The second half of the 2025-26 legislative session starts this week. Lawmakers are wasting no time picking up where they left off—and we’re right alongside them. Each week, the Policy Council will bring you updates on legislation dealing with the budget, tax relief, government transparency, and other issues that matter most to the success of our great state. As of Monday, January 12, here are the bills we are keeping an eye on.
Taxes
- Income tax H. 4216 – This bill would establish two new tax brackets (1.99% up to $30,000 and 5.39% for anything above), eliminate all standard and itemized deductions, add a graduated deduction of up to $30,000 for those earning under $110,000, and conditionally lower the top marginal tax rate by 1% until it reaches 1.99%. A Senate Finance subcommittee hears this bill on Wednesday, Jan. 14 at 10am. Click here to read our analysis.
- Homestead exemption (pending introduction) – This bill will likely be introduced during the first full Senate meeting. Details are not yet available. A Senate Finance subcommittee hears this bill 30 minutes after the Senate adjourns on Tuesday, Jan. 13.
- Film industry handouts H.3832 – Allocates rebates amounting to 30% of an annual production budget to film producers that spend over $250,000 and heightens that budget limit to $2 million annually. This bill also heightens the cap for tax incentives from $10 million to $30 million while allowing unused portions of that cap to carry over for up to three years. Lawmakers should refrain from picking winners and losers and let the free market work on its own. This bill is on the House floor.
Regulation
No bills on regulation are scheduled for committee hearings this week, but a House Regulations subcommittee is holding hearings to review proposed agency regulations relating to charter school applications, testing scrutiny, and graduation requirements.
Misc.
- Dismissal of pending gun possession charges S.136 – Last year the Senate and House approved this measure; however, Governor McMaster vetoed the bill returning it to the General Assembly. The Senate voted to override the veto, and the House now has the same choice. The bill allows for individuals to seek expungement of a pre-2024 unlawful handgun possession and requires dismissal and expungement of pending pre-2024 charges once related offenses are resolved. The bill is currently on the House floor.
- A Department of Transportation (DOT) Modernization Ad Hoc Committee will meet Jan. 13 one hour after the House adjourns. This comes in the wake of increased calls to reform the structure of the DOT.
Budget Hearings
The legislative budget process starts with state agencies presenting their spending requests to various House budget subcommittees. Lawmakers use the information gathered at these hearings alongside the Governor’s Executive Budget to write the first draft of the budget. The following subcommittees meet this week:
Tuesday, 1/13
- Public Education and Special Schools subcommittee — immediately after House adjournment; hearing from First Steps, Wil Lou Gray Opportunity School, and the State Museum.
- Constitutional subcommittee — two hours after House adjournment; hearing from local government entities, the Revenue and Fiscal Affairs Office, and the Councils of Governments.
Wednesday, 1/14
- Constitutional subcommittee — 10am; hearing from the Inspector General and Secretary of State.
- Healthcare subcommittee — 10am; hearing from the Department of Public Health, Department of Health and Human Services, and Department of Social Services.
- Public Education and Special Schools subcommittee — 10am; hearing from the Department of Education, Education Oversight Committee, Public Charter School District, and Erskine Charter School.
- Criminal Justice subcommittee — 10am; hearing from the Conservation Bank.
- Economic Development subcommittee — 10:30am; hearing from the Forestry Commission, Parks and Recreation, Office of Resilience, Arts Commission, and the Department of Archives and History.
Thursday, 1/15
- Constitutional subcommittee — immediately after House adjournment; hearing from the Adjutant General’s Office and the Department of Veterans’ Affairs.
