Dorchester County has the authority to negotiate property-tax based incentives; with County Council making final incentive approval. We can create customized incentive proposals on jobs and investment upon request. Companies may also take advantage of the following two potential 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 can be negotiated with the County and can reduce tax liability by nearly 42% for a 20-year period on new investment occurring in a five-year window. Qualifiers must be competitive manufacturers, warehouse/distributors, or office/headquarters. With the ability to lower the assessment ratio to nearly 5%, the approval process requires County Council approval and legal counsel to prepare ordinances and agreements on behalf of the company.
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:
1. 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%.
2. Job Development Credits (Discretionary)
As a manufacturer, 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. If approved, your company may be reimbursed for portions of land acquisition, building, site/building improvements, transportation facilities, public and private utility system upgrades, purchase/acquisition of ‘pollution control equipment,’ training facilities and apprenticeships.
3. 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.