In the legislature

The eighth week of the legislative session:

TAX BREAKS: The South Carolina House approved huge breaks for businesses, including phasing out the state's corporate income tax. The breaks received key approval Thursday with a 105-9 vote in the House and went to the Senate on Friday. The state collects $167.9 million yearly in corporate income taxes. That 5 percent tax rate yields the third-largest source of state taxes, behind sales and individual income taxes. Beginning in 2013, the state would cut $16.8 million from those collections and phase out the tax entirely over 10 years. The legislation also provides economic development incentives and gives the state Commerce Department more money to close deals for industries the state is recruiting. The corporate tax break was initially set to start in 2011, but legislators delayed it by two years in hopes of getting past the recession. The bill also includes tax credits for small businesses, those with as few as five employees, for each additional worker they hire.

SPENDING CUTS -- DISABILITIES: Lawmakers are considering cutting all services for nearly 26,000 people with disabilities as the state tries to plug a $560 million budget hole. Parents say the proposed cuts to day care programs and other services would force them to give up much-needed jobs to stay home and care for their children. The budget approved by a House committee would provide services only for 4,800 people with disabilities living in group homes or institutions, the only type of care the federal government requires the state to provide. Others who need help could move to those facilities, but there are only two open slots in the entire system. Activists and people with disabilities packed the Statehouse lobby Wednesday to ask legislators not to cut their programs.

STATE BUDGET -- EDUCATION: Hundreds of additional teachers statewide will lose their jobs, and class sizes will rise under continued budget cuts, the state's schools chief said Wednesday. Superintendent Jim Rex urged senators to find ways to raise money, rather than simply chop services, such as raising the state cigarette tax and eliminating some sales tax exemptions. There already are 1,000 fewer teachers this school year compared with the previous year. A House proposal on the 2010-11 budget would return state spending on teacher salaries to 1995 levels. It would send teachers home for five days without pay and administrators for 10. It would provide enough money to run school buses for only two-thirds of the school year, if fuel prices don't rise.

UNEMPLOYMENT TAXES: Legislators have nixed a tax break for people drawing unemployment checks. The Senate Finance Committee on Tuesday approved legislation that keeps the state from going along with federal law changes that exempt unemployment checks during 2009 and 2010 from income taxes. That means people drawing unemployment and filing income taxes before the April 15 deadline have to report their unemployment benefits and pay state taxes even if they're getting the federal tax break.

TERRORIST FILING FEE: Lawmakers have given initial approval to repealing a 1951 law requiring any group that wants to overthrow the government to register and pay a $5 fee. A Senate Judiciary panel Thursday approved repealing the law, which was adopted during the Cold War communist scare. Sen. Larry Martin said the archaic measure is pointless. The Pickens Republican said bloggers spread the misconception last month that legislators had recently passed the bill, prompting concern from conservative activists and ridicule from others.

LAWSUIT LIMITS: A proposal to place a limit on how much people can be awarded through civil lawsuits in the state passed the House. The measure, approved 104-9, would limit the amount juries could award to punish a person or business for negligence. Such punitive damages could be $350,000 or three times compensatory damages, whichever is greater. House leaders called it an economic development issue, since neighboring Georgia, Florida and North Carolina already have the caps. Opponents said multi-million-dollar lawsuit awards are extremely rare in South Carolina, and they said they doubted that the cap would influence whether a company moves to the state.