South Carolina offers a variety of tax credits that may reduce your state tax liability or increase your refund. Some credits are automatically calculated using information from your federal return, while others require you to provide additional details or complete a separate credit schedule.
If you see a credit listed in your South Carolina return, select Begin to determine whether you qualify and enter any required information.
Credits Automatically Calculated
Certain South Carolina credits are calculated automatically based on your residency status and information already entered on your federal return.
Examples include:
- Child and Dependent Care Credit
- Two Wage Earner Credit
If you're eligible, these credits will be included in your South Carolina tax calculation automatically.
Tuition Tax Credit
You may qualify for a credit for eligible tuition expenses paid to a qualifying educational institution.
Select Begin next to Tuition Tax Credit to review eligibility requirements and enter any necessary information.
Credit for Taxes Paid to Another State
If you're a South Carolina resident who paid income tax to another state on income that's also taxed by South Carolina, you may qualify for a credit.
This credit helps prevent double taxation of the same income.
Select Begin next to Credit for Other State Taxes to determine whether you're eligible.
Two Wage Earner Credit
Married taxpayers filing a joint South Carolina return may qualify for the Two Wage Earner Credit when both spouses have earned income.
This credit is generally calculated automatically using information already entered on your return.
Classroom Teacher Expenses Credit
Eligible educators may qualify for a credit for unreimbursed classroom expenses paid during the tax year.
Select Begin next to Classroom Teacher Expenses Credit to enter your qualifying expenses.
Parental Refundable Credit (Form I-361)
South Carolina offers a refundable credit for qualifying parents who meet the state's eligibility requirements.
Select Begin next to Parental Refundable Credit - Form I-361 to determine whether you qualify and calculate the credit.
Tax Credits - Schedule SC1040TC
South Carolina provides several additional credits through Schedule SC1040TC. Some credits require supporting forms, certificates, or information from a business, partnership, S corporation, or other qualifying entity.
Carryover of Unused Qualified Credits
If you have unused South Carolina credits from previous tax years that are eligible to be carried forward, enter the available carryover amount.
New Jobs Credit
Taxpayers who received a qualifying New Jobs Credit from a business entity may enter the credit amount provided on their supporting documentation.
Qualified Conservation Contribution Credit
Taxpayers who made qualifying conservation contributions may be eligible to claim this credit. Enter the allowable credit amount from your supporting records.
Alternative Motor Vehicle Credit (Schedule TC-35)
This credit may be available for qualifying alternative fuel or alternative motor vehicles.
Select Begin to complete Schedule TC-35 and determine your eligibility.
Solar Energy Credit (Schedule TC-38)
Taxpayers who install qualifying solar energy property may qualify for this credit.
Select Begin to complete Schedule TC-38.
Residential Retrofit Credit (Schedule TC-43)
This credit may be available for qualifying improvements made to a residence to improve accessibility or accommodate certain needs.
Select Begin to review eligibility requirements.
Excess Insurance Premium Credit (Schedule TC-44)
Taxpayers with qualifying excess insurance premium tax credits may enter the allowable credit amount using Schedule TC-44.
Select Begin to enter the required information.
Other Credits
Select Begin next to Other Credits if you qualify for any of the following South Carolina tax credits:
- Drip/Trickle Irrigation Systems Credit
- Minority Business Credit
- Water Resources Credit
- Scenic Rivers Credit
- Palmetto Seed Capital Credit
- Child Care Program Credit
- Capital Investment Credit
- Family Independence Payments Credit
- Community Development Credit
- Research Expenses Credit
- Brownfields Cleanup Credit
- Certified Historic Structure Credit
- Certified Historic Residential Structure Credit
- Textiles Rehabilitation Credit
- Commercials Credit
- Motion Pictures Credits After June 30, 2004
- Venture Capital Investment Credit
- Health Insurance Pool Credit
- SC Quality Forum Credit
- Qualified Retirement Plan Contribution Credit
- Port Cargo Credit
- Retail Facilities Revitalization Credit
- Premarital Preparation Course Credit
- Industry Partnership Fund Credit
- Ethanol or Biodiesel Production Credit
- Renewable Fuel Facility Credit
- Apprenticeship Credit
- Credit for Shareholders of S Corporations
- Venison for Charity Credit
- Fire Sprinkler System Credit
- Energy Efficient Manufactured Home Credit
- Clean Energy Credit
- Abandoned Buildings Revitalization Credit
- Angel Investor Credit
- Exceptional Needs Children Scholarship Credit
- Solar Energy Property Credit
- Alternative Fuel Property Credit
- Agribusiness Income Tax Credit
- Preceptor Income Tax Credit
- South Carolina Housing Tax Credit
- Nursing Home Credit
- Small Business Jobs Credit
- Accelerated Small Business Jobs Credit
- New Jobs Credit for Professional Sports Teams
Many of these credits require additional documentation, certificates, schedules, or information supplied by a qualifying business or organization. Be sure to keep copies of any records that support your credit claim.
How Do I Know Which Credits Apply to Me?
Don't worry if you're not sure which credits you qualify for. The interview screens will guide you through each available credit and help identify any tax benefits that may apply to your situation.
If you've received a credit certificate, Schedule K-1, or other documentation showing eligibility for a South Carolina credit, complete the applicable credit section to ensure you're claiming every tax benefit available to you. Reviewing all available credits can help reduce your South Carolina tax liability and maximize your refund when eligible.