Corporate headquarters tax credit
South Carolina offers a Corporate Headquarters Tax Credit to support companies relocating or expanding headquarters operations in the state.
The credit equals 20% of:
- The value of the actual portion of the facility dedicated to headquarters operations; or
- Direct lease costs for the first five years of operation.
The credit may be applied against either corporate income tax or the license fee. These credits are not limited in their ability to eliminate corporate income taxes and may potentially eliminate corporate income taxes for up to 10 years from the year earned.
Eligibility requirements
To qualify for the Corporate Headquarters Tax Credit, a company must meet all of the following criteria:
Investment requirement
The company must invest at least $50,000 in qualifying real property costs.
Job creation requirement
The company must create at least 40 new full-time jobs that:
- Perform headquarters-related functions and services; and
- Have gross wages equal to or greater than two times the state per capita income.
An executive is defined as an employee who spends at least 80% of his or her time on corporate-wide duties.
Headquarters function requirement
The facility must be the location where the majority of the company’s financial, legal, human resources, planning and other staff functions are handled on a regional or national basis.
Sole headquarters requirement
The facility must serve as the sole corporate headquarters within the region or nation, and other company facilities must report to it.
For purposes of this credit:
- A region is defined as a geographical area comprised of either five states, including South Carolina; or
- Two or more states, including South Carolina, if the entire business operations of the company are performed in fewer than five states.
Credit application and duration
The credit may be applied against:
- Corporate income tax; or
- The corporate license fee.
The credit is not limited in its ability to eliminate corporate income taxes and may potentially eliminate corporate income tax liability for up to 10 years from the year earned.
Frequently asked questions
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