South Carolina Other Tax Credits Guide

South Carolina offers dozens of tax credits that may help reduce your state income tax liability. Many credits require a separate tax schedule and supporting documentation. If you're claiming a credit, be sure to attach the related tax credit schedule and Form SC1040TC to your return, as the South Carolina Department of Revenue may disallow credits that aren't properly documented.

Because the available source document only provides limited descriptions for many credits, this guide includes all information available from the SC1040TC and related South Carolina instructions.

Credits Automatically Calculated on the Return

Child and Dependent Care Credit

Code/Form: SC1040 Line 11

Description: Credit based on qualifying child and dependent care expenses claimed on your federal return.

Credit Amount:

• 7% of allowable federal child and dependent care expenses
• Maximum credit:
  • $210 for one qualifying child
  • $420 for two or more qualifying children

Eligibility:

• Available to full-year residents.
• Eligible part-year residents and nonresidents may claim a prorated credit.
• Not available if filing Married Filing Separately. 

Two Wage Earner Credit

Code/Form: SC1040 Line 12

Description: Available to married taxpayers filing jointly when both spouses have South Carolina taxable earned income.

Credit Amount:

• 0.7% (.007) of the lower spouse's qualified earned income
• Maximum qualified income used in the calculation: $50,000
• Maximum credit: $350

Eligibility:

• Married Filing Jointly only
• Both spouses must have qualified earned income taxed by South Carolina
• Credit is not allowed if either spouse's qualified earned income is zero or less.

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SC1040TC Nonrefundable Credits

Credit for Taxes Paid to Another State

Code: Claimed on SC1040TC Line 1

Description: Available when a South Carolina resident or part-year resident pays income tax to another state on the same income taxed by South Carolina.

Requirements:

• Must file a return with the other state.
• Must have an actual tax liability to the other state.
• A separate worksheet is required for each state.
• Tax withheld on a W-2 does not qualify by itself.
• Partnerships cannot claim this credit.

Credit Limitation: The allowable credit is generally limited to the lesser of:

• The South Carolina tax attributable to the income taxed by both states, or
• The tax paid to the other state on that same income. 

Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit

Code: Listed on SC1040TC

Form: Separate tax credit schedule required.

Description: Credit related to qualified renewable energy systems.

Thresholds/Limits: Refer to the applicable South Carolina tax credit schedule.

Excess Insurance Premium Credit

Code: Listed on SC1040TC

Form: TC-44

Description: Credit associated with qualifying excess insurance premiums.

New Jobs Credit

Code: Listed on SC1040TC

Description: Credit generally available for qualified job creation activities.

Form: Separate schedule required.

Qualified Conservation Contribution Credit (Code 019)

Form: TC-19

Description: Available to taxpayers donating a qualifying gift of land for conservation purposes or a qualified conservation contribution of a real property interest.

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Other South Carolina Credits Available Through SC1040TC

The following credits are listed by the South Carolina Department of Revenue and generally require separate schedules or supporting documentation:

Code 001 - Drip/Trickle Irrigation Systems Credit

Credit related to qualifying agricultural irrigation systems.

Code 002 - Minority Business Credit

Credit designed to encourage investment and participation in minority-owned businesses.

Code 003 - Water Resources Credit

Credit for qualifying water resource conservation or improvement activities.

Code 005 - Scenic Rivers Credit

Credit related to qualifying scenic river preservation contributions.

Code 007 - Palmetto Seed Capital Credit

Credit encouraging investments in qualified South Carolina startup businesses.

Code 009 - Child Care Program Credit

Credit related to qualifying child care program contributions or investments.

Code 011 - Capital Investment Credit

Available for qualifying investments in certain business property or facilities.

Code 012 - Family Independence Payments Credit

Credit related to certain payments made under qualifying programs.

Code 014 - Community Development Credit

Credit intended to encourage qualifying community development contributions.

Code 018 - Research Expenses Credit

Credit for qualified research and development expenditures.

Code 020 - Brownfields Cleanup Credit

Credit available for qualifying environmental cleanup costs.

