Positioning Business for Success

ADVANTAGES & INCENTIVES

In South Carolina and the Central SC region, we’ve designed and formalized a tax and incentive environment that positions business and people for success. From customized incentive packages and a host of credits and exemptions, Central SC makes business welcome.

Why Choose Central SC?

5%Corporate Income Tax. One of the Lowest in the Nation.

Low Cost of LivingWell Below the National and Nearby Metropolitan Areas

Electricity

SC has one of the lowest industrial power rates at roughly 10% below the national average.

Green initiatives are on the rise, helping businesses stretch their dollars. SC and power companies provide rebates and incentives for qualified businesses.

Natural Gas

The cost of natural gas ( $4.64 mcf) falls below the Southeastern U.S average.

Water & Wastewater

With seven of the eight major river basins in the state flowing through Central SC, companies in the region have access to an abundant, high-quality supply of fresh water.

Water $4.42/$5.80 Wastewater $5.35/$7.48 inside/outside city or town. Rate per 1,000 gallons

Telecommunications

  • Fiber
  • Wireless
  • Data
  • Voice

Interstates

NE to SW

Florence, SC
to Kent, TX

SE to NW

Charleston, SC
to Kingston, TN

S to N

Columbia, SC
to Cleveland, OH

N to S

Houlton, ME
to Miami, FL

Airports

Columbia Metropolitan Airport (CAE)

located within region

35+ Nonstop Daily Flights To 8 Major Markets Including Atlanta, Charlotte, Chicago, Dallas/Ft. Worth, Miami, New York, Philadelphia & Washington, D.C. • Serves 1.3 Million Passengers Annually • Direct Flights To Major International Airport (CLT) Via Charlotte • Main Freight Carriers: Federal Express, UPS, Delta • 76K Tons Of Cargo Processed Annually

Charlotte Douglas International Airport (CLT)

95 miles N

Nonstop Service To 175+ Destinations, Including 38 International • 6th Busiest Airport In The U.S. (Aircraft Movements) • Serves More Than 50M Passengers Annually • Home To Norfolk Southern's Charlotte Regional Intermodal Facility • 183K Tons Of Cargo Processed Annually

Ports

Port of Charleston

120 Miles SE

9th Largest U.s. Port • #2 U.S. Port For North Europe Container Volume • Deepest Water In The Southeast • All Major Container Carriers • Double Truck Moves Averaging 55 Minutes • Expanding Neo-panamax Service With Channel Deepening To 52', Entrance To 54' By 2021 • International Destinations: Africa, Asia, Australia, Central America, Europe, Southamerica • Intermodal And Merchandise Rail Services Through CSX And Norfolk Southern

Port of Georgetown

127 Miles E

Dedicated Breakbulk & Bulk Cargo specialized For Cement, Aggregates, Forestproducts, Metals • CSX Rail-served warehousing Space Provides Nearly 28 acres Of Open Storage And Over 100,000 Sf Of warehouse Space

Port of Savannah

178 Miles S

Largest Single-terminal Container Facility in The Nation Over 3 Million Square Feet of Warehouse Space Served By CSX & Norfolk Southern • International destinations: Africa, Asia, Australia, Central America, Europe, South America

Shipping & Foreign Trade Zones

120 Miles SE

UPS Southeast Region Air Hub & Fedex Ground Hub Located On-site At CAE • FTZ 127 Located At CAE • FTZ 21 Located At Port Of Charleston, Includes Orangeburg • Individual FTZ Sites Established Across The State

Rail Service

127 Miles E

CSX & Norfolk Southern offer 2,300+ Miles Of Rail Statewide • Combined Intermodal Facilities located In Charleston & Charlotte

Corporate Income Tax & Incentives

Corporate Income Tax

  • 5% Corporate Income Tax
  • Single Factor Apportionment
  • Only taxed on portion of income derived from in-state operations


Job Tax Credit

  • Credit of $750 to $26,000 per job to offset up to 50% of annual corporate income tax or premium tax liability
  • 15 year carry-forward
  • Credits available for 5 years, beginning with year 2
  • Value of credit dependent on county’s development tier

Research & Development Tax Credit

  • Credit equal to 5% of taxpayer’s qualified research expenses to offset up to 50% of remaining corporate income tax liability
  • Carry forward of up to 10 years

