SC Changes Endowed Chairs Program & Manufacturing Incentives

Touted as a tool to help the state attract and retain jobs, South Carolina Gov. Mark Sanford last week signed into law H. 4478, the Economic Development Competitiveness Act. The new law directs one-third of the state's endowed chairs money be administered by the Coordinating Council on Economic Development — a reform measure that the governor says will help shift its focus to job creation and allow private sector investment to lead public sector investment. Funding previously was administered by an academic panel. The Act also provides several incentives for manufacturing, including renewable energy tax incentives.

To support the state's manufacturers and attract new facilities, the Act includes the following incentives:

• A renewable energy facility tax credit equal to 10 percent of the cost of a company's qualifying investments in plant and equipment for renewable energy operations;
• An amendment changing the South Carolina Life Sciences Act to make it the South Carolina Life Sciences Act and Renewable Energy Manufacturing Act, extending benefits to renewable energy manufacturing facilities, including tax credits for machinery and equipment and job creation; and,
• A reduction to the industrial property tax on warehouses located on a manufacturing site from 10.5 percent to 4 percent, an incentive to help the state attract distribution centers.

The Economic Development Competitiveness Act is available at: http://www.scstatehouse.gov/sess118_2009-2010/bills/4478.htm.