Corporate headquarters tax credit
South Carolina offers a Corporate Headquarters Tax Credit to support companies establishing or expanding qualifying headquarters operations in the state.
Companies that meet investment, job creation and headquarters-function requirements may receive a credit equal to 20% of qualifying headquarters costs, including certain facility, lease and equipment investments.
Overview
The Corporate Headquarters Tax Credit is available to qualifying companies that establish, expand or add to a regional, national or global headquarters facility in South Carolina.
To qualify, a project must meet requirements related to investment, job creation, compensation and headquarters functions.
Investment requirement
The company must invest at least $50,000 in qualifying real property costs.
Job creation requirement
The headquarters establishment or expansion must create at least 40 new full-time jobs that:
- Perform headquarters-related functions and services
- Have gross wages equal to or greater than twice South Carolina’s per capita income
- Receive a benefits package that includes health care
At least 20 of the 40 new jobs must qualify as headquarters staff employees.
Headquarters function requirement
The facility must serve as a qualifying regional, national or global headquarters for the company or a business unit with multistate operations.
Headquarters-related functions may include financial, personnel, legal, planning, information technology and similar corporate functions.
A company operating solely within South Carolina does not qualify.
Regional headquarters
For purposes of the credit, a region generally includes:
- Five states, including South Carolina
- Two or more states, including South Carolina, when the company conducts all of its business operations in fewer than five states
Credit details
The credit equals 20% of qualifying headquarters costs.
Qualifying costs may include:
- Eligible real property costs associated with the headquarters facility
- Direct lease costs for qualifying headquarters space
- Certain tangible personal property purchased for and used in headquarters-related functions
Qualifying real property costs must total at least $50,000.
The credit is nonrefundable. Unused credit may be carried forward for up to 10 years.
Depending on the company’s tax structure, the credit may be applied against certain South Carolina income, license or bank taxes.
Claiming the credit
The South Carolina Department of Revenue administers the Corporate Headquarters Tax Credit.
Companies claim the credit using Form TC-8 with the applicable South Carolina tax return.
Companies must have documented plans to meet required staffing levels when the credit is first claimed and must satisfy employment requirements within the timeframe established by state law.
SCDOR resources
Corporate Headquarters Tax Credit requirements and guidance:
