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 ...
South Carolina offers many tax credits that can be used to reduce or even eliminate state income taxes and license fees. Examples of these tax credits include the new jobs credit, infrastructure credit, corporate headquarters credit, abandoned buildings credit, biomass resource credit, research credit, community development credit, venture capital credit, historic rehabilitation credit, and conservation easement credit (and many others).
A taxpayer will sometimes seek to claim more than one state tax credit at the same time, which raises the question of how the tax credits ...
One of the issues attorneys assess in evaluating an appropriate estate plan for a client is whether a revocable trust, also known as a living trust, is the best vehicle for implementing the client's wishes. The revocable trust is frequently used with a Last Will and Testament to direct assets to intended beneficiaries but may also minimize the expense and delays of the probate process. A revocable trust does not change the disposition of the estate, but in many cases the trust is a more efficient path to achieve the transfer of assets.
As with all legal issues, many factors play a role in this ...
One of the biggest challenges for many clients is keeping up with their tax advisors while he or she is explaining the details of a particular tax matter. For instance, the term “recapture” sounds more like a rule out of a game of capture the flag than the word used to denote a certain type of income recognition. While there is certainly too much tax lingo to create an exhaustive list on this blog, perhaps the definitions below will help you get more out of your next tax representation, and at the very least, will help you hide that “Bueller?” look on your face.
- Adjusted basis – The cost ...
Property taxes are the oldest taxes levied in the United States and the only major tax imposed by all 50 states. Property taxes are the primary source of revenue for local government entities in South Carolina. In South Carolina per capita property tax collections are almost twice as high as income taxes.
The amount of property taxes you pay is determined by the classification of your property, the tax rate set by your local government entity, and the value of your property. The classification schedules are set by law, and range from 4% for owner-occupied residential real estate to 10.5 ...
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 ...
The South Carolina General Assembly approved a law on June 4, 2015 allowing the South Carolina Department of Revenue to offer an amnesty program to taxpayers in the state who have not filed tax returns and/or owe state taxes. The law becomes effective on the Governor's signature. Adoption of the law was advocated by the Department of Revenue.
The new law, South Carolina Code Section 12-47-397, is designed to encourage voluntary compliance and payment of taxes owed to the State. The law authorizes the South Carolina Department of Revenue to establish an amnesty program and to designate ...
If a corporate taxpayer receives a statutory notice of deficiency (i.e. a "90-day letter") from the Internal Revenue Service ("IRS"), one of its options is to petition the United States Tax Court for a redetermination of the proposed deficiency. A statutory notice of deficiency tells a taxpayer the IRS has determined that for one reason or another, the taxpayer owes more tax than what they previously reported. Under the Internal Revenue Code ("IRC"), the taxpayer may file a petition with the Tax Court for a redetermination of the deficiency within 90 days (or 150 days if addressed to a ...
South Carolina employers are required to withhold income taxes from employee wages, and to pay these withheld taxes to the South Carolina Department of Revenue (DOR). South Carolina businesses are also required to pay sales taxes to DOR on sales of goods to their customers, and the business can collect the sales tax from the customer. When an employer or business fails to pay employee tax withholdings or collected sales taxes to DOR, individual(s) associated with the business may be held personally liable for these unpaid taxes as a "responsible party". These responsible party taxes ...
The income of a multi-state business subject to tax in South Carolina is ordinarily determined by allocating certain income to South Carolina and apportioning the remainder of the business's income based on the ratio of South Carolina sales to gross sales everywhere. However, the law permits a taxpayer or the South Carolina Department of Revenue to use an alternative method when the ordinary allocation and apportionment rules do not fairly represent the extent of a taxpayer's business activities in South Carolina.
On December 23, 2014 the South Carolina Supreme Court issued an ...