December 29, 2011 – Myrtle Beach, S.C. –AvCraft Technical Services, an aircraft maintenance, repair, and modification provider, today announced an expansion in Horry County. The $1 million capital investment will generate 150 new jobs in the Grand Strand Area.

Downloads

• Industry Reports
• Maps
• Economic Profile
• 2011 Workforce Analysis
  
• Custom Reporting
• Newsletter

Tax Credits & Incentives

Corporate Income Tax Credits

Jobs Tax Credit

South Carolina rewards qualifying businesses for creating new jobs—in Horry County, a Jobs Tax Credit of $2,500, per job, for five years. Unused credits can be carried forward 15 years.

Multi-County Industrial Park

In South Carolina, a county may join with another county to form a “multi-county industrial park,” which raises the value of the Jobs Tax Credit by $1,000 per job.

Corporate Headquarters Credit

To offset the costs of relocating or expanding corporate headquarters, the state provides credit equal to 20% of the development, construction or direct lease costs during the first five years of operations.

Enhanced Corporate Headquarters Credit

An Enhanced Headquarters Credit—equal to 20% of the personal property costs of establishing the headquarters—is offered to eligible companies when employee compensation levels exceed 1.5 times the state per capita income average.

Research & Development Tax Credit

South Carolina offers a credit equal to 5% of the taxpayer’s qualified expenditures for research and development made in the state. The credit taken, in any one tax year, may not exceed 50% of the company’s remaining tax liability after all other credits have been applied. Any unused portion of the credit can be carried forward for 10 years from the date of the qualified expenditure.

 

State and Local Sales Tax Credits

Sales and Use Tax

The state Sales and Use Tax rate is 5%. Horry County assesses an additional 3%, the city of Myrtle Beach assesses an additional 1%. Out-of-state sales are exempted. Use Tax credits are available for tangible personal property purchases made out of state.

State Sales Tax Incentives

Exemptions include state sales tax on:

    Manufacturing machinery and equipment

    Research and development machinery and equipment

    Repair parts

    Materials that will become a integral part of a finished product

    Electricity or other fuels used in the manufacturing process

    All pollution control equipment

    Packaging materials

    Long distance telecommunications, including 800 services

    Material handling equipment for manufacturers and distributors investing $35 million or more

Discretionary Incentives

Job Development Credit (JDC)

A performance-based incentive, JDC provides companies with funds to offset the cost of locating or expanding a business facility in the state, by allowing them to use a portion of new employees' withholding taxes for eligible project expenses. A company can collect the credit for up to 15 years. JDCs are approved on a case-by-case basis by the S.C. Coordinating Council for Economic Development (CCED). Qualifying companies must meet certain business requirements and the amount a company receives depends on the company's pay structure and location.

Port Volume Increase Credit

South Carolina provides income tax credits to qualifying companies that use state port facilities and increase base port cargo volume by five percent over base-year totals. To qualify, a company must have 75 net tons of non-containerized cargo or 10 loaded TEUs transported through a South Carolina port for their base year. Tax credits are limited to $8 million per calendar year.

Economic Development Set-Aside Program

The primary business development tool for the Coordinating Council for Economic Development, the Economic Development Set-Aside Program provides funds for road or site improvements and other costs related to business location or expansion.

Rural Infrastructure Fund

The Rural Infrastructure Fund (RIF) provides qualified counties in the state's rural areas with financial assistance for infrastructure and other activities that enhance economic growth and development. The fund also can be used for job creation and product development.

Local Incentives

Five-Year Property Tax Abatement

Manufacturers, distributors and certain other kinds of businesses are exempt from County Ordinary and County Operating Taxes for the first five years of operations. This results in an average 30-35% reduction in both real and personal property taxes for the first five years.

Additional Incentives

Horry County takes an aggressive posture in negotiating incentives to attract and retain business enterprises. Examples of discretionary incentives include:

Fee in Lieu of Property Taxes (FILOT)

The MBREDC has the authority to offer a FILOT to companies that meet the criteria set forth annually by the South Carolina Department of Revenue in their publication, South Carolina Tax Incentives for Economic Development.  Any FILOT will be applied to new investment or expanding real and personal property only and will not include existing property currently on the Horry County tax digest.  The following performance table will apply:  

 

 

Super and Enhanced Investment Fees

The MBREDC has the authority to offer of a Super or Enhanced Investment Fee to companies that meet or exceed the minimum criteria set forth annually by the South Carolina Department of Revenue in their publication, South Carolina Tax Incentives for Economic Development.  As of 2011, the statutory minimum requirement for this incentive was $150 million investment and 125 new jobs. This incentive reduces the company’s property tax assessment to 4% for up to 40 years.  Any Special Source Revenue Credits (SSRC) offered in addition to a Super or Enhanced Investment Fee will be evaluated and preliminarily approved by the county administrator prior to being offered. 

 

Special Source Revenue Credit (SSRC)

The MBREDC will have the authority to offer a SSRC based on the performance-based schedule below.  

 

 

 

 

 

Special Source Revenue Bond (SSRB)

The MBREDC asks that Horry County provide it with the authority to negotiate a SSRB with companies meeting the following minimum criteria: $20 million capital investment, 100 jobs, and county average wage rate.  A SSRB effectively bonds the revenue stream associated with a SSRC and provides companies with upfront cash.  Essentially, a SSRB is a front-end reimbursement of a percentage of the company’s property taxes over time.  Please note that the MBREDC reserves the right to ask for a special letter of conditions from the county administrator and subject to approval by Horry County Council should a quality company be interested in locating in the county and not precisely fit the above criteria.  Limited claw-back provisions would be a part of any SSRB agreement.    

 Industrial Revenue Bonds

For qualifying projects, and companies that obtain external letters of credit for collateral, Horry County agrees to assist by serving as a conduit for low-interest Industrial Revenue Bonds (IRBs).  Companies may also utilize the South Carolina Jobs Economic Development Authority (JEDA) as an IRB conduit.  All parties agree that IRB financing is a non-recourse, non-obligation financing instrument.     

 Horry County Closing Fund (HCCF)

To make Horry County more competitive on both the regional and state-level, the MBREDC will use the recently established Horry County Closing Fund (HCCF) for deal closing incentives.  Funds from the HCCF will be used to reimburse companies for eligible expenditures including, but not limited to: training, site work, relocation assistance, real property improvements, rent abatement, business license fees, and other eligible fees allowed under South Carolina law.  These funds are in addition to any state grant.  Only companies that invest a minimum of $2.5 million in Horry County, create a minimum of 35 new employees, and offer healthcare benefits to their employees in Horry County will qualify for this incentive.  Horry County and the MBREDC will work collaboratively to develop a financial mechanism to establish a long-term funding source for deal closing.  Until such time as the agreement is established, and funding is in place, the MBREDC will be limited to the $600,000 per year approved and appropriated by the County Council.   The following table will be used.  

 

 

 

 Expedited Permitting

Certain projects require commitment from the local leadership to expedite permitting and plan review.  To the extent allowed by local and state law, Horry County will commit to assist projects with expedited permitting as needed.  The County Administrator and his head official will agree to personally supervise this process.