South Carolina's specialty is its terrific business environment that stimulates growth by providing fantastic performance incentives. These incentives are in the form of tax exemptions for the corporations if the business uses certain business credit offerings designed by the government. These credit policies are effective in eliminating the entire tax liabilities on the organizations when used potentially.
The incentives are essentially performance-based and aim at creation of jobs and increasing investment levels. These special and discretionary incentives are offered by both by the state and local Governments depending on the types of case. Several such incentives are enlisted below:
Job Tax Credits: This is a reward system generated for encouraging expansion of the existing companies in South Carolina. To qualify for such a credit system, the companies need to create and retain particular number of job opportunities in a taxable year. Only the businesses engaged in manufacturing, warehousing, distribution, research and development, processing, and inventing or modifying technological applications are eligible for this credit category.
Corporate Headquarters Tax Credit: This credit facility compensates the corporations for the costs that they incurred to relocate their headquarters. The government provides a 20% credit on the actual value of the new property to the companies looking at relocation of facilities. This credit facility can be used against either license fee or income tax. They can eliminate a company's income tax liabilities for ten years starting from the sanction date.
Companies availing for this credit facility must be in a position of creating at least 40 new jobs on full-time basis for engagement in the headquarters for administration and execution of work processes or for research and development. The facility, for availing such a credit, must be a place where majority of the company's employees are based. It must serve a regional or national base for the company's legal and financial works.
Enhanced Corporate Headquarters Tax Credit: Such a credit facility covers a portion of a company's costs related to establishment of its headquarters. It can contribute approximately 20% to the actual cost of the new property. Such credit facility is available to the companies only when they are purchasing the property to make it their headquarters or to utilize the space for research and development of their products.
The company also needs to create at least 75 jobs (20 jobs at the staff level) on a permanent basis for works related to administration or research and development. The compensation for the jobs created under such credit policy for the employees must be exceeding 1.5 times, on an average, the per capital income of the state at the time when the jobs were created.