Legislation

2026 Legislative Update

What 2026 Means for South Carolina’s Tire Dealers & Automotive Businesses

As lawmakers look ahead to 2026, several policy priorities taking shape in Columbia could have a direct impact on tire dealers, service centers, and the broader automotive industry across South Carolina. Here’s what business owners should be watching:

A Stronger Business Climate

State leaders are working to lock in South Carolina’s historic income-tax cut and continue moving toward a lower — potentially zero — income tax. For tire dealers and small automotive businesses, that means more take-home pay for employees and additional capital to reinvest in shops, equipment, and workforce growth.

Faster Road Projects & Reduced Congestion

Common-sense planning reforms aim to accelerate road construction, reduce congestion, shorten commute times, and eliminate bureaucratic delays. Improved road infrastructure not only benefits customers, but also reduces wear-and-tear on vehicles — driving demand for tire replacement, alignment, and repair services.

Public Safety & Crime Reduction

Efforts to strengthen accountability for juvenile crime and repeat offenses are intended to improve safety across communities. Safer roads, shopping corridors, and commercial districts are good for employees, customers, and local businesses.

Immigration Law Enforcement & Workforce Stability

State leaders are reinforcing enforcement of existing immigration laws and coordinating with federal authorities. The goal is a lawful, stable workforce and fair competition for businesses that follow the rules.

Judicial & Insurance Reform

Judicial reform and insurance modernization are key priorities heading into 2026. These efforts are aimed at improving fairness, predictability, and affordability in insurance markets — an important issue for tire dealers facing rising property, liability, and workers’ compensation costs.

Regulatory Accountability & Government Reform

Lawmakers are advancing reforms to reduce unnecessary bureaucracy, restore accountability in public institutions, and ensure that regulations serve businesses and consumers — not paperwork for paperwork’s sake.

Workforce & Welfare Reform

Reforms are underway to strengthen workforce participation and help more South Carolinians re-enter the job market. For tire dealers struggling to hire technicians and front-line staff, expanding the available workforce is a critical step forward.

Protecting Local Communities

From school safety to election integrity and responsible governance, lawmakers are emphasizing stability and accountability — key ingredients for a healthy business environment where local shops can operate with confidence.

Why It Matters to Tire Dealers

Taken together, these priorities point toward:

A more competitive tax environment
Better roads and transportation infrastructure
Safer communities for customers and employees
More predictable insurance and legal systems
A stronger, more available workforce

As these policies develop during the 2026 legislative session, tire dealers and automotive service businesses should stay engaged — because decisions made in Columbia directly affect day-to-day operations on Main Street.

2025 Legislative Update

1101 Public Affairs
2025 End-of-Session Legislative Report
South Carolina General Assembly – Year One, 126th Session

Session Overview

Year one of the 126th session of the South Carolina General Assembly officially wrapped May 28th. Over the past five months, lawmakers focused heavily on school choice, tort reform, liquor liability, and energy. While the legislature will not reconvene until January 2026, significant interim activity is expected, including study committees, ad hoc working groups, and campaign events, especially with all House seats up for election next year. When the General Assembly begins again in January issues such as income tax reductions, casino and horse racing, tort reform, regulatory reform, and several thousand other pieces of legislation will still be in play.

Final Budget Summary

The General Assembly finalized the 2025–2026 budget, a $14.7 billion spending plan. Late May revenue estimates from the Board of Economic Advisors revealed a $1 billion surplus, allowing for $150 million in recurring and $600 million in one-time expenditures. The remaining $470 million was left unspent, anticipating potential federal funding cuts or shifting priorities next session.

Key budget highlights include:

Income Tax Cut: Top marginal rate reduced from 6.25% to 6%.

Transportation: $200 million allocated for bridge repair and modernization; $35 million for Hurricane Helene recovery.

Airports: $90 million for statewide enhancements.

Commerce: $80 million for the LocateSC program to support site development and business recruitment.

