South Carolina may lack the headquarters of a Fortune 500 company, but it may be one of the most business-friendly and tax-friendly states in the nation. For instance, there’s no state property tax, no local income tax, no inventory tax, no sales tax on manufacturing machinery, industrial power or material for finished products, and no wholesale tax or no unitary tax on worldwide profits. Many companies are also attracted to the state’s road systems, railroads and ports. Nestlé USA, BASF, Siemens and QVC have all announced investments here in the past year.
Jobs Tax Credits: Offers a financial incentive for new and expanding companies that create and maintain a certain number of jobs in the state.
Corporate Headquarters Tax Credit: Offers a 20% tax credit, which can be applied against the corporate income tax or license fee, to companies that relocate or expand a corporate headquarters facility.
Investment Tax Credit: Offers a tax credit of up to 2.5% of investment in new production equipment to manu- facturers locating or expanding in the state.
Research & Development Tax Credit: Offers a credit of up to 5% of the taxpayers qualified research expenses as defined in Section 41 of the Internal Revenue Code.
In July 2021, the South Carolina Department of Commerce Office of Innovation partnered with two statewide nonprofit organizations, Build Carolina and the South Carolina Council on Competitiveness, to create a pilot fellowship program designed to prepare new graduates for software development careers. The state hopes to help build a strong talent base for South Carolina’s rapidly growing technology ecosystem.