The "Small Business Livable Wage Tax Credit Act" aims to support small businesses in South Carolina by providing an income tax credit for employers who pay their nonexempt employees at or above a designated livable wage. The bill defines a "qualified employer" as a business with fewer than fifty employees that is in good standing and voluntarily participates in the program. The livable wage is determined annually based on the MIT Living Wage Calculator, and the credit is calculated as the incremental wage cost, which is the difference between the federal minimum wage and the livable wage multiplied by the hours worked by eligible employees. The credit structure is designed to decline over four years, starting at 100% in the first year and decreasing to 25% by the fourth year.

To qualify for the tax credit, employers must maintain or increase their workforce, ensure all nonexempt employees are paid at or above the livable wage, submit annual payroll verification, and remain current on state tax obligations. The participation in this program is voluntary, and the Department of Revenue is tasked with implementing regulations and publishing an annual report on the program's impact. The act will take effect upon the Governor's approval and will apply to income tax years after 2025, with provisions set to expire on December 31, 2035.

Statutes affected:
12/17/2025: 12-6-3830
Latest Version: 12-6-3830