The "South Carolina Job Creation and Competitiveness Act of 2025" seeks to overhaul the state's income tax framework by repealing existing chapters related to the South Carolina Income Tax Act and Corporate License Fees, specifically Chapters 6 and 20 of Title 12. It introduces a new Chapter 7, establishing a flat income tax rate of three and one-half percent for individuals, estates, and trusts, while also providing a state standard deduction of $12,000 for single filers and $24,000 for married couples filing jointly. The bill includes provisions for an earned income tax credit, credits for taxes paid to other states, and repeals certain sales tax exemptions under Section 12-36-2120. Additionally, it clarifies tax regulations, including the treatment of timber rights and the compliance requirements for taxpayers.

The legislation also proposes various tax exemptions aimed at stimulating economic growth, particularly for technology-intensive and manufacturing facilities, contingent upon significant investments and job creation. Specific criteria are established for qualifying for these exemptions, such as a minimum investment of $100 million for construction materials and the creation of at least 3,800 full-time jobs. The bill further details exemptions for durable medical equipment, energy-efficient products, and children's clothing sold to charitable organizations, among others. It introduces a phased approach for certain exemptions, such as injectable medications, based on revenue growth forecasts. Overall, the act aims to simplify tax regulations, enhance competitiveness, and provide targeted tax relief to support economic development in South Carolina.

Statutes affected:
12/11/2024: 12-36-2120
12/11/2024-A: 12-36-2120
12/11/2024-B: 12-36-2120
01/17/2025: 12-36-2120
Latest Version: 12-36-2120