Tax Credits & Incentives

Corporate Income Tax Credits

Jobs Tax Credit
South Carolina rewards qualifying businesses for creating new jobs—in Florence County, a Jobs Tax Credit of $2,500, per job, for five years. Unused credits can be carried forward 15 years.

Multi-County Industrial Park
In South Carolina, a county may join with another county to form a “multi-county industrial park,” which raises the value of the Jobs Tax Credit by $1,000 per job.

Corporate Headquarters Credit
To offset the costs of relocating or expanding corporate headquarters, the state provides credit equal to 20% of the development, construction or direct lease costs during the first five years of operations.

Enhanced Corporate Headquarters Credit
An Enhanced Headquarters Credit—equal to 20% of the personal property costs of establishing the headquarters—is offered to eligible companies when employee compensation levels exceed 1.5 times the state per capita income average.

Economic Impact Zone Investment Tax Credit
This one-time corporate income tax credit provides manufacturers locating in an Economic Impact Zone (EIZ) up to 5% of the costs of their investments in production equipment.

Child Care Credit
Companies in South Carolina may claim corporate income tax credits for costs associated with establishing and running child care programs—including capital expenses up to $100,000 and operating expenses up to $3000 per employee.

Research & Development Tax Credit
South Carolina offers a credit equal to 5% of the taxpayer’s qualified expenditures for research and development made in the state. The credit taken, in any one tax year, may not exceed 50% of the company’s remaining tax liability after all other credits have been applied. Any unused portion of the credit can be carried forward for 10 years from the date of the qualified expenditure.

State and Local Sales Tax Credits

Sales and Use Tax
The state Sales and Use Tax rate is 5%. Florence County assesses an additional 1%. Out-of-state sales are exempted. Use Tax credits are available for tangible personal property purchases made out of state.

State Sales Tax Incentives
Exemptions include state sales tax on:

• Manufacturing machinery and equipment
• Research and development machinery and equipment
• Repair parts
• Materials that will become a integral part of a finished product
• Electricity or other fuels used in the manufacturing process
• All pollution control equipment
• Packaging materials
• Long distance telecommunications, including 800 services
• Material handling equipment for manufacturers and distributors investing $35 million or more

Discretionary Incentives

Job Development Credit (JDC)
A performance-based incentive, JDC provides companies with funds to offset the cost of locating or expanding a business facility in the state, by allowing them to use a portion of new employees' withholding taxes for eligible project expenses. A company can collect the credit for up to 15 years. JDCs are approved on a case-by-case basis by the S.C. Coordinating Council for Economic Development (CCED). Qualifying companies must meet certain business requirements and the amount a company receives depends on the company's pay structure and location. To contact CCED for more information, call 803-737-2024.

Enterprise Zone Retraining Credit Program
Overseen by the Coordinating Council for Economic Development (CCED), this program reimburses eligible companies for 50% of the costs to retrain production workers, up to $500 per employee. For more information or to receive an application, contact CCED at 803-737-2024.

Port Volume Increase Credit
South Carolina provides income tax credits to qualifying companies that use state port facilities and increase base port cargo volume by five percent over base-year totals. To qualify, a company must have 75 net tons of non-containerized cargo or 10 loaded TEUs transported through a South Carolina port for their base year. Tax credits are limited to $8 million per calendar year.

Economic Development Set-Aside Program
The primary business development tool for the Coordinating Council for Economic Development, the Economic Development Set-Aside Program provides funds for road or site improvements and other costs related to business location or expansion.

Rural Infrastructure Fund
The Rural Infrastructure Fund (RIF) provides qualified counties in the state's rural areas with financial assistance for infrastructure and other activities that enhance economic growth and development. The fund also can be used for job creation and product development.

Local Incentives

Five-Year Property Tax Abatement
Manufacturers, distributors and certain other kinds of businesses are exempt from County Ordinary and County Operating Taxes for the first five years of operations. This results in an average 30-35% reduction in both real and personal property taxes for the first five years.

Fee-In-Lieu of Property Taxes (FILOT)
Companies making qualifying capital investments can negotiate with Florence County for a 20-year fee schedule, in lieu of the normal property tax schedule. The FILOT allows a reduction in the assessment rate for both real and personal property from 10.5% (for manufacturers) down to as low as 6%. Investments of $400 million or more, which create at least 200 new jobs, may qualify for a 30-year FILOT with assessment rates as low as 4%.

Special Source Revenue Credits (SSRC)
Offered at the county's discretion and in conjunction with a FILOT agreement, an SSRC is a percentage reduction in local real and personal property taxes levied on manufacturers. SSCRC credits can range from 5% to 95% and can be offered in a variety of different scenarios for up to 20 years.

Additional Incentives
Florence County takes an aggressive posture in negotiating incentives to attract and retain business enterprises. Examples of discretionary incentives include:

• The extension of water and wastewater systems to a company’s site.
• The use of public funds and equipment to perform preliminary site development.
• A reduction in the cost of land for the purpose of attracting new companies.
• The development and extension of transportation infrastructure to a company’s site.

South Carolina Department of Commerce.

Click here to download additional tax information, including sample tax calculations, from the Florence County Economic Development Partnership.