Which per-capita income figures applied to South Carolina job and headquarters credit compensation tests under RR 99-11?

Plain-English summary

South Carolina Revenue Ruling #99-11 published the per-capita income figures then used to test compensation requirements for two historical income-tax credits.

For a qualified service-related facility under the job tax credit, the ruling said the taxpayer had to use the most recent county per-capita income data available on the last day of the tax year in which the qualifying jobs were filled. Depending on the job count, the statute required average cash compensation above 1.5, 2, or 2.5 times the county figure.

For the headquarters personal-property credit, the ruling used the most recent state per-capita income data available at the same tax-year-end point. The historical rules required specified headquarters or research-and-development jobs above 1.5 times the state figure and statewide employee compensation above twice that figure.

The ruling listed county figures available as of June 1, 1999 and a statewide figure of $20,508. Those numbers are historical and should not be used for current credit calculations.

What this means for you

Employers evaluating old credit periods

Use the income data that was most recent at the end of the tax year when the jobs were filled, not necessarily the data publication date or the return-filing date.

Payroll and compensation teams

The compensation test applied to an average, and the required job and compensation levels had to be maintained for each year in which the credit was claimed under the ruling's framework.

Tax professionals

For current job-credit work, use current statutes, RR #25-5, and the Department's current per-capita income publications. RR #99-11 is a source for 1999 historical figures only.

Common questions

Q: Which date controlled the income data?
A: The last day of the taxpayer's taxable year in which the qualifying jobs were filled; the taxpayer used the most recent data available on that date.

Q: Did the job credit use state or county income?
A: The qualified service-related facility test discussed here used the county figure where the jobs were located.

Q: Did the headquarters credit use state or county income?
A: The compensation tests discussed by the ruling used the statewide per-capita income figure.

Q: What statewide figure did RR 99-11 publish?
A: $20,508, as historical data available when the ruling was issued.

Q: Can the listed county amounts be used today?
A: No. They are 1999 figures and must be replaced with the current Department-published data for a present calculation.

Citations and references

• S.C. Code Ann. § 12-6-3360(M)(13) — historical qualified service-related facility tests
• S.C. Code Ann. § 12-6-3410(D)(2) — historical headquarters-credit compensation tests
• SC Revenue Ruling #25-5 — later comprehensive new-jobs-credit guidance directing use of current per-capita income publications

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR99-11.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214

SC REVENUE RULING #99-11

SUBJECT:

Per Capita Income Figures for State and Counties
(Income Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous documents and any oral directives in conflict
herewith.

REFERENCE:

S. C. Code Ann. Section 12-6-3360(M)(13)(Supp. 1998)
S. C. Code Ann. Section 12-6-3410(D)(2) (Supp. 1998)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Supp. 1998)
SC Revenue Procedure #97-8

SCOPE:

A Revenue Ruling is the Department of Revenue’s official
advisory opinion of how laws administered by the Department
are to be applied to a specific issue or a specific set of facts, and
is provided as guidance for all persons or a particular group. It is
valid and remains in effect until superceded or modified by a
change in the statutes or regulations or a subsequent court
decision, Revenue Ruling or Revenue Procedure.

Taxpayers that operate “qualified service-related facilities” are eligible for the South
Carolina job tax credit contained in Code Section 12-6-3360 if they create a certain
number of jobs. In most cases, those jobs must pay a certain percentage above the per
capita income for the county in which the jobs will be located in order for the taxpayer’s
facility to qualify as a qualified service-related facility.
The South Carolina headquarters credit contained in Code Section 12-6-3410 provides a
credit equal to 20% of the personal property costs incurred in constructing a headquarters
if a corporation meets certain investment and job requirements as well as certain per
capita income requirements with respect to employees employed at the headquarters and
throughout the State. This document provides taxpayers with the per capita income
figures for the State and for each county within the State in order that a taxpayer may
determine if it has met the requirements of either Code Section 12-6-3360(M)(13) or 126-3410(D)(2).

1

The South Carolina Job Tax Credit
The South Carolina job tax credit, Code Section 12-6-3360(M)(13), reads in relevant part:
“Qualified service-related facility” means:
...(b) a business, other than a business engaged in legal, accounting, or investment
services or retail sales, which has a net increase of at least:
(i)

two hundred and fifty jobs at a single location;

(ii)

one hundred twenty-five jobs at a single location and the jobs have
an average cash compensation level of more than one and one-half
times the per capita income in the county where the jobs are located;

(iii)

seventy-five jobs at a single location and the jobs have an average
cash compensation level of more than twice the per capita income in
the county where the jobs are located; or

(iv)

thirty jobs at a single location and the jobs have an average cash
compensation level of more than two and one-half times the per
capita income in the county where the jobs are located.

