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Property Tax Abatement – Statutory
South Carolina provides property tax abatement to new or existing companies making new capital investments in the state to reduce tax burden when new assets are at their greatest value. This provides approximately 20 to 25% tax reduction annually for 5 years on new capital investment.
Requirements: - Invest greater than $50,000 in new capital expenditures in one year
- Company must be involved in manufacturing, research and development, corporate headquarters, office, or distribution/ warehouse facilities
- If other than manufacturer, must create at least 75 new jobs
- File tax return/PT-300 to SC Dept. of Revenue; deduction is automatic.
The abatement is given for 5 years – years 2 through 6 – and is a waiver of the county’s operating portion (58.5 mills) of property tax
Fee-in-Lieu of Property Tax
Fee-in-Lieu of Property Taxes allows companies to negotiate a long-tern property tax arrangement with the county in which it located. The agreement, which lowers the assessment ration and slows any growth in tax rates, provides companies with a predictable tax bill for up to 20 years.
Requirements:
- Company must be manufacturer, warehouse/distributor or an office/ headquarters
- Commit to significant new investment and new job creation (greater than $10 million over 5 years)
- Project must be competitive in nature
Industrial Revenue Bond – Negotiated
For small manufacturers, the lowest cost means to finance a new operation or an expansion due to tax-exempt status of the bond (loan.) Can be used for the acquisition of land, the construction of buildings, improvements to real property and the acquisition of new machinery. Cannot exceed $10 million in expenditures 3+/- years.
Job Development Tax Credits
Job Development Tax Credits are a discretionary incentive that can provide companies paying above per capita income levels in a community with a partial rebate of new employees’ withholding taxes for a period of 10 years. Qualifying companies creating a substantial number of new jobs and new investments can apply to the South Carolina Coordinating Council for Economic Development for approval. The amount the company can collect depends upon the wages paid and the company’s location. Companies applying in the state’s highest unemployment areas may be approved for 15 years.
Corporate Headquarters Credits – Statutory
South Carolina provides an income tax credit to partially reimburse companies relocating or expanding a corporate headquarter facility for real or personal property expenditures associated with the creation of new headquarters-related jobs.
Child Care Credits – Statutory
South Carolina offers companies a credit against state corporate income tax, bank tax, or premium tax credits to partially reimburse the costs associated with the start-up and long-term operation of a day care facility.
CATT
South Carolina’s Center for Accelerated Training (CATT) recruits, screens, tests and trains workers to meet the needs of new and expanding industry at virtually no cost to the company. This is a state-funded program that imposes no quotas on industry.
COST OF LIVING COMPARISON Third Quarter 2006
City 100% 16% 28% 8% 10% 5% 33% Comp Groceries Housingng Utilities Transp. Health Misc. Index Items Care Goods
Spartanburg, SC* 90.9 95.1 77.2 83.7 106.6 94.7 98.4 *4th quarter 2005 data Charleston, SC 99.0 103.1 97.4 99.4 91.2 112.2 99.4 Atlanta, GA 98.2 97.2 94.9 97.5 105.3 108.8 98 Los Angeles, CA* 156.1 127.7 236.0 106.4 119.4 117.4 110.3 *2nd quarter 2006 Boston, MA 139.5 122.7 173.2 131.8 114.4 137.6 106.3 Newark, NJ 127.9 117.4 165.3 109.1 108.3 106.3 115.2
Based on an index of 100.0 = Average Source: Appalachian Council of Governments 2006 Quarterly Cost of Living Index, ACCRA 1/07
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