5-year property tax abatement
Qualifying manufacturers, research and development facilities, distribution facilities and corporate headquarters operations may receive a five-year exemption from county operating property taxes on eligible investments.
The abatement can reduce a company’s total property tax burden during the first five years of qualifying operations. School operating taxes are not included in the exemption.
Overview
South Carolina provides a five-year property tax abatement on eligible real and personal property for qualifying business investments.
Eligible manufacturers and research and development facilities investing at least $50,000 may qualify for the abatement. Distribution and corporate headquarters facilities may also qualify by investing at least $50,000 and creating at least 75 new full-time jobs.
The abatement applies to county operating property taxes for five years after eligible property is placed in service. Once the five-year period expires, the property becomes subject to applicable ad valorem property taxes.
Eligibility
Businesses may qualify if they meet one of the following requirements:
- Manufacturing facilities investing at least $50,000
- Research and development facilities investing at least $50,000
- Distribution facilities investing at least $50,000 and creating at least 75 new full-time jobs
- Corporate headquarters or corporate office facilities investing at least $50,000 and creating at least 75 new full-time jobs
How the abatement works
The five-year property tax abatement:
- Applies to county operating property taxes
- Does not apply to school operating taxes
- Begins when qualifying property is placed in service
- Remains in effect for five years
- Ends after the five-year period, after which the property becomes subject to applicable property taxes
Estimated savings
The amount of savings varies by county based on local millage rates and the portion attributable to county operating taxes.
