Is South Carolina's Angel Investor Credit ending, and what must 2025 investors do to claim it?

Plain-English summary

South Carolina's Angel Investor Credit is scheduled to expire on December 31, 2025. This Information Letter is a reminder from the Department that the enabling law is set to sunset unless the General Assembly extends it again.

The credit comes from the High Growth Small Business Job Creation Act (Title 11, Chapter 44 of the South Carolina Code), enacted in 2013 to help early-stage, high-growth South Carolina businesses raise capital. It gives an individual angel investor an income tax credit of 35% of a qualified investment, up to $100,000. A taxpayer could use 50% of the credit against net income tax liability in the year of the investment, with the remainder carried forward for up to 10 years under Section 11-44-40(B).

The Act was originally set to expire December 31, 2019, then extended to December 31, 2025 by 2020 Act 138. As of this letter's November 3, 2025 publication, the legislature had not extended it further.

What happens at expiration:

• Existing carryforward credits survive — they may still be claimed during the 10-year carryforward window.
• No new credits may be claimed for investments made after December 31, 2025 unless the General Assembly acts.
• 2025 investors face a hard deadline: to claim the credit on a 2025 return, a taxpayer who makes a qualifying 2025 investment must submit an application to the Department by December 31, 2025. The Department will notify the taxpayer of tentative approval and credit allocation by January 31, 2026.

What this means for you

Investors considering a 2025 qualifying investment

If you want the credit, invest and file your application with the Department before December 31, 2025. Applications for investments made after that date cannot be approved unless the law is extended.

Investors already holding the credit

You do not lose unused credit at expiration. Carryforwards may still be claimed during the remaining 10-year window under Section 11-44-40(B).

Watch for a possible extension

The Act has been extended before. The repeal is not a certainty until the deadline passes without legislative action — confirm the current status if you are planning around it.

Common questions

Q: When does the Angel Investor Credit expire?
A: December 31, 2025, unless the General Assembly extends it.

Q: What is the credit worth?
A: 35% of a qualified investment, up to $100,000, with 50% usable in the investment year and the rest carried forward up to 10 years.

Q: Do I lose carryforward credits at expiration?
A: No. Existing carryforwards may still be claimed during the 10-year carryforward period.

Q: I invested in 2025 — what's the deadline?
A: Apply to the Department by December 31, 2025; you'll be notified of tentative approval by January 31, 2026.

Citations and references

Authority and statutes:

• S.C. Code Ann. Title 11, Chapter 44 — High Growth Small Business Job Creation Act (Angel Investor Credit)
• S.C. Code Ann. § 11-44-40(B) — 35% credit and 10-year carryforward
• 2013 S.C. Acts 80 — enacting the Act
• 2020 S.C. Acts 138 — extending the Act to December 31, 2025
• S.C. Code Ann. § 12-4-320 (2014) — Department's authority to issue advisory opinions
• SC Revenue Procedure #09-3

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL25-20.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #25-20
SUBJECT:

Angel Investor Credit – Repeal December 31, 2025
(Income tax)

DATE:

November 3, 2025

AUTHORITY: S.C. Code Ann. § 12-4-320 (2014)
SC Revenue Procedure #09-3
SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

Purpose:
The purpose of this information letter is to remind taxpayers the enabling legislation for
the angel investor tax credit is set to be repealed on December 31, 2025.
Explanation:
The General Assembly enacted the High Growth Small Business Job Creation Act (the
“Act”), chapter 44 of title 11 of the South Carolina Code, in 2013 to improve the
availability of early-stage capital for emerging high-growth enterprises in South Carolina.
2013 S.C. Acts 80. The Act aimed to encourage individual angel investors to invest in early
stage, high-growth, job-creating businesses by providing an income tax credit of 35% of
the angel investor’s qualified investment up to $100,000. Id. The Act allowed a taxpayer
to use 50% of the credit against their net income tax liability in the tax year the investment
was made, but the credit could be carried forward for up to 10 years. Id.
The provisions of the Act were initially set to expire on December 31, 2019. Id. However,
in 2020, the General Assembly, extended the provisions contained in chapter 44 of title 11
to December 31, 2025. 2020 S.C. Acts 138. As of the date of publication of this information
letter, the General Assembly has not extended the provisions of the Act and therefore,

chapter 44 of title 11 is set to expire on December 31, 2025. Carryforward credits may
continue to be claimed during the 10-year period allowed under section 11-44-40(B).
However, no new credits may be claimed after December 31, 2025, unless the General
Assembly acts to extend the Act.
For 2025, taxpayers who make qualifying investments in 2025 must submit an application
for approval to the Department by December 31, 2025 to claim the credit on their tax year
2025 return. The Department will notify the taxpayer by January 31, 2026 of tentative
approval and allocation of the credit. The Department cannot approve any claims for credits
for investments made after December 31, 2025 unless further action is taken by the General
Assembly to extend the provisions of the Act.

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