The bill H. 3416 aims to amend the South Carolina Code of Laws by introducing a new section, 12-6-1172, which exempts the retirement income of first responders and law enforcement officers from state income tax. The bill defines "retirement income" as all taxable income received from state retirement plans or private pension plans, including benefits for surviving spouses. It specifies that individuals who served as law enforcement officers or first responders can deduct their retirement income from their taxable income in South Carolina.

Additionally, the bill amends Section 12-6-1170 to make conforming changes regarding deductions. It states that if a taxpayer claims a deduction under the new Section 12-6-1172, their overall deduction must be reduced by the amount claimed under this section, with an exception for surviving spouses. The bill is set to take effect upon the Governor's approval and will apply to tax years beginning after 2025.

Statutes affected:
12/05/2024: 12-6-1172, 12-6-1170
Latest Version: 12-6-1172, 12-6-1170
12/06/2024: 12-6-1172, 12-6-1170