A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-3830 SO AS TO ALLOW AN INCOME TAX CREDIT FOR A TIMBER CASUALTY LOSS IN A FEDERALLY DECLARED DISASTER AREA RESULTING FROM HURRICANE HELENE; AND BY AMENDING SECTION 12-6-1140, RELATING TO DEDUCTIONS FROM INDIVIDUAL TAXABLE INCOME SO AS TO ALLOW A DEDUCTION FOR PAYMENTS RECEIVED FROM CERTAIN DISASTER RELIEF AGENCIES RESULTING FROM HURRICANE HELENE.
Summary
H4594 would create a temporary South Carolina income tax credit for timber casualty losses caused by Hurricane Helene in federally declared disaster areas. The credit would equal 100% of the taxpayer’s timber casualty loss, but it is capped at $550 per affected acre of eligible timber property. Any unused credit could be carried forward for up to five tax years, and the total statewide amount of credits available under the program would be limited to $25 million on a first-come, first-served basis.
The bill also amends the state’s individual income tax deduction provisions to exclude certain Hurricane Helene-related disaster relief payments from taxable income, to the extent those payments are included in federal taxable income. This applies to payments from federal disaster relief or assistance grant programs administered by the state, its political subdivisions, or the U.S. Department of Agriculture, so long as the payments were specifically intended to address agricultural losses in a federally declared disaster area. The act would take effect upon gubernatorial approval and would be repealed on January 1, 2029, though any credits already carried forward could continue to be used for the full carryforward period.
Impact
The bill would add a new temporary tax credit provision in Title 12 for timber losses and expand the list of income items excluded from South Carolina taxable income for certain disaster relief payments. It would require the Department of Revenue, working with the State Forestry Commission, to administer applications, verify qualifying timber losses through owner and registered forester certification, and enforce the statewide cap. The Forestry Commission would also be authorized to set damage criteria and conduct audits at DOR’s request. The measure primarily affects timberland owners, forestry operations, and agricultural taxpayers receiving Helene-related disaster assistance.
Sentiment
The available context suggests the bill is generally supportive and relief-oriented, aimed at helping taxpayers recover from Hurricane Helene’s damage. No committee transcripts or recorded votes were provided, so there is no documented opposition or amendment debate in the supplied materials. The bill’s structure, including a sunset date and capped credit pool, indicates an effort to target aid while limiting fiscal exposure.
Contention
The main potential points of contention are the fiscal cost of the credit, the $25 million statewide cap, and the first-come, first-served allocation method, which could favor faster applicants over equally affected taxpayers. Another possible issue is administrative complexity, since eligibility depends on damage determinations, forester certification, and Forestry Commission criteria for assessing whether timber remains viable. The bill also narrows relief to Hurricane Helene-related losses and specified disaster payments, which may leave out other disaster-affected taxpayers or forms of assistance.
Revenue and taxation; exclude from the calculation of taxable net income certain disaster relief or assistance grant program payments for agricultural losses suffered due to Hurricane Helene