In performing a quick review of SEC filings of larger corps with an SEC State Location Code in South Carolina, I only found one company…SCANA….with Total Consolidated Pretax Income of more than $3 bil, for the most recent 12 years.
SCANA, a Utility company, has an effective state corporate income tax rate paid of only 1.44% for the past twelve years. This effective state corporate income tax rates paid is computed by dividing the current state income tax paid ($73 mil) by the consolidated pretax income ($5,082 mil), both for the past 12 years. This 1.44% tax rate paid is a 71% discount to South Carolina’s current state corporate income tax rate of 5.00%. SCANA had a lower state corporate income tax rate paid of 1.10% for the most recent six years, and an even lower negative 1.15% for the most recent year.
Also from my quick review, it appears that Sonoco Products might be the next largest South Carolina-based company. It generated Pretax Income in the past 12 years of $2,727 mil and paid State Corporate Income Tax of $61 mil, thus a modest effective state corporate income tax rate paid of 2.24%.
For maximum positive effect to the US economy and to US job creation, I think the US government should let businesses have a choice on the capital expenditures they make.....they could either take 100% first year expensing, or they could instead choose a refundable investment tax credit. The latter is necessary to permit both smaller and at least somewhat troubled companies to be treated fairly in comparison with large very profitable Corps. Many of these smaller and somewhat troubled companies are in tax loss positions, thus they cannot take immediate benefit of 100% expensing of equipment purchases.
