Tax Incentives and Opportunity Zones for Myrtle Beach Commercial Sellers

Myrtle Beach’s Opportunity Zones aren’t on the beach. They’re inland — in Conway and the interior parts of Horry County where the permanent residents live, the logistics operations run, and the workforce that supports the tourism economy is based. That’s actually good news for commercial property owners in those areas. Because OZ investors looking at Horry County aren’t chasing vacation rentals. They’re looking for industrial, self-storage, and service-oriented commercial properties with stable, year-round fundamentals.

Where the OZ tracts are

Horry County’s OZ tracts concentrate in the Conway area and along the inland corridors that run between Conway, Loris, and the US-501 highway. Conway is the county seat and the economic center of inland Horry County. It has the government offices, the hospital, Coastal Carolina University, and much of the distribution and service infrastructure that supports the beach economy.

These aren’t glamorous locations. But that’s the point. OZ was designed for areas that need investment, and the inland Horry County tracts qualify. They also have commercial properties — warehouses, retail buildings, self-storage facilities — that generate stable cash flow from the permanent population rather than seasonal tourism.

Federal OZ benefits

The 10-year exclusion is the big motivator. An OZ investor buying a commercial property in inland Horry County and holding for a decade pays zero capital gains on the appreciation. In a county that’s been one of the fastest-growing in South Carolina, that appreciation could be substantial.

OZ 2.0 and Horry County

Here’s the thing about OZ 2.0. Under the proposed framework, governors nominate new tracts by approximately October 2026. New zones take effect January 1, 2027, and last for 10 years. Horry County’s inland tracts have a good case for redesignation — they still need investment, and the economic data supports continued OZ status.

But nothing is guaranteed. The current designations were based on 2010 Census data, and Horry County has grown significantly since then. Some tracts may have improved enough to lose eligibility. If your property is in a current OZ tract, selling while the designation is active gives you the certainty of OZ buyer demand.

South Carolina’s incentive programs

South Carolina’s corporate income tax is 5%, but the state’s incentive programs often reduce the effective rate significantly. As we covered in our article on Myrtle Beach’s economy beyond the boardwalk, the Grand Strand has been diversifying its employer base beyond tourism.

FILOT — Fee in Lieu of Tax — is South Carolina’s signature property tax incentive. The standard assessment ratio for commercial property is 10.5%. Under a FILOT agreement, that drops to as low as 6%. For an industrial or distribution facility in inland Horry County, that reduction in annual property taxes makes a meaningful difference in operating costs.

Related: Top Employers in the Myrtle Beach Metro: Beyond the Boardwalk

Related: Growth Drivers of Myrtle Beach

Job tax credits provide up to $1,500 per new job in qualifying counties. Horry County qualifies, and these credits have helped attract employers in healthcare, distribution, and manufacturing — companies that need the kind of commercial space found in the OZ tracts.

1031 exchanges

Look, the 1031 exchange is the workhorse strategy for commercial property sellers everywhere, and Myrtle Beach is no different. Sell, identify a replacement within 45 days, close within 180 days, defer 100% of gains. No dollar cap. It’s been in the tax code for over a century.

The nuance for sellers in OZ tracts is that your buyer pool is wider. You’ve got traditional 1031 buyers, OZ-motivated buyers, and conventional cash buyers all potentially competing. Some sophisticated buyers are even doing 1031 exchanges into OZ-designated properties to stack the benefits. More buyer types means more offers and better pricing.

Horry County’s growth story

Horry County isn’t just a beach town. It’s one of the fastest-growing counties in South Carolina. The permanent population keeps increasing, which drives demand for commercial services year-round. Conway is expanding. Inland commercial corridors are developing. The logistics infrastructure that supports the tourism economy needs more warehouse and distribution space.

OZ tracts in these inland areas are positioned where the permanent growth is happening. For sellers of commercial property in these corridors, the combination of OZ incentives, FILOT, and population growth creates real demand.

If you’re considering selling commercial property in Myrtle Beach, I’d like to hear about it. Call me at 704-600-3839 or visit rothcapital.com.