House Ways and Means Committee gives favorable report to bill conforming state tax law to recent federal changes

The House Ways and Means Committee on March 3 gave a favorable report to House Bill 33-68, a measure sponsored by Representative Steven Long that would conform South Carolina’s tax code to several 2025 federal changes. The committee approved a subcommittee amendment by voice vote and then reported the bill favorably on a 22–1 roll call, with Representative Rutherford casting the lone no vote.

Representative Steven Long, the bill’s sponsor, said the amended bill “conforms South Carolina to the 2025 tax code” and described it as incorporating what he called the "1 big beautiful bill," including provisions on overtime pay, tips and car loan interest. Long told the committee the measure is intended to clean up discrepancies between federal and state filing rules for tax year 2025, which many residents are currently filing.

Representative Cobb Hunter pressed the sponsor on fiscal estimates and timing, noting a difference between a $288,000,000 estimate Long cited and a $534,100,000 figure in materials she had seen. "I really, for what it's worth, ... think that we are moving hastily in this regard," Cobb Hunter said, questioning whether the change would create recurring revenue needs that could force cuts to other programs. Long replied that the $288 million estimate reflects layering this measure on top of the income-tax plan under consideration in H 42 16 and highlighted differences between tax filing calendar years and the state's July 1 fiscal year.

Representative Rutherford asked about a provision that would allow car loan interest to be treated similarly to mortgage interest for deductions; Long said the change would extend such treatment to car loans and staff estimated a fiscal impact of $13,000,000 to the state. During follow-up discussion a staff member informed the committee that the deduction "caps out at 200,000 in income," a limit that would reduce benefits for higher earners.

The committee first adopted the subcommittee amendment by voice vote. For the final favorable report on House Bill 33-68 as amended, the clerk conducted a roll call that the chair announced resulted in 22 ayes and one no. The committee chair closed the meeting after reporting the vote.

With the favorable report, House Bill 33-68 moves next in the House process as prescribed by chamber rules; the transcript does not specify the next calendar step or committee referral beyond the Ways and Means action.