Manufacturing, processing, and technology intensive companies located in South Carolina have the opportunity to receive a refund for “retraining” employees. Subsequent to approval by the State Board for Technical and Comprehensive Education, by participating in the Enterprise Zone Retraining Program (E-Zone), qualified companies may be reimbursed up to $1,000 per eligible employee, per year, against withholding taxes, for certain training and education.

E-Zone Requirements

Eligibility

Only 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 must spend at least $1.50 on retraining eligible employees for every $1.00 claimed as a credit against withholding on approved retraining ($1000 per person cap, per year).

Legislative Requirements

By law, all company participation and ongoing training plans must be reviewed and approved by the SC Technical College System.

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

No initial application fee for new companies.

Qualifications for Reimbursement

Application

An application package must be submitted for approval. Representatives from local technical colleges will assist in the application process.

Employee Qualifications

Full time production and technology intensive first line employees or immediate supervisors,who have been on the company payroll for a minimum of two years,qualify. (Company must offer benefits/health care.)

Eligible Training

Retraining of eligible employees must be necessary for the qualifying business to remain competitive or introduce new technologies.

Below is a sample list of acceptable course justifications:

  • New equipment
  • New technology (ex. computer platforms, software implementation and upgrades)
  • New/Improved processes
  • New products
  • New Standard Operating Procedures (SOP)
  • New regulations (company, and regulatory agencies) [OSHA, FDA, USDA, etc.]
  • Lean Manufacturing
  • Six Sigma
  • ISO 9000 Quality Management Principles
  • Total Quality Management
  • High Performance/Self-directed work teams
  • Safety refresher
  • Apprenticeship (Note: Needs to be an active registered apprenticeship program that contains that specific training.)
  • Export

Not Eligible

  • 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 
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