There are a plethora of incentives and tax advantages available in South Carolina and the NESA Region.
- South Carolina has one of the lowest corporate income tax rates in the nation at 5%
- South Carolina has not had a general tax increase in over 20 years.
- South Carolina does not impose a state or local tax on intangibles and inventory.
- South Carolina does not impose a local, value-added, or unitary tax on related corporations.
- South Carolina does not allow local governments to impose an income tax.
- South Carolina provides alternative methods to fairly apportion the income of multistate businesses.
- South Carolina provides generous job development and retraining credits to qualifying businesses.
- South Carolina's tax incentive package is designed to encourage economic growth and to make South Carolina one of the best places in the nation to do business.
Job Tax Credits
- Available to manufacturing, distribution, processing, warehousing, research and development and tourism facilities
- Can offset 50% of company's state income tax
- Unused credits can be carried forward for 15 years
Property Tax Incentives
- Property tax abatements can provide savings of 20-25% of property tax costs
- Fee-in-lieu of property tax (FILOT) agreements offer a property tax reduction of 30-45%. FILOT also protects companies from property tax increases in a contractural agreement for up to 30 years.
- Special source revenue credits (SSRC) are discretionary incentives offered by county governments that can further reduce property tax liability.
- Property tax exemptions available for inventories (raw materials, works-in-progress, finished goods), intangibles (stocks, dividends, interest) and pollution control equipment
Sales Tax Exemptions
- Electricity and fuel used in manufacturing processes
- Machinery, equipment, repairs used in production
- Raw/packaging materials
Job Development Credits
- State discretionary incentive that can be used to offset capital expenditures by rebating a portion of new employees' with-holding taxes
Economic Development Set-Aside Program
- Assists companies in locating/expanding in South Carolina through infrastructure or site improvements and other related costs
Enterprise Zone Retraining Credit Program
- Helps existing industries maintain a competitive edge
- Allows companies to claim a Retraining Credit for existing employees
- If approved, companies may reimburse themselves up to 50% of training costs for eligible production workers.
Rural Infrastructure Fund
- Provides rural counties with financial assistance for economic development activities
- Used for job creation and/or product development
Port Volume Increase Credit
- Income tax credit to entities using state port facilities that increase base year port cargo volume
- Up to $8 million in tax credits per year
Disclaimer: Incentives are offered through the counties and the South Carolina Department of Commerce. While NESA can work with the aforementioned entities to help develop an attractive incentives package for your company, it does not grant incentives nor can it make any promises that incentives will be granted by state or local governments. The information contained herein is current to the best of our knowledge; however, we are not responsible for any errors or omissions that may exists. For a list of incentives specific to your project, please make us aware of your project parameters and we will work with the counties and the South Carolina Department of Commerce to develop a comprehensive list of statutory and discretionary incentives that may be available to your company.