State offers tax incentive to increase business through Port of Charleston

A new South Carolina tax incentive aims to lure new distribution centers to the state while rewarding new and existing businesses in the state for their increased use of the Port of Charleston.

The new incentive, which was passed this legislative session, goes into effect just days before the S.C. State Ports Authority expects to receive the final environmental impact statement from the U.S. Army Corps of Engineers on its proposed cargo container terminal at the former Navy base.

The corps’ statement is expected to be issued on Dec. 15. A final permit for the $600 million project is expected to be issued in April.

Through the International Trade Incentive Program, companies in the state that are involved in manufacturing, warehousing or distribution may apply for state income tax credits from an available pool of $8 million.

“This incentive works to make our state more competitive in attracting distribution centers and foreign investment,” said Bernard S. Groseclose Jr., president and CEO of the S.C. State Ports Authority. “At the same time, it encourages companies already here to increase shipments.”

Any taxpaying company that ships at least 75 net tons of non-containerized cargo or 10 fully loaded 20-foot containers and increases its port cargo volume by at least 5% in a single calendar year is eligible to apply.

Although the program is starting at the end of 2006, the initial allocation of credits will be based on increases from 2005, according to the state’s Coordinating Council for Economic Development.

The CCED will allocate the tax credits. The deadline for applications will be March 1, 2007.

Businesses involved in global trade are advised to keep thorough records of your company’s shipments, jobs created and new investments in facilities, plant and equipment.