The "State of South Carolina Small Business Tax Cut of 2026" bill aims to provide various tax exemptions and modifications to support small businesses in South Carolina. Key provisions include amending Section 12-37-220 to exempt the first ten thousand dollars of net depreciated value of business personal property owned by small businesses, defined as those with fewer than one hundred employees or gross annual sales under ten million dollars. Additionally, Section 12-37-900 is amended to state that taxpayers with less than ten thousand dollars of net depreciated value of business personal property are not required to return such property for taxation. A new Section 12-37-980 mandates that all business personal property must be returned to the Department of Revenue for taxation.

Further amendments include changes to Section 12-20-50, allowing corporations to exclude the first fifty million dollars of equity contributions from a qualifying entity from their paid-in or capital surplus, under certain conditions related to employment and research activities in South Carolina. The bill also modifies Section 33-44-409 to clarify the standards of conduct for corporate officers regarding competition. These changes are set to take effect upon approval by the Governor and will first apply to property tax years beginning after 2026.

Statutes affected:
01/22/2026: 12-37-220, 12-37-900, 12-37-980, 12-20-50, 33-44-409
Latest Version: 12-37-220, 12-37-900, 12-37-980, 12-20-50, 33-44-409