Taxes & Incentives
We recognize the role taxes play in making important buisness decisions. South Carolina has developed an impressive array of tax incentives. The job tax credit, job development and retraining credits, and the fee in lieu of property taxes are our incentive building blocks that have resulted in record economic growth in South Carolina.
South Carolina Tax Incentives for Economic Development - 2009 Winter Edition
- Corporate: 5%, one of the lowest in the nation.
- Personal: Tiered index ranging from 3.0% to 7.0% on all income with 5 income brackets adjusted annually for inflation.
- South Carolina has no state property taxes and no intangibles tax. Real and personal property taxes are levied by local taxing authorities. The assessment rate for businesses, including manufacturing, distribution, corporate headquarters and corporate office facilities is set by the South Carolina Department of Revenue.
- No inventory tax for manufacturers or merchants.
- A 5 year exemption from all North Charleston and County property taxes (except school and special purpose taxes) for new and expanding manufacturers with a capital investment in excess of $50,000 (North Charleston and County) + 10 jobs (North Charleston).
- A 5 year exemption from all North Charleston and County property taxes (except school and special purpose taxes) for corporate headquarters, corporate office facilities and distribution facilities if the cost of new construction or additions of $50,000 or more and 75 or more full time jobs are created.
- Property taxation exemption (except school and special purpose taxes) for new enterprises and additions valued at $50,000 or more which are engaged in research and development (in the experimental or laboratory sense) for new products, new uses for existing products or for importing existing products. Some restrictions apply.
- Fee-in-lieu of taxes: South Carolina counties may also negotiate fee-in-lieu of property taxes with newly locating or expanding firms who meet the requirements. Complete details are available upon request.
- Exemption from property taxes on water, air or noise pollution equipment and facilities.
The following are examples of these incentives:
Jobs Tax Credits
Credits granted for five years for each permanent job created, of $1,500 per job. Amount depends on number of jobs created and county location. Manufacturers that locate in a jointly developed industrial park and create permanent jobs may be eligible for an additional $1,000 five year credit.
Child Care Program Incentive
Provides tax credits for companies that provide child care benefits. Annual credit may not exceed $3,000 per employee.
Infrastructure Construction and Improvements
Credits can be applied to corporate income taxes for contributions to infrastructure construction or improvement. Credits are up to 50% and cannot exceed $10,000 per year, but any unused credit, up to $30,000 for each project may be carried forward for 3 years.
Corporate Headquarters and Office Facilities
Corporate tax credits are available to companies that establish or expand corporate headquarters and office facilities. Credit given only for 20% of cost of construction or for five-year lease expenses on headquarters' real property. Minimum of 40 new jobs must be created, 20 of which must be managerial or professional positions. Unused credits may be carried over for 10 years.
Business Development Corporation of South Carolina
Financing available to job-creating companies unable to obtain loans from conventional sources.
Tax Increment Development Financing
Companies that locate in a distressed area may be eligible for financing for the redevelopment of buildings, park facilities, streets and water/sewer improvements.
Palmetto Seed Capital Fund
Financing for early-stage development projects.
JEDA Direct Loans and Guarantees
Loans and loan guarantees available to companies for land, construction, equipment and working capital.
Allows companies to negotiate fee-in-lieu of property taxes for up to 40% savings.
Relocating or expanding companies can receive a pre-trained workforce on the first day of operation. State can recruit, screen, test and train potential employees to fit specific needs.
Qualified companies may apply for up to 5% of wages that normally are withheld for personal income tax. Credits may be used for land, building, training and infrastructure.
Foreign Trade Zones
It is expected that by mid-1997 North Charleston sites will expand the 2,400 approved acres in the tri-county area, allowing businesses to bring in goods or raw materials and process and store them duty-free until they are shipped into or out of the U.S.
Entertainment And Tax Increment Financing Districts
Located around the North Charleston Coliseum, former Naval Base and Century Oaks area to assist new development in the designated area with their infrastructure requirements.
For more information contact John Cawley, Economic Development Coordinator, at (843) 740-2530.