In response to the COVID-19 situation, several manufacturers have modified operations to now produce items needed to fight the virus, i.e., hand sanitizers, masks, etc. If your manufacturing organization is doing this, you could likely be eligible to participate in the Enterprise Zone Retraining Program and claim refunds for a portion of the training on new technology or processes for incumbent workers. To find out more about saving as much as 67% on your training costs, contact the Enterprise Zone Retraining program manager Michelle Fehr

EZone logo

The Enterprise Zone Retraining Program (EZone) offers a tax incentive for companies wanting to remain competitive by introducing new equipment and/or new technology to their facility.

If you have a facility in South Carolina with full-time production/technology first-line employees or immediate supervisors that need training on new processes and/or new equipment, EZone may be able to help. Applying is easy and once approved, the application lasts five years.

Significantly Save on Employee Training Costs

Easily Claim a Tax Credit for Training

A company spending at least $1.50 on retraining eligible employees can claim a credit of $1.00 against withholding on approved retraining ($1,000 per person cap, per year). Representatives from the local technical college will assist in the application process.

Employee Qualifications

Full-time production and technology first-line employees and/or immediate supervisors, who meet the following: 1) have been on the company payroll for at least two years; 2) need training on new equipment and/or processes and 3) are offered benefits/healthcare through the company.

 
 

Eligible Retraining

Includes (but not limited to) training on the following:

  • Newly installed equipment
  • Newly implemented technology

Training Not Covered by EZone

  • Executive training
  • Management development training
  • Career development
  • Personal enrichment training
  • Cross training of employees on equipment or technology that is not new to the company

EZone Requirements

Eligibility

South Carolina companies engaged in manufacturing, processing or technology intensive activities at manufacturing, processing or technology intensive facilities are eligible to participate.

Company Training Cost

A company spending at least $1.50 on retraining eligible employees can claim a credit of $1.00 against withholding on approved retraining ($1,000 per person cap, per year).

Approval Process

Company participation and ongoing training plans are reviewed and approved by the State Board for Technical and Comprehensive Education. This includes a yearly review. Application remains in effect for five years.

$250 Annual Renewal Fee (payable to SC Department of Revenue)

No initial application fee for new companies.
*Company must file quarterly EZA 1605Z and 1606Z Returns, even if $0 claimed.

Qualifying is Easy!

Company

  • Covers a minimum of 50% of premium toward benefits/health care for employees
  • Part of the manufacturing industry and/or process or technology intensive

Trainees/Employees

  • Full-time employees (not temporary or contract)
  • Production or technology first-line employees or immediate supervisors
  • Continuously on company payroll for a minimum of two years
  • Not subject to a revitalization agreement/job development credit, including a preliminary revitalization agreement

Training

  • Retraining on newly installed equipment
    or
  • Retraining on newly implemented technology, such as computer platforms, software implementation/upgrades, Total Quality Management, ISO 9000, self-directed work teams, OSHA safety refreshers, etc.

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