SCMC Highlights Major Wins for SC Business Community with 2026 Legislative Report

South Carolina Manufacturers and Commerce (SCMC), the state's largest business advocacy organization, has released its 2026 Legislative Report following a successful first legislative session. The report highlights policy victories that strengthen South Carolina's business climate, support employers, and create new opportunities for employees and families across the state.

"When we announced our historic undertaking to combine the state's two best known business advocacy organizations into one unified voice, we knew we had our work cut out for us," said SCMC President and CEO Sara Hazzard. "If we wanted to be the kind of organization we aspired to be – one that fights for families and businesses, and one that truly represents the very best in our businesses small and large – we had to work hard for our members, fight for their priorities, and deliver results. I am proud to say, as we wrap up our first legislative session, I believe we are off to a fantastic start."

Among the major legislative victories highlighted in the report are:

Income Tax Reform (H.4216)

Modernizes South Carolina's tax system by shifting the tax base from Federal Taxable Income to Adjusted Gross Income and reducing the state's top individual income tax rate from 6 percent to 5.21 percent, with triggers for additional reductions if state revenue growth targets are met. The reform will deliver an estimated $309 million in tax relief during its first year.

Small Business Tax Cut of 2026 (S.688)

Exempts the first $10,000 of a small business's personal property from taxation, while also reforming the unemployment insurance tax system, to reduce costs, ease compliance burdens, and return tax dollars to employers so they can continue investing in their employees and growing their businesses.

Manufacturing Property Tax Relief (S.439)

Raises the manufacturing property tax exemption cap established in the Comprehensive Tax Cut Act of 2022 from $170 million to $300 million, protecting small and mid-sized manufacturers from future property tax increases. 

Small Business Regulatory Freedom Act (H.3021)

Reduces the regulatory burden on job creators by strengthening oversight of state regulations, increasing agency accountability, requiring legislative approval of high-cost regulations, and ending judicial deference to state agencies in legal disputes.

SCDOT Modernization (S.831)

Modernizes the South Carolina Department of Transportation by expanding project delivery tools, accelerating environmental permitting, strengthening accountability, and accelerating the delivery of critical infrastructure projects.

The full 2026 Legislative Report is available here.

"The legislative victories we achieved were shared efforts," said Hazzard. "We proudly worked hand in hand with our board, our members, legislative leadership, the governor, and key stakeholders to keep economic momentum building. But we are just getting started. As we look ahead and see our best days remain in front of us, we won't take our foot off the gas. Working together, there is nothing we can't accomplish."

The report will be updated following the final enactment of the FY 2026-2027 state budget to include budget-related investments and appropriations that are business community priorities.