Corporate HQ Tax Credit

  • 20% credit based on cost of facility or direct lease costs offset annual corporate income tax or license fee
  • Carry forward of up to 10 years
  • Available for 5 years
  • Not limited in ability to eliminate corporate income taxes

Sales & Use Tax Exemptions

Exemptions

  • Manufacturing machinery & equipment and repair parts
  • Materials that will 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 machinery and equipment
  • Air, water, and noise pollution control equipment
  • Packaging materials
  • Long distance telephone calls and access charges, including 800 services
  • Material-handling equipment for manufacturing or distribution projects investing $35 million or more.
  • Construction materials used in the construction of a single manufacturing or distribution facility with a capital investment of at least $100 million in an 18 month period Job Tax Credit
  • Other exemptions include specific technology intensive and datacenter materials

Local Property Taxes & Incentives

Details

  • Only local governments levy property taxes.
  • No state tax on real or personal property.
  • No tax, state or local, on inventories or intangibles.
  • Local Property Tax Liability: Property Value (less depreciation) x Assessment Ratio x Millage.

Exemptions

  • All inventories (raw materials, work-in-progress, and finished goods)
  • All Intangible property
  • All pollution control equipment

5-Year Property Tax Abatement

  • Represents a reduction of 20 to 50 percent of the total millage, depending on the county.
  • By law, manufacturers and research and development facilities (investing $50,000 or more) and distribution or headquarters’ facilities (investing $50,000 or more and creating 75 new full-time jobs) are entitled to a five-year property tax abatement from county ordinary operating taxes.

Fee-in-Lieu of Property Taxes (FILOT)

  • Assessment ratio can be lowered from 10.5% to as low as 6%
  • Companies investing more than $2.5 million are eligible to negotiate a lower assessment ratio, and stabilize millage rates for the period the Fee is in effect.
  • Existing buildings already on the tax rolls may not be included in the FILOT unless new equipment investment is over $45 million

Super FILOT

  • Assessment ratio can be lowered to 10.5% to 4%
  • Real and personal property may be included under the FILOT agreement
  • Single investment of at least $400 million or invest more than $150 million and create at least 125 net new jobs.

Special Source Revenue Credit (SSRC)

  • County’s discretion to offset project’s infrastructure and/or machinery and equipment costs with a credit reduction on property tax
  • Done in the form of a credit off the tax payment due to the county in designated years

Other Property Tax Incentives

  • Textile Revitalization Credit
  • Retail Facilities Revitalization Act
  • Revitalization of Abandoned Building Credits

State Discretionary Incentives

Job Development Credit (JDC)

  • Rebates a portion of new employees’ withholding taxes that can be used to address the specific needs of individual companies.
  • Credit per employee per year cannot exceed $3,250.
  • Available for up to 10 years
  • Reimbursements can only be used for eligible capital expenditures.

Job Retraining Credit

  • Refund of up to $1,000 per full-time production or technology employee per year.
  • Cannot exceed $2,000 per employee over 5 years
  • Cannot be claimed on the same employee

Other Discretionary Incentives

  • Port Volume Increase Tax Credit
  • SC Agricultural Products Purchases Credit

Federal Incentives

New Market Tax Credit (NMTC)

  • Competitive program by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund administered locally
  • Lower interest rates (sometimes below market) on loans
  • Non-traditional financing not available in the marketplace
  • Access to a reduced cost of capital
  • CDFI Fund New Market Tax Credit Program

Opportunity Zones

  • Tax Cut & Jobs Act federal incentive to spur investment in undercapitalized communities
  • Temporary deferral of taxes on previously earned capital gains not taxed until the end of 2026 or when the asset is disposed of
  • Basis step-up of previously earned capital gains invested in Opportunity Funds for at least 5 years, investors’ basis on the original investment increases by 10 percent. If invested for at least 7 years, investors’ basis on the original investment increases by 15 percent.
  • Permanent exclusion of taxable income on new gains for investments held for at least 10 years

Opportunity Zone Information

South Carolina Opportunity Zones & Mapper

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Opportunity Zone Resources & Information

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New Market Tax Credit Resources & Information

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Opportunity Zones & New Markets Tax Credits (NMTC) Interactive Map

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