The "South Carolina Job Creation and Competitiveness Act of 2025" seeks to overhaul the state's income tax system by repealing Chapters 6 and 20 of Title 12, which cover the South Carolina Income Tax Act and corporate license fees. The bill introduces a new Chapter 7, establishing a flat income tax rate of 3.5% on the taxable income of individuals, estates, and trusts, while also implementing a state standard deduction of $12,000 for single filers and $24,000 for married couples filing jointly. It includes provisions for an earned income tax credit, guidelines for taxes paid to other states, and repeals certain sales tax exemptions under Section 12-36-2120. The bill aims to create a comprehensive framework for tax administration, including penalties for noncompliance and requirements for filing tax returns.

Additionally, the bill expands and clarifies various tax exemptions, particularly for construction materials, machinery, and equipment used in specific industries, with a focus on large investments and job creation. It introduces a certification requirement for datacenters, allowing those certified before January 1, 2032, to benefit from tax provisions for an additional ten years. The bill also specifies exemptions for items such as energy-efficient products, durable medical equipment, and feminine hygiene products, while detailing conditions for these exemptions. Overall, the act aims to streamline the tax exemption framework and promote economic development through targeted incentives, with the provisions set to take effect upon the Governor's approval for tax years beginning after 2026.

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