Implement SC H4216 Income Tax Reform (2026+)
Overview
South Carolina H.4216 was signed into law and takes effect for tax years beginning after 2025. This issue tracks moving the reform from contributed reform status to baseline implementation.
Previous implementation: PR #7494 implemented this as a contributed reform. This issue covers making it the default (baseline) for 2026+.
Law Summary
SC H4216 is a comprehensive income tax reform that includes:
1. New Two-Bracket Tax Structure
| Bracket |
Threshold |
Rate |
| 1 |
$0 |
1.99% |
| 2 |
$30,000 |
5.21% |
2. SC Income Adjusted Deduction (SCIAD) with Phaseout
Replaces federal standard/itemized deductions with a new state-specific deduction:
| Filing Status |
Base Amount |
Phase-out Start |
Phase-out End |
| Single |
$15,000 |
$40,000 |
$95,000 |
| Married Filing Separately |
$15,000 |
$40,000 |
$95,000 |
| Head of Household |
$22,500 |
$60,000 |
$142,500 |
| Married Filing Jointly |
$30,000 |
$80,000 |
$190,000 |
| Surviving Spouse |
$30,000 |
$80,000 |
$190,000 |
Formula: SCIAD = base_amount × (1 - (AGI - phase_out_start) / phase_out_width)
3. EITC Capped at $200
The SC EITC (125% of federal) is capped at a maximum of $200.
Status Checklist
References
This issue serves as the central coordination point for moving SC H4216 to baseline.
Implement SC H4216 Income Tax Reform (2026+)
Overview
South Carolina H.4216 was signed into law and takes effect for tax years beginning after 2025. This issue tracks moving the reform from contributed reform status to baseline implementation.
Previous implementation: PR #7494 implemented this as a contributed reform. This issue covers making it the default (baseline) for 2026+.
Law Summary
SC H4216 is a comprehensive income tax reform that includes:
1. New Two-Bracket Tax Structure
2. SC Income Adjusted Deduction (SCIAD) with Phaseout
Replaces federal standard/itemized deductions with a new state-specific deduction:
Formula:
SCIAD = base_amount × (1 - (AGI - phase_out_start) / phase_out_width)3. EITC Capped at $200
The SC EITC (125% of federal) is capped at a maximum of $200.
Status Checklist
References
This issue serves as the central coordination point for moving SC H4216 to baseline.