A taxpayer shall use the most recent per capita income data available as of the end
of the taxable year in which the jobs are filled. Determination of the required
number of jobs is in accordance with the monthly average described in subsection
(F).
A taxpayer must use the most recent per capita income information available as of the
last day of the taxpayer’s taxable year in which the jobs have been filled. For example,
if the taxpayer is qualifying as a “qualified service related facility” and plans to pay its
employees one and a half times the per capita income of the county where the facility is
located and the taxpayer is a calendar year taxpayer, the taxpayer should use the per
capita income information available as of December 31st (last day) of the taxable year in
which the 125th person (based on the monthly average) is hired to determine if the
employees have been paid an average cash compensation level of one and one-half times
the per capita income of the county. The taxpayer must retain the required number of
jobs with the appropriate average cash compensation for the entire taxable year, and
foreach taxable year for which the credit is claimed.

2

The Board of Economic Advisors usually receives the information concerning county per
capita income once a year, usually in May. Once the Board of Economic Advisors
receives this information, it forwards this information to the South Carolina Department
of Revenue. Accordingly, the following are the per capita income amounts for each of
the counties in this State as of June 1, 1999 that should be used for determining whether a
taxpayer has met the per capita income requirements contained in Code Section 12-63360(M)(13):
County

Per Capita Income

Abbeville

$17,102

Aiken

$21,117

Allendale

$14,371

Anderson

$20,044

Bamburg

$15,344

Barnwell

$19,141

Beaufort

$25,599

Berkeley

$15,147

Calhoun

$17,112

Charleston

$21,670

Cherokee

$17,626

Chester

$16,279

Chesterfield

$16,948

Clarendon

$14,365

Colleton

$16,017

Darlington

$18,582

Dillon

$15,765

Dorchester

$19,013

Edgefield

$16,576

3

Fairfield

$17,301

Florence

$20,622

Georgetown

$20,173

Greenville

$24,761

Greenwood

$20,981

Hampton

$16,597

Horry

$21,185

Jasper

$16,153

Kershaw

$19,383

Lancaster

$18,638

Laurens

$19,773

Lee

$12,512

Lexington

$22,771

McCormick

$14,571

Marion

$15,716

Marlboro

$14,567

Newberry

$18,273

Oconee

$21,349

Orangeburg

$17,446

Pickens

$19,459

Richland

$23,874

Saluda

$18,376

Spartanburg

$21,182

Sumter

$16,883

Union

$16,829

Williamsburg

$13,734

4

York

$22,414

The South Carolina Headquarters Credit
The personal property credit which is a component of the headquarters credit contained in
Code Section 12-6-3410, provides in relevant part:
...(D) A headquarters establishment, expansion, or addition which meets the
criteria of subsection (B) of this section is entitled to an additional credit equal to
twenty percent of cost for tangible personal property if the following conditions
are met:
...(2) The establishment, expansion, or addition of a corporate headquarters
or research and development facility must result in:
(a) the creation of at least seventy-five new full-time jobs performing
either:
(i) headquarters related functions and services; or
(ii) research and development related functions and
services.
The jobs must have an average cash compensation level of more than
one and one-half times the per capita income of this State based on
the most recent per capita income data available as of the end of the
taxpayer’s taxable year in which the jobs are filled; and
(b) an average South Carolina employee cash compensation level for
all employees in this State of more than twice the per capita income
in the State based on the most recent per capita income data available
as of the end of the taxpayer’s taxable year in which the jobs are
filled.
A taxpayer must use the most recent per capita income information available as of the last
day of the taxpayer’s taxable year in which the jobs have been filled. For example, for
the personal property component of the headquarters credit if the taxpayer is a calendar
year taxpayer, the taxpayer should use the State per capita income figure available as of
December 31st (last day) of the taxable year in which the seventy-fifth employee is hired
in determining if the employees have been paid an average cash compensation level of
one and one-half and twice the State average.
Pursuant to Code Section 12-6-3410, no credit may be claimed for a taxable year during
which the taxpayer fails to meet the qualifying employment requirements provided in
5

Code Section 12-6-3410. Further, the carryforward period continues to run for any year
in which the credit may not be claimed for failure to meet the employment requirements
and thus, there is no extension of the carryforward period. Therefore, for any year in
which the taxpayer wishes to claim the credit (including the fifteen year carryforward
period) the taxpayer must have maintained the required employment levels and have met
the per capita income requirements contained in the statute. 1
The information on the State per capita income is generally made available twice a year,
usually in May and October. The following is the current State per capita income which
should be used in determining if a taxpayer has met the requirements of Code Section 126-3410(D)(2).
State of South Carolina
$20,508
The Department of Revenue will publish information concerning the per capita income
figures for counties and for the State after it becomes available from the Board of
Economic Advisors. If you have questions about this revenue ruling, you may call
Jerilynn VanStory at (803)898-5151.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Elizabeth A. Carpentier
Elizabeth A. Carpentier, Director
Columbia, South Carolina
, 1999
September 10

1

Note, a taxpayer may claim the credit for a taxable year in the unextended carryforward period
if the taxpayer re-qualifies for the credit by meeting the employment requirements during that
taxable year.

6