- Port Volume Increase Tax Credit is provided to manufacturers or distributors or companies engaged in warehousing, freight forwarding, freight handling, goods processing, cross docking, transloading or wholesale of goods.
- South Carolina provides a use tax credit for purchases of tangible personal property paid in another state, if the state in which the property is purchased and the sales and use taxes are paid allows substantially similar tax credits on tangible personal property purchased in this state. If the amount of the sales or use tax paid in the other state is less than the amount of use tax imposed in South Carolina, the user is required to pay the difference to this state.
- Renewable Energy Systems and Components Tax Credit – South Carolina provides a nonrefundable income tax credit equal to 10% of qualifying expenditures to qualifying companies in the renewable energy field that are expanding or locating in South Carolina.
- Credit for Alternative Fuels – South Carolina allows a company a credit against income taxes equal to 25% of the cost of purchasing, constructing and installing eligible property that is used for distribution, dispensing, or storing alternative fuel at a new or existing commercial fuel distribution or dispensing facility in South Carolina.
- Recycling Facility Tax Credit – In order to reward qualified recycling facilities, South Carolina offers a credit equal to 30% of the cost of recycling property placed into service each year. A qualified recycling facility is one that has a $300 million dollar investment within five years and that manufactures products for sale composed of 50% or more postconsumer waste material by weight or volume.
- Solar Energy Tax Credit grants a company a credit against income taxes equal to 25% of the costs incurred by the company in the purchase and installation of a solar energy system, a small hydropower system or geothermal machinery and equipment for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response or the generation of electricity in or on a facility in South Carolina owned by the company.
- Corporate Headquarters Tax Credit provides a 20% tax credit to offset the costs associated with relocating or expanding a corporate headquarters facility. The credit can be applied against either corporate income tax or the license fee.
- South Carolina offers an additional credit equal to 20% of the tangible personal property costs of establishing the headquarters. The tangible personal property must be purchased for the headquarters facility or research and development facility, which is a part of the same project; n The tangible personal property must be used to create a minimum of 75 permanent new full-time jobs performing headquarters or research and development-related functions and services
- Investment Tax Credit South Carolina allows manufacturers locating or expanding in South Carolina a one-time credit against a company’s corporate income tax of up to 2.5% of a company’s investment in new production equipment.
- Research & Development Tax Credit – In order to reward companies for increasing research and development in a taxable year, South Carolina offers a credit equal to 5% of the taxpayer’s qualified research expenses as defined in Section 41 of the Internal Revenue Code. The credit taken in any one taxable year may not exceed 50% of the company’s remaining tax liability after all other credits have been applied.
- The Jobs Tax Credit is a valuable financial incentive that rewards new and expanding manufacturing, processing, agricultural packaging, warehousing and distribution, research and development, agribusiness operations and qualifying technology companies for creating jobs in South Carolina.
- Five-Year Property Tax Abatement By law, manufacturers (investing $50,000 or more) and distribution or corporate headquarters facilities (investing $50,000 or more and creating 75 new jobs in Year 1) are entitled to a five-year property tax abatement from county operating taxes. This abatement usually represents an offset of up to 20% to 50% of the total millage, depending on the county. The abatement does not include the school portion of the local millage.
- Corporate Income Tax Moratorium for companies creating net new jobs in some economically distressed counties in South Carolina. Companies that qualify will be able to entirely eliminate their state corporate income tax liability for a period of either 10 or 15 years. At least 90% of the company’s total investment in South Carolina must be in a county where the unemployment rate is twice the state average. The length of the moratorium depends on the number of net new full-time jobs created. Companies creating at least 100 net new full-time jobs in a five-year period qualify for a 10-year moratorium, and companies creating at least 200 net new full-time jobs in a five-year period qualify for a 15-year moratorium. The moratorium period begins once a company meets the required job target.
- South Carolina supports new and expanding industry with a wide range of valuable exemptions to the sales tax (state and local) including machinery, pollution control equipment, packaging materials, construction materials, technology intensive materials, recycling equipment, and datacenter materials.
- South Carolina exempts sales tax on the gross proceeds of the sales of tangible personal property where the seller, by contract of sale, is obligated to deliver to the buyer, an agent of the buyer, or a donee of the buyer, at a point outside of South Carolina or to deliver it to a carrier or to the mail for transportation to a point outside of South Carolina.
