Gov. Henry McMaster has signed Tax Conformity bill H.5341 on Wednesday evening. It will be formally delivered to the Secretary of State on Thursday morning.
“It took bipartisan leadership in both the House and the Senate to get the extremely important tax conformity bill to my desk and I’m proud to have just signed it into law. This is good news for every South Carolina taxpayer and business. #SCWinning,” McMaster posted on social media Wednesday night.
The South Carolina House of Representatives had given its final approval to the bill on Wednesday afternoon.
The state legislature’s annual passage of a Conformity bill underwent lengthy deliberation all through 2018 due to the passage of the Tax Cuts and Jobs act in December.
At issue were the numerous state deductions and exemptions that had to be balanced with the new Federal tax code in a way that was revenue-neutral.
House Speaker Jay Lucas (District 65-Darlington) issued this statement Wednesday afternoon once H.5341 was sent to McMaster:
“Although tax conformity is an issue the General Assembly addresses every year, the recent Federal tax overhaul necessitated additional action to keep more hard-earned money in the pockets of South Carolina taxpayers. Today’s legislation streamlines filing and ensures families will continue to benefit from our state’s tax-friendly environment.
“I am very thankful for the Senate’s willingness to work together to honor our commitments to millions of taxpayers and am proud of the proposal we are sending to the Governor’s desk for his signature.”
The bill met the many goals of being revenue neutral; helping families, particularly those with children; maintaining a stable environment for business and industry; and being as simplistic as possible.
H.5341 updates South Carolina’s Conformity to the Internal Revenue Code through Feb. 9, 2018, and any provisions that expired on Dec. 31, 2017, that are extended but not amended by congressional enactment during 2018. Conforming to changes to the IRC through Feb. 9, 2018, will incorporate the changes in both the Tax Cuts and Jobs Act of 2017 (H.R.1) and the Bipartisan Budget Act of 2018 (H.R.1892).
Click here to read H.5341 in its entirety.