TAXES & INCENTIVES
In South Carolina and Orangeburg County, new and expanding business concerns will find a tax structure that favors and supports economic growth. To assure equitable local treatment, the South Carolina Department of Revenue determines the value of taxable real and personal property for manufacturing, distribution, corporate headquarters and corporate office facilities. The assessment rate statewide is 10.5 percent of market value for manufacturer’s real property, while other business real property is assessed at 6.0 percent. Manufacturing and business personal property is assessed at 10.5 percent of depreciated value.
To encourage investment in the state, South Carolina offers a variety of incentive programs to new and expanding industries. Classified as a “least developed” county, Orangeburg County offers maximum benefit for these programs. Job tax credits, job development fees and other bottom line assistance programs carry maximum weight in Orangeburg. In addition, the county has adopted a policy for, and implemented a number of, fee-in-lieu-of tax agreements. If a company qualifies, for five years following start-up, manufacturers are exempt from county ordinary taxes, except school and special purpose taxes. In addition, the exemption can be renewed for an additional five years when plant expansions, add-ons or other improvements exceed $50,000.
Other tax incentives include no tax on intangibles, no inventory taxes and no taxes on goods moving in interstate commerce. Machines used in manufacturing to prevent or abate pollution are exempt from both property and sales taxes. South Carolina also has no wholesale sales tax; electricity and fuel used in manufacturing materials that become an integral part of the finished product are exempt from sales tax.
South Carolina offers corporate income tax credits to companies engaged in manufacturing, processing, warehousing, wholesaling, research and development, and to service-related industries when locating or expanding in the state and creating a minimum number of full-time permanent new jobs.