09.22.14 |
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South Carolina’s Job Tax Credit Supports In-State Job Creation

South CarolinaThe South Carolina Job Tax Credit is an incentive available to various industries operating in South Carolina, including manufacturing, banks, warehousing, distribution and certain retail establishments, among others. The credit is designed to encourage businesses to create new jobs over several years and is enhanced for jobs created in economically distressed areas of the state.

The Job Tax Credit, which may be claimed against South Carolina corporate income tax, insurance premium taxes or bank taxes, ranges from $1,500 to $8,000 for each new full-time job created in state, depending on the ranking of the county in which the business is located. The county rankings, or tiers, are determined every year by the South Carolina Department of Revenue, utilizing data from the state Department of Employment and Workforce and the United States Department of Commerce. Counties with the highest unemployment rates and lowest per capita income are assigned higher credit amounts.

To be eligible for the incentive, a business must create a monthly average of 10 full-time jobs, with some exceptions for hotels and other qualifying service-related facilities. If the increase in employment falls below this minimum in any year during the credit period, the credit is disallowed.

Businesses may utilize the credit for a period of five years, starting in the year following the creation of the job, provided the job is maintained. If additional new full-time jobs are created during these five years, a new five-year period credit is created. The credit is limited to 50 percent of the respective tax liability each year; however, a 15-year carryover of excess credit amounts is available.

Enhanced credit amounts are available for taxpayers located in certain business or industrial parks or on property subject to certain criteria related to voluntary brownfields cleanup.

For purposes of the credit, a “full-time job” is one generally requiring a minimum of 35 hours per week, and a “new job” is one created in South Carolina at the time a new facility or expansion of an existing facility is initially staffed.


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