south carolina moving expenses tax deduction

The Coordinating Council for Economic Development determines whether a company is eligible for the credit.

Any excess credit earned may be carried forward and claimed against income taxes in the next five taxable years. The maximum amount of tax credits allowed to all qualifying taxpayers may not exceed $8 million for each calendar year. The credit allows eligible companies to claim a tax credit against their state income tax or withholding tax. The development categories of counties in South Carolina are reviewed each year by the state and re-categorized annually in the five-tier system based upon the unemployment rate and the number of persons living below poverty in each of the state’s 46 counties. Specifically, an additional $1,000 per net new employee can be added to the current $750 (if 99 employees or fewer) or $1,500 (if employment at 100 or above) per net new employee available in a developed county, like Charleston County, raising the total to $1,750 and $2,500 respectively.Ĭharleston County has utilized this incentive in cases where a company relocation or expansion entails substantial new employment creation. This special designation can be made by a county pertaining to specific business properties, enabling the level of job tax credits for which the company is eligible to increase. Charleston County is currently a Tier 1 County (developed) which, in 2011, allows a credit of $1,500 per year for each new job created (the credit is $750 per year for each new job for companies with less than 99 employees). Credits can be used to offset up to 50% of South Carolina income tax in a single year, and unused credits may be carried forward for 15 years. The value of these credits is determined by the development tier of the county.

The jobs tax credit is available for a five-year period beginning with year two (year one is used to establish the created job levels) if the jobs are maintained. In certain limited instances, service and retail facilities may also be eligible andĬreate a monthly average of 10 net new full-time jobs at the facility in a single taxable year. If a company has fewer than 99 employees worldwide, it may be eligible for a jobs tax credit if it creates a monthly average of two or more net new full-time jobs in a single taxable year. To be eligible for jobs tax credits, a company must:Įstablish or expand a manufacturing, distribution, processing, warehousing, research and development, tourism, or technology intensive facility within the state. South Carolina provides companies that create new jobs in the state a tax credit against their South Carolina income tax liability. Commerce Department project manager will be enlisted to talk with company officials, review the opportunity and potentially spearhead the application process. To apply for JDC benefits, a company must contact the host county and inform it of a competitive relocation or expansion project, and a S.C. The JDC benefits are available over a 10-year period, and rebates begin as soon as a company has achieved its agreed upon hiring targets, as enumerated in its Revitalization Agreement. A company within a developed county like Charleston County is allowed to retain 55% of calculated benefits. The JDC benefits are calculated based upon the wage levels being paid for different job categories, with a range of 2-5% applying to the lowest paying tiers and the highest paying tiers respectively and utilizing a 2,000 hour work year. Coordinating Council for Economic Development (SCCCED) and must enter into a Revitalization Agreement with the state enumerating the cost items on which JDCs can be spent.

Companies that are offered JDCs apply to the S.C. Eligible expenses can include the acquisition of land, site preparation, public infrastructure, operating leases with terms of at least 5 years, some employee relocation expenses and employee training, but do not include removable assets such as machinery and equipment. The Enterprise Zone Act created JDCs, which are targeted rebates of the state employee withholding tax returned to companies for reimbursement of eligible expenses associated with relocation or expansion within South Carolina. Commerce Department as a closing tool to leverage competitive site location decisions, including expansions by existing industry that are considering alternate sites in other states. South Carolina Tax Incentives for Economic Development – SC Department of RevenueĪ lucrative discretionary financial incentive known as “job development credit” (JDC) is made available by the S.C.

South carolina moving expenses tax deduction