Gov. Henry McMaster signed South Carolina’s annual tax Conformity legislation into law on Thursday, March 28. H.3985 (Reps. Lucas, G. M. Smith and Stavrinakis) had been ratified by the Senate on Wednesday.
The SCACPA Advocacy Team would like to send a special thanks to legislative leadership that worked with South Carolina CPAs to get the Conformity bill through much faster than in previous years.
In addition, a tax lien bill was signed into law Thursday that allows the South Carolina Department of Revenue to implement a system of filing and indexing liens that can be accessible to the public online. It will take effect July 1, and you can read its most recent wording here.
Last year’s Conformity bill did not get signed until Oct. 4 due to lengthy deliberation all through the year after the introduction of the Tax Cuts and Jobs Act. This year’s Conformity bill moved along with little resistance since it was introduced in the House on Feb. 14.
H.3985 updates the reference to the Internal Revenue Code to state income tax laws and provides that if the IRS Code sections adopted by the state are extended, then these sections are also extended for South Carolina income tax purposes.
A fiscal impact study prepared by the SC Revenue and Fiscal Affairs Office can be read here.
You can read more about the South Carolina Department of Revenue’s Information Letter 19-7, a 13-page advisory opinion that summarizes South Carolina conformity with Internal Revenue Code sections affecting individual taxpayers through Feb. 9, 2018. Information Letter 19-7 contains nine pages of charts that describe individual tax provisions in the Tax Cuts and Jobs Act of 2017 and how South Carolina adopts to each IRC section.