Incentives to grow your business
Town Incentives
Facade Improvement Grant
Background
On September 26, 2016, Fort Mill Town Council adopted a Facade Improvement Grant Program to encourage reinvestment in, and revitalization of, the downtown commercial district. This program provides reimbursable matching grants of up to $5,000 to help offset the cost of exterior improvements to a property owner or tenant’s commercial building. The Facade Improvement Grant Program requires a minimum match equal to, or greater than, the total grant amount. Grants will be awarded on a competitive basis until all available funding for the current fiscal year has been committed. Individuals and business owners who wish to be considered for a grant must complete and submit a formal application.
Resources and Application
Bailey Bill
Background
The Bailey Bill (SC Code of Laws §4-9-195 and §5-21-140) authorizes local governments to offer a special property tax assessment for rehabilitated historic buildings. The main feature of the Bailey Bill is to assess property on the pre-rehabilitation fair market value for up to twenty (20) years. This means the owner of a historic structure continues to pay property tax on the pre-rehab value of the property, but does not pay tax on the increased value due to the renovations for up to twenty (20) years. A minimum of 20% of the fair market value of the building must be spent on qualified rehabilitation expenditures.
Applications
Tax Abatement
Background
Any manufacturing company that invests in land, building, and machinery and equipment, with a sum of $50,000 or greater, is eligible for an abatement of city and county property taxes. A distribution company may be eligible for abatement if the project creates 75 or more new jobs. The abatement stands for five (5) years and does not affect the depreciation value of the property. The abatement must be filed, in the same tax year as the purchase was made, to the Department of Revenue.
York County Incentives
Fee-in-Lieu of Property Tax Agreement
Background
- Discretionary agreement negotiated with York County that can provide a long-term benefit to a qualified company while insulating the firm from annual property tax increases. This value amounts to up to a 43% reduction in property taxes annually for 20 to 30 years. Additional savings may be achieved for qualifying companies.
- The company’s project must be competitive with other locations and the firm must be a manufacturer, warehouse/distribution, or an office, headquarter or R&D operation.
- Qualified company must commit to a minimum of $2.5 million investment over a five-year period to be eligible.
- Manufacturers can benefit from lowering the statutory 10.5% assessment rate to as low as 6% on real and personal property. Warehouse/distribution and office operations can benefit from reducing the statutory assessment of 10.5% to as low as 6% on personal property.
- A bond/incentive attorney must prepare legal documents for review and final submission to York County Council for final approval. The process for full approval by York County Council is approximately eight weeks once negotiated terms have been reached.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Property Tax Abatement
Background
- Statutory exemption that allows qualifying companies to abate the county portion of property taxes for five-years on any new investment over $50,000. The Town of Clover and Town of Fort Mill also provide for an abatement of their property taxes for new investment. Estimated savings of approximately 20 to 25% annually over a five-year period.
- Investment must be greater than $50,000 in new capital expenditure in one year.
- Companies must be involved in manufacturing, R&D, corporate headquarters or distribution/warehouse operations. If other than manufacturing and R&D, there must be at least 75 new jobs created.
- Company files return PT-300 to SC Department of Revenue and reduction is automatic.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Property Tax Exemptions
Background
Statutory property tax exemptions on inventories, intangibles, pollution control equipment.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
York County Tax Abatement
Background
Any manufacturing company that invests in land, building, and machinery and equipment, with a sum of $50,000 or greater, is eligible for an abatement of city and county property taxes. A distribution company may be eligible for abatement if the project creates 75 or more new jobs. The abatement stands for five (5) years and does not affect the depreciation value of the property. The abatement must be filed, in the same tax year as the purchase was made, to the Department of Revenue.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
South Carolina State Incentives
Corporate Headquarters Tax Credit
Background
A corporation establishing a corporate headquarters in South Carolina, or adding to an existing corporate headquarters, is entitled to a credit against corporate income and license taxes. The credit is equal to 20% of the (a) qualifying real property costs incurred in the design, preparation and development of either establishing or expanding a corporate headquarters, and (b) direct construction or direct lease costs for the first five years of operations for the headquarters. In order to quality for the credit, the headquarters or expansion must result in the creation of forty (40) new headquarters function jobs or research and development related functions and services, twenty (20) of which are executive, administrative or professional jobs. The qualifying real property costs involved must be at least $50,000.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Investment Tax Credit
Background
Manufacturers can take a one-time negotiated credit against their corporate income tax of up to 2.5 % of a company’s investment in new production equipment. Value of credit varies depending upon the recovery period for property under Internal Revenue Code. Can be used to offset up to 100% of corporate income tax liability with unused credits carrying forward for up to 10-years.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Job Development Credit
Background
- A discretionary performance based incentive from the state that rebates a portion of a new employees’ state withholding tax back to the company. Requires approval by the South Carolina Coordinating Council for Economic Development and applicants are considered on a case-by-case basis.
- Eligible companies must meet specific requirements per the program guidelines and a non-refundable application fee of $4,000 must be paid.
- Approved companies can receive a percentage of each eligible individual employee’s personal income tax returned to them as a cash rebate in either quarterly or annual payments. Depending on salary values, this could be as much as 4% of annual payroll.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Jobs Tax Credit
Background
- A benefit to companies for job creation that helps reduce state corporate income tax liability, up to 50% in a given year. Program allows for 15 year carry forward of unused credits.
- An annual average monthly employment increase of 10 or more new full-time jobs must be created in order to be eligible andthe company must be involved in manufacturing, processing, warehousing, distribution, tourism, be considered a corporate office facility, bank or qualified technology intensive facility.
- Credit of $1,500 annually for five years for each new job. Credit increases to $2,500 per job with Multi-County Business Park status.
- Qualified small businesses (a firm employing 99 or fewer employees) can receive a credit benefit from this program but value of credit may vary depending upon certain performance criteria.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Research & Development Tax Credit
Background
- A credit against state corporate income tax, or corporate license tax based on a firm making qualified research and development expenditures.
- Credit equal to 5% of expenditures is available; credit is limited to offset 50% of income tax liability after all other tax credits have been applied.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Sales Tax Exemptions
Background
Manufacturers
- Machinery and equipment for both research and development and production
- Repair parts
- Materials which will become an integral part of the finished product
- Manufacturing of electricity
- Pollution control equipment
All Industries
- Packaging Materials
- Long distance telecommunications, including 800 services
Sales Tax Caps
- South Carolina provides a $500 sales tax cap on the purchase or lease of aircraft, motor vehicles, motorcycles, boats, recreational vehicles and other items.
Resources
For details or to apply for this program contact yced@yorkcountygov.com.
Federal Incentive Programs
National Park Service-Federal Tax Credits for Rehab of Historic Buildings
Background
Administered by the National Park Service in conjunction with State Historic Preservation Offices (SHPO), the Federal Historic Preservation Tax Incentives program offers a 20% federal tax credit for qualified rehabilitation expenses.
Thousands of property owners across the country have already utilized these tax incentives to rehabilitate historic commercial buildings and similar properties.
