2026 Legislative Recap

Bills Passed and Signed Into Law

Roadside Markets - H. 5097 
(Rep. Patrick Haddon, others) 
Reduces local government regulations and permitting requirements for on-premises roadside markets, including stormwater regulations, stormwater permitting, and local building codes requirements. The language specifically states that a roadside market may not be classified or required by a county or municipality to be zoned as a commercial operation. We heard from many of our farmers that the local requirements are prohibitive, unduly burdensome, and driving up costs. Many of our members were engaged throughout this process and we were happy to get it across the finish line. 
Passed and signed into law; Act 157 of 2026; effective 5/15/2026 

UTV Registration - S.222 
(Sen. Ott)
Allows UTV’s to travers paved roads. UTVs will need to have seat belts, headlights, turn signals, brake lights, and windshields (or approved eye protection). Drivers must be 17 years old or older, with a valid driver’s license, insurance and must register your UTV with the state. UTVs are not allowed on interstates and are limited to 55mph top speed; however, a farmer with a valid SCATE card & a valid driver's license may operate a UTV with a top speed less than 55 mph without restriction, if it is being operated within 10 miles of the operator's agricultural operation.​ The bill allows local governments to designate where UTVs can and cannot travel, plus designate specific speed limits, hours of operation, and noise restrictions. ​ 
Passed and signed into law; Act 164 of 2026; effective 11/18/2026​  

Defining Carbon Neutral Biomass For Our Foresters - H.3967 
(Rep. Haddon, others)
This bill provides that the combustion of biomass fuels, including wood residuals and byproducts, is considered carbon neutral when used for energy generation in South Carolina. It aligns state policy with scientific consensus and similar federal positions regarding carbon neutrality of sustainable biomass. The bill promotes the use of forest and agricultural byproducts for renewable energy and supports landowners, timber producers, and rural economies through market expansion. Many property owners, foresters, farmers, and biomass industry professionals were supportive of the legislation, and we were pleased to advocate for passage. 
Passed and signed into law; Act 117 of 2026; effective 4/6/2026

Veterinary Telehealth Legislation - H. 3223 
(Rep. Bailey)  
The bill establishes a framework in law to allow telehealth services to be performed by licensed South Carolina veterinarians with an existing patient relationship within the state. 
Passed and signed into law: Act 102 of 2026; effective 3/9/2026

Cigarettes for Heating - H.4303 
(Rep. Gil Gatch, others) 
Creates a new excise tax category for "cigarettes for heating." Heated tobacco products (HTPs) are one of the newer smoke-free products entering markets in the United States (these products have existed for some time and are used in Europe and Asia on a much larger scale). While not without risk, HTP's or "heat-not-burn tobacco" offer an alternative and are different than combustible cigarettes because they heat tobacco at a consistent temperature below combustion, delivering nicotine content while reducing the levels of harmful carcinogens and toxins contained in smoke. The bill creates an excise tax for HTPs, in the same manner the tax exists for traditional cigarettes, potentially creating greater market opportunities for SC-grown tobacco. 
Passed and signed into law; Act 234 of 2026; effective 5/19/2026

Cryptocurrency Bill - S.163 
(Sens. Verdin, Leber) 
The bill establishes a regulatory framework for cryptocurrency in South Carolina. It prohibits a governing authority from accepting or requiring payment using any type of central bank currency (digital) for transactions or participate in a test of central bank digital currency. The legislation also clarifies the business of “engaging in digital asset mining, operating nodes or developing blockchain software.” 
Passed and signed into law; Act 208 of 2026; effective 5/19/2026

Shrimp Labeling Bill - H.4248 
(Rep. Herbkersman, others)  
The bill requires any food service establishment serving shrimp to place a disclaimer on the menu as well as the main entrance stating that the establishment may serve items containing foreign imported shrimp. It also implements penalties for violations. 
PASSED 6/26/2026.

