E-Zone Program

Manufacturing companies located in South Carolina may have the opportunity to utilize the Job Retraining Tax Credit (E-Zone) program in order to be reimbursed for certain training and education provided to employees. Subsequent to approval by the State Board for Technical and Comprehensive Education, companies may claim a credit of $1,000 per employee credit against withholding taxes. 

 

E-Zone Requirements

$250 renewal fee
(Payable to SC Department of Revenue)

No initial application fee for new companies.

Approval by the State Board for Technical and Comprehensive Education As indicated in the legislation, all companies training plans are subject to a review by the State Board for Technical and Comprehensive Education on an annual basis.
Training for Manufacturing Employees Only companies engaged in manufacturing or processing operations or technology intensive activities at manufacturing, processing or technology intensive facilities are eligible for E-Zone reimbursement.
Company Training Cost The qualifying business must expend at least $1.50 on retraining eligible employees for every $1.00 claimed as a credit against withholding for retraining.

 

Qualifications for Reimbursement

Application

Application with training plan and employee information must be submitted. Representatives from local technical colleges are available to assist in the application process.

Certain Employee Qualifications Only training and education provided to full time first line employees or immediate supervisors qualify for the E-Zone credit. Employees must be employed by the business for a minimum of two years. The company must offer a benefit package which includes heath care. (Training and education to contract for temporary employees is not eligible.)
Eligible Training and Education

Reimbursement may be granted (but not limited to) for the following types of training and education of current employees:

  • Newly installed equipment
  • Newly implemented technology, such as computer platforms, software implementation and upgrades
  • New Processes
  • New Work Instructions
  • Job Redesign
  • Quality Standards(ISO,TS)
  • Apprenticeship