USA - SOUTH CAROLINA Law and Practice Contributed by: Matt Norton and Christian Kolic, K&L Gates
8.5 Tax Benefits South Carolina is known for taking an aggres - sive approach to economic incentives for busi - nesses opening and conducting operations in the state. These incentives include both tax credits and the reduction of property taxes and are typically based on the size and scope of the operation, the number of jobs created, and the wages those jobs command, as well as the facil - ity’s geographic location within the state. South Carolina counsel working in this area should be consulted to assist in structuring incentive packages, which may include fee-in-lieu-of-tax agreements, job tax credits, payroll tax rebates, tax abatements, capital credit agreements, tax increment financing, and various types of infra - structure grants. The owner of real property is generally entitled to take deductions for depreciation with respect to buildings and improvements located on the land. In addition, investors in real property who are not dealers in that property and have met the requi - site holding periods may be entitled to defer the recognition of gain on the sale of real property by entering into a like-kind exchange pursuant to Section 1031 of the Internal Revenue Code. Finally, property owners who invest the capital gain proceeds from the sale of real property into an opportunity zone project may defer or reduce the amount of gain ultimately recognised.
Developers can also benefit from South Caroli - na-specific tax credits related to historic building rehabilitation and abandoned building revitalisa - tion. Real property owners who develop solar farms on their property may be entitled to state and federal tax credits.
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