What are South Carolina's 2015 county tier rankings for the job tax credit, and which counties qualify for the tax moratorium and reduced fee-in-lieu investment (per SC IL #15-1)?

Plain-English summary

This Information Letter publishes the 2015 county designations that South Carolina uses for three economic-development incentives. The designations turn on per capita income and unemployment data from the South Carolina Employment Security Commission and the Budget and Control Board.

Job tax credit — county tiers. The 46 counties are ranked into four tiers, with equal weight given to unemployment rate and per capita income under § 12-6-3360. Less-developed counties fall in higher tiers and earn a larger per-job credit. Because of 2010 amendments to the statute, the letter publishes two ranking lists: Ranking List #1 applies to new, full-time jobs created in tax years beginning in 2015 where the credit is first earned on or after January 1, 2015, and uses the Tier I-IV labels; Ranking List #2 applies for transitional purposes to increases in jobs first earned earlier, and uses the older "distressed / least developed / under developed / moderately developed / developed" labels.

Under Ranking List #1, Tier IV (the most-distressed group, largest credit) is Allendale, Bamberg, Barnwell, Chesterfield, Clarendon, Dillon, Hampton, Marion, Marlboro, McCormick, Union, and Williamsburg. Tier I (the most-developed group) is Aiken, Beaufort, Berkeley, Charleston, Dorchester, Georgetown, Greenville, Kershaw, Lexington, Richland, and Saluda. Tiers II and III cover the remaining counties, listed in full in the letter.

Tax moratorium. Section 12-6-3367 grants a 10-year (15 years in certain cases) moratorium on corporate income or insurance premium taxes for qualifying taxpayers in the most-distressed counties. For 2015 the qualifying counties are Chesterfield, Dillon, and Marlboro.

Reduced fee-in-lieu investment. The normal minimum investment to qualify for a fee in lieu of property taxes is $2.5 million (Little Fee and Simplified Fee) or $45 million (Big Fee), reduced to $1 million in counties whose average annual unemployment rate is at least twice the State average over the last 24 months. For 2015, no county qualifies for the $1 million minimum.

What this means for you

If you are creating jobs in South Carolina

Find your county's tier to gauge the per-job credit; the largest credits go to Tier IV counties. Note that Ranking List #1 applies to jobs first earning the credit on or after January 1, 2015, while Ranking List #2 governs certain earlier jobs.

If you are siting a capital-intensive project

Check whether the county is a 2015 moratorium county (Chesterfield, Dillon, Marlboro) and note that no county qualified for the reduced $1 million fee-in-lieu investment threshold this year.

Common questions

Q: Which counties are Tier IV (largest job tax credit) for 2015?
A: Allendale, Bamberg, Barnwell, Chesterfield, Clarendon, Dillon, Hampton, Marion, Marlboro, McCormick, Union, and Williamsburg.

Q: Which counties qualify for the tax moratorium in 2015?
A: Chesterfield, Dillon, and Marlboro.

Q: Did any county qualify for the reduced $1 million fee-in-lieu investment in 2015?
A: No. For 2015 no county met the twice-the-State-average unemployment threshold for the reduced $1 million minimum investment.

Subject

Job Tax Credit - County Rankings for 2015 Fee in Lieu of Property Taxes – Reduced Investment Counties Tax Moratorium – Qualifying Counties

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL15-1.pdf

Original ruling text

State of South Carolina

Department of Revenue
300A Outlet Pointe Blvd., P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.dor.sc.gov

SC INFORMATION LETTER #15-1
SUBJECT:

Job Tax Credit - County Rankings for 2015
Fee in Lieu of Property Taxes – Reduced Investment Counties
Tax Moratorium – Qualifying Counties

DATE:

January 8, 2015

REFERENCE:

S. C. Code Ann. Section 12-6-3360 (2014)
S. C. Code Ann. Section 12-6-3367 (2014)
S. C. Code Ann. Section 12-44-30 (2014)
S. C. Code Ann. Section 4-12-30 (Supp. 2012)
S. C. Code Ann. Section 4-29-67 (Supp. 2012)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to announce
general information useful in complying with the laws administered by the
Department. An Information Letter has no precedential value.

