The general assembly met for what will likely be the final time this session to take up conference reports and the budget. Please see below for the Chamber’s 2024 Legislative Wins.

Budget:

• $199.4 million to accelerate the reduction of the individual income tax rate from 6.4% to 6.2%.
  
• $7.16 million to Trident Technical College for maintenance, renovation and replacement.
  
• $20 million to the Charleston International Airport to finance ongoing capital improvements.
  
• $15 million to the Statewide Water and Sewer Fund.
  
• $2.5 million to the Department of Social Services for the Working Families Child Care Scholarships and Support.
  
• $200 million to SCDOT to accelerate bridge infrastructure improvements and modernization.
  
• $2 million to Charleston County for Highway 61 Corridor Improvements.
  
• $200 million to the County Transportation Committees (CTCs) to fund local transportation projects and improvements.
  
• $55 million to SC Ports Authority for land acquisition adjacent to the North Charleston Terminal for future economic development efforts.
  
• $30 million to the Office of Resilience for their Disaster Relief and Resilience Reserve Fund.
  
• $10 million to the Military Enhancement Fund which provides grants to ensure the long-term success of military installations in South Carolina.
  
• $1 million to Veterans Trust Fund which provides grants to organizations providing Veteran’s services in South Carolina.
  
• $182,000 to Military Child Education Coalition. Out of 73 school districts in South Carolina, only 11 have received the Purple Star designation. This funding will help increase the number of Purple Star Districts across the state.
  
• $5 million to the Economic Development Closing Fund.
  
• $20 million to SC Nexus to continue developing, testing and deploying exportable energy technologies.
  
• $78.65 million to fund the South Carolina Workforce Industry Needs Scholarship Program (SCWINS).
  
• $5 million to ReadySC for Economic Development Training.
  
• Funding to raise teacher pay from $42,500 to $47,000.
  
• Funding to freeze in-state tuition at public colleges and universities and relieve the tuition burden for South Carolina students.

Legislation
Affordability and Accessibility of Childcare

• S. 862 Childcare Caretaker Requirements – This legislation expands the educational background caregivers may have and updates the health and safety training required of the childcare workforce. These changes will help ensure a quality childcare workforce is in place to meet the rising demands of parents in South Carolina.
  
• H. 4832 Paid Family Leave Insurance – Would allow insurance companies and employers to create their own voluntary insurance coverage options that fit their business needs, from type of policy to eligibility requirements, to duration of leave and percentage of salary paid on leave to who is responsible for the cost. The policy would function similarly to any other supplemental policy an employer offers, like dental, vision or short-term disability. This adds another tool in the toolkit as our small businesses compete to recruit and retain talent.

Improving our Business Climate

• H. 3992 Delinquent Unemployment Tax – Would alleviate the burden placed on business owners who have fallen behind on unemployment insurance payments. As it currently stands, employers who have missed a payment are moved to the highest rate class, paying a substantially higher fee, until they can become current. Under this legislation, if an employer is acting in good faith and has entered into a department approved payment plan, and remains current on the plan, they will be reverted to their original rate class. This legislation is key in helping keep our small businesses stay afloat, at a time when inflation, rising insurance costs and wage pressures are already impacting their bottom line.
  
• H. 4087 Knowledge Based Incentives – South Carolina’s economic development incentives work well to recruit manufacturing companies. However, the incentives are not adequate for recruiting regional/corporate headquarters or white-collar companies in sectors like med tech, cyber, life sciences and engineering amongst others. White collar incentives are crucial to maintain a diverse and resilient economy as well as retaining our South Carolina college graduates. South Carolina competes for economic development projects with other states across the Southeast. This includes states like Tennessee, Florida and Texas that already have no income tax.
  
• S. 298 Forced Combination Standards– The bill creates clarity for businesses when completing their taxes. SC currently advertises itself as a separate entity apportionment state, but the SC Department of Revenue (SCDOR) can force a combination. This bill articulates criteria and standards to justify separate filing.
  
• H. 3811 Industry Partnership Tax Credit – The bill increases the Industry Partnership Tax Credit Fund operated by the SC Research Authority from $9 million to $12 million. The goal of the fund is to fuel SC’s innovation economy by accelerating academia, entrepreneurship and industry.

Workforce Sustainability

• S. 557 Apprentice Tax Credit – S. 557 will expand the current apprenticeship tax credit from $1000 to $4000-$6000 depending on the type of apprenticeship. There are currently 935 active apprenticeships in SC. To increase this number, legislation is needed to incentivize more businesses to participate.

Military

• H. 4928 Veterans Trust Fund– The bill allows Board of Trustee members to fundraise. Funds must be used to support Veteran programs.
  
• H. 4673 Navy DL – The bill allows an 18-year-old in South Carolina to take their driver’s license test after maintaining a beginner’s permit for at least 30 days. Without this bill, an e18-year-old cannot take their driver’s license test until they have maintained a beginner’s permit for at least 180 days. Societal trends are making this a larger issue as a growing number of new service members are entering active duty without driver’s licenses.
  
• S. 610 Professional Counseling Compact – Supports military spouses by expanding membership into the professional counseling compact.

Other

• S. 1021 Abandoned Building Tax Credit – Extends the tax credit to 2035 and increases the maximum amount from five hundred thousand dollars to seven hundred thousand dollars for each abandoned building site.

As we look toward the 2025 Legislative Session, next month, the Chamber’s Business Advocacy Committee will begin the process of selecting priorities. If there are legislative issues, initiatives or topics you would like the Business Advocacy Committee to consider, please let me know.

Please don’t hesitate to contact me should you have any questions. Have a great weekend!