How did Act 83 of 2019 increase South Carolina job tax credits in Tier III and Tier IV counties?

Plain-English summary

South Carolina Revenue Ruling #19-11 explains the large job-tax-credit increases enacted by Act No. 83 of 2019 and how they applied to old and new credit periods. RR #25-5 later superseded this ruling with a comprehensive New Jobs Credit guide.

For eligible jobs created in tax years beginning on or after January 1, 2019, the basic annual credit per maintained job became:

• $25,000 in Tier IV counties, up from $8,000;
• $20,250 in Tier III counties, up from $4,250;
• $2,750 in Tier II counties, unchanged; and
• $1,500 in Tier I counties, unchanged.

The amount generally followed the county tier and statutory amount for the year the job was actually created. Jobs created before 2019 kept the old credit amount through their existing five-year credit period. Additional qualifying jobs created in 2019 or later generally used the new amount even when the employer was already in an older credit period.

The ruling describes three methods: the traditional credit for a business of any size, the annual small-business credit for a business with 99 or fewer employees worldwide, and an accelerated small-business election. The traditional credit generally required 10 new full-time jobs and began the year after creation. Small businesses generally qualified with two jobs, with full or half credit depending on the wage threshold, and the accelerated method began in the creation year.

What this means for you

Employers reviewing older credit periods

Track jobs by creation year. A single return could contain old amounts for pre-2019 jobs and new amounts for later job additions. The ruling recommends separate TC-4, TC-4SB, or TC-4SA calculations for each amount.

Businesses beginning a new credit period

Choose the traditional, annual small-business, or accelerated small-business provision carefully. The ruling says only one method applies for the entire credit period.

Passthrough entities

The entity creating the jobs calculates and retains the credit form and reports passed-through credit on Schedule SC K-1. Each partner, shareholder, or member remains limited to using the credit against 50% of its income tax liability.

Current planning

Use RR #25-5 rather than this ruling for current comprehensive guidance. RR #19-11 is most useful for understanding the 2019 tier increases and transition between old and new per-job amounts.

Common questions

Q: Did existing pre-2019 Tier III and IV jobs jump to the new amount?
A: No. They retained the old amount during their existing credit period.

Q: Could additional jobs created in 2019 use the new amount?
A: Yes, generally, even when added during an older credit period.

Q: What was the general annual use limit?
A: The credit could not exceed 50% of the taxpayer's South Carolina income, bank, or insurance-premium tax liability, and unused credit carried forward 15 years.

Q: Is RR 19-11 current?
A: No. RR #25-5 superseded it.

Citations and references

• S.C. Code Ann. § 12-6-3360 — traditional and annual small-business job credits
• S.C. Code Ann. § 12-6-3362 — accelerated small-business credit
• Act No. 83 of 2019 — Tier III and Tier IV amount increases
• SC Revenue Ruling #25-5 — superseding New Jobs Credit guidance

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR19-11.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #19-11

SUBJECT:

Job Tax Credit – Increased Credit Amount for Tier III and IV Counties
(Income Tax)

EFFECTIVE DATE:

For jobs created in tax years which begin on or after January 1, 2019

MODIFIES:

SC Revenue Ruling #99-5 and SC Revenue Ruling #07-2

SUPERSEDES:

SC Revenue Ruling #87-5 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCES:

S.C. Code Ann. Section 12-6-3360 (2014) (Supp. 2018)
S.C. Code Ann. Section 12-6-3362 (2014)
Act No. 83 of 2019 (Enacted May 22, 2019)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public
and Department personnel. It is an advisory opinion issued to apply
principles of tax law to a set of facts or general category of taxpayers. It
is the Department’s position until superseded or modified by a change in
statute, regulation, court decision, or another Department advisory
opinion.

PURPOSE
Act No. 83, enacted May 22, 2019, substantially increased the job tax credit amount for jobs
created in South Carolina counties ranked as a Tier III county or Tier IV county. The purpose of
this advisory opinion is to provide guidance regarding the credit amount available to taxpayers in
a Tier III or Tier IV county who first create qualifying jobs in 2019 and who are beginning a
credit period and to taxpayers who created qualifying jobs in 2018 and earlier who are in an
existing credit period.

1

OVERVIEW OF JOB TAX CREDITS
South Carolina Code Title 12, Chapter 6 contains three job tax credit provisions. The provisions
are contained in Code Section 12-6-3360(C)(1), the “traditional” annual job tax credit; Code
Section 12-6-3360(C)(2), the “annual” small business job tax credit; and Code Section 12-63362, the “accelerated” small business job tax credit.
In general, the job tax credