Job tax credit
South Carolina’s Job Tax Credit is a statutory tax credit available to qualifying new and expanding companies that create and maintain new full-time jobs in the state.
The credit is based on the number of qualifying jobs created and the county where those jobs are located. Unlike the discretionary Job Development Credit, companies do not apply to the South Carolina Coordinating Council for Economic Development (Coordinating Council) for approval.
Eligibility
Qualifying businesses may include:
- Manufacturing and processing
- Warehousing and distribution
- Research and development
- Agribusiness and agricultural packaging
- Corporate offices
- Tourism
- Qualifying technology-intensive facilities
- Certain service-related businesses
- Other qualifying business types established under state law
Most qualifying companies must create a monthly average of at least 10 net new full-time jobs to qualify.
Service-related facilities
Qualifying service-related facilities have different job-creation requirements based on location and compensation.
Tier IV counties
A qualifying service-related facility located in a Tier IV county must generally create a monthly average of at least 10 net new full-time jobs.
Tier I, II or III counties
A qualifying service-related facility located in a Tier I, II or III county must generally create within a single taxable year a monthly average of:
- 175 new full-time jobs
- 150 new full-time jobs in a building that has been vacant for at least 12 months
- 100 new full-time jobs with an average salary equal to at least 1.5 times the lower of the state or county per capita income
- 50 new full-time jobs with an average salary equal to at least two times the lower of the state or county per capita income
- 25 new full-time jobs with an average salary equal to at least 2.5 times the lower of the state or county per capita income
Credit details
The value of the Job Tax Credit depends on the development tier of the county where qualifying jobs are created.
Counties are re-ranked annually based on unemployment rates and per capita income. A county’s tier designation may change from year to year.
| County development tier | Credit value per job |
|---|---|
| Tier I | $1,500 |
| Tier II | $2,750 |
| Tier III | $20,250 |
| Tier IV | $25,000 |
Multi-county industrial parks
Qualifying jobs located in a multi-county industrial park may receive an additional $1,000 per job.
This can increase the total credit available for qualifying job creation.
Credit period and limitations
The Job Tax Credit is available for five years, beginning in the year after qualifying jobs are created.
Year one establishes the qualifying employment level. Credits are then available for qualifying jobs that continue to be maintained during the five-year credit period.
The credit:
- May be claimed against applicable South Carolina income tax, bank tax or insurance premium tax
- May not exceed 50% of the applicable tax liability for the year
- May be carried forward for up to 15 years if not fully used
Continued eligibility depends on maintaining the required level of qualifying employment.
Illustration of estimated credit value
The following example illustrates the potential value of the Job Tax Credit for a qualifying company creating 100 net new jobs in a Tier II county within a multi-county industrial park:
| Year | Credit Per Job | Number of Jobs | Annual Total |
|---|---|---|---|
| 1 | Establish qualification | ||
| 2 | $3,750 | 100 | $375,000 |
| 3 | $3,750 | 100 | $375,000 |
| 4 | $3,750 | 100 | $375,000 |
| 5 | $3,750 | 100 | $375,000 |
| 6 | $3,750 | 100 | $375,000 |
| Total Value | $1,875,000 |
This example assumes all 100 qualifying jobs are maintained throughout the five-year credit period. The credit amount for those jobs is based on the county designation in effect when the jobs are created.
Small business jobs tax credit
Qualifying small businesses with 99 or fewer employees worldwide may be eligible for related Job Tax Credit provisions with a lower job-creation threshold.
Small businesses may generally qualify by creating and maintaining a monthly average of at least two new full-time jobs. Credit amounts vary based on county location and employee wages.
Claiming the credit
The South Carolina Department of Revenue (SCDOR) administers the Job Tax Credit for most qualifying companies.
Companies claim the credit using Form TC-4 with the applicable South Carolina tax return and should maintain documentation supporting qualifying employment levels and credit calculations.
SCDOR resources
Job Tax Credit requirements and guidance
