Who qualifies for South Carolina's new Pregnancy Resource Tax Credit, and how do donors and charities claim it?

Plain-English summary

South Carolina created a new Pregnancy Resource Tax Credit — a nonrefundable income tax credit for people and businesses that make voluntary cash contributions to certain pro-life pregnancy and child-welfare charities. Act 162 of 2026 added Code Section 12-6-3383. This Information Letter explains how the credit works for both donors and the charities that receive the gifts.

The credit is available for tax years beginning after 2024 and is repealed on December 31, 2030. Donors who earn a credit before that date can still carry forward unused amounts for the remaining carryforward period.

How much the credit is worth

• The credit equals your qualifying cash contribution, but the amount you can claim in a year is limited to 50% of your total South Carolina income tax liability for that year.
• Unused credit carries forward five consecutive years from the end of the year the credit was earned.
• The Department may allocate a total of $3.5 million in credits statewide per calendar year. Generally no more than 25% of a year's credits may go to a single eligible charitable organization. (For the 2025 and 2026 tax years, because allocations occur after June 1, 2026, they are not subject to the 25% per-organization limit.)
• Credits earned by a partnership, LLC, S corporation, or other passthrough entity flow to the owners in proportion to ownership, or as they agree in an executed document.

Which charities qualify

Eligible charitable organizations are pregnancy resource centers, crisis pregnancy centers, maternity homes, or residential programs for human-trafficking victims that provide services such as diverting children from Department of Social Services custody, caring for children in DSS custody, creating permanency through adoption, preventing child abuse or trafficking, or assisting with carrying a pregnancy to term and promoting healthy childbirth.

To qualify, an organization must:

• be exempt from federal tax under IRC Section 501(c)(3) and file its public IRS filings annually with the Secretary of State;
• file an Application for Certification as an Eligible Charitable Organization (Form I-68) with the SCDOR each year, certifying (among other things) that no more than 20% of credit-related contributions will be spent on administration, and that it does not provide, pay for, or cover abortions or financially support any entity that does;
• for years after the first, also report the number and total amount of prior-year contributions and provide a CPA compilation, review, or compliance audit of the financial statements relating to the grants.

The certification application is signed under penalty of perjury, and the organization must tell the SCDOR of any change affecting eligibility. The Department publishes the list of qualifying organizations at dor.sc.gov/pregnancy-resource-tax-credit.

How donors claim the credit

• Apply using the Application for Pregnancy Resource Tax Credit (Form TC-68A), naming the eligible charity and the dollar amount of contributions made or to be made.
• The SCDOR reviews applications in the order received and, within 30 days, allocates available credits and notifies you of the amount. If the $3.5 million cap prevents a full allocation, it notifies you of the reduced amount within 30 days.
• You must make the contribution within 60 days of the allocation notice and submit documentation showing it was made. If you don't, or if the final gift is smaller than applied for, the SCDOR adjusts the credit and reallocates the freed-up credits to other taxpayers, first-come, first-served.
• Only credits actually allocated by the SCDOR may be claimed on your income tax return.

Common questions

Q: How large can the credit be?

A: Up to your qualifying cash contribution, but capped at 50% of your South Carolina income tax liability for the year. Unused amounts carry forward five years.

Q: Can I just donate and claim the credit on my return?

A: No. You must first apply on Form TC-68A and receive an allocation from the SCDOR, then make the contribution within 60 days and document it. Only allocated credits can be claimed.

Q: Is there a statewide limit?

A: Yes. The Department may allocate a total of $3.5 million per calendar year, generally with no more than 25% going to any single charity.

Q: How does a charity get on the eligible list?

A: It files Form I-68 each year, meets the 501(c)(3) and no-abortion requirements, and keeps administrative spending on credit-related contributions at or below 20%. The Department publishes the approved list online.

Q: When does the credit expire?

A: It applies to tax years beginning after 2024 and is repealed December 31, 2030, though unused credits earned before repeal keep their five-year carryforward.

Citations and references

• S.C. Code Ann. § 12-6-3383 — Pregnancy Resource Tax Credit, added by Act 162 of 2026
• S.C. Code Ann. § 12-4-320 (2014) — Department's authority to issue advisory opinions
• SC Revenue Procedure #09-3 — advisory-opinion procedures
• Form I-68 (charity certification) and Form TC-68A (donor application); Department list at dor.sc.gov/pregnancy-resource-tax-credit

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL26-14.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 #26-14
SUBJECT:

Pregnancy Resource Tax Credit
(Income Tax)

DATE:

