• $500 per job ($1,000 within State Development Zone plus Tier designation)
  
• Company must be eligible for Jobs Tax Credit or Investment Tax Credit
  
• Minimum 5 or more workers that will receive training
  
• On the job training wages not eligible
  
• Must meet wage requirements
  

• A credit equal to a percentage of those qualified NC R&D expenses (small business 3%; other - 1%-3% - depending upon investment level)
• Company that has NC university research expenses is allowed a 15% tax credit
• May be used to offset up to 50% of state income tax or franchise tax after all other credits are applied
• Carry forwards up to 15 years

• Companies that utilize the NC ports in Wilmington or Morehead City can become eligible for significant tax credits.

Business Energy Improvement Program

Low interest rates for energy conservation measures

Loans ranging from $100,000 to $500,000

Industrial Development Bond

Grants or loans for job creation in Tier 1, 2 or 3 counties

Maximum amount of $5,000 per job or $500,000 per project

Road Access Funds

State will provide assistance on the construction of access roads to a site

Improvements to existing road infrastructure that are required due to the scope of the project area also available

Road improvements must have approval of local officials

Rail Spur Extension Assistance

Extensions or renovations of existing rail spurs may be possible through state funding

Local governments may provide other improvements that reduce rail costs, such as the relocation of streets

State's portion of assistance cannot exceed 50% of the total project cost.

Approval of funds based on new jobs created, capital investment of project, amount of rail use and general impact of project on community and state.

Industrial Extension Service

Services include training, lean manufacturing assistance, energy savings analysis, environmental / health/safety analysis, etc.

Job Creation Tax Credit

Credit amount per job dependent on Tier designation for County.

Credits in four equal installments over four years.

Urban Progress Zones and Agrarian Work Zones bring an additional $1,000 incentive per job (5 job requirement).  If job is filled by zone resident or a long-term unemployed worker, add an additional $1,000 per job.

TAX CREDIT PER JOB CREATION

$750 - TIER 3

$5,000 - TIER 2

$12,500 - TIER 1

Jobs Tax Credit Example
EXAMPLE: Company A with 20 jobs relocating to City X
County X - Tier 2
City X - Urban Progress Zone (UPZ)
Requirements: Minimum 10 jobs created & meets county wage standard 
County X Tier 2 Job Tax Credit.....10 jobs x $ 5,000 per job = $ 50,000
City X Urban Progress Zone Tax Credit...15 jobs x $ 1,000 per job = $15,000
Total JobsTax Credit for Company A locating within City X = $ 60,000

Investment Tax Credit

• 7% on all Machinery & Equipment invested in Tier 1
  
• 5% on all Machinery & Equipment over $1 million threshhold invested in Tier 2
  
• 3.5% on all Machinery & Equipment over $2 million threshhold invested in Tier 3

Sales Tax Exemption for Large Scale Data Centers

• Qualified large data center projects investing in real and personal property will be exempt from sales and use taxes on machinery and equipment.  However, a one percent priviledge tax will be imposed on eligible datacenter purchases (maximum of $80 per article).

• Qualified data center projects must be designated as a Tier 4 classification as designated by the Uptime Institute and make minimum real and personal property investment leves based on NC Development Tier structure as follows:

                 - Tier 1 county:  a minumum of $150 million investment in real      
                   and/or personal property within 5 years after commencement of construction.

                 - Tier 2 and 3 counties:  a minimum of $300 million investment in real and/or 
                    personal property within 5 years after commencement of construction.


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South Carolina Taxes
Corporate Income Tax

Job Creation Tax Credit Program

Offsets corporate income tax liability up to 50% in a given year

TAX CREDIT PER JOB CREATION

Jobs Tax Credit Example
EXAMPLE: Company A moves to "Least Developed County"

1	Establish Qualifications for Credit...
2	$3,500	100	$350,000
3	$3,500	100	$350,000
4	$3,500	100	$350,000
5	$3,500	100	$350,000
6	$3,500	100	$350,000
Five Year value - $2,250,000

Corporate Headquarters Tax Credit Program

Technology Intensive Sales Tax Exemption

"Technology Intensive" new and/or expanding facilties in South Carolina may be exempt from some sales and use taxes when the new and/or expanding facility meets certain investment and job creation requirements.  For a company to qualify for these exemptions, the new and/or expanding facility must:

                  - Qualify as a "technology intensive facility" as the term is defined in the SC jobs
                    tax credit statute.

                  - Invest at least $300 million in property at the facility over a five year peroid, 60%
                    of which must be spent on computer equipment.

                  - Create at least 100 new jobs with an average wage that is at least 150% of the 
                    state per capita wage within a five year period.

Items exempt from sales and use tax include computer equipment, electricity used by the facility, and equipment and raw materials.

Once qualified for this exemption, all future computer equipment purchases are exempt.

Child Care Program Tax Credit

An amount equal to 50% of investment but no more than $100,000 for costs incurred in establishing a child care program and 50% of the child care payments made not to exceed $3,000 for each participating employee per year

Offsets corporate income tax liability up to 50% in a given year; unused credits can carry forward up to 10 years

Research & Development Tax Credit

Credit against corporate income tax liability equal to 5% of qualified R&D expenditures

Credit is limited to 50% of liability remaining after all other credits have been applied; must be used before a taxable year beginning 10 years or after from the date of qualified expenditure
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South Carolina Incentives
Local Property Tax Incentives
To offset local property tax liability, a company may take advantage of one of two incentive programs.  Depending upon total investment, a company may qualify for either a five-year abatement of a portion of property taxes or by agreement with the appropriate county, a fee-in-lieu-of-taxes arrangement. Other unique options can be considered given a projects size and scope.

  - Companies involved in manufacturing, R&D, corporate HQ, corporate offices, or warehouse & distribution are eligible; if other than manufacturing & R&D companies must create at least 75 new jobs or 150 more substantially equivalent jobs

  - Negotiated with the County Councils
  - Property tax reduction of 30%-45%
  - May lower assessment ratio from 10.5% to as low as 6% on real & personal property for manufacturers
  - For HQ and corporate offices the assessment ratio may be reduced from 10.5% to as low as 6% on personal property
  - Companies must be a manufacturer, warehouse & distribution, or a corporate office / HQ
  - May negotiate a locked or a 5 year adjustable millage rate for 20 years

Enterprise Program Job Development Credit

Quarterly cash refund of employee payroll tax for up to 15 years

Requires application and discretionary approval

Value based on individual employee wage rates and development designation of county

Supplemental Economic Development Fund

Center for Accelerated Technology Training

Other Employee Recruiting and Training Proividers

South Carolina Financial Assistance Programs

Industrial Revenue Bonds

Low cost, tax-exempt financing provided for qualified manufacturing companies

Used to finance acquisition of land, construction of buildings, improvements to real property, and acquisition of new machinery

Cannot exceed $10 million in expenditures over 3 year period

Tax-Increment Financing For Redevelopment Areas

South Carolina Exemptions and Caps

Property Tax Exemptions

All inventories (raw materials, work-in-progress, and finished goods)

All intangible property

All pollution control equipment

Sales Tax Exemptions

Manufactures receive sales tax exemptions on machinery and equipment, research and development machinery and equipment, repair parts, materials which will be part of an integral part of the finished product, manufacturing electricity, and pollution control equipment

All industries receive sales tax exemptions on packaging materials and long distance telecommunications services, including 800 services

Note:  Materials handling equipment is exempt from sales taxes for manufacturing or distribution project investing $35 million or more

Sales Tax Caps

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