Taxes and Fees

Tax treatment for agribusiness continues to be a major issue requiring close monitoring in an effort to assure we maintain all present agribusiness sales tax exemptions and favorable ag use property tax assessments.

As 2025 approaches, tax laws presently in effect are nearing expiration.  PABC opposes legislation which would effectively increase the tax burden of agribusinesses and strongly supports policy considerations that lower taxes on agribusinesses.

SECTION 1.  Section 12-6-3360(A) of the S.C. Code is amended to read:

(A) Taxpayers that operate manufacturing, tourism, processing, agricultural packaging, warehousing, distribution, research and development, corporate office, qualifying service-related facilities, agribusiness operations, extraordinary retail establishment, professional sports teams, and qualifying technology intensive facilities, and banks as defined pursuant to this title are allowed an annual jobs tax credit as provided in this section. In addition, taxpayers that operate retail facilities and service-related industries qualify for an annual jobs tax credit in counties designated as "Tier IV". As used in this section, "corporate office" includes general contractors licensed by the South Carolina Department of Labor, Licensing and Regulation. Credits pursuant to this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, bank taxes imposed pursuant to Chapter 11 of this title, and insurance premium taxes imposed pursuant to Chapter 7, Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina income tax, bank tax, or insurance premium tax liability. In computing a tax payable by a taxpayer pursuant to Section 38-7-90, the credit allowable pursuant to this section must be treated as a premium tax paid pursuant to Section 38-7-20.

The trade of agribusiness commodities is being affected currently by many state, federal and even international policies.  Issues include, but are not limited to, EU deforestation, transportation of commodities/products (shipping, trucking, and rail) and the use of beneficial chemical products (fumigants, herbicides, pesticides) that can effectively reduce the use of SC produced products and the profitability of SC agribusiness producers.  PABC supports working with the agribusinesses impacted in these areas to find solutions.  Efforts to expand agribusiness markets, encourage use of SC commodities, and effectively manage costs impacting the agribusiness community should be a priority.  Trade negotiations should be monitored closely as to the effects upon SC agribusiness revenues and expenses.

Support exists to retain the highest level of estate tax exemptions possible and to retain stepped up basis at the death of an ag or forestry landowner.  These issues are integral to retaining land assets within family farms, which includes both agricultural and timberland operations.  PABC supports appropriate tax policy which allows for retention of family farm assets integral to agricultural and forestry operations.