Business Incentives

South Carolina has one of the lowest state and per capita tax rates in the nation and offers other attractive incentives such as no manufacturer inventory tax and no state real or personal property taxes. A five-year abatement of county property taxes (excluding schools and special use taxes) is available to any business with capital expenditures for new facilities in excess of $50,000. Additional exemptions and abatements are also available.

With larger investments, a special “fee in lieu of taxes” can be negotiated, offering a predictable future tax rate.

• NO Inventory Tax
• NO Local Income Tax
• NO State Property Tax
• NO Unitary Tax on Worldwide Profits
• NO Wholesale Tax
• NO Sales Tax on manufacturing machinery, industrial power or materials for finish

Corporate Income Tax Credit Incentives

Jobs Tax Credit

• A valuable financial incentive that rewards new and expanding businesses for creating jobs in South Carolina. The jobs tax credit for Jasper County is $3,500 per job for a 5-year period.

Corporate Headquarters Tax Credit

• A 20% credit provided to businesses locating or expanding their corporate headquarters facility in South Carolina. The credit is based on the value of the actual portion of the facility dedicated to the headquarters operation or lease costs for the first five years of operation in South Carolina.

Enhanced Corporate Headquarters Tax Credit

• A credit provided to businesses locating or expanding their corporate headquarters facility in South Carolina. This credit can be applied against 20% of the tangible personal property costs of establishing the headquarters. Tangible property eligibility requirements apply.

Economic Impact Zone Investment Tax Credit

• Allows manufacturers locating in “Economic Impact Zones” a one-time credit against a company’s corporate income tax of up to 5% of a company’s investment in new production equipment. The credit value depends on the applicable recovery period for the property.

Child Care Program Tax Credit

• Companies may claim corporate income tax credit for capital and operating costs of establishing and operating a child care program. The maximum credit claimed may equal 50% of the incurred capital expenditure, not to exceed $100,000.

Research and Development Tax Credit

• A tax credit equal to 5% of the taxpayer’s qualified expenditures for research and development made in a taxable year in South Carolina.

Tax Rates & Incentives

Out of State Sales

• South Carolina exempts sales tax on gross proceeds of sales of tangible personal property shipped and delivered outside of the state.

Use Tax Credit

• South Carolina provides a credit to the use tax for sales and use taxes on purchases of tangible personal property paid in another state.

Sales Tax Exemptions

• South Carolina supports new and expanding business with a wide range of valuable state and local sales tax exemptions.

Sales Tax Caps

• South Carolina provides a $300 maximum sales tax cap on the sale or lease of aircraft, motor vehicles, boats, recreational vehicles, motorcycles, and other items.

Property Tax Exemptions

• South Carolina exempts three classes of property from local property taxation, to include all inventories (raw materials, work-in-progress, and finished goods), intangible property and all pollution control equipment.

5-Year Property Tax Abatement

• A South Carolina local incentive that provides 5-year property tax abatement from county operating taxes. The value of the abatement typically ranges from 30-35 %.

20-Year Fee-in-Lieu of Property Taxes

• A South Carolina local incentive allowing the county to negotiate a fee-in-lieu of property taxes agreement with eligible companies that meet certain investment criteria. Eligibility requirements apply.

30-Year Super Fee-in-Lieu of Property Taxes

• A South Carolina local incentive allowing the county to negotiate a fee-in-lieu of property taxes agreement with eligible companies for up to 30-years with an assessment ratio as low as 4%. Eligibility requirements apply.

South Carolina’s Enterprise Program-Job Development Credit

South Carolina’s Enterprise Program provides companies with funds to assist in offsetting the cost of locating or expanding a business facility in the state by contributing cash contributions to the project that allow the state to lower the cost of investment and positively contribute to the company’s bottom line. Eligibility requirements apply.

The Job Development Credit reimburses qualifying companies the cost of eligible capital expenditures (land, building, site development or infrastructure) associated with projects that create new full-time jobs providing healthcare benefits for citizens of South Carolina.

ReadySC

ReadySC (formerly known as CATT) is a program unique to South Carolina and is an outstanding employment training resource for companies locating or expanding within the state. ReadySC recruits, screens, and provides short-term training of individuals for specific job assignments with new and expanding businesses and industry, typically at no cost to the company. Custom training programs are provided to actively prepare a trained workforce for positions within the facility and are often conducted in close proximity to the facility or on-site at the new facility itself.

"The South Carolina Department of Commerce, working with the S. C. Legislature, the Governor’s Office, the Counties and the Municipalities of our state, have a bold and forward-thinking package of incentives to help bring you to the Palmetto State. These incentives not only make our rural areas competitive for large projects, but they also allow us the flexibility we need to help tailor a total package to meet your needs."
-Ted Felder