With over 6,000 manufacturers in the state, South Carolina is seeded with businesses in a variety of sectors including aerospace and aviation, automotive manufacturing, and advanced manufacturing.
Many of these innovative businesses rely upon the federal Research and Development (R&D) tax credit as a means to reduce tax liability. In addition to income tax, certain eligible small businesses can also utilize the credit to offset Alternative Minimum Tax and payroll taxes.
Yet, despite reaping the benefits of this federal incentive, many of these same businesses regrettably leave money on the table by failing to assess the S.C. state credit opportunity, a credit that was created to promote investment in new technology and innovation within the state. This is unfortunate, because the requirements associated with claiming the state credit largely follow those of the federal, and thus, it’s likely that many of these businesses would find themselves eligible for both.
Interested in learning more about how the S.C. state credit opportunity works? Margaret Krajcer, JD, vice president and general counsel of Tax Credits Group recently wrote authored an article on this topic for the South Carolina Association of CPAs. Be sure to check out the full article on the SCACPAs blog: Claiming the Federal Research and Development Tax Credit? Don’t Overlook the State Opportunity