Deer Tags Legislation - H.5217 
(Reps. Hixon, Haddon, Forrest)  
The bill Increases the number of antlerless deer (doe) tags included with the purchase of a SC hunting license & big game permit from 2 to 3 & leaves the antlered deer (buck) tags at 3, increasing the total number of tags in the base set to 6. 
Passed and signed into law; Act 207 of 2026; effective 1/2/2027

Land Protection - H.5069 
(Rep. Travis Moore, others) 
The "SC Protected Lands & Conservation Coordination Act" recognizes that the continued growth and rapid land development in South Carolina places increasing pressure on our working agricultural lands and the preservation of our natural resources. Specifically, H. 5069 attempts to protect these assets through a combination of public and private efforts & collaboration, voluntary landowner conservation easements, and the setting of a long-term goal of protecting 7 million acres of land & water statewide by 2050, increasing the total acreage of conserved land in the state by an additional 3,600,000 acres. 
Passed and signed into law; Act 190 of 2026; effective 5/18/2026

Restricted Faculty Licenses for Veterinarians - H.4342 (amended) 
(Rep. Smith) 
The bill  would allow the State Board of Veterinary Medical Examiners to issue a restricted faculty license to practice veterinary medicine to an applicant who is a faculty member at a SC school of veterinary medicine (in anticipation of opening of the Harvey S. Peeler, Jr. College of Veterinary Medicine) if the applicant meets one of the following criteria: Is a licensed vet in another state; or Is a graduate of an accredited school of veterinary medicine or holds a certificate issued by the Education Commission of Foreign Veterinary Graduates A restricted faculty license would allow the holder to practice veterinary medicine while engaged in the performance of his or her official duties as a faculty member only and would be confined to clinical, hospital, or field services units, of the school where employed. The license will be cancelled by the board when the holder leaves the faculty of the vet school. 
Passed and signed into law; Act 105 of 2026; effective 3/9/2026

Income Tax Reform - H. 4216 
(Rep. Bannister and others) 
The bill does the following: Reduces the state's top income tax rate from 6% to 5.21%. Creates a two-tiered system: the first $30,000 of taxable income will be taxed at 1.99%; above $30,000 will pay 5.21%, minus $966. Shifts South Carolina’s income tax base from federal taxable income to adjusted gross income (AGI) vs. the current federal standard deduction. If the state continues to meet certain revenue thresholds, the top rate will continue to reduce by $200m annually until it eventually reaches 0%. The fiscal impact of the reductions included in the bill are estimated at $309m in year one. 
Passed and signed into law; Act 110 of 2026; effective tax years beginning after 2025.

Unemployment Insurance Tax Changes - S. 688 (Unemployment Insurance Tax Code) 
(Sen. Shane Massey) 
This bill increases the period for calculating an employer’s unemployment insurance tax rate from twelve calendar quarters (3 years) to twenty calendar quarters (5 years) phased in over a period of 3 years (fully phased in by 2028). A longer look back period offers a business more quarters without an action to impact or lower their tax rate. The bill also reduces the trust fund solvency target and changes the penalty structure, allowing the business to pay the taxes + 2% until the lien is satisfied instead of the business automatically being moved to the highest tax class. 
Passed and signed into law; Act 243 of 2026; effective 7/1/2026

Small Business Tax Cut Bill 
(Rep. Newton, others) 
Business Personal Property Tax (BPP) is a tax on the furniture, fixtures, and equipment that are owned and used in a business. H.5006 introduced Rep. Brandon Newton, exempts the first $10,000 of business equipment from the state’s business personal property (BPP) tax while small businesses with less than $10,000 total would be exempt from the tax. The bill defines a small business as a commercial retail service, industry entity, or nonprofit corporation business independently owned and operated with less than one hundred employees or gross annual sales less than $10 million. The bill also requires that all filings go directly to the Department of Revenue (DOR), simplifying the reporting and compliance requirements. S.688 was amended to include the BPP tax cut originally filed in H.5006. 
Passed and signed into law; Act 243 of 2026; effective 7/1/2026 

Small Business Regulatory Freedom Act - H.3021 
(Rep. Jeff Bradley) 
The bill adds independent oversight to ensure regulations remain within statutory authority and are not outdated; holds agencies accountable for noncompliance; requires proposed regulations with an estimated fiscal impact exceeding $1M to receive joint approval from the legislature. It also ends judicial deference to state agencies in legal disputes. 
Passed 6/26/2026

