however, any taxes not collected as a result of the increase
in the exemption are not eligible for reimbursement.

B
.
S
ection
11-11-150
(A) of the S.C. Code is amended by
adding:

(
6) Section
12-37-270
for the
homestead exemption allowed pursuant to Section
12-37-253
;

C
. Section
12-37-245
of the S.C. Code is repealed.

D
.
C
hapter 45, Title 12 of the S.C. Code is amended by
adding:

S
ection
12-45-72
. In addition to the requirements provided in Section
12-60-2510
, a
property tax notice or assessment must include an itemized list of any
homestead exemption received by the taxpayer and a notation of State
Legislature Aiding in Saving Homes (SLASH), the amount in which the
individual's property tax bill was reduced, and in the amount, if any, in which
the State reimbursed the local taxing authorities on behalf of the individual.

E
. If any
section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word
of this SECTION is for any reason held to be unconstitutional or invalid, the
General Assembly hereby declares that it would not have passed this SECTION,
without the sections, subsections, paragraphs, subparagraphs, sentences,
clauses, phrases, or words declared to be unconstitutional, invalid, or
otherwise ineffective.

F
. This
SECTION takes effect upon approval by the Governor and first applies to property
tax years beginning after 2025.

S
ECTION
7.A.
S
ection
12-37-220
(B)(11) of the S.C. Code is
amended to read:

(
11)
(
a) all property of nonprofit housing
corporations devoted exclusively to providing below-cost housing for the aged
or for handicapped persons or for both aged and handicapped persons as
authorized by Section 202 of the Housing Act of 1959 and regulated in part by
24 C.F.R. Part 885;

(
b)
all property of nonprofit housing corporations devoted exclusively to providing
below-cost supportive housing for elderly persons or households as authorized
by Section 202 of the Housing Act of 1959 as amended under Section 801 of the
National Affordable Housing Act of 1990 and regulated in part by 24 C.F.R. Part
889;

(
c)
all property of nonprofit housing corporations devoted exclusively to providing
below-cost supportive housing for persons with disabilities as authorized by
Section 811 of the National Affordable Housing Act of 1990 and regulated in
part by 24 C.F.R. Part 890;

(
d)
all property of nonprofit housing corporations devoted exclusively to providing
rental or cooperative housing and related facilities for elderly or handicapped
persons or families of low or moderate income as authorized by Section 515 of
Title V of the Housing Act of 1949;

(
e)
(
i)
all property of nonprofit housing corporations or
instrumentalities of these corporations when the property is devoted to
providing housing to low or very low income residents.
A
Except as otherwise provided in this subitem, a
nonprofit
housing corporation or its instrumentality must satisfy the safe harbor
provisions of Revenue Procedure 96-32 issued by the Internal Revenue Service
for this exemption to apply. For purposes of this subitem, property of
nonprofit housing corporations or instrumentalities of these corporations
includes all leasehold interests in property owned by an entity that provides
housing accommodations to persons of low or very low income, and in which a
wholly owned affiliate or wholly owned instrumentality of a nonprofit housing
corporation is the general partner, managing member, or the equivalent.
However,
except as otherwise provided in this subitem,
the
exemption allowed by this subitem only applies if the property of nonprofit
housing corporations or instrumentalities of these corporations satisfies the
safe harbor provisions of Revenue Procedure 96-32 issued by the Internal
Revenue Service;

(
ii) the exemption allowed by this
subitem must be proportionate to the nonprofit housing corporation's percentage
of direct or indirect ownership in the qualifying property, except that if:

(
A) the nonprofit housing
corporation's percentage of direct or indirect ownership interest in the
qualifying property exceeds fifty percent; or

(
B) notwithstanding the unit mix
prescribed by the safe harbor provisions of Revenue Procedure 96-32, all of the
units in the property are devoted to providing housing to residents who qualify
as low income under Revenue Procedure 96-32, then the exemption allowed by this
subitem equals one hundred percent;

(
iii) to claim the exemption allowed
by this subitem, the nonprofit housing corporation or its instrumentality must
apply to the department and certify the nonprofit housing corporation's
percentage of direct or indirect ownership in the property and provide a rent
roll or other suitable documentation evidencing compliance with the
requirements of Revenue Procedure 96-32, as applicable. Such initial
certification must be made by the first penalty date for the property tax year
in which the exemption is first claimed for the property. In each subsequent
year in which the exemption allowed by this subitem is claimed, the nonprofit
housing corporation or its instrumentality must submit an annual certification
to the department by October first. The annual certification must provide the
current percentage of the nonprofit housing corporation's direct or indirect
ownership in the property and current rent roll or other suitable documentation
evidencing compliance with the requirements of Revenue Procedure 96-32, as
applicable. The department shall prescribe the form of the application and
certification required by this subitem as well as the penalties for
noncompliance. The eligibility and transition rules provided in the safe harbor
provisions of Revenue Procedure 96-32 must be taken into account by the
department in determining compliance. Compliance with this subitem does not
require displacement of any tenant before the termination of the tenant's lease
agreement;

(
iv) no later than sixty calendar
days following the notification to any nonprofit housing corporation or its
instrumentality of an approved exemption under this subitem, the department
shall also notify the chief administrative officer of any county and, as
applicable, any municipality with jurisdiction over property determined to be
exempt under this subitem;

B
. This
SECTION takes effect upon approval by the Governor and applies prospectively to
property of nonprofit housing corporations or their instrumentalities eligible
and first making application for the exemption for property tax years beginning
after 2026. This SECTION shall not apply to any project that, prior to approval
by the Governor of this act, had submitted an application or been approved for
an exemption under Section
12-37-220
(B)(11)(e). Provided, however, all exempt
projects under Section
12-37-220
(B)(11)(e) are required to submit the required
annual certifications to the department.

S
ECTION 8. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on May 7, 2026 at 1:47 PM