Port volume increase tax credit
South Carolina’s Port Volume Increase Tax Credit, also known as the International Trade Incentive Program (ITIP), rewards companies that expand cargo movement through the state’s port facilities. Businesses that increase shipping volume year over year may qualify for either an income tax credit or a withholding tax credit, subject to statutory requirements and annual program limits.
The program supports manufacturers, distributors and logistics-based operations that rely on port access and are increasing their activity in South Carolina.
Program overview
The Port Volume Increase Tax Credit is designed to encourage measurable growth in cargo volume moving through South Carolina ports.
To qualify under the general program, a company must:
- Establish a base year by meeting the minimum cargo threshold through a South Carolina port facility.
- Increase total port cargo volume by at least 5% over that base year in a subsequent calendar year.
The base year is defined as the first calendar year, January 1 through December 31, in which the company meets the minimum cargo requirements. Base year cargo volume is recalculated each year after it is established.
Eligible companies may receive either:
- An income tax credit, or
- A credit against employee withholding
The SC Coordinating Council for Economic Development (Coordinating Council) determines qualification, credit type and credit amount.
Eligible businesses
The program is available to taxpayers engaged in:
- Manufacturing
- Distribution
- Warehousing
- Freight forwarding
- Freight handling
- Goods processing
- Cross-docking
- Transloading
- Wholesaling of goods
Companies must demonstrate that qualifying cargo is exported or imported through South Carolina port facilities and that total volume increases by at least 5% in a single calendar year.
Cargo volume requirements
To establish eligibility under the general credit, base year port cargo must be at least one of the following:
- 75 net tons of non-containerized cargo
- 385 cubic meters
- 10 loaded twenty-foot equivalent units (TEUs)
The 5% increase requirement is measured against this established base year.
Special qualification categories
In addition to the general port volume increase credit, the program includes provisions for large distribution and logistics investments.
New warehouse or distribution facility
A new warehouse or distribution facility may qualify if the company:
- Commits to invest at least $40 million at a single site
- Creates at least 100 new full-time jobs
- Has base year cargo of at least 5,000 TEUs or its non-containerized equivalent
Up to $1 million of the annual credit allocation may be awarded to qualifying facilities under this category. The credit may be awarded in the year the project is announced, but it cannot be claimed until the Coordinating Council receives satisfactory proof that capital investment and job creation requirements have been or will be satisfied. Required proof must be provided no later than three years after the award date.
Existing taxpayer with significant presence
A taxpayer engaged in moving goods through South Carolina port facilities may also qualify if the company:
- Maintains a presence in the state at the time of approval
- Employs at least 250 full-time South Carolinians
- Commits to construct a distribution facility that is operational within five years
- Has base year cargo of at least 5,000 TEUs or its non-containerized equivalent
As with new facilities, the credit may be awarded when the project is announced but cannot be claimed until proof requirements are satisfied within the specified timeframe.
Evaluation and approval
The Coordinating Council determines eligibility and allocates credits. Applications must be accompanied by a letter of recommendation from the South Carolina State Ports Authority.
In evaluating applications, the Coordinating Council may consider:
- The amount of base year port cargo volume
- The total and percentage increase in cargo volume
- The number of qualifying applicants
- The type of cargo transported
If more than one company is involved in shipping the same cargo, the Coordinating Council may request additional documentation to ensure that only one company claims credit for that cargo.
Application process
Applications must be submitted to the Coordinating Council by December 31 of the year following the year in which the increase in port volume occurs. For qualifying warehouse or distribution facilities, applications may be submitted in the year the new facility is announced.
The Coordinating Council may allocate credits on a monthly, quarterly or annual basis.
Applications may be submitted at any time during the year and must include:
- A letter of recommendation from the South Carolina State Ports Authority
- An Excel spreadsheet documenting container numbers, shipment dates and TEU or other measurement counts for all containers moving through South Carolina ports
- Supporting business and operational documentation
Shipment data must be supplied by the applicant and cannot be provided by the South Carolina State Ports Authority. Completed applications and documentation may be emailed to portapplication@sccommerce.com.
Frequently asked questions
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