Incentives

There’s no better place to do business than South Carolina and Lancaster County. The state offers a comprehensive package of incentives, and the corporate income tax rate of 5% is among the lowest in the Southeast. There is no state property tax or local income tax; no inventory, wholesale, or unitary tax on worldwide profits; and no sales tax on manufacturing machinery, industrial power, or materials for finished products. Your company may be eligible for a 5-year exemption from county ordinary property tax or a reduced fee in lieu of property tax.

 

The Lancaster County Economic Development Corporation can provide your company with a detailed incentive summary for your project.  In order to complete this document, we will need you to fill out a project questionnaire that provides details about the company, number of jobs to be created and/or transferred, average wages, and total investment.

 

Here are some other specific incentives your company may be eligible for, depending on the total amount of investment, job creation, and wages and benefits offered:

• A lowered corporate income tax rate of 2.5%.

• Property tax incentives that lower the assessment rate to 6%.

• No property tax increases for 30 years in negotiated Fee-In-Lieu of Property Tax Agreements.

• Property tax rebates for companies that meet or exceed investment, job creation, and wage minimums
  
• Discounted or free property in County owned industrial parks for companies that meet or exceed investment, job creation, and wage minimums.

• Job Tax Credits, which can help offset corporate income tax.
• Credits are worth $8,000 per job.
• Credits accrue for 5 years with a 15-year carry-forward.
• Offsets are worth up to 50% reduction of corporate income tax in a given year.

• Job Development Credits, which can rebate a percentage of payroll taxes.
• Companies can receive a rebate of up to 100% in Lancaster County due to our Tier IV development designation with the State of South Carolina Department of Commerce.
• Rebates are paid quarterly for 10 years provided the company meets, exceeds, and maintains job creation, investment, and wage minimums in the agreement.
• Can be used to offset land and building costs.
• Must be approved by the state Coordinating Council for Economic Development.

Specific sales tax exemptions

• Manufacturing production machinery and applicable repair parts.
• Manufacturing materials that become an integral part of the finished product.
• Industrial electricity and other fuels used in manufacturing tangible personal property.
• Research and development equipment.
• Air, water, and noise pollution control equipment.
• Packaging materials.
• Long distance telecommunication services, including 800 services.