South Carolina’s annual tax Conformity legislation found in H.3985 (Reps. Lucas, G. M. Smith and Stavrinakis) received its third reading on the floor of the full Senate on Wednesday, March 20.
The bill’s next steps are the procedural formality of being ratified and an arrival for signature at the Governor’s office. The Conformity bill has moved with little resistance since it was introduced in the House on Feb. 14.
A fiscal impact study prepared by the SC Revenue and Fiscal Affairs Office can be read here.
The bill 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.
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.