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, and it specifies who qualifies as a first responder and a law enforcement officer. Under this new provision, eligible individuals can deduct their retirement income from their taxable income in South Carolina.

Additionally, the bill amends Section 12-6-1170 to make conforming changes related to the new deduction. Specifically, it states that if a taxpayer claims a deduction under the new Section 12-6-1172, the amount of that deduction will reduce the overall deduction allowed under Section 12-6-1170, with an exception for surviving spouses. The bill is set to take effect upon approval by the Governor and will first 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