The Job Development Credit program 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.
The Job Development Credit effectively uses the personal withholding taxes of new employees to reimburse qualified, approved companies that add value to South Carolina and the community in which they locate. Employees receive a credit equal to the withholding used by the company; therefore, there is no financial impact on employees. No company will be allowed to claim a credit on any employee whose job was created in this state before the taxable year in which a company was approved for the program.
In addition, the Coordinating Council generally caps annual collection at no more than $3,250 per employee per year.Please note that the Coordinating Council will generally only allow companies to collect credits for 10 years, and only on new full-time jobs with wages at or above the current county average wage for the county in which the project is located.
Eligible Recipients Detail:
To be eligible to apply for the Job Development Credit, a company must:
-Meet the requirements of a manufacturing and processing, corporate office, warehouse and distribution, research and development, agribusiness, tourism, or qualified service-related facility as required for the Jobs Tax Credit;
-Create at least 10 new, full-time jobs (or meet additional requirements if qualifying as a service facility);
-Provide full-time employees with a benefits package that includes a comprehensive health plan and pay at least 50% of the cost of health plan premiums;
-and Pay a non-refundable $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, and pay a $500 annual renewal fee.
General Infrastructure (Attached to Job Creation); Last Mile Connectivity; Building Connectivity; Broadband Enabled Devices (General)
Eligible Purpose Detail:
Reimbursements are for eligible capital expenditures (land, building, site development, pollution control equipment or infrastructure) associated with projects creating new full-time jobs that also provide health care benefits for South Carolina citizens.