Secretary of State Mark Hammond Releases Second Annual Report on the High Growth Small Business Job Creation Act

COLUMBIA, SC – On January 29, 2014, South Carolina Secretary of State Mark Hammond released the second annual report of qualified businesses that have registered with the Secretary of State under the High Growth Small Business Job Creation Act.  The High Growth Small Business Job Creation Act was enacted in June 2013 to promote economic growth in the state of South Carolina, by encouraging angel investors to invest in early stage, high-growth businesses.  Under the Act, an angel investor may be entitled to a tax credit of 35 percent of qualified investments in qualified businesses.

Since the inception of the Act, 76 qualified businesses have registered with the Secretary of State.  Fifty of these businesses have registered in the previous year, demonstrating increased awareness of the benefits of the Act.  The qualified businesses are located throughout the state—in the Upstate, the Midlands, the Lowcounty and the Pee Dee. They have reported creating 315 full-time, part-time, and temporary jobs – an increase of 215 jobs since this same time a year ago.  Furthermore, these businesses have raised more than $63,000,000 in capital, and categorized nearly $11,000,000 of this capital as qualified investments at the time of registration.

“I am pleased to be a part of this tax credit program as it continues to grow,” said Secretary Hammond.  “Programs like the High Growth Small Business Job Creation Act demonstrate South Carolina’s commitment to maintaining a business-friendly environment and attracting innovative businesses that create high-paying jobs.”

An aggregate report is available that lists the amount of capital raised by qualified businesses, including the amount of qualified investments. The aggregate report also details the number of jobs created by the businesses, and the average wages paid by those jobs.  Please note that the information provided is that which is reported at the time of registration as a qualified business.  A current listing of qualified businesses may be found here.Click here for a list of Frequently Asked Questions.

If you are a business owner who is interested in registering as a qualified business under the High Growth Small Business Job Creation Act, you may submit an application to the Secretary of State.   Angel investors interested in receiving a tax credit for investing in a qualified business may file an application with the South Carolina Department of Revenue.  The Angel Investor Credit application may be found on the Department of Revenue’s website at www.sctax.org.