On May 22, 2019, South Carolina Governor, Henry McMaster, signed into law South Carolina Bill R103, H4243 under the Summary “Professional Sports Team.” The bill amends sections 12-6-3360 relating to the South Carolina Job Tax Credit. With this new legislation, professional sports teams are now eligible for Job Tax Credit benefits. In addition, under the legislation, the Job Tax Credit award for Tier IV and Tier III counties increased significantly. Tier IV counties are now eligible for a $25,000 credit for each new full-time job created. For Tier III counties, each new full-time job created is now eligible for a $20,250 credit. Tier II and Tier I counties remained unchanged, however, and new full-time jobs created are still eligible for a $2,750 credit and a $1,500 credit, respectively.
The South Carolina Job Tax Credit is a financial award to businesses that create and maintain at least 10 full-time jobs for their new or expansion projects. The credit is annual and lasts five years, as long as the minimum jobs are created and maintained. Eligible businesses and the requirements for the Job Tax Credit are as follows:
- Eligible businesses include:
- Manufacturing, tourism, processing, agricultural packaging, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, agribusiness operations, extraordinary retail establishment, professional sports teams, qualifying technology intensive facilities, and banks.
- Detailed definitions of each qualified industry are outlined in the statute.
- Manufacturing, tourism, processing, agricultural packaging, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, agribusiness operations, extraordinary retail establishment, professional sports teams, qualifying technology intensive facilities, and banks.
- New Job is defined as:
- “A Job created in (South Carolina) at the time a new facility or an expansion is initially staffed.”
- Jobs relocated from an existing location in South Carolina to a new or expanded facility are not eligible.
- New jobs may also include employees who were reinstated at a facility after an employer had to rebuild a facility due to “Acts of God,” such as accidental fires, or involuntary conversion because of condemnation or exercise of eminent domain by the state or any political subdivision of the federal government.
- Full-time jobs are positions requiring a minimum 35 hours per week.
- In general, businesses must create and maintain at least 10 full-time jobs.
- However, special provisions are provided for businesses that employ less than 99 employees total, specific industries, and for professional sports teams.
The South Carolina county tier rankings are as follows:
|
Tier I ($1,500 JTC) |
Tier 2 ($2,750 JTC) |
Tier 3 ($20,250 JTC) |
Tier IV ($25,000 JTC) |
|
Anderson Beaufort Berkeley Charleston Dorchester Greenville Lexington Richland Spartanburg York
|
Aiken Florence Georgetown Greenwood Kershaw Laurens Lancaster Newberry Oconee Pickens Saluda Sumter
|
Abbeville Calhoun Cherokee Chesterfield Colleton Darlington Edgefield Fairfield Horry McCormick Union
|
Allendale Bamberg Barnwell Chester Clarendon Dillion Hampton Jasper Lee Marion Marlboro Orangeburg Williamsburg
|
The requirements for the Job Tax Credit in South Carolina are simple and attainable, thus presenting an extremely valuable opportunity to new and expanding businesses throughout the state. Qualified businesses located in Tier IV counties, meeting the minimum Job Tax Credit requirements, are eligible for a credit of at least $250,000 for the jobs they create. With the new legislation, it’s clear that South Carolina is defining itself as a premier location to locate and expand business.
TECHNICAL INFORMATION CONTACTS:
Allea Newbold
Principal
Ryan
813.228.7100
allea.newbold@ryan.com
Matt Lowell
Director
Ryan
321.251.2924
matt.lowell@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.