South Carolina has some of the highest business property taxes in the Southeast. The state generally taxes land, buildings, machinery and equipment, and furniture and fixtures, but does not tax inventory, pollution control equipment, intellectual property, and other assets.
To reduce the effect of its high business property tax rates, and to make the state a more competitive environment for business, South Carolina offers a property tax incentive and tax savings for manufacturers, and certain other businesses, investing at least $2.5 million over a five year period in the state ...
The South Carolina Infrastructure and Economic Development Reform Act, 2017 Act 40, was recently enacted and is designed to enhance South Carolina's economic competitiveness. The Act, commonly referred to as the gas tax bill, increased the South Carolina gas tax to pay for infrastructure improvements. In addition, the Act provided several tax credits and incentives, including a new property tax exemption for manufacturers.
The Act provides an exemption equal to 14.2857% of the property tax value of manufacturing property. S.C. Code § 12-37-220(B)(52)(a). The exemption is ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts mandatory surveys to collect information on direct investment. There are three (3) specific surveys which track "out-bound" foreign investment: a quarterly survey, an annual survey, and a 5-year benchmark survey. The purpose of the quarterly survey is to report positions and transactions between a U.S. reporter and its foreign affiliates. The purpose of the annual survey is to report annual financial and operating data of the U.S. reporter and its foreign affiliates. The benchmark surveys are ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts mandatory surveys to collect information on direct investment. There are three (3) specific surveys which track "out-bound" foreign investment, a quarterly survey, an annual survey, and a 5-year benchmark survey. The purpose of the quarterly survey is to report positions and transactions between a U.S. reporter and its foreign affiliates. The purpose of the annual survey is to report annual financial and operating data of the U.S. reporter and its foreign affiliates. The benchmark surveys are ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts mandatory surveys to collect information on direct investment. There are three (3) specific surveys which track "out-bound" foreign investment: a quarterly survey, an annual survey, and a 5-year benchmark survey. The purpose of the quarterly survey is to report positions and transactions between a U.S. reporter and its foreign affiliates. The purpose of the annual survey is to report annual financial and operating data of the U.S. reporter and its foreign affiliates. The benchmark surveys are ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new direct investment and then applicable quarterly, annually, and within 5-year benchmark surveys.
The initial five blog posts in this series summarized the applicable reporting and survey requirements for foreign investment into the United States. The next blog posts in this series now focus on the reporting and survey requirements where U.S. companies make "out-bound ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new in-bound direct investment, and then applicable quarterly, annual, and 5-year benchmark surveys. The purpose of the new foreign direct investment survey is to capture new investment transactions when a foreign direct investment relationship is created. The purpose of the quarterly survey is to report positions and transactions between a U.S. affiliate and its foreign ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new in-bound direct investment, and then applicable quarterly, annual, and 5-year benchmark surveys. The purpose of the new foreign direct investment survey is to capture new investment transactions when a foreign direct investment relationship is created. The purpose of the quarterly survey is to report positions and transactions between a U.S. affiliate and its foreign ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new in-bound direct investment, and then applicable quarterly, annual, and 5-year benchmark surveys. The purpose of the new foreign direct investment survey is to capture new investment transactions when a foreign direct investment relationship is created. The purpose of the quarterly survey is to report positions and transactions between a U.S. affiliate and its foreign ...
The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new in-bound direct investment, and then applicable quarterly, annual, and 5-year benchmark surveys. The purpose of the new foreign direct investment survey is to capture new investment transactions when a foreign direct investment relationship is created. The purpose of the quarterly survey is to report positions and transactions between a U.S. affiliate and its foreign ...
Businesses making investments in the United States, directly or indirectly, are required to report this investment to the United States government. This "in-bound" investment is reported to the United States Department of Commerce, through its Bureau of Economic Analysis (BEA). This is the first in a series of posts on the subject.
The BEA promotes a better understanding of the U.S. economy by preparing official economic statistics. These statistics provide accurate and relevant economic information that helps gauge the performance of the U.S. economy and the role of the U.S. in ...
The South Carolina Department of Revenue (the "Department" or "DOR") issued SC Revenue Ruling #16-12 on December 16, 2016. The ruling provides guidance to manufacturers on property tax return filings, assessment procedures, and payment obligations. The ruling focuses primarily on the procedural aspects applicable to a manufacturer's property tax obligations as opposed to substantive provisions used to determine a manufacturer's property tax liability.
