Last Week of Regular Legislative Sessions a Whirlwind – But Productive
Small Business Tax Relief heads to the Governor’s desk for his signature after lawmakers incorporated the “Small Business Tax Cut Act of 2026” into the Unemployment Insurance (UI) Tax Relief bill (S.688). The bill exempts the first $10,000 of a small business’s personal property (BPP) from county taxation, ease compliance burdens, and effectively eliminate the tax altogether for small businesses with less than $10,000 in BPP.
Other Notable Actions:
Small Business Regulatory Freedom Act (H.3021) – The House and Senate are heading to conference on a bill that seeks to reduce the regulatory burden on job creators in our state. The bill would strengthen the state’s existing regulatory review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance, and also require proposed regulations with an estimated financial impact of over $10 million to receive joint approval by the House and Senate. It would also end judicial deference to state agencies in legal disputes. Concerns exist over automatic sunset provisions included in the House passed version. The conference committee is expected to meet in the coming weeks.
Sales Tax Exemption for Broadband Equipment (H.5122) – Last week, the Senate passed a bill that would exempt equipment and related purchases by broadband and communications service providers, when used in producing or distributing internet access and communications services, from the state sales tax. An amendment was adopted to clarify that data centers do not qualify for the exemption. The bill now heads to the Governor’s desk for his signature.
Abandoned Buildings Tax Credit (S.853) – Last week, the House concurred in Senate amendments to a bill that clarifies eligibility rules for these tax credits in response to a S.C. Department of Revenue (DOR) ruling released earlier this year. The bill now heads to the Governor’s desk for his signature.
Workers’ Compensation Fee Schedule Flexibility (H.3874) – Last week, the House concurred in Senate amendments to a bill that would give the Workers’ Compensation Commission broader authority to establish and adjust medical fee schedules for medical services provided by practitioners. The bill now heads to the Governor’s desk for his signature.
Aircraft Property Tax Reduction (S.436) – Last week, the House concurred in Senate amendments to a bill that would allow commercial aircraft carriers to enter into fee-in-lieu agreements (FILOTs) approved by the Coordinating Council for Economic Development. The bill now heads to the Governor’s desk for his signature.
U.S. Produced Iron and Steel (H. 4709) – Last week, the Senate passed a bill that requires public works contracts to include provisions mandating that iron and steel products permanently incorporated into projects be produced in the United States, with limited exceptions. The bill now heads to a conference committee where the House and Senate will try to work out differences.
