Incentives
South Carolina is one of the best states for business
A wide range of economic incentives, together with competitive tax rates, provide an exceptional economic climate for business in the Charleston region. Companies will want to contact the South Carolina Department of Commerce to learn more about the various programs which may apply. www.SCCommerce.com.
The site has the opportunity for Fee in Lieu of Taxes (“FILOT”) and Special Source Revenue Credit (“SSRC”). The FILOT fixes the taxes for a period of time. The SSRC reduces the taxes by a percentage for a certain time.
FEE IN LIEU OF PROPERTY TAX
In South Carolina, counties levy property taxes. Companies with qualifying investments may be able to negotiate a fee in lieu of property taxes, which can greatly reduce their liability by decreasing assessment ratios and fixing millage rates for a specified term of years. This incentive is discretionary and may only be granted by the County in which the project is located. There are multiple types of fee arrangements that vary as to the length of the incentive and the amount of the incentive.
SPECIAL SOURCE REVENUE CREDIT
A County may grant a company a credit against its property taxes or fee in lieu of property taxes in order to offset costs related to the company’s infrastructure expenditures. The incentive is discretionary and may only be granted by the county where the project is located.
• One of the lowest corporate income tax rates in the Southeast.
• A business-friendly method to determine income, subject to the state’s corporate income tax rate.
• Numerous credits and methods to reduce and eliminate corporate income tax liability.
