Companies that increase their cargo shipments
through South Carolina's ports will be eligible for a tax break under a
bill passed Tuesday in the state Legislature.
The bill, which will take effect as soon as it's signed by Gov. Mark
Sanford, is touted as the state's best hope to compete for job-rich
distribution centers that in recent times have forgone South Carolina for
sites in neighboring states.
The incentive, similar to ones put in place years ago in Georgia,
Virginia and North Carolina, would allow new or growing companies to take
a cut in either state job taxes or investment taxes, depending on whether
they're adding new employees or building new facilities in the state. The
tax break would be available to any business that increases its cargo
shipments through the state's ports by 5 percent in a year's time.
"It's very exciting to see this go through after having worked on it
for more than a year," said John Hassell, president of the Maritime
Association of the Port of Charleston and a State Ports Authority board
member.
Economic development officials say the tax credit will be an important
part of the incentiveages South Carolina can offer large companies looking
to locate in the Southeast. "Big box" retailers, such as Wal-Mart and Home
Depot, are the main targets of the bill, as they're big port users, funnel
in millions of tax dollars each year and compel states to compete heavily
for them.
Port officials also have argued that the incentive is vital to helping
the Port of Charleston attract customers and stay competitive with growing
ports in Savannah and Norfolk, Va.
Craig Lund, manager of national accounts for the State Ports Authority,
said recently that large retail distribution centers are some of the most
crucial investments companies can make in South Carolina right now. They
bring numerous high-wage jobs to a region, but they also import and export
so many goods that shipping lines scramble to service them at nearby
ports.
"If (an agency) has been out there working with a distribution center
about locating here, this is something new they can throw out there,"
Hassell said Tuesday. "Up until now, we didn't even have it in the
toolbox."
Companies will have to apply for the tax credits on a first-come,
first-served basis. The Legislature has set aside a total of $8 million in
next year's budget to dole out.
Companies can take a maximum $1,500 job tax credit or 6 percent
investment tax credit.