South Carolina State Tax Credits
More ways to save your hard-earned money from the tax man!
South Carolina has some great State Tax Credits for you....
Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.
We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!
It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).
We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap
South Carolina Nonrefundable Educational Credit
Overview:
This nonrefundable credit supports donors who contribute to the Exceptional SC Scholarship Fund, benefiting children with exceptional needs in South Carolina.
Who It’s For:
South Carolina taxpayers—individuals or businesses—who make approved donations to the Educational Credit for Exceptional Needs Children’s Fund (Exceptional SC).
Four Key Highlights:
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Credit Cap Based on Tax Liability:
Claim up to 75% of your SC tax liability (for 2021 and later tax years). Credits from earlier years are limited to 60%. -
3-Year Carryforward:
Unused credits from 2021 onward can be carried forward for up to three years. Earlier-year credits expire if unused. -
Approval Letter Required:
Your donation must be reported by Exceptional SC, and you’ll receive a credit approval letter from the SC Department of Revenue (SCDOR) to claim it. -
Federal Deduction Adjustment:
If you claimed a federal deduction for the donation, you must add it back to your South Carolina taxable income.
South Carolina Jobs Tax Credit
Overview:
A multi-year income or premium tax credit for businesses that create new jobs in South Carolina, with credit value and eligibility based on job count, wages, and county development tier.
Who It’s For:
Businesses in South Carolina—including manufacturers, processors, R&D firms, warehouses, agribusinesses, corporate offices, and qualified service facilities—that create and maintain a minimum number of net new full-time jobs.
Four Key Highlights:
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Credit Value Ranges by County Tier:
From $1,500 to $25,000 per job, depending on the county’s development tier (I–IV), with an additional $1,000 bonus per job if located in a multi-county industrial park. -
Small Business Provision:
Companies with fewer than 99 employees worldwide may qualify with just 2 net new jobs, receiving a reduced or full credit based on wage levels. -
Five-Year Benefit Window:
The credit is available for 5 years starting in Year 2 (after a job creation baseline is established in Year 1), and unused credits can be carried forward for 15 years. -
Tier & Wage Incentives for Service-Related Jobs:
Service facilities in Tier I–III counties may qualify with as few as 25–175 jobs, depending on wage levels and building history, incentivizing high-paying job creation.
South Carolina Small Business Tax Credit
Overview:
A multi-year tax credit for small businesses in qualifying industries that create at least two new full-time jobs, offering income, corporate, bank, or insurance tax relief, based on county development tiers.
Who It’s For:
South Carolina-based small businesses (with 99 or fewer employees) in sectors like manufacturing, R&D, warehousing, agribusiness, tourism, and certain service-related industries (especially in Tier IV counties).
Four Key Highlights:
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Tier-Based Credit Ranges:
Earn up to $25,000 per job in Tier IV counties and as little as $1,500 in Tier I, with additional $1,000 bonuses for jobs in multi-county industrial parks or Brownfields redevelopment sites. -
5-Year Benefit Period + Long Carryforward:
Credits begin in Year 2 of job creation and last for 5 years, with unused credits carried forward for up to 15 years. -
Extra Credit for High-Wage Jobs:
Jobs paying at least 120% of county/state per capita income qualify for full credit; lower-wage jobs receive only 50% of the standard amount. -
Flexible Use & Transferability:
Credits can offset up to 50% of total tax liability and are transferable in business reorganizations, with full use available to pass-through entities based on ownership structure.
South Carolina Headquarters Tax Credit
Overview:
A 20% tax credit for businesses establishing or expanding regional or national headquarters in South Carolina, applicable to various state-level taxes with a 10-year carryforward option.
Who It’s For:
Corporations, banks, fiduciaries, or individuals investing in South Carolina-based headquarters that handle core business functions and create qualifying full-time or remote jobs.
Four Key Highlights:
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Substantial Investment Required:
Must invest at least $50,000 in real property (land, buildings, or renovations) tied to the headquarters operation. -
Flexible Tax Use:
Credit can be applied to Corporate Income Tax, Corporate License Fee, Bank Tax, Fiduciary Income Tax, or Individual Income Tax. -
Includes Remote & Relocated Talent:
New full-time positions transferred from out-of-state or based remotely within South Carolina count toward job requirements. -
Long-Term Benefit:
Unused credits can be carried forward for up to 10 years, offering strategic tax planning for phased growth.
South Carolina Apprenticeship Tax Credit
Overview:
A nonrefundable tax credit available to businesses that employ registered apprentices, offering up to $1,000 per apprentice annually for up to four years—with additional credit potential for retained employees.
Who It’s For:
South Carolina businesses or individuals that employ registered apprentices through the U.S. Department of Labor and wish to offset Corporate or Individual Income Tax liabilities.
Four Key Highlights:
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$1,000+ Per Apprentice:
Taxpayers can claim the greater of $1,000 or actual apprenticeship cost per qualifying apprentice employed at least seven months during the tax year. -
Multi-Year Benefit + Retention Bonus:
Credit is available for up to 4 years per apprentice, with 3 additional years for retained apprentices—potentially up to $7,000 total per individual. -
Annual Cap & Statewide Limit:
Statewide program is capped at $5 million annually—credits are first-come, first-served, so timely filing is critical. -
Registered Apprenticeship Requirement:
Apprentices must be part of a federally registered apprenticeship program; youth apprentices also qualify if retained for 7+ months.
South Carolina Angel Investor Tax Credit
Overview:
This tax credit supports South Carolina-based startups by incentivizing individuals and investment entities to invest in qualified early-stage businesses through equity or subordinated debt.
Who It’s For:
South Carolina residents, nonresidents subject to SC income tax, and certain pass-through investment entities making qualified investments in SC-based startups.
Four Key Highlights:
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50% Tax Credit on Investment:
Investors may claim up to 50% of their qualified investment in a South Carolina certified business—$100,000 maximum per individual per year. -
Carryforward for 10 Years:
Unused credits can be carried forward for up to a decade, providing long-term tax planning flexibility. -
Strict Business & Investor Qualifications:
Target companies must be SC-headquartered, <5 years old, with ≤25 employees, and primarily in industries like manufacturing, R&D, or IT.
Retail, real estate, and entertainment-related businesses do not qualify. -
Transferable Credit (Once):
Credits can be transferred once to a spouse, heir, or another taxpayer—ideal for estate or exit strategy planning.