South Carolina offers a range of incentives designed to support businesses in a variety of sectors, including manufacturing, technology, tourism, and energy.  The state’s incentive programs are aimed at fostering economic growth, attracting investment, and encouraging job creation.  Below are some of the key incentives available for businesses operating in South Carolina.

South Carolina Job Tax Credit

Overview

The South Carolina Job Tax Credit is designed to encourage businesses to create jobs in the state.  The program provides tax credits to businesses that create new full-time jobs in certain industries and areas of South Carolina.

Eligibility

• The business must create a minimum number of jobs, typically 2 or more, in a designated area of South Carolina.

• The business must operate in an eligible industry, including manufacturing, distribution, and high-tech sectors.

• The new jobs must meet certain wage thresholds set by the state.

Incentive Value

• Businesses can receive tax credits worth up to $1,500 per new job created in eligible areas.

• Credits can be carried forward for up to 15 years if they are not fully utilized in a given tax year.

Application Process

Businesses must apply through the South Carolina Department of Revenue (DOR), submitting job creation projections and other required documentation.

South Carolina Research and Development Tax Credit

Overview

The South Carolina Research and Development (R&D) Tax Credit incentivizes businesses to engage in R&D activities by offering a tax credit based on qualified research expenses.  The program is designed to support innovation and technological advancement in the state.

Eligibility

• The business must be conducting research and development activities in South Carolina.

• The R&D activities must be aimed at developing or improving products, processes, or software.

Incentive Value

• The tax credit is worth up to 5% of eligible R&D expenditures in South Carolina.

• The credit is applied against South Carolina corporate income taxes.

Application Process

Businesses must apply through DOR, providing detailed documentation of their R&D activities and expenses.

South Carolina Economic Development Set-Aside Fund

Overview

The South Carolina Economic Development Set-Aside Fund provides financial support to businesses that are planning to locate or expand in the state.  The fund is designed to support projects that create jobs and investment in targeted areas.

Eligibility

• The business must be located in an economically distressed area or an area with high unemployment.

• The business must be making a significant investment in new facilities or equipment.

Incentive Value

• Grants and low-interest loans are available, with funding amounts determined by the size of the project and the number of jobs created.

• The fund provides up to $2 million in financial assistance for qualifying projects.

Application Process

Businesses must apply through the South Carolina Department of Commerce (DOC), submitting project details, financial projections, and job creation estimates.

South Carolina Manufacturer’s Tax Credit

Overview

The South Carolina Manufacturer’s Tax Credit is aimed at supporting manufacturing businesses in the state.  This program offers tax credits for investment in new equipment and facilities that support the growth of manufacturing operations.

Eligibility

• The business must be in the manufacturing industry and make investments in new or expanded facilities.

• The business must create a minimum number of jobs and meet certain wage criteria.

Incentive Value

• The credit is worth up to 5% of the business’s investment in new equipment and facilities.

• Businesses can carry the credit forward for up to 15 years.

Application Process

Businesses must apply to the DOR, providing documentation of their investments and job creation efforts.

South Carolina Port Tax Credit

Overview

The South Carolina Port Tax Credit is designed to encourage businesses to use South Carolina’s ports for their shipping and logistics needs.  This program provides tax credits to businesses that increase their use of port facilities in the state.

Eligibility

• The business must be engaged in shipping or importing goods through South Carolina’s ports.

• The business must increase its volume of shipments over a specified threshold.

Incentive Value

• The credit can be worth up to $3,500 per eligible container handled through the state’s ports.

• The program is designed to incentivize businesses to increase their shipping activity, thus supporting South Carolina’s port infrastructure.

Application Process
Businesses must apply through DOR, providing details on their shipping volumes and port usage.

South Carolina Renewable Energy Tax Credit

Overview

The South Carolina Renewable Energy Tax Credit incentivizes businesses that invest in renewable energy projects, including solar and wind energy systems.  This program is designed to support the growth of clean energy industries in the state.

Eligibility

• The business must invest in qualifying renewable energy systems, such as solar panels or wind turbines.

• The energy systems must be used for business operations within South Carolina.

Incentive Value

• The credit is worth up to 25% of the total investment in renewable energy systems.

• The maximum credit amount is $1 million for solar energy systems and $500,000 for other renewable energy projects.

Application Process

Businesses must apply through the South Carolina Energy Office, providing detailed project specifications and financial documentation.

South Carolina Tourism Infrastructure Fund

Overview

The South Carolina Tourism Infrastructure Fund provides financial assistance to businesses that invest in tourism-related projects.  The fund supports projects that enhance the state’s tourism infrastructure, including hotels, attractions, and event spaces.

Eligibility

• The business must be involved in the tourism industry or plan to develop tourism-related infrastructure.

• The project must contribute to increasing tourism and improving the state’s tourism offerings.

Incentive Value

• The fund offers grants and low-interest loans, with funding amounts determined by the size and scope of the project.

• The fund can cover up to 50% of project costs, with a maximum grant of $1 million.

Application Process

Businesses must apply to the South Carolina Department of Parks, Recreation and Tourism, submitting project plans and financial information.

South Carolina Community Development Block Grant (CDBG)

Overview

The South Carolina CDBG program offers grants to businesses and communities in economically distressed areas.  The program supports projects that create jobs, improve infrastructure, and revitalize communities.

Eligibility

• The business must be located in a designated low-income or distressed area of South Carolina.

• The business must demonstrate that the project will create or retain jobs for local residents.

Incentive Value

• Grants can cover up to 50% of the total project costs.

• Funding amounts vary depending on the size and impact of the project.

Application Process

Businesses must apply through DOC, providing project details, financial projections, and job creation estimates.