Corporate income tax moratorium
South Carolina offers a Corporate Income Tax Moratorium for companies creating net new jobs in certain economically distressed counties.
Companies that qualify may eliminate their state corporate income tax liability entirely for a period of 10 or 15 years, depending on job creation levels.
The incentive supports investment and job growth in communities targeted for economic opportunity.
Eligibility requirements
To qualify for the Corporate Income Tax Moratorium, a company must meet all of the following requirements:
Investment location requirement
At least 90% of the company’s total investment in South Carolina must be located in a county where the unemployment rate is at least twice the state average.
Job creation requirement
The length of the moratorium depends on the number of net new full-time jobs created within a five-year period.
- A company creating at least 100 net new full-time jobs qualifies for a 10-year moratorium.
- A company creating at least 200 net new full-time jobs qualifies for a 15-year moratorium.
The moratorium period begins once the company meets the required job target.
Certification and approval
To receive the moratorium, a company must:
- Obtain certification through an application process with the South Carolina Coordinating Council for Economic Development (Coordinating Council);
- Demonstrate that the project will have a significant beneficial effect on the region; and
- Demonstrate that the public benefits of the project exceed costs.
If approved, the company must enter into a contract with the South Carolina Department of Revenue.
Designated moratorium counties
For 2026, the following counties have been designated as moratorium counties:
- Marlboro County
- Union County
Only projects meeting the statutory requirements and located in currently designated moratorium counties may qualify.
Frequently asked questions
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