South Carolina State Incentive Programs
About the Programs
South Carolina has three discretionary grant funds that are administered by the Coordinating Council. The Coordinating Council will evaluate each project on a case-by-case basis and a grant may be awarded by the Coordinating Council, in their sole discretion, depending on the needs of the project.
Incentive Program Details
The Economic Development Set-Aside Program
The Economic Development Set-Aside Program assists companies in locating or expanding in South Carolina through road or site improvements and other costs related to business location or expansion. Overseen by the Coordinating Council, it is the Coordinating Council’s primary business development tool for assisting local governments with road, water/sewer infrastructure or site improvements related to business location or expansion.
The Closing Fund
The Closing Fund was created in 2006 to assist when additional funding is necessary to recruit or retain high-impact economic development projects in the state. The grants are generally awarded to assist with the costs of real property improvements or other road or infrastructure improvements. This fund is dependent on annual appropriations from the South Carolina General Assembly.
Rural Infrastructure Fund
The Rural Infrastructure Fund (RIF) assists qualified counties in the state's rural areas by providing financial assistance for infrastructure and other activities that enhance economic growth and development. It can be used for job creation and/or product development. Qualified counties are designated as “Tier III” or “Tier IV” by the Department of Revenue. Click here to view the county tier map.
Additional Incentives
Job Development Credit
South Carolina’s Enterprise Program is substantially different from the state’s other tax incentives because it does not reduce a particular tax liability; instead, it provides companies with funds to offset the cost of locating or expanding a business facility in this state. Representing actual cash contributions to the project, this incentive allows South Carolina to lower the effective cost of investment and positively contribute to a company’s bottom line and profitability.
The Job Development Credit effectively uses the personal withholding taxes of new employees to reimburse qualified, approved companies that add value to South Carolina and the community in which they locate. These reimbursements are for eligible capital expenditures (land, buildings, site development, pollution control equipment, or infrastructure) associated with projects that create new full-time jobs and provide health care benefits for South Carolina citizens.
The Coordinating Council administers the Enterprise Program. Funds for the Job Development Credits come from state personal income tax withholding that is paid by a company’s employees. Employees receive a credit equal to the withholding the company uses; therefore, there is no financial impact on employees. No company will be allowed to claim a credit on any employee whose job was created in this state before the taxable year in which a company was approved for the program. In addition, the Coordinating Council generally caps annual collections at $3,250 per employee.
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