South Carolina State House Recap: Week of April 28, 2025

With only three legislative days left before Sine Die adjournment at 5 p.m. on Thursday, May 8, the State House was anything but quiet this week. As expected in the final days of session, lawmakers are racing to advance major pieces of legislation that could reshape the state’s tax code, education landscape, public safety laws, and long-term energy strategy.

From a fast-tracked income tax cut proposal and a long-awaited school voucher program to hands-free driving legislation and key negotiations on tort reform, the pace has been relentless and the stakes high. Below is a breakdown of the top issues that moved this week, and what we’re watching as the finish line approaches:

Income Tax Reform: Last-Minute Push from the House

In one of the most closely watched efforts of the week, the House advanced a revamped income tax bill that would reduce the state’s top income tax rate from 6.2% to 5.39%. Introduced on April 25 and passed out of committee by a 17–6 vote on April 30, the bill is expected to pass the House before the session ends, although the Senate is unlikely to consider it before January 2026.

Here’s the proposed impact:

• 42% of filers would see a tax cut.

• 24% primarily those earning under $75,000 would see an increase.

• 34% would see no change.

Future rate reductions would be triggered in years when state revenue grows by at least 5%, with the broader Republican goal of gradually eliminating the income tax altogether.

School Vouchers: Heading to the Governor

After years of legal setbacks and policy negotiation, lawmakers passed a compromise version of the Education Scholarship Trust Fund bill, which now heads to Governor Henry McMaster’s desk following a 73–32 House vote on May 1.

Key features of the final compromise include:

• $7,500 scholarships per student, usable for tuition at private or religious schools.

• In year one, eligibility opens to up to 10,000 students from households earning under 300% of the federal poverty level.

• In year two, the cap rises to 15,000 students, with income eligibility expanding to 500% (~$161,000 for a family of four).

• Priority will go to public school students from low-income families, via an early application window.

• Funding from either lottery revenue or the general fund will be left to future legislatures to decide.

Hands-Free Driving Bill Nearing the Finish Line

Lawmakers are expected to pass a hands-free driving bill before Sine Die, propelled in large part by the potential loss of $54 million in federal highway funds. The legislation would prohibit drivers from holding or manually using handheld devices while behind the wheel, bringing South Carolina in line with the majority of U.S. states that have already adopted hands-free laws. While final language is still being negotiated, enforcement provisions and penalties are anticipated to closely resemble those in neighboring states.

Treasurer Curtis Loftis Remains in Office (for Now)

Although the Senate voted in April to remove State Treasurer Curtis Loftis for his role in a $1.8 billion accounting error, the House has deferred action on the matter. The House has signaled it will wait until January 2026 to take up the issue, leaving Loftis in office for now.

Energy Bill Clears the House

The House amended and passed H. 3309, the South Carolina Energy Security Act, on an 88–13 vote this week. The House version removes language related to data centers, which had become a sticking point during negotiations. The bill now heads back to the Senate for concurrence.

Tort Reform & Liquor Liability: A Standoff Continues

Efforts to reconcile the Senate and House approaches to tort reform and liquor liability remain unresolved:

• The Senate passed S. 244, a comprehensive tort reform bill affecting sectors from healthcare to trucking.

• The House passed H. 3497, a narrower bill focused solely on liquor liability.

With neither chamber willing to take up the other’s bill, House members have begun strategically attaching their version to multiple unrelated Senate bills — a procedural maneuver aimed at keeping negotiations alive. With both sides dug in, the standoff appears likely to continue into the final hours of session.

Final Countdown

With just three legislative days left, the pace will only intensify as lawmakers work to close out 2025. Expect key decisions on tax reform, budget reconciliation, and late-stage maneuvers to salvage stuck priorities.

Need tailored insights or support navigating the impact of these legislative changes? Let’s connect — Alpha Strategies is here to help.