June 9, 2026

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
Act 162 of 2026 adds South Carolina Code Section 12-6-3383, establishing a new,
nonrefundable income tax credit for taxpayers who make voluntary cash contributions to
eligible charitable organizations. The purpose of this Information Letter is to provide
taxpayers and eligible charitable organizations with details about this new credit.
General Credit Provisions
The Pregnancy Resource Tax Credit is available for tax years beginning after 2024 and is
repealed on December 31, 2030. Unused credits can be carried forward for five
consecutive years from the end of the tax year in which the credit was earned. Taxpayers
who earn a credit before the repeal date can continue to carry forward any unused credits
for the remaining five-year carryforward period, or until the credits are used. The amount
of credit a taxpayer can claim in a tax year is limited to 50% of the taxpayer’s total South
Carolina income tax liability for that year.
The South Carolina Department of Revenue (SCDOR) may allocate a total aggregate of
$3.5 million in credits to taxpayers during a calendar year. No more than 25% of the
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credits allocated during a calendar year may be allocated to a single eligible charitable
organization. 1
Any tax credits earned by a partnership, limited liability company, S Corporation, or
other passthrough entity will be allocated among all partners, members, or shareholders
either in proportion to their ownership interest in the entity or as the partners, members,
or shareholders agree in an executed document.
Eligible Charitable Organizations
Eligible charitable organizations are pregnancy resource centers, crisis pregnancy centers,
maternity homes, or residential programs for human trafficking victims that provide
services for:

1. the prevention and diversion of children from custody with the Department of
   Social Services;
2. the safety, care, and well-being of children in custody of the Department of
   Social Services;
3. the express purpose of creating permanency for children through adoption;
4. the prevention of abuse, neglect, abandonment, exploitation, or trafficking of
   children; or
5. the provision of assistance related to carrying a pregnancy to term, preventing
   abortion, and promoting healthy childbirth.
   Eligible charitable organizations must be exempt from federal taxation under Internal
   Revenue Code (IRC) Section 501(c)(3) and must file their publicly available Internal
   Revenue Service filings annually with the Secretary of State. To qualify, an organization
   will file an Application for Certification as an Eligible Charitable Organization (I-68)
   with the SCDOR each year. On the application, the organization will certify that:
6. it is an eligible charitable organization pursuant to Section 12-6-3383(A)(2),
   including that it is exempt from federal income taxation under IRC Section
   501(c)(3) and that no more than 20% of the contributions received related to
   the credit will be spent on administrative purposes;
   Credits not allocated before June 1, 2026, may be allocated without regard to the 25% per eligible charitable
   organization restriction for the same calendar year. For the 2025 and 2026 tax years, credit allocations will take
   place after June 1, 2026, and therefore will not be subject to the 25% per eligible charitable organization restriction.

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2. the organization does not provide, pay for, or provide coverage of abortions
and does not financially support any other entity that provides, pays for, or
provides coverage of abortions.
For recertification in years after the initial certification year, the organization must also
provide the number and total amount of voluntary cash contributions from the previous
tax year along with a copy of a compilation, review, or compliance audit of the
organization’s financial statements relating to the grants received, conducted by a
certified public accounting firm.
The annual certification application must be signed by an officer of the organization
under penalty of perjury. The organization must notify the SCDOR of any changes during
the year that may affect their eligibility for the credit.
The SCDOR will review the Applications for Certification and will notify organizations
if they qualify as an eligible charitable organization for the purpose of the credit. The
SCDOR will publish a list of eligible charitable organizations at dor.sc.gov/pregnancyresource-tax-credit.
Qualifying Donors
Taxpayers must apply for the credit using the Application for Pregnancy Resource Tax
Credit (TC-68A). On the application, the taxpayer must provide the name of the eligible
charitable organization and the dollar amount of contributions made or to be made. The
SCDOR will review applications in the order in which they are received. Within 30 days
after receiving an application, the SCDOR will allocate available credits based on the
dollar amount of contributions certified in the application and will notify the taxpayer of
the allocated credit amount.
If, due to the $3.5 million aggregate credit limit, the SCDOR is unable to allocate the full
amount of certified credits the taxpayer requested on the application, the SCDOR will
notify the taxpayer within 30 days after the application of the reduced amount of credits
being allocated to the taxpayer.
The contribution to the eligible charitable organization must be made within 60 days of
the SCDOR notification of the credit allocation. The taxpayer will be required to submit
documentation to the SCDOR showing the contribution was made within the required 60day period. If the taxpayer does not provide documentation of the contributions, or if the
final contribution amount is lower than the amount provided on the original application,
the SCDOR will adjust the amount of credit allocated to the taxpayer. Any credits
cancelled during this adjustment will be made available for reallocation to other
taxpayers. Allocations will be made on a first-come, first-served basis in the order in
which applications are received. Only credits allocated by the SCDOR may be claimed
on a donor’s income tax return.
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Donors and charitable organizations seeking certification can find more information
about the application process, including the opening dates for applications, at
dor.sc.gov/pregnancy-resource-tax-credit.

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