COLUMBIA, S.C. (WIS) – A bill that would align South Carolina’s tax code with the federal has moved out of the Senate Finance Committee.
The state legislature has been racing to conform the state’s tax code with changes made by the “One Big Beautiful Bill” to the federal tax code before the end of the 2026 filing season.
The House passed the bill last week, and the full Senate could take up debate on it in the next few days.
The move comes after Senate leaders initially said they would not take up tax conformity this session, following a bill sent to Gov. Henry McMaster that would remove South Carolina from the federal tax code starting in 2027.
Supporters of the tax bill say that conforming will result in South Carolinians receiving more money through tax refunds.
“Conform this year just for 2025 and move on. I think we owe it to this state and the taxpayers of this state to quit this squabbling,” Chairman of the Senate Finance Committee, Sen. Harvey Peeler (R-Cherokee) said.
Opponents say the bill is unnecessary because the state will not conform to the federal tax code going forward.
“I just think this conformity this year, while it’s normally a pretty easy process, is not an easy process this year and has a fiscal impact on us and is not the right thing to do, but I also understand where the politics of it lie,” Ethics Committee Chairman Sen. Sean Bennett (R-Dorchester) said.
If the bill passes the Senate and is signed by the governor, some South Carolinians could have to amend their tax filings.
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Bill that would align SC tax code with federal moves out of Senate committee
