Overtime income tax exemption

H 3298 would exempt overtime income from South Carolina's individual income tax. It directly affects South Carolina residents who earn overtime pay, including hourly workers across various industries. The bill requires that overtime income not be included in taxable income and prohibits state tax withholding on overtime earnings. The exemption applies to income tax years beginning after 2024, with the South Carolina Department of Revenue allowed to request necessary administrative information. This is a direct policy change to tax calculation rules, not a procedural measure.