Competitive Incentives
Potential Incentive Options
I. Grants
a. Discretionary incentive
b. Can be used for infrastructure, land acquisition and other eligible expenses
II. Job Development Credits (JDCs)
a. Discretionary incentives
b. Quarterly reimbursement of a discretionary percentage of employees withholding taxes for 10 years
c. Maximum reimbursement of $3,250 per employee per year
d. Based on wages and physical location within the state
III. Job Tax Credits (JTCs)
a. Statutory incentive
b. Corporate income tax incentive
IV. Research and Development Tax Credit
a. Statutory incentive
b. Corporate income tax incentive
c. Is “stackable” with other corporate income tax credits
V. Investment Tax Credit
a. Statutory incentive
b. Corporate income tax credit
c. Is “stackable” with other corporate income tax credits
VI. Port Tax Credit
a. Discretionary incentive
b. Either corporate income tax credit or withholding tax credit
c. Based on SC port volume increases
VII. Property Tax Exemptions
a. Statutory incentive
b. Exempts inventories, raw materials, works in process, finished goods, intangible personal property, and pollution control equipment and facilities from property taxes
VIII. Property Tax Abatements
a. Statutory incentive
b. Abates the county operation portion of the millage rate for 5 years
c. Available for manufacturing investments of more than $50,000
IX. Fee in Lieu of Property Taxes
a. Discretionary incentive
b. Locks the property tax rate for 30 years (40 years for projects having investments of more than $150 million in a single facility)
c. Reduces the property tax assessment from 10.5% to 6% on real and personal property (4% for projects having investments of more than $150 million in a single facility)
X. Special Source Revenue Credits
a. Discretionary incentive
b. Can reduce the amount of net property tax payable by a negotiated percentage
XI. Sales Tax Exemptions for Manufacturing
a. Statutory incentive that exempts the following from local and state sales taxes:
• Manufacturing production machinery and applicable repair parts;
• Manufacturing materials that become an integral part of the finished product;
• Coal, coke, or other fuel for manufacturers, transportation companies, electric power companies, and processors;
• Industrial electricity and other fuels used in manufacturing tangible personal property;
• Research and development equipment;
• Manufacturers’ air, water, and noise pollution control equipment;
• Packaging materials; and
• Long distance telecommunication services, including 800 services.
XII. Recruitment Assistance
a. Discretionary incentive
The SC Technical College System will recruit, screen, and train employees at no cost to the company