Full expensing is a tax policy that will put South Carolina at the front of the line for new capital investments as American businesses reshore their supply chains. Full expensing creates better economic growth, higher wages, and a better standard of living for South Carolinians. Pro-growth tax treatment of new investments will bolster South Carolina’s position as the manufacturing hub of the southeast. 

Under current law, businesses depreciate investments in research, experimentation, and short-lived assets over 5-20 years. Depreciation causes businesses to lose out on full cost recovery, particularly during a period of high inflation. 

A long depreciation cycle penalizes businesses because they lose the full value of cost recovery as they write off investment costs over decades. Full expensing allows businesses to immediately write off the full cost of investment against taxable income. This reform enhances the incentive to invest in Research and Experimentation, covered under I.R.C. Section 174, and Machinery and Equipment, covered in I.R.C. Section 168.   


  • Bolster South Carolina’s position as a go-to manufacturing hub. 
  • Incentivize new research and capital investments in South Carolina. 
  • Protect business investments from pernicious inflation. 
  • Improve the tax incentive to reshore supply chains to South Carolina.

Learn more

Click here to view full expensing model legislation for South Carolina.


Michael Lucci – a tax expert and Senior Policy Advisor with the State Policy Network – contributed to this summary.