Global Business: Economic Development Bill Passes Into Law

This week, the South Carolina Senate and House of Representatives voted 31-8 and 112-4, respectively, to pass S.1043 – a bill which allows the state to adjust its incentives offerings to better accommodate professional service and office projects, as well as agricultural projects.

For companies creating office and professional service jobs, the bill makes modifications to the parameters of the state’s job development credits (JDCs) program, reducing the job and wage thresholds applicable to qualified service-related facilities for the highest three tiers. The new law also allows businesses engaged in legal, accounting, banking or investment services to apply for JDCs. Retail sales firms can also apply for JDCs under the new law as long as retail sales are not actually conducted at the facility.

For agricultural operations, S.1043 establishes a tax credit program similar to that of the Port Tax Credit program. It allows an agribusiness operation that increases purchases that are certified as South Carolina-grown by a minimum of 15 percent per year to claim an income tax credit or employee withholding credit in an amount determined by the S.C. Coordinating Council for Economic Development. The base year total dollar purchases that are certified as South Carolina-grown must exceed $100,000 for a taxpayer to be eligible.

Championed by the S.C. Economic Developers’ Association, this new law equips the state’s economic development leaders with important new tools. And, as a result, Team South Carolina will remain competitive on the global economic stage, retaining its status as an ideal destination for business.