The state of South Carolina is situated between North Carolina and Georgia in the Southeastern United States and is strategically located halfway between New York City and Miami. Home to over 4.6 million people, South Carolina is similar in size to Ireland
The message is clear: South Carolina is one of the best places in the world to do business. For the second year in a row, South Carolina ranks first in the nation for per-capita employment by foreign-owned firms.
Further information on South Carolina
Why Invest in South Carolina
What are European companies finding in South Carolina that they cannot find anywhere else? The answers are as varied as the 1200 international operations that call South Carolina home.
South Carolina is ideally located along the east coast of the United States halfway between New York City and Miami. Its preeminent logistics network includes five interstate highways, efficient rail service and the Port of Charleston – one of the busiest container ports in the United States. South Carolina offers efficient and reliable business logistics.
South Carolina's business and regulatory climate is designed to support success. In fact, the state is consistently ranked among the top 10 in the nation for its business climate and for its worker training programs offered through readySC™. South Carolina has fair wage rates, no local income tax, a right-to-work policy, easy access to government, trade secret protection, one-stop permitting, minimal start-up costs and incentives that reward job creation and investment.
Low Cost of Doing Business
South Carolina businesses thrive thanks to lower operating and capital costs. The average salary ranks the 8th lowest in the nation. Business-friendly regulations and smart investments in energy infrastructure give South Carolina the region's most affordable power costs. Industrial power costs in the state average only 5.9 cents per kilowatt hour, the lowest in the Southeast.
Served by 5 interstate highways, an efficient port with numerous worldwide shipping connections and the capability to support post-Panamax vessels, two Class One rail carriers and three major airports, South Carolina offers manufacturers numerous means of reaching customers and suppliers around the world.
Workforce and Education
As a right-to-work state with the second lowest unionization rate in the country, South Carolina businesses can rely on a stable, efficient workforce at competitive wage rates and free from work stoppages. Over the past decade, South Carolina boasts the 8th fastest growing labor force nationwide.
Favorable Tax Climate and Incentives
The Palmetto State offers a host of tax incentives and tax advantages to businesses choosing to locate or expand their manufacturing operations in the state:
- No state property tax
- No local income tax
- No inventory tax
- Favorable corporate income tax structure
- Job Development Tax Credits
- Economic Development Set-Aside Grants
- Corporate Headquarters Tax Credits
- Research and Development Tax Credits
What We Can Do To Help You
The State of South Carolina European Office is the European subsidiary of the South Carolina Department of Commerce. The office was first established in Brussels in 1975. Today, operating out of Munich, the office has 40 years of experience assisting European companies establish, relocate and expand business operations in the United States.
Join us as we celebrate 40 years of impact and continued success in South Carolina and Europe.
Advisory and support services are offered, including:
- Support for business site selection
- Provide identification of suitable communities, sites and buildings
- Offer detailed information on industry sectors and operating costs
- Provide access to technical and workforce training programs
- Offer governmental assistance, language interpretation, customary procedures and serve as an on-the-ground point of contact
- Create new opportunities for existing businesses in overseas markets
- Identify new direct foreign investment for South Carolina and attract new suppliers to the state
- Provide consultative services for international businesses in South Carolina
For more information please visit www.SCcommerce.com.
Basic Business Taxes
Corporate Income Tax:
5% of taxable income derived from South Carolina operations; phasing in single-factor sales formula for apportionment.
Sales and Use Tax:
6% on gross receipts from retail sales or leases of tangible personal property; local governments may also levy local sales and use taxes; exemptions include manufacturing production machinery and repair parts; manufacturing materials that become an integral part of the finished product; coal or other fuel for manufacturers, transportation companies, electric power companies, and processors; industrial electricity and other fuels used in manufacturing tangible personal property; R&D equipment; manufacturers' air, water, and noise pollution-control equipment; material-handling equipment in manufacturing and distribution facilities investing at least $35 million; packaging materials; long-distance telecommunications services, including 800 services; parts and supplies used to repair or condition aircraft owned or leased by the federal government or commercial air carriers; an exemption for construction materials used in manufacturing or distribution facilities investing at least $100 million over 18 months; an exemption for computer equipment & electricity of a data center investing at least $50 million and creating & maintaining at least 25 jobs over 5 years.
No state tax on real or personal property; assessed value and millage rates set locally; 5-year county property tax abatement for new or expanding manufacturing or research and development facilities investing at least $50,000 or new or expanding distribution or corporate headquarters facility investing at least $50,000 and creating at least 75 new jobs; all inventories, intangible property and pollution control equipment exempt. Fee-in-lieu of tax available that can reduce property tax between 43-62% and runs for up to 30 years.
Corporate income tax credits:
- Job Tax Credit
- Corporate Headquarters Credit
- Research and Development Credit
- Investment Tax Credit
- Biomass Resources Credit
- Ethanol or Biodiesel Credit
- Solar Energy Credit
- Renewable Fuels Credit
Discretionary income, license, or withholding tax incentives:
- Job Development Credit
- Job Retraining Credit
- International Trade Incentive Program - Port Volume Increase Credit
- Textile Facility Revitalization Credit
- ReadySC (customized work force training program)
- Apprenticeship Carolina
- WorkReady SC (statewide, nationally affiliated Career Readiness Certificate Program)
- InvestSC, Inc. (S.C. Capital Access Program)
- Foreign trade zones –
- Jobs – Economic Development Authority
- Taxable industrial development bonds
- Tax-exempt industrial development bonds
Discretionary property tax incentives:
- Negotiated fee in lieu of property tax
National recognition in recent months includes:
- #1 for Economic Development Project of the year. Area Development
- #2 for best Place to Do Business. Area Development
- #3 for Economic Growth Potential. Business Facilities
- #2 for Automotive Manufacturing Strength. Business Facilities
- #5 for Pro-Business Regulatory Environment. Forbes