While a taxpayer's liability for property tax under general South Carolina law is determined based on property the ...
South Carolina offers a wide variety of economic development incentives to businesses seeking to locate or expand in the state. This incentive array focuses on certain types of businesses the state wishes to attract. One such business is the warehouse and distribution facility.
Like all states, the State of South Carolina, and its local government bodies (counties and cities), impose a number of different taxes on businesses, including a state income tax, sales and use taxes, property taxes, and local business license taxes. The South Carolina General Assembly and local ...
Businesses seeking to locate or expand operations in South Carolina may be eligible for one or more types of grant funding through the State of South Carolina. Grants are designed to be a reimbursement mechanism, where the state will reimburse the business for certain project-related costs (e.g. land, buildings, roads, and infrastructure). The state often funds the grant to the local county government in which the project is located, and the applicable county government then administers the grant for the business.
Grant funding is discretionary, and may be in addition to, or in lieu ...
South Carolina has some of the highest business property taxes in the Southeast. The state generally taxes land, buildings, machinery and equipment, and furniture and fixtures, but does not tax inventory, pollution control equipment, intellectual property, and other assets.
To reduce the effect of its high business property tax rates, and to make the state a more competitive environment for business, South Carolina offers a property tax incentive and tax savings for those businesses investing at least $2.5 million over a five year period in the state. This incentive is known as the ...
While South Carolina has low income taxes, and comparatively low sales taxes as well, the state makes up for this by having some of the highest business property tax rates in the Southeast. These property taxes are generally levied on the land, buildings and personal property (excluding inventory) of a business in the state.
South Carolina law does authorize its counties, which bill and collect the state's property taxes, to enter into property tax incentive arrangements with businesses, which can reduce property taxes. These property tax incentive arrangements generally require ...
On May 23, 2016 the South Carolina Textiles Communities Revitalization Act was amended to remove a fifty percent cap applicable to the income tax credit provided by the Act. L. 2016, H5009. This taxpayer-friendly amendment enhances the value of the credit by accelerating the time period for claiming the credit. The amendment applies to credits claimed for income tax year 2016, regardless of when the credit was earned.
The South Carolina Textiles Communities Revitalization Act provides financial incentives for the rehabilitation, renovation, and redevelopment of abandoned ...
Sales Tax: In South Carolina, a 6% sales tax is imposed upon every person engaged within this State in the business of selling tangible personal property and other types of goods and services sold at retail. Voters in various South Carolina counties have approved an additional 1 - 2.5% additional tax assessment ("Local Option Sales Tax") where the additional proceeds are applied by the county for infrastructure improvements or rollback of property taxes. This can bring the South Carolina sales tax to 8.5% in areas of the state.
Use Tax: South Carolina also imposes a complimentary 6% use ...
South Carolina offers many statutory and discretionary incentives to promote capital investment and job creation in our state. The Job Development Credit ("JDC") is a discretionary credit, applied through and approved by the South Carolina Coordinating Council for Economic Development ("Council"), which is available to a new or expanding business making capital investment and creating new jobs in the state.
The JDC will reduce a business's state employee withholding tax liability (refundable only to the extent of withholding actually paid) as reimbursement of the cost of ...
On February 16, 2016, a new income tax credit for taxpayer's who construct, purchase, or lease solar energy property was enacted, and is effective for income tax years beginning after 2015. L. 2016, H3874 (to be codified at S.C. Code § 12-6-3770). The credit is scheduled to sunset on December 31, 2017. The credit is equal to 25% of the cost, including installation cost, of solar energy property. The maximum credit that can be claimed is $2,500,000. The credit is claimed over five years in equal annual installments. To qualify for the credit, the solar energy property must be located on the ...
South Carolina offers multi-state companies an alternative method of allocating and apportioning their income as an incentive for planning new facilities or expanding existing facilities in the State. Generally, a company that transacts or conducts business partly within and partly outside South Carolina is subject to income tax based on the portion of its business carried on in the State. The portion of a company's income carried on in South Carolina is determined by allocation and apportionment. The law requires that certain classes of income, less related expenses, be ...
