South Carolina expanded its job development credits and added a credit for taxpayers who purchase state-grown agricultural products.
Job Development Credits
The state reduced the job creation requirement for some qualified service-related facilities.
For example, the requirement drops from 175 to 125 for jobs at a single location. In addition, it drops from 150 to 100 for certain buildings that were vacant before the taxpayer’s investment.
At the discretion of the Coordinating Council for Economic Development, the law also allows businesses engaged in legal, accounting, banking, or investment services to qualify for the credits. Similarly, businesses generally engaged in retail sales may qualify, provided that no retail sales are conducted at the facility.
These provisions apply to tax years beginning after 2017.
Credit For Increased Purchases Of Agricultural Products
For tax years 2018 through 2027, taxpayers can claim a credit for increasing their purchases of certified South Carolina-grown agricultural products. To qualify, the taxpayer must be an:
- agribusiness operation; or
- agricultural packaging operation.
In addition, the taxpayer must increase its purchases by at least 15% over the base year.
The Council determines the credit amount for each taxpayer, but the credit is limited to $100,000 per taxpayer annually. The maximum amount of credits for all taxpayers each year begins at $500,000 for 2018 and increases to $2 million for 2021 through 2027.
Act No. 265 (S.B. 1043), Laws 2018, effective October 3, 2018, or as noted; Information Letter 18-15, South Carolina Department of Revenue, October 16, 2018, ¶400-920