Education: First-year public school teacher salaries raised to $48,500; tuition freeze maintained at state universities.

State Employees: Health insurance premium freeze and $66 million in pay raises.

USC Brain Health Center: $150 million for a new facility.

Legislative Pay Raise: For the first time since 1990, lawmakers received a raise—from $10,400 to a total of $40,400 annually, including an increased in-district stipend from $1,000 to $2,500/month.

Key Legislation Passed

Tort Reform / Liquor Liability

H3430: Originally a bill on State Auditor appointments, it became the vehicle for tort reform this year. While much of the original reform bill (S244) remains pending in House Judiciary, key liquor liability insurance reforms were enacted to reduce rising premiums for bars and restaurants.
→ A Judiciary ad hoc committee will work over the interim to further study and advance broader tort reform measures in 2026.
Bill link

Hands-Free Driving Law

H3276: Prohibits drivers from physically holding mobile devices to read, text, email, or stream media while driving.
→ Law takes effect September 1, 2025. A 180-day grace period will be followed by enforcement: $100 fine (1st offense), $200 (repeat offenses), and 2 license points.
Bill link

Energy Security Act

H3309: Streamlines permitting for new energy projects and authorizes a Santee Cooper–Dominion Energy partnership to construct a new combined-cycle plant in Colleton County.
Bill link

Key Legislation for 2026

“Path to Zero” Income Tax Plan

H4216: Proposes lowering income taxes to 0% over time.

If passed: earners ≥$30,000 pay 5.39%, earners below $30,000 pay 1.99%, with phased reductions.

Impact: ~25% would pay more, 40% less, 33% unchanged.
Bill link

Small Business Regulatory Relief

H3021: The Small Business Regulatory Freedom Act passed the House unanimously. Requires agencies to justify proposed regulations to the Small Business Regulatory Review Committee and relevant legislative committees.
Bill link

Interim Studies and Watch List

DOT Oversight Committee: House formed a committee to examine SCDOT’s project prioritization and contract awards.

Insurance Rate Review Committee: Will study rising property and casualty insurance rates and identify consumer relief strategies.

Senate Health Initiative: Led by Senate Medical Affairs Chair Danny Verdin, this comprehensive review of healthcare aims to improve population health statewide.

Additional Resources

For a full list of bills signed into law in 2025, visit:
South Carolina Legislature Online – Legislation

2024 Legislative Update

The SCTDRA ontinues to focus its resources and attention on legislative and regulatory matters that have a direct impact on your business. The following in a recap from our legislative monitor on what has taken place this year.

More than 5,000 pieces of legislation were introduced this year with just a small fraction making it through the entire process.

On the tire front, two pieces of legislation dealing with recycling fees were considered with only the Senate version S763 by outgoing Senator Dwight Loftis receiving hearings. The bills dealt with raising the cost per tire or per ton to drop the tires at a county recycling facility. Counties claim they do not receive enough dollars to properly run the facilities. DHEC and the tire council also had several meetings on the issue, at which members of the SCTDRA were present. Ultimately, the legislation did not make it out of committee. The Association of Counties will continue to work on the issue over the session and will most likely look at new legislation next year when a new General Assembly will take over. SCTDRA staff and leadership continue to be present and represent the voice of our retailer members.

In June, primaries were held and on November 5th we should know all the new members of the

House and Senate. With a minimum of 15 new House members and six new Senators it is expected that

committee assignments will shift around, and new ideas will be considered.

SCTDRA ended up with a good session as we were always a part of any tire recycling discussions and the traditional issues like raising fees and shifting liability did not come to fruition.

Find out who YOUR local senator and local house members are by using the following links:

https://www.scstatehouse.gov/member.php?chamber=H - house

https://www.scstatehouse.gov/member.php?chamber=S - senate

Find out who YOUR local senator and local house members are by using the following links:

https://www.scstatehouse.gov/member.php?chamber=H - house

https://www.scstatehouse.gov/member.php?chamber=S - senate