INTRODUCTION
The job tax credit, the tax moratorium, and the reduction in the minimum required fee in lieu of
property tax investment are dependent, in part, on per capita income and unemployment rate data
received from the South Carolina Employment Security Commission and Budget and Control
Board.
The purpose of this advisory opinion is to provide the county rankings for purposes of the job tax
credit, counties qualifying for the tax moratorium, and counties qualifying for the reduced fee in
lieu of property tax.
JOB TAX CREDIT – County Rankings
South Carolina’s 46 counties are now ranked and designated annually for job tax credit purposes
with equal weight given to unemployment rate and per capita income. Because of the
amendments in the job tax credit statute in 2010, it is necessary to have two rankings of South
Carolina’s counties for purposes of the job tax credit.

Ranking List #1 - For new, full time jobs created in tax years that begin in 2015, where the
job tax credit was first earned on or after January 1, 2015, and increases in such jobs. As
required by statute, the Department has ranked South Carolina’s counties as “Tier IV,” “Tier
III,” “Tier II,” and “Tier I” for computation of the new job tax credit with equal weight given to
unemployment rate and per capita income.
TIER IV

TIER III

TIER II

Allendale
Bamberg
Barnwell
Chesterfield
Clarendon
Dillon
Hampton
Marion
Marlboro
McCormick
Union
Williamsburg

Abbeville
Cherokee
Chester
Colleton
Darlington
Fairfield
Horry
Jasper
Lancaster
Lee
Orangeburg
Sumter

Anderson
Calhoun
Edgefield
Florence
Greenwood
Laurens
Newberry
Oconee
Pickens
Spartanburg
York

TIER I
Aiken
Beaufort
Berkeley
Charleston
Dorchester
Georgetown
Greenville
Kershaw
Lexington
Richland
Saluda

Ranking List #2 – For Transitional Purposes: For increases in new, full time jobs created in
tax years that begin in 2015, where the job tax credit was first earned before January 1,
2011. As required by statute, the Department has ranked South Carolina’s counties as
“distressed,” “least developed,” “under developed,” “moderately developed,” and “developed”
for computation of the new job tax credit based on unemployment rate and per capita income and
then adjusted in accordance with applicable special rules in South Carolina Code Sections 12-63360(B) and 12-6-3360(L), as they existed prior to the amendment of Code Section 12-6-3360
effective January 1, 2011.

DISTRESSED
Allendale
Bamberg
Barnwell
Chesterfield
Clarendon
Dillon
Hampton
Marion
Marlboro
McCormick
Union
Williamsburg

LEAST
DEVELOPED
Abbeville
Cherokee
Fairfield
Horry
Jasper
Lancaster
Lee
Orangeburg

UNDER
DEVELOPED
Calhoun
Chester
Colleton
Darlington
Edgefield
Greenwood
Laurens
Pickens
Sumter

MODERATELY
DEVELOPED
Anderson
Beaufort
Florence
Georgetown
Newberry
Oconee
Richland
Saluda
Spartanburg
York

DEVELOPED
Aiken
Berkeley
Charleston
Dorchester
Greenville
Kershaw
Lexington

TAX MORATORIUM – Qualifying Counties
South Carolina Code Section 12-6-3367, in part, grants a 10 year moratorium (15 years in certain
cases) on corporate income taxes or insurance premium taxes for qualifying taxpayers in a
county with an average annual unemployment rate of at least twice the State average during each
of the last two completed calendar years, based on the most recent unemployment rates available,
or in a county with one of the three lowest per capita incomes based on the average of the three
most recent years of available average per capita income data. The moratorium begins the first
full taxable year after the taxpayer qualifies in a county designated as a moratorium county.
For 2015, the following counties have been designated moratorium counties under South
Carolina Code Section 12-6-3367.
Chesterfield
Dillon
Marlboro

FEE IN LIEU OF PROPERTY TAXES - Reduced Investment Counties
The minimum required investment necessary to qualify for the fee in lieu of property taxes is
$2.5 million for the “Little Fee” and “Simplified Fee,” and $45 million for the “Big Fee.” See
South Carolina Code Sections 4-12-30(B)(3), 12-44-30(14), and 4-29-67, respectively. This
investment amount, however, is reduced to $1 million for a company investing in a county with
an average annual unemployment rate of at least twice the State average during each of the last
24 months, based on data available on November 1.
For 2015, no county qualifies for the $1 million minimum investment under the “Little Fee,”
“Simplified Fee,” and “Big Fee.”