Code 021 - Certified Historic Structure Credit

Credit for rehabilitation of qualifying historic structures.

Code 022 - Certified Historic Residential Structure Credit

Credit for rehabilitation of qualifying historic residential property.

Code 023 - Textiles Rehabilitation Credit

Credit supporting rehabilitation and redevelopment of former textile facilities.

Code 024 - Commercials Credit

Credit related to qualifying commercial production activities.

Code 025 - Motion Pictures Credits After June 30, 2004

Credit available for qualified motion picture production activities.

Code 026 - Venture Capital Investment Credit

Credit designed to encourage venture capital investment in qualifying businesses.

Code 027 - Health Insurance Pool Credit

Credit related to contributions or participation in qualifying health insurance pools.

Code 028 - SC Quality Forum Credit

Credit associated with participation in qualifying quality improvement programs.

Code 029 - Qualified Retirement Plan Contribution Credit

Credit related to qualifying retirement plan contributions.

Code 030 - Port Cargo Credit

Credit available for qualifying increases in port cargo activity.

Code 031 - Retail Facilities Revitalization Credit

Credit designed to encourage redevelopment of retail facilities.

Code 032 - Premarital Preparation Course Credit

Credit for eligible taxpayers completing approved premarital education courses.

Code 036 - Industry Partnership Fund Credit

Credit supporting contributions to qualifying workforce development initiatives.

Code 040 - Ethanol or Biodiesel Production Credit

Credit related to qualified biofuel production.

Code 041 - Renewable Fuel Facility Credit

Credit for investment in qualifying renewable fuel facilities.

Code 045 - Apprenticeship Credit

Credit available to employers participating in qualifying apprenticeship programs.

Code 046 - Credit for Shareholders of S Corporations

Credit passed through to qualifying S corporation shareholders.

Code 051 - Venison for Charity Credit

Credit for qualifying venison donations to charitable organizations.

Code 052 - Fire Sprinkler System Credit

Credit related to installation of qualifying fire sprinkler systems.

Code 053 - Energy Efficient Manufactured Home Credit

Credit for qualifying energy-efficient manufactured housing.

Code 054 - Clean Energy Credit

Credit for qualifying clean energy investments or projects.

Code 055 - Abandoned Buildings Revitalization Credit

Credit supporting redevelopment of abandoned buildings.

Code 056 - Angel Investor Credit

Credit encouraging investment in qualifying startup and emerging businesses.

Code 057 - Exceptional Needs Children Scholarship Credit

Credit related to contributions benefiting qualifying scholarship programs.

Code 058 - Solar Energy Property Credit

Credit for qualifying solar energy property investments.

Code 059 - Alternative Fuel Property Credit

Credit for qualified alternative fuel property.

Code 061 - Agribusiness Income Tax Credit

Credit supporting qualifying agribusiness activities.

Code 062 - Preceptor Income Tax Credit

Credit available to certain qualifying medical preceptors.

Code 063 - South Carolina Housing Tax Credit

Credit related to qualifying affordable housing activities.

Code 102 - Nursing Home Credit

Credit available for qualifying nursing home-related activities.

Code 104 - Small Business Jobs Credit

Credit supporting job creation by eligible small businesses.

Code 204 - Accelerated Small Business Jobs Credit

Form: TC-4SA

Description: Available for qualifying small businesses that create two or more full-time jobs.

Limitation: Credit is limited to 50% of the taxpayer's tax liability.

Code 304 - New Jobs Credit for Professional Sports Teams

Credit associated with qualifying job creation activities relating to professional sports organizations.

Important Reminder

Most South Carolina tax credits require separate schedules and supporting documentation. If you claim a credit, attach:

• Form SC1040TC
• The applicable credit schedule(s)
• Any required worksheets
• Supporting certificates or documentation

Failure to attach required forms may result in the credit being denied by the South Carolina Department of Revenue. [dor.sc.gov]

Note: This article contains all credit descriptions and limitations available from the SC1040TC and SC1040 instruction materials available. Certain credits have additional eligibility requirements, carryforward provisions, and calculation rules that are contained in their individual schedules and forms. [dor.sc.gov]