Read Gov. McMaster's full State of the State address

S.C. Governor Henry McMaster (Facebook)

Governor Henry McMaster announced a tax reform proposal that would exempt military and law enforcement retirees from paying state taxes on retirement income.

The exemption would apply to military veterans, retired first responders, firefighters and peace officers.

According to the governor's office, the proposal would result in a $22 million tax cut for the retirees in its first year of implementation.

The proposal would result in a $8.5 million annual tax cut, the governor's office said.

In a statement, Gov. McMaster said: "There's no way we will ever be able to repay these men and women in uniform for the true value they add to our state and our community, but this is one example of how we can show our gratitude and appreciation for their service. This income tax exemption on retirement pay will reaffirm the unwavering commitment of South Carolinians to these people who have chosen to serve."MORE NEWS: Apple says all Macs and iOS devices affected by chip flaws

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