Local, Regional, and State Incentives
The superior business climate and available incentives that support growing business help companies to minimize cost and maximize profits. South Carolina offers one of the lowest corporate taxes in the nation, highly competitive wages for workers, and low unionization.
There are a wide range of sales tax exemptions that will significantly reduce start-up and annual operating costs. The state Sales and Use Tax rate is 6 percent. Horry County assesses an additional 2 percent, and the city of Myrtle Beach assesses an additional 1 percent. Out-of-state sales are exempted. Use Tax credits are available for tangible personal property purchases made out of state.
- No State Property Tax
- No Wholesale Tax
- No Local Income Tax
- No Inventory Tax
- No Unitary Tax on world-wide profits
STATE SALES TAX INCENTIVES
Exemptions include state sales tax on:
- Manufacturing machinery and equipment
- Research and development machinery and equipment
- Repair parts
- Materials that will become an integral part of a finished product
- Electricity or other fuels used in the manufacturing process
- All pollution control equipment
- Packing materials
- Long distance telecommunications, including 800 service
- Material handling equipment for manufacturing and distributors investing $35 million or more
Corporate Income Tax Credits
- Jobs Tax Credit – For every job created in Horry County, businesses receive a jobs tax credit of $2,500 per job for five years. Unused credits can be carried forward 15 years.
- Multi-County Industrial Park – In South Carolina, counties may join together to form a “multi-county industrial park,” which raises the value of the Jobs Tax Credit by $1,000 per job.
- Corporate Headquarters Credit – To offset the costs of relocating or expanding corporate headquarters, the state provides credit equal to 20% of the development, construction, or direct lease costs during the first five years of operations.
- Enhanced Corporate Headquarters Credit – An Enhanced Corporate Headquarters Credit equal to 20% of the personal property costs of establishing the headquarters is offered to eligible companies when employee compensation levels exceed 1.5 times the state per capita income average.
- Research & Development Tax Credit – South Carolina offers a credit equal to 5% of the taxpayer’s qualified expenditures for research and development made in the state. The credit taken, in any one tax year, may not exceed 50% of the company’s remaining tax liability after all other credits have been applied. Any unused portion of the credit can be carried forward for 10 years from the date of the qualified expenditure.
- Corporate Headquarters Credit – A performance-based incentive, Job Development Credits(JDC) provides companies with funds to offset the cost of locating or expanding a business facility in the state by allowing them to use a portion of new employees’ withholding taxes for eligible project expenses. A company can collect the credit for up to 15 years.
- Port Volume Increase Credit – South Carolina provides income tax credits to qualifying companies that use state port facilities, and increase base port cargo volume by five percent over base year totals. To qualify, a company must have 75 net tons of non-containerized cargo or 10 loaded TEUs transported through a South Carolina port for their base year. Tax credits are limited to $8 million per calendar year.
- Economic Development Set-Aside Program – The primary business development tool for the CCED, this program provides funds for road or site improvements and other costs related to business location or expansion.
- Rural Infrastructure Fund – The Rural Infrastructure Fund (RIF) provides qualified counties in the state’s rural areas with financial assistance for infrastructure and other activities that enhance economic growth and development. The fund can also be used for job creation and product development.
Local & Additional Incentives
- Five-Year Property Tax Abatement – Manufacturers, distributors, and certain other types of businesses are exempt from the County Ordinary and County Operating Taxes for the first five years of operations. This results in an average of 30-35% reduction in both real and personal property taxes for the first five years.
- Fee In Lieu of Property Tax (FILOT)– The MBREDC has the authority to offer a FILOT to companies that meet the criteria. Any FILOT will be applied to new investments or expanding real and personal property and will not include existing property currently on the Horry County tax digest.
- Super and Enhanced Investment Fees – The minimum requirement for this incentive is a $140 million investment and 125 new jobs. This incentive reduces a company’s property tax assessment to 4% for up to 40 years.
- Special Source Revenue Bond (SSRB)– The minimum requirement for this incentive is a $20 million capital investment, 100 jobs, and the county average wage rate. An SSRB effectively bonds the revenue stream associated with an SSRC and provides companies with upfront cash. Essentially, an SSRB is a front-end reimbursement of a percentage of a company’s property taxes over time.
- Industrial Revenue Bonds – For qualifying projects and companies that obtain external letters of credit for collateral, Horry County agrees to assist by serving as a conduit for low-interest Industrial Revenue Bonds (IRBs).
- Horry County Closing Fund (HCCF) – Funds for the HCCF will be used to reimburse companies for eligible expenditures including, but not limited to: training, site work, relocation assistance, real property improvements, rent abatement, business license fees, and other eligible fees allowed under South Carolina law. These funds are in addition to the state grant. Only companies that invest a minimum of $2.5 million in Horry County, create a minimum of 35 new jobs at or above the County’s average hourly wage, and offer healthcare benefits to their employees in Horry County will qualify for this incentive.
- Expedited Permitting – Certain projects require commitment from local leadership to expedite permitting and plan review. To the extent allowed by local and state law, Horry County will commit to assist with expedited permitting as needed.