Discretionary Incentives

Job Development Credits

South Carolina’s Enterprise Program, a discretionary program, administered by the South Carolina Coordinating Council for Economic Development, is substantially different from the state’s other tax incentives because it does not reduce a particular tax liability; instead, it provides companies with funds to offset the cost of locating or expanding a business facility in this state. Funds for the Job Development Credits come from state personal income tax withholding, which is paid by a company’s employees. Employees receive a credit equal to the withholding used by the company; therefore, there is no financial impact on employees.

Maximum reimbursement per employee is $3,250 per year (Super or Enhanced Fees are $5,000)

  • Wages paid to employees must meet or exceed the county average wage
  • Reimbursements can be collected for up to 10 years (certain projects may be eligible for up to 15 years)
  • Reimbursements can only be used for eligible capital expenditures including:
  • o Training costs and facilities
    o Acquiring and improving real estate and in certain cases, capital and operating leases for real estate if the lease is at least a five year term
    o Improvements to public and private utility systems, including water, sewer, electricity, natural gas and telecommunications
    o Fixed transportation facilities, including highway, rail, water and air
    o Construction or improvements to real property and fixtures for the purpose of complying to environmental laws and regulations
    o Employee relocation expenses for employees being paid at least two times the lower of state or county per capita income
    o Financing costs associated with any of the above expenses
    o South Carolina Quality Forum improvement programs
    o Training that increases a business’s export capabilities
    o Apprenticeship programs

The value of the credit is determined using the county designation (below), number of employees and gross wages paid.

Eligibility Requirements

  • Meet the requirements of a manufacturing/processing, warehouse/distribution, research and development, tourism, technology intensive facility, as defined in the statutes for the Job Tax Credit
  • Offer health care benefits to the employee and family paying at least 50% of the premiums for the employee
  • Create at least 10 net new full time jobs within 5 years
  • Gross wages for new employees must meet or exceed the county average wage
  • Pay a $4,000 application fee, receive a positive cost/benefit certification (the project is of greater benefit than cost to the state) from the Coordinating Council (CCED), receive approval from the CCED, and enter into a revitalization agreement
  • Revitalization agreement establishes mutually agreeable investment and employment minimums that the company must meet and maintain in order to claim a JDC, sets maximum reimbursement and sets a date for the project’s completion
County Designation Credit Amount Gross Wages per Hour of New Employee (2011) Percent to Claim
Tier IV 100% $8.87 to $11.81 2%
Tier III 85% $11.82 to $14.77 3%
Tier II 70% $14.78 to $22.16 4%
Tier I 55% $22.17 and over 5%

Illustration of 10-Year Value of JDC in a Tier I County

Number of New Employees 50
X Estimated Average Hourly Wage $15.00
X 2,000 Hours per Year (total payroll) $1,500,000
X JDC Rebate Percentage 4%
Maximum Credit (annually) $60,000
X County Percentage 55%
Allowable Credit $33,000
X Maximum Number of Years 10
Total Value $330,000

Job Retraining Credit

Eligible businesses may negotiate with the Coordinating Council for a refund of up to $500 per production employee per year for retraining; the retraining must be necessary for the business to remain competitive or to introduce new technologies.

Qualifying for the Credit

  • JDCs and Retraining Credits cannot be claimed for the same employee
  • Refund may not exceed $500 per production employee per year or $2,000 over five years
  • Company must match on a (dollar-for-dollar basis) the employee’s withholding share used for the training
  • The total amount is paid to the technical college providing the training
  • The retraining must be approved and coordinated by the technical college(s), under the jurisdiction of the State Board for Technical and Comprehensive Education, serving the approved business
  • Company must submit an application (with a $500 application fee) to the Coordinating Council

We’re Always Eager To Hear What You Have To Say

If you are interested in development opportunities or have questions about economic development in Lexington County, South Carolina, we want to hear from you!

Contact us Today!

Stay Connected!