At 5:00 p.m. on Thursday, May 8, the South Carolina General Assembly adjourned sine die, officially bringing the first half of the 126th legislative session to a close. Under this year’s sine die resolution, lawmakers may only return to Columbia to finalize the state budget for FY2025–26 or to address any vetoes issued by Governor Henry McMaster.

This session, the SCRLA remained laser-focused on protecting and strengthening South Carolina’s hospitality industry. From liquor liability reform to pro-growth energy policy, lawmakers took action on several key issues that have the potential to impact you—and your bottom line.

Raising the Bar: Hospitality Industry Wins Long-Fought Liquor Liability Reform

The most impactful victory of the session for the hospitality industry was the passage of H. 3430, a compromise reform package that modernizes the state’s joint and several liability laws—laws that have for years contributed to skyrocketing insurance premiums and threatened the viability of countless hospitality businesses across the state. Years of advocacy, engagement, and coalition building led to this breakthrough moment, and it couldn’t have come at a more critical time. The bill addresses South Carolina’s outdated joint and several liability laws by making significant—but measured—changes that help level the legal playing field for businesses serving alcohol for on-premise consumption. Specifically, the new law:

• Eliminates the alcohol and “gross negligence” exceptions to South Carolina’s modified joint and several liability threshold.
• Allows juries to consider the fault of all parties involved in an incident—not just those named in a lawsuit—when awarding damages.
• Establishes a “knowingly” standard for overservice liability, meaning a server or establishment must have knowingly served an already intoxicated guest to be held civilly liable.

• Incentivizes best practices by reducing insurance requirements if businesses implement certain risk mitigation steps.

For too long, businesses serving alcohol in South Carolina have been facing skyrocketing liquor liability insurance premiums or losing access to coverage altogether. This bill brings relief, fairness, and accountability to a system that has grown untenable. SCRLA is proud to have played a role in getting this legislation across the finish line, and we’re grateful for the leadership of the Responsible Hospitality Reform Alliance and the House and Senate for working together on this crucial compromise.

Other Legislative Wins

While liquor liability reform stole the spotlight this session, another noteworthy bill also made it to the Governor’s desk for final approval.

South Carolina Energy Security Act (H. 3309)

South Carolina’s economic growth—and by extension, our booming tourism and hospitality sector—depends on reliable and affordable energy. H.3309, the South Carolina Energy Security Act, supports that growth by pursuing an “all of the above” energy strategy and cutting red tape in the permitting process. This common-sense approach will help ensure that our state’s infrastructure keeps pace with increased demand.

Defeating H.3861 – Short-Term Rental Preemption

The SCRLA once again partnered with the Municipal Association of SC this session in opposing H.3861, which would have stripped local governments of the authority to regulate short-term rentals. We submitted written and in-person testimony and successfully adjourned debate on the bill in subcommittee. This is a win for the hospitality industry and for home rule—ensuring local communities can manage tourism in ways that best fit their needs.

Bills Awaiting Senate Action

Several bills that passed the House this session still await consideration in the Senate. Highlights include:

Income Tax Reform (H. 4216)

This comprehensive bill would transform South Carolina’s income tax structure. Highlights include:

• $400 million in income tax relief.
• An immediate reduction in the top income tax rate from 6.2% to 5.39%.
• A simplified structure that would ultimately phase out the top rate to 0%, contingent upon state revenue growth.
• A shift to adjusted gross income (AGI) as the basis for calculating taxes, simplifying the process for business owners and individual filers alike.

For hospitality operators, these reforms could mean more reinvestment in staff, equipment, and customer experience. SCRLA will be closely monitoring this bill in 2026 and will continue to keep our members informed as the Senate further deliberates.

Small Business Regulatory Freedom Act (H. 3021)

This bill takes a much-needed swing at red tape and excessive regulation. Under H.3021, every new proposed state regulation would require the elimination of two existing ones. It also limits how courts defer to state agencies in legal disputes and establishes a “shot clock” to speed up the regulatory approval process. This would be a major win for hospitality operators who often face time-consuming and costly regulatory hurdles at both the state and local levels.

