SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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H. 3489
Fiscal Impact Summary
This bill updates South Carolina’s conformity to the Internal Revenue Code (IRC) through
December 31, 2024, including any expired provisions of the federal code that are extended, but
not otherwise amended, by congressional enactment during 2025.
The Department of Revenue (DOR) will administer the changes to income tax provisions with
existing staff and resources. Therefore, the bill is not expected to impact expenditures for the
agency.
Based on information provided by DOR and our analysis, we do not anticipate that conforming
to the changes will have a significant impact on South Carolina. Therefore, the bill is not
expected to impact state revenue.
Explanation of Fiscal Impact
Introduced on January 14, 2025
State Expenditure
This bill updates South Carolina’s conformity to the IRC through December 31, 2024. DOR will
administer the changes to income tax provisions with existing staff and resources. Therefore, the
bill is not expected to impact expenditures for the agency.
State Revenue
This bill updates South Carolina’s conformity to the IRC through December 31, 2024, including
any expired provisions of the federal code that are extended, but not otherwise amended, by
congressional enactment during 2025. Research by DOR identified one federal tax law enacted
by Congress that impacts South Carolina’s conformity through December 31, 2024:
Federal Disaster Tax Relief Act of 2023 (Pub. Law 118-148; enacted Dec. 12, 2024)
To estimate the impact of conforming to the IRC changes, Revenue and Fiscal Affairs (RFA)
utilized U.S. estimates by the Joint Committee on Taxation and adjusted those estimates to
project the impact of adopting these federal provisions on South Carolina. Based on information
provided by DOR and our analysis, we do not anticipate that conforming to the changes will
have a significant impact on South Carolina. The Federal Disaster Tax Relief Act of 2023
Bill Number: H. 3489 Introduced on Januar
y 14, 2025
Subject: IRC Conformit y
Requestor: House Wa ys and Means
RFA Analyst(s): Jolliff
Impact Date: February 5, 2025
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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H. 3489
includes three provisions with revenue effects. South Carolina did not adopt Section 304(b) of
the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Therefore, the extension of rules for
treatment of certain disaster-related personal casualty losses provision does not impact the state.
Further, DOR anticipates that the provisions allowing taxpayers to exclude compensation for
certain wildfire losses and East Palensine disaster relief payments will have minimal impact in
South Carolina. Therefore, the bill is not expected to impact state revenue.
Provision Impact
Extension of rules for treatment of certain disaster-related
personal casualty losses
Not applicable to SC
Exclusion from gross income for compensation for losses or
damages resulting from certain wildfires
Minimal
East Palestine disaster relief payments Minimal
For information, DOR identified one provision for 2024 that would impact 2025 if extended. The
provision is an exemption for telehealth services from certain high deductible health plan rules.
The provision was first enacted in the CARES Act of 2020 and was estimated to have an impact
on South Carolina of approximately $160,000. This provision was extended in the Telehealth
Expansion Act of 2023. As this provision impacts health insurance policies, the provision will
impact South Carolina regardless of conformity.
Local Expenditure
N/A
Local Revenue
N/A