The "South Carolina Job Creation and Competitiveness Act of 2025" seeks to overhaul the state's income tax framework 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, implementing a flat income tax rate of three and one-half percent on the taxable income of individuals, estates, and trusts. It establishes a state standard deduction of $12,000 for single filers and $24,000 for married couples filing jointly, along with provisions for an earned income tax credit and guidelines for taxes paid to other states. Additionally, it amends Section 12-36-2120 to eliminate certain sales tax exemptions, aiming to streamline tax administration and clarify regulations.

The bill also introduces various tax exemptions, particularly for healthcare, education, and technology sectors, including supplies for patient treatment outside hospitals and prescription drugs for Medicare Part A patients. It specifies conditions for these exemptions, such as significant investments and job creation requirements for manufacturing facilities. Furthermore, it outlines the certification process for datacenters and includes provisions for tax assessments if investment or job creation criteria are not met. The act will take effect upon the Governor's approval and will apply to tax years beginning after 2026, ultimately aiming to foster economic growth and support charitable activities while providing clear guidelines for tax exemptions.

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