COLUMBIA, S.C. (AP) – South Carolina Gov. Nikki Haley has signed a tax cut for military retirees into law.
Haley signed the bill Tuesday. The Legislature gave final approval to the compromise minutes before the session ended Thursday.
Supporters hope the tax deductions encourage working-age veterans to find a job in South Carolina after they retire.
The tax benefits for veterans who served 20 years in uniform will phase in over five years. By 2020, military retirees younger than 65 can deduct $17,500 of their income earned in the state. Older retirees can exempt up to $30,000. Once fully phased in, the cuts are expected to reduce state revenues by $18 million.
The House’s initial version allowed for bigger benefits sooner.
Sponsoring GOP Rep. Murrell Smith of Sumter says he’ll try again next year.