Incentives
Dorchester County recognizes that the taxing structure of a state is an important factor when deciding to locate or expand a business. Often, companies are unaware of available tax incentives that may reduce or eliminate tax liability. Learn about both Dorchester County and South Carolina incentives below.
County Incentives
Dorchester County has the authority to negotiate property-tax based incentives; with County Council making final incentive approval. Incentive proposals are based on job creation, capital investment, wages and project competitiveness. Companies, if eligible, may take advantage of the following potential property tax incentive programs:
Property Tax Abatement (Statutory)
South Carolina provides a property tax abatement to new or existing companies making a new capital investment. The abatement can result in a 20-25% annual reduction in property tax liability for a five-year period. To qualify, a company must be involved in manufacturing, research and development, corporate headquarters, or distribution -warehousing. If qualifying thresholds are met, the company will simply complete a PT-300 tax return from the SC Department of Revenue.
Fee-in-Lieu of Property Tax (Negotiated)
A Fee-in-Lieu-of-Tax (FILOT) agreement may be offered by the County. The agreement can reduce tax liability for a preset period of time by lowering the county assessment ratio and locking local millage. Qualifiers must be competitive manufacturers, warehouse/ distributors, or office/headquarters. If investment or jobs criteria is met, the agreement can drop the assessment ratio as low as 4%.
State Incentives
In South Carolina, the state administers corporate income and sales and use taxes, and counties levy property tax thus government’s authority ability to reward growth is tied to their mode of taxation. New and existing industries may be incentivized when new jobs are created and/or new capital investment occurs. There are two levels of incentives in our state outlined below:
Jobs Tax Credit (Statutory)
The Jobs Tax Credit is a valuable incentive that rewards new and expanding companies for creating jobs in South Carolina. In order to qualify, companies must create and maintain a certain number of new jobs (10+) in a taxable year. Applied on a per employee basis, Dorchester County currently attributes $1,500 per new employee to the company’s corporate income tax liability in South Carolina. By creating new jobs in Dorchester County, companies may earn annual credits that can be used for five years and offset state corporate income tax liability by up to 50%.
Job Development Credits (Discretionary)
Your company may qualify for Job Development Credits, which allows the state to assist a company in significantly reducing or completely offsetting certain approved capital expenditures over a 15-year period via a quarterly rebate of state withholdings tax. Job Development Credits are subject to wage-level eligibility, require a formal application with fee and are subject to approval by the S.C. Coordinating Council for Economic Development.
Other State Incentives
Other state incentives are available through the Coordinating Council for Economic Development. These incentives may include grants to assist with infrastructure improvements that facilitate economic development. Training opportunities for workforce development are also available through readySC.