Taxes & Incentives

South Carolina’s tax policies are structured to enhance business profitability:

• Corporate Income Tax: A competitive 5% corporate income tax rate, calculated based on in-state sales, benefits companies serving markets beyond South Carolina.
• No State Property Tax: South Carolina does not impose a state-level property tax, allowing businesses to allocate resources more efficiently.
• No Inventory Tax: The absence of taxes on inventories reduces carrying costs, particularly advantageous for manufacturing and distribution sectors.
• Sales Tax Exemptions: South Carolina offers a variety of sales tax exemptions, including no sales tax on manufacturing machinery, industrial power, or materials for finished products, effectively lowering both startup and operational expenses.  
• No Local Income Tax: The state does not levy local income taxes, further enhancing the attractiveness of Union County for businesses seeking a cost-effective location.

To encourage job creation and investment, Union County offers several performance-based incentives:

• Job Tax Credits: Businesses creating new jobs may qualify for credits against their corporate income tax liability. The credit amount varies based on the county’s development tier and the number of jobs created.
• Fee-in-Lieu of Property Taxes (FILOT) Agreements: These agreements allow companies to negotiate reduced property tax rates, often resulting in significant savings over standard property tax obligations.  
• Job Development Credit (JDC): The JDC effectively uses the personal withholding taxes of new employees to reimburse qualified, approved companies that add value to South Carolina and the community in which they locate.  
• Retraining Credits: Eligible businesses can receive a refund of up to $1,000 per full-time employee per year for retraining costs, applicable to sectors such as manufacturing, processing, and technology-intensive industries.

Union County recognizes that each business has unique needs. Therefore, we offer tailored incentive packages that may include:

• Economic Development Set-Aside Program: Assists companies in locating or expanding in South Carolina through road or site improvements and other costs related to business location or expansion.  
• Closing Fund: Provides additional funding necessary to recruit or retain high-impact economic development projects, generally awarded to assist with the costs of real property improvements or other road or infrastructure improvements.  
• Rural Infrastructure Fund (RIF): Assists qualified counties in the state’s rural areas by providing financial assistance for infrastructure and other activities that enhance economic growth and development.