South Carolina General Assembly
118th Session, 2009-2010

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H. 4230

STATUS INFORMATION

General Bill
Sponsors: Reps. Scott, Gunn and Clemmons
Document Path: l:\council\bills\bbm\9466htc09.docx
Companion/Similar bill(s): 3208

Introduced in the House on January 12, 2010
Currently residing in the House Committee on Ways and Means

Summary: Income tax deductions

HISTORY OF LEGISLATIVE ACTIONS 

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
  12/15/2009  House   Prefiled
  12/15/2009  House   Referred to Committee on Ways and Means
   1/12/2010  House   Introduced and read first time HJ-37
   1/12/2010  House   Referred to Committee on Ways and Means HJ-37
   3/11/2010  House   Member(s) request name added as sponsor: Clemmons

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/15/2009

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW THE DEDUCTION OF RETIREMENT BENEFITS ATTRIBUTABLE TO SERVICE ON ACTIVE DUTY IN THE ARMED FORCES OF THE UNITED STATES AND TO PHASE IN THIS DEDUCTION OVER FOUR YEARS; AND TO AMEND SECTION 12-6-1170, AS AMENDED, RELATING TO THE RETIREMENT INCOME DEDUCTION, SO AS TO CONFORM THIS DEDUCTION TO THE MILITARY RETIREMENT DEDUCTION ALLOWED BY THIS ACT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 12-6-1140 of the 1976 Code, as last amended by Act 353 of 2008, is further amended by adding a new item to read:

"(9)    for taxable years beginning after 2012, military retirement benefits attributable to service on active duty in the armed forces of the United States;"

SECTION    2.    Section 12-6-1170(A)(2) of the 1976 Code is amended to read:

"(2)    The term 'retirement income', as used in this subsection, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governments, but, for taxable years beginning after 2012, not including military retirement."

SECTION    3.    In addition to amounts allowed as a deduction pursuant to Section 12-6-1170 of the 1976 Code, there is allowed as a deduction from South Carolina taxable income of individuals for purposes of the South Carolina Income Tax Act a portion of military retirement benefits attributable to service on active duty in the armed forces of the United States according to the following schedule:

Taxable Year                                                    Deduction Percentage

2010                                                                25 percent

2011                                                                50 percent

2012                                                                75 percent.

SECTION    4.    This act takes effect upon approval by the Governor and applies for taxable years beginning after 2009.

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