SCDOT Modernization - S.831 
(Sen. Larry Grooms, others) 
Major DOT reform legislation passed this year which will make comprehensive changes to the agency as well as required legislative approval for certain projects. A few highlights: Abolishes DOT commission. Implements stronger auditing & transparency rules. No legislative approval required for “choice lanes.” Authorization of public-private partnerships for certain roads projects Requirement for County Transportation Councils to spend 33 percent of their funding on the maintenance of state roads. 
Passed and signed into law; Act 177 of 2026

Bills Contemplated & Not Passed
Agricultural Property Annexation - S.264 
(Sen. Peeler) 
 This bill exempts agricultural property from annexation with express consent from the property owner. The South Carolina Municipal Association fought hard to prevent this bill from passing. Unfortunately, the bill did not advance in the House after Subcommittee passage late in the 2026 session due to the Ways and Means priority being placed on the budget and tax cut bills. 
Passed the Senate and a House Ways & Means Subcommittee (unanimously).
Agricultural Property Annexation legislation will be a top priority for the 2027-28 legislative session, and we will continue to advocate for this bill as it presents ag property owners with another tool in the toolbox for farmers to protect their private property rights. 

Conservation Easement Tax Credit - H.3409 
(Rep. Haddon) 
Updates South Carolina’s conservation tax credit for individuals who place their property under a conservation easement; this legislation will strengthen a critical incentive for landowners looking to conserve land. 
Passed House Ways and Means Subcommittee unanimously in April 2026. 

Young Farmer Loan Program - H.3183 
(Rep. Haddon) 
Proposes the creation of the “Young Farmer Loan Program” under the South Carolina Conservation Bank (SCCB). The program aims to assist young farmers in acquiring farmland by providing loans administered by the SC Conservation Bank. The details include farmers ages 18-40, loan up to $500,000, applications submitted to SC Department of Agriculture; reviewed/approved by SC Conservation Bank; Bank develops forms and pre-qualification process, promotes the program and sets rules. 

Equine Advancement Act - S.344 
(Sen. Michael Johnson) 
Establishes a South Carolina Equine Commission, establishes a statewide equine industry development fund, and provides for rules and definitions related to advanced deposit account wagering (ADW). 
Passed Senate Finance Committee in March 2026; did not advance on the Senate floor. 

Balloons As Litter - H.3047 
(Rep. Dennis Moss) 
Clarifies that intentionally releasing balloons inflated with a gas that is lighter than air (Helium) is illegal and considered littering under South Carolina law. Littering overall is already illegal, with fines ranging from $25 to $1,000. 
Passed House 92-17 in April 2026. Did not advance in the Senate. 

Clean Air Act - H.4624 
(Rep. Lee Gilreath, others) 
Prohibits the intentional emission of any air contaminant whose purpose is to affect temperature, weather, or sunlight intensity. Amendment to specify this is not applicable to established agricultural practices. 
Did not advance beyond House Subcommittee. 

Municipal Zoning - H.4293 
(Rep. David Martin, others) 
With news regarding a series of chemical spills at Silfab Solar in Ft. Mill, SC, much of the York County legislative delegation called for legislation that would allow county or city governments to pull permits to halt industrial projects if the local government determines that the property is not operating or being constructed in accordance with its zoning classification and regulations. Sponsors shared that this bill is aimed at large-scale manufacturing or industrial operations, the current language could lead to potential unintended consequences, interruption or disruption in agricultural construction or operations. 
SCFB GR worked with the bill sponsor and members of the committee to ensure that bill would not disrupt our Right to Farm in SC. 

Farm Structures – Farm Event Venues & Local Building Codes - H.3262 
(Rep. Tommy Pope, others) 
Exempts farm structures that are converted or upgraded for use as an event venue (for up to three hundred people) from certain local building codes enforcement. One House Agriculture Subcommittee 2/24; did not advance. Foreign Land Ownership H.3408 (Rep. Patrick Haddon, others) prevents foreign adversaries from purchasing or owning farmland in South Carolina. 
Passed House 116-0 in April 2026; did not advance in the Senate. 

