Small business jobs tax credit
The Small Business Jobs Tax Credit is designed to support smaller companies that are creating new jobs in South Carolina.
This credit provides an alternative qualification path for eligible small businesses that may not meet the standard job creation threshold required under the general Jobs Tax Credit program.
Who may qualify
A company may qualify for the Small Business Jobs Tax Credit if it:
- Is engaged in manufacturing, processing, warehousing and distribution, research and development, agribusiness, qualified technology intensive activity or operates a corporate office; and
- Has fewer than 99 employees worldwide.
Job creation requirement
To qualify, an eligible small business must create a monthly average of at least two net new jobs. Net new jobs are calculated as the increase in average monthly employment from one year to the next. This reduced threshold allows smaller companies to access job creation incentives while continuing to grow their workforce.
Credit value
Under the Small Business Jobs Tax Credit:
- The full credit amount is available only for net new jobs that pay at least 120% of the county’s average hourly wage.
- For net new jobs paying less than 120% of the county’s average hourly wage, credits ranging from $750 to $12,500 per job may be available.
- In a multi-county industrial park, credits may range from $1,750 to $13,000 per job.
The actual credit amount depends on wage levels and project location.
Multi-county industrial parks
If the project is located in a multi-county industrial park, the value of the credit increases.
Under this arrangement, counties share property tax revenue, and the credit value may be increased by $1,000 per job compared to standard county credit levels.
Credit period and limitations
The Small Business Jobs Tax Credit:
- Is available for a five-year period beginning with year two.
- Uses year one to establish the created job levels.
- May be applied against corporate income tax or premium tax.
- May not exceed 50% of the year’s tax liability.
- Allows unused credits to be carried forward for up to 15 years from the year earned.
Frequently asked questions
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