Datacenter Exemption

South Carolina Department of Revenue

Program Type:

Tax Incentive

Eligible Geography:

South Carolina

Summary:

The exemption is available to the taxpayer once it has notified both the Department and the Department of Commerce in writing of its intent to claim the exemption and commitment to make the required investment and create and maintain the required number of jobs, and the datacenter has been certified by the Department of Commerce. The taxpayer is required to send a notice to the Department once it has met the minimum job and capital requirements, or at the end of the 5-year investment period if it has not met the requirements.

In order to qualify for the exemption, the datacenter facility must be certified by the South Carolina Department of Commerce and the following requirements must be met: The taxpayer must invest at least $50 million in real and/or personal property over a 5-year period. If two or more taxpayers are investing, the requirement is $75 million. The taxpayer must create and maintain at least 25 full-time jobs at the facility with an average cash compensation level of 150% of the per capita income of the State or the county in which the facility is located, whichever is lower. The per capita income levels used to determine eligibility are the most recently published levels available at the time the facility is certified by Commerce. The jobs must be created within the 5-year period. The taxpayer must maintain the jobs for 3 consecutive years after the datacenter has been certified as having met the investment and job requirements.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Eligible Purpose:

Broadband Enabled Devices (General); Broadband-Related Industry

Eligible Purpose Detail:

Computers, computer equipment and computer hardware used within a qualifying datacenter, and electricity used by a qualifying datacenter and eligible business property located and used at the qualifying datacenter.

Electricity used for purposes unrelated to the datacenter, such as electricity used in administrative offices, parking lots, storage warehouses, cafeterias, maintenance shops and similar activities is not exempt.