Timber Loss Tax Credit Bill - S.682 
(Sen. Tom Young, others) 
Allows eligible taxpayers to apply for a $550/acre tax credit based on timber casualty loss in a federally declared disaster area after Hurricane Helene. As currently written, the legislation caps the total credit for all taxpayers at $25 million over the next five years and will be distributed on a first-come, first-served basis. 
Passed the SC Senate 38-5 in March 2026; was not taken up by the House. 

Lab Grown Cultured Meat - Bill H. 5096 
(Rep. Haddon, others) 
Would ban the manufacture, sale, and distribution of "artificial or cell-cultivated food products" in South Carolina. It would also impose penalties for entities that manufacture, sell, or distribute these products in the state in violation of the ban. In addition, an amendment added by the House would extend this ban to plant-based meat substitutes. 
Passed House 110-0 in February 2026; was not taken up by the Senate. 

Sludge Application Legislation Introduced - H.5310 
(Rep. Bustos) 
Rep. Joe Bustos (Charleston) introduced this ANTI-AGRICULTURE bill that would prohibit land application of sludge as well as the sale and distribution of compost or other agricultural products containing sludge. Biosolids or "sludge" can be a nutrient-rich fertilizer, encouraging plant growth and development and improving soil health. In advance of any land application, the sludges are treated by digestion or chemical stabilization to kill off harmful pathogens. 
As agriculture continues to see record-high input prices, including the cost of fertilizers (and potential further increases due to the instability in the Middle East), now is not the time to take away a tool in the agricultural toolbox. SCFB Government Relations shared these issues with the bill sponsor and other members of the General Assembly and defeated a related House budget proviso. 

Ag Income Tax Deduction - H. 5180 
(Rep. Haddon, others) 
The bill would allow certain tax deductions for a farmer who sells or leases farmland to a beginning farmer or rancher. Eligibility would require that the farm be placed into a working farm conservation easement and be sold to a beginning young farmer and rancher, preserving the farm for agricultural use in perpetuity with a new generation of farmers. 
The bill has over fifty co-sponsors and was referred to the House Ways and Means Committee. 

Bulk Ag Transportation Legislation - S.810/S.806 
Codifies the current farm-specific free bulk ag hauling permit. This permit allows producers to haul loads up to 90,000 pounds on US and state routes. The proposed legislation would not change the ability to haul within existing specifications with a farm tag but would eliminate the requirement for a permit. This would aid growers by eliminating bureaucratic red tape to ensure all producers are treated equally while safely hauling their commodities from field to bin. 
The bill was referred to the Senate Transportation Committee. An agency solution was offered, with the backing of Senate Transportation Committee Chairman Larry Grooms, in lieu of state legislation. 

Hemp Drinks - H.3924 
(Rep. Wooten) 
Bill failed on the House floor after being a major topic all session and a conference committee report. Bill would have regulated the manufacture, distribution, and sale of THC drinks in South Carolina. Without passage of legislation, these beverages will continue to be unregulated in the state until federal limitations potentially take effect, or subsequent state legislation is passed into law. 

Concurrency - S.277 
(Sen. Tom Davis) 
Defines “concurrency programs” in South Carolina. Concurrency refers to concurrent infrastructure requirements. These requirements ensure infrastructure keeps pace with development by requiring developers to fund infrastructure improvements that their developments may require; gives local governments the ability to say “no” to a development. 
Passed Senate LCI Committee March 2026; did not advance on the Senate Floor. 

Data Center Development Act - S.867 
(Sen. Tom Davis) 
Directs the Public Service Commission (PSC) to ensure data centers pay their own energy infrastructure costs. Creates a new Data Center Development Office under the Department of Environmental Services to issue operating permits based on size, water usage, and environmental impact. 
Passed Senate AgNR Committee April 2026; did not advance on Senate floor. Similar or related bills included S.724 (Blackmon); S.902 (Rankin); H.4583 (Cromer); H.5286 (Long).      

SCFB GR staff will continue collaborating with members of the General Assembly, their staff, and our partners to promote our policy priorities in the FY26-27 Budget to get them across the finish line.