South Carolina incentive legislation provides the ability for both state and local government to incent business and industry when new jobs are created and new investment occurs. More information on each item below is available by request.
State Corporate Income Tax:
- Corporate income tax rate is 6.0 percent.
- Corporations engaged in multi-state activity are taxed on the portion of income derived from doing business in SC.
- SC permits an extended recovery time for business losses with up to a 15-year carry forward loss period.
Sales & Use Tax:
- SC sales & use tax rate is 6 percent.
- Sales tax applies to all retail, leases, and rentals of tangible personal property, including the value of property purchased at wholesale and used or consumed by the purchaser, unless specifically exempt.
- Use tax based on the sales price of such property.
- SC counties can apply additional 1 to 2 percent local option sales & use tax.
State Intangible Personal Property Tax
- SC exempts all intangible property from local property taxation.
State & Local Property Taxes
- 2nd Lowest Property Taxes in SC.
- No State tax on real and personal property (local government levies property taxes).
- For manufacturers, real and personal property are both assessed at 10.5%.
- Non-manufacturers, 6% for real property and 10.5% for personal property.
SC Business License Fee (Franchise Tax)
- Annual fee paid to SC Department of Revenue.
- Rate is 1 mill per dollar of a proportion of total paid-in-capital and paid-in-surplus, plus $15
- Earned surplus (retained earnings) is not included in the base when calculating the fee
- Outside the state business, the fee is determined by apportionment with a minimum fee of $25
Local Business License Fees:
- Required Annual License Fee for Business License (Required for businesses and professionals)
- Local tax for specified types of business
SC Tax Incentives for Economic Development 2013
SC Tax Climate
