Super FILOT
South Carolina’s Super FILOT provides enhanced property tax treatment for qualifying projects involving significant capital investment.
Through a negotiated Fee-in-Lieu of Property Taxes agreement, eligible companies may receive an assessment ratio as low as 4% on qualifying property, providing greater property tax savings than generally available under a standard FILOT.
Overview
A Super FILOT is a contractual property tax incentive negotiated between a qualifying company and the county where its project is located.
Instead of paying standard ad valorem property taxes on qualifying property, the company makes fee payments based on terms established in the agreement. Those terms may include a reduced assessment ratio, a fixed or periodically adjusted millage rate and an extended fee period.
Both qualifying real and personal property may be included, subject to applicable statutory requirements and the terms negotiated with the county.
Eligibility
A company may qualify for Super FILOT treatment if it meets one of the applicable large-investment thresholds.
Qualifying projects generally include those in which a company:
- Invests at least $400 million in a qualifying project
- Invests at least $150 million and creates at least 125 new full-time jobs
Additional qualifying pathways and statutory requirements may apply to certain projects.
Super FILOT benefits
Reduced assessment ratio
A Super FILOT may reduce the assessment ratio applied to qualifying property to as low as 4%.
The specific assessment ratio is negotiated with the county and established in the FILOT agreement.
Millage rate stability
The county and company may negotiate how the millage rate will apply during the agreement period.
Depending on the agreement structure, the millage rate may be fixed or periodically adjusted according to applicable statutory requirements.
Property valuation
Under a Super FILOT agreement:
- Qualifying personal property generally depreciates according to South Carolina property tax depreciation schedules
- Real property is generally valued using its original South Carolina income tax basis without depreciation
- The agreement may provide for qualifying real property to be valued through appraisal under applicable FILOT rules
Extended investment and agreement periods
Qualifying Super FILOT projects may receive longer investment and project-completion periods than are generally available under a standard FILOT.
The applicable periods depend on the project, investment level and agreement structure, subject to statutory limits and county approval.
Standard FILOT and Super FILOT
Both incentives allow qualifying companies to negotiate fee payments in place of standard property taxes.
Super FILOT is available to projects meeting significantly higher investment thresholds and may provide enhanced benefits, including an assessment ratio as low as 4%.
Companies that do not meet Super FILOT requirements may still qualify for a standard FILOT.
Learn more about Fee-in-Lieu of Property Taxes (FILOT)
Negotiating a Super FILOT
Super FILOT agreements are negotiated with and granted at the discretion of the county where the project is located.
Companies considering a qualifying large-scale investment should work with county officials and SC Commerce early in the project evaluation process to:
- Determine potential eligibility
- Identify property that may qualify
- Evaluate potential agreement terms
- Coordinate required approvals and documentation
After an agreement is established, FILOT property is reported through the South Carolina Department of Revenue (SCDOR) as part of the applicable property tax filing process.