The South Carolina Economic Impact Zone Community Development Act of 1995 established an income tax credit for qualified manufacturing and production facilities. The credit is designed to encourage capital investment in the state through the formation of new businesses and the retention and expansion of existing businesses. Known as the "investment tax credit", the credit was initially limited to businesses making qualified investments in 27 designated counties in South Carolina, but has been expanded statewide.
The credit applies for qualified manufacturing and ...
South Carolina provides an income tax credit to a taxpayer who invests in motion picture related projects. Specifically, the state provides a credit equal to 20% of the cash invested by a person in a company that: (1) develops or produces a qualified South Carolina motion picture project or (2) constructs, converts, or equips a motion picture production facility or post-production facility in South Carolina. Key requirements of each credit are:
- Motion Picture Project Credit
- The credit is earned when cash only is spent. This credit, when combined with a taxpayer's other South ...
South Carolina provides a tax credit to corporations against the state corporate income, or state corporate license fees, equal to 20% of the qualifying costs of establishing a corporate headquarters in South Carolina, or expanding or adding to an existing corporate headquarters. The credit is made up of two parts, the real property costs and the personal property costs. Key Features of the credit are:
- A corporation may qualify for only the real property portion of the credit, or may qualify for both the real and personal property portions of the credit.
- Any unused credit may be carried ...
Update: As of June 16, 2016 all community development tax credits have been claimed.
South Carolina provides valuable tax incentives to people who support Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs). A 33% credit is provided for each dollar invested in or donated to a certified CDC or CDFI. S.C. Code § 12-6-3530. This credit is commonly referred to as the community development tax credit.
The community development tax credit was enacted in 2000 and is scheduled to sunset on June 30, 2020. A total of $5 million in credits are ...
South Carolina offers a statutory incentive to new and expanding businesses that create jobs in our state. The Job Tax Credit ("JTC"), codified in S.C. Code Ann. § 12-6-3360, permits certain businesses to reduce their corporate income tax liability annually by a maximum of 50%. Any unused credit may be carried forward for up to 15 years. There are three types of JTCs: (1) the "traditional" annual job tax credit, (2) the "annual" small business job tax credit, and (3) the "accelerated" small business job tax credit. This blog will address the "traditional" JTC only.
To qualify for JTC, a ...
South Carolina offers a broad range of tax and financial incentives to encourage new and existing businesses to open or expand operations in the state. This is the first in a series of blogs which will review these lucrative incentives and how they function. This blog address the players in economic development in South Carolina, from the Department of Commerce to the county economic development alliances.
- Department of Commerce
The South Carolina Department of Commerce ("DOC") is overseen by Secretary of Commerce Bobby Hitt, who was appointed by Governor Nikki Haley. DOC is the ...
Rehabilitating or renovating an existing building can often be more expensive than greenfield construction. South Carolina provides several tax credits to encourage the use of abandoned buildings. The tax credits are available for the renovation or rehabilitation of qualifying buildings which have been abandoned. Recently issued guidance by the South Carolina Department of Revenue provides guidance on:
- Abandoned Building Income Tax Credit (SC Rev. Rul. #15-7)
- Statutes: Title 12, Chapter 67
- Form to Claim: TC-55
- Repeal Date: December 31, 2019
- Textile Mill Income Tax Credit (SC ...
On July 24, 2013 the South Carolina Supreme Court issued its opinion in the case of Centex International, Inc. v. South Carolina Department of Revenue, Opinion No. 27288. In a 3-2 decision, the Court found that a partnership did not qualify for the infrastructure tax credit and that its corporate owners could not claim the infrastructure tax credit. The partnership clearly incurred infrastructure expenses, but the Department of Revenue argued that only a corporate taxpayer was entitled to earn and claim the credit. The Court agreed.
The Court framed its analysis by reciting general ...
On June 11, 2013 the "South Carolina Abandoned Buildings Revitalization Act" was signed into law by the Governor. The Act provides new incentives for the rehabilitation, renovation, and redevelopment of abandoned buildings in South Carolina. Taxpayers meeting the requirements of the Act can receive a tax credit equal to 25% of the cost of rehabilitating property against either (1) state income taxes and corporate license fees, or (2) property taxes.
In order to qualify for the credit a taxpayer must rehabilitate an abandoned building for commercial use. A building with an ...