Corporate income tax moratorium
South Carolina offers a Corporate Income Tax Moratorium for qualifying companies that make significant investments and create new full-time jobs in designated counties.
Depending on job creation levels, qualifying companies may receive a moratorium on applicable state corporate income tax for up to 10 or 15 years.
Overview
The Corporate Income Tax Moratorium is available to qualifying companies that establish or expand certain business facilities in designated South Carolina counties.
To qualify, a company must meet requirements related to its location, South Carolina investment and creation and maintenance of new full-time jobs.
Location and investment requirements
A qualifying facility must be located in a designated moratorium county.
At least 90% of the company’s total investment in South Carolina must be located in the qualifying county.
Job creation requirements
A company must create at least 100 new full-time jobs at the qualifying facility within five years of creating the first new full-time job.
- Companies creating and maintaining at least 100 qualifying jobs may receive a 10-year moratorium.
- Companies creating and maintaining at least 200 qualifying jobs within the five-year period may receive a 15-year moratorium.
The moratorium begins with the first full taxable year after the company qualifies. Continued eligibility depends on maintaining the required employment level.
Moratorium details
The moratorium applies to the portion of the company’s South Carolina corporate income tax attributable to its qualifying investment.
The amount is based on the ratio of the company’s new investment in the qualifying county to its total investment in South Carolina.
The moratorium may continue for:
- Up to 10 taxable years for companies creating and maintaining at least 100 qualifying new full-time jobs
- Up to 15 taxable years for companies creating and maintaining at least 200 qualifying new full-time jobs within the required five-year period
Certification and approval
Companies seeking the moratorium must first apply to the South Carolina Coordinating Council for Economic Development (Coordinating Council) for certification.
The Coordinating Council evaluates whether the proposed facility will have a significant beneficial economic effect on the region and whether the project’s public benefits exceed its public costs.
Following certification by the Coordinating Council, the South Carolina Department of Revenue (SCDOR) reviews the project and, if approved, enters into an agreement with the company allowing the moratorium to apply.
Claiming the moratorium
Companies claiming the Corporate Income Tax Moratorium use SCDOR Form TC-34 with the applicable corporate income tax return.
Companies must continue to meet applicable job-maintenance and other statutory requirements throughout the moratorium period.
SCDOR resources
Designated moratorium counties
For 2026, South Carolina's designated moratorium counties are:
- Chesterfield County
- Marlboro County
- Union County
Moratorium counties are designated annually, so companies should confirm the current designation when evaluating eligibility.
