FINANCIAL INCENTIVES
Jobs Creation Tax Credit
South Carolina provides a corporate income tax credit for new
jobs created by companies locating a new business here, or expanding existing facilities.
Qualifications:
Companies must be involved in manufacturing, processing,
warehousing, distribution, research and development, tourism, or a corporate headquarters
facilities;
Create a minimum of 10 new jobs, or the equivalent of 2 part-time
jobs; Service related facilities are eligible but are required to create 250 new jobs, or
the equivalent of 2 part-time jobs.
Application:
The credit can be used up to one-half of the corporate income tax
liability, with a 15 year carry-forward on any unused portion. The credit applies
for each new full-time job for five years beginning with years 2 through 6.
Value:
The tax credit in Greenville County is $1,500 per job, with an
additional $1,000 for any property located in a multi-county park.
Local Property Tax Abatement
South Carolina provides a property tax abatement for new or
existing facilities making new capital investments in the state.
Qualifications:
A company must be involved in manufacturing, research and
development, corporate headquarters, office or distribution/warehouse facilities;
Invest at least $50,000 in new capital expenditures in one year;
and
Distribution, warehouse, headquarters and office operations must
also create a minimum of 75 new jobs, or 150 equivalent part-time jobs.
Application:
The abatement is given for 5 years: years 2-6;
The company will still pay the school portion of their property
taxes; and
Concurrent abatements may occur if repeated yearly investments
are made.
Value:
This will result in approximate savings of 25%-35% on annual
property taxes for real and personal property. The abatement for 1997-1998 is 65 mills.
Property Tax Calculation Example:
$1 Million Investment (Land, Building and Equipment)
x 10.5% Assessment Ratio
$ 105,000 Assessed Value
x .200 Example Millage Rate
$ 21,000 Annual Tax
Property Tax Abatement Example:
$1 Million Investment (Land, Building and Equipment)|
x 10.5% Assessment Ratio
$ 105,000 Assessed Value
x .065 Millage Abatement
$ 6,825 Annual Abatement
Estimated annual property tax for year one: $21,000-$6,825=
$14,175
Property Tax Exemption
All inventories (raw materials, work-in-progress and finished
goods)
All intangible property
All pollution control equipment
Fee-in-Lieu of Property Taxes
A company may negotiate, with Greenville County Council (through
the Greater Greenville Chamber of Commerce), a Fee-In-Lieu of property taxes agreement.
This incentive is offered to new companies and existing companies that are expanding in
Greenville County.
Qualifications:
A new or existing company must be a manufacturer,
warehouse/distributor or an office/headquarters;
A company must have a minimum capital investment of $10 million
in real and personal property; and
There is no minimum job requirement, but is subject to review by
the County Council.
Application:
The Fee incentive is designed so that companies will have lower
property tax payments over the life of the fee.
Value:
A company may negotiate a reduction in the assessment rate from
the usual 10.5% down to a possible minimum of 6%. In some unique cases, the fee may be
negotiated to as low as 4%.
A company may also negotiate to lock-in the millage rate for the
life of the agreement.
