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 new tax structure where the first one million dollars of taxable income for individuals, estates, and trusts will be taxed at a rate of zero percent. Any taxable income exceeding one million dollars will then be subject to the top marginal tax rate. This amendment aims to provide a more favorable tax environment for lower and middle-income earners while maintaining a progressive tax system for higher income brackets.

The bill specifies that this new tax structure will apply to taxable years beginning after 2024 and includes provisions for indexing the income brackets in accordance with Section 12-6-520. The act will take effect upon approval by the Governor, signaling a significant shift in the state's approach to income taxation.