Angel Investor Tax Credit Extension (H. 4134)

Startups and small businesses in the hospitality and tourism tech space stand to benefit from the continuation of the Angel Investor Tax Credit, which provides a 35% non-refundable tax credit to individuals who invest in high-growth early-stage companies. Extending this credit through 2035 supports innovation in our state’s economy and encourages private investment in future hospitality ventures.

Bills to Watch in 2026

Despite strong interest and advocacy, several high-profile bills didn’t make it across the finish line this year. Highlights include:

Business Personal Property Tax Relief (H. 3358)

Introduced by Speaker Murrell Smith and others, this bill would exempt the first $10,000 of a business’s personal property from taxation and remove filing requirements for businesses under that threshold. For restaurants and hotels, that would mean less paperwork and lower taxes on items like kitchen equipment, furnishings, and POS systems.

Comprehensive DUI Reform (S. 52)

Introduced by Senator Tom Davis, S.52 aims to overhaul South Carolina's approach to driving under the influence (DUI) offenses. The bill proposes stricter penalties for DUI convictions, including mandatory attendance at victim impact panels and the possibility of both fines and incarceration. It also seeks to expand the use of ignition interlock devices and introduces the offense of "felony DUI second degree," targeting cases involving moderate bodily injury. Additionally, S.52 would allow courts to order convicted individuals to pay child support if their actions result in the death or disability of a parent or guardian.

Childcare Tax Credit Modernization (S. 47)

The lack of affordable childcare remains a major barrier to workforce participation across the hospitality sector. S. 47 seeks to modernize the state’s existing childcare tax credits, making them more accessible to employers and workers alike. This includes allowing businesses to claim credits against their withholding taxes and creating a new refundable income tax credit for full-time childcare workers. If passed, this bill would help employers attract and retain staff while supporting working families.

Senator Clementa C. Pinckney Hate Crimes Act (S. 247/H. 3039)

S. 247 would establish enhanced penalties for crimes proven to be motivated by bias against race, color, religion, sex, gender, national origin, sexual orientation, or physical or mental disability and sends a clear message that South Carolina is committed to protecting residents, workers, and visitors alike from hate-based violence. The hospitality industry is a diverse and vibrant community and has a strong interest in fostering environments where all guests and employees feel safe and respected.

Unemployment Insurance Modernization (H. 3477)

This bill proposes tying the duration of unemployment benefits to the state’s unemployment rate, with a maximum of 12 weeks in times of low unemployment and 20 weeks during economic downturns. For hospitality operators struggling to fill open positions, this bill would encourage quicker re-entry into the workforce and help address ongoing staffing shortages.

Medical Informed Consent Act (S.54)

S.54 would have wide-ranging implications for employers across the state. The bill would prohibit private employers from requiring employees to receive certain types of medical treatments or vaccinations. While the bill did not advance beyond the Senate floor this year, SCRLA continues to monitor it and will evaluate its implications for workplace safety and employer rights.

Looking Ahead

The hospitality industry made its voice heard this session—and lawmakers responded. The passage of liquor liability reform alone will relieve pressure on bars and restaurants, help stabilize insurance markets, and reinforce our industry’s commitment to safe, responsible service. At the same time, several unfinished items remain on the table and there is still more to accomplish together. Our success at the Statehouse is only possible because of the active engagement of SCRLA members like you. Whether you attended a Hospitality Day, contacted your legislator, contributed to the SCRLA PAC, provided physical or written testimony to a subcommittee, or hosted a lawmaker at your business—thank you. Your voice made a difference. As we look toward the second half of the 126th General Assembly in 2025, SCRLA remains committed to being your voice at the Statehouse and your partner in building a strong, resilient, and thriving hospitality industry.

To ensure that South Carolina's hospitality industry is well represented at the State House, the SCRLA has an active PAC at the state-level and is governed by a PAC Advisory Committee comprised of members of the SCRLA Board of Directors and SCRLA Chapter Presidents. While the SCRLA PAC does not make campaign expenditures to primary campaigns, SCRLA PAC will be making dozens of political contributions to support pro-hospitality candidates running for the State House who will have our industry’s best interest top of mind when making policy decisions critical impacting our industry. To learn more about the SCRLA PAC and how to get more involved in the political process, please click here. Additionally, please consider making a contribution to the SCRLA PAC today by clicking here.