What 789 & On Means for South Carolina Businesses

789 & On is South Carolina's tax incentive for businesses with annual revenue of $789,000 or more

789 & On is a state tax credit program designed to encourage business growth and job creation in South Carolina. The program offers tax incentives to companies that meet the revenue threshold and commit to hiring or expanding operations within the state. Unlike some incentive programs that target specific industries, 789 & On applies across sectors, making it relevant to manufacturers, service providers, retailers, and professional firms alike.

The program is administered through South Carolina's Department of Commerce, which reviews applications and certifies businesses that meet the requirements. The tax credit reduces what a business owes to the state, making it a direct financial benefit rather than a rebate or grant that requires repayment.

Key Takeaways

• 789 & On provides state tax credits to South Carolina businesses with annual revenue exceeding $789,000 that create new jobs or expand operations.
• The program applies to most business types and sectors, though specific job creation or investment thresholds must be met to may have access to.
• Tax credits reduce what a business owes to South Carolina's Department of Revenue, providing immediate financial benefit.
• The Department of Commerce handles certification, and businesses should contact them directly to learn current requirements and application timelines.

How the revenue threshold works

The $789,000 figure represents the annual gross revenue a business must have reached to participate. This threshold applies to the fiscal year in which the business submits its application or the year immediately preceding it. A business that has not yet reached $789,000 in annual revenue does not meet the basic requirement, regardless of other factors.

Revenue is calculated based on total business income before expenses, and the Department of Commerce typically requests documentation such as tax returns or financial statements to verify this figure. Different business structures—sole proprietorships, partnerships, corporations, and LLCs—all report revenue differently, so the verification process may vary depending on how your business is organized.

Job creation and investment requirements

Simply reaching the revenue threshold does not automatically may have access to a business for 789 & On. The program also requires that businesses create new jobs or make capital investments in South Carolina. The specific number of jobs or dollar amount of investment varies depending on the county where the business operates and the type of work involved.

Rural counties and areas with higher unemployment typically have lower job creation thresholds than urban areas, meaning a business in a less populated region may may have access to by creating fewer positions. Similarly, capital investment requirements—such as purchasing equipment, building facilities, or upgrading technology—are adjusted by region. The Department of Commerce publishes these thresholds by county, and you can request them when you contact the department about your business's location.

How to explore 789 & On for your business

Start by contacting the South Carolina Department of Commerce directly. They maintain current information about program requirements, county-specific thresholds, and the application process. You can reach them through their main office or through regional economic development offices located throughout the state.

Before reaching out, gather your business's financial records for the past year or two, including tax returns and revenue documentation. Have ready the county where your business operates or plans to expand, and a general sense of how many jobs you have created or plan to create. This information helps the Department of Commerce determine whether your situation may align with the program's requirements.

The department can also explain whether other state incentive programs—such as those focused on manufacturing, technology, or specific industries—might offer additional benefits alongside or instead of 789 & On. Many businesses benefit from layering multiple incentives, and the department's staff can advise on what combinations may be available to you.

Timeline and certification process

The time from initial inquiry to tax credit certification varies. The Department of Commerce reviews applications to confirm that a business meets the revenue threshold, job creation targets, and investment requirements for its county. This review typically takes several weeks, though the exact timeline depends on application volume and the completeness of the documentation you provide.

Once certified, the tax credit is applied against your state income tax liability. If your business is structured as a corporation, you claim the credit on your corporate tax return. If you operate as a sole proprietor, partnership, or LLC, the credit may flow through to your personal return depending on your business structure. Your accountant or tax professional can advise on how to properly claim the credit once you receive certification from the Department of Commerce.

What 789 & On does not cover

This program provides a tax credit, not a cash payment or grant. If your tax liability is lower than the credit amount, you cannot receive the difference as a refund in most cases. The credit reduces what you owe, but it does not generate money if you have no tax obligation or a small one.

789 & On also does not provide funding for startup costs, working capital, or equipment purchases. It is a tax incentive that recognizes job creation or investment you have already made or committed to making. If you are looking for funding to launch or expand operations, you would need to explore other resources such as small business loans, grants from economic development organizations, or venture capital.

Other South Carolina business incentives to consider

South Carolina offers several other tax credit and incentive programs that may work alongside or instead of 789 & On. The Jobs Tax Credit targets job creation in specific industries and regions. The Research and Development Tax Credit supports companies investing in innovation. Manufacturing-focused businesses may may have access to for Property Tax Abatement or industry-specific credits.

The Department of Commerce can explain how these programs interact and whether your business might benefit from more than one. Some businesses layer multiple incentives to maximize their tax benefit, while others find that a single program best fits their situation. Speaking with the department early in your planning process helps you understand the full range of options available.

Frequently Asked Questions

Does my business have to be located in a specific county to use 789 & On?

No, the program applies statewide. However, the job creation and investment thresholds your business must meet vary by county. Rural and economically distressed counties have lower thresholds than urban areas, so your location affects what you need to demonstrate to may have access to.

Can a business that has already created jobs in the past may have access to?

Yes. The program recognizes job creation that has already occurred, as long as you can document it with payroll records, tax filings, or employment verification. You do not have to commit to future hiring; past job creation counts toward meeting the program's requirements.

What happens if my business revenue drops below $789,000 after I receive certification?

Contact the Department of Commerce to discuss your situation. Program rules about ongoing may be able to access and whether you can continue to claim the credit depend on the specific terms of your certification and current program guidelines. The department can clarify what happens in your case.

Can I use 789 & On if I operate multiple businesses?

Each business entity is evaluated separately based on its own revenue and job creation. If you own multiple companies, each one must meet the $789,000 revenue threshold and job creation requirements independently. Discuss your specific structure with the Department of Commerce to understand how they treat your situation.

Who do I contact at the Department of Commerce to learn more?

The South Carolina Department of Commerce's main office handles business incentive inquiries, and they can direct you to the right department or regional office based on your business type and location. You can reach them through the state's main business resources website or by contacting your local economic development authority, which often has direct relationships with the department.