The bill H. 3498 proposes an amendment to Section 12-6-510 of the South Carolina Code of Laws, which pertains to individual income taxes. The key change introduced by this bill is the establishment of a zero percent tax rate on the first one million dollars of taxable income for individuals, estates, and trusts, with the top marginal tax rate applying to any income exceeding that threshold. This adjustment aims to provide tax relief for lower and middle-income earners while maintaining a progressive tax structure for higher income levels.

The bill specifies that these changes will take effect for taxable years beginning after 2024, and it includes provisions for indexing the income brackets in accordance with Section 12-6-520. This indexing is intended to ensure that the tax brackets remain relevant and fair over time, adjusting for inflation and other economic factors. The bill will become law upon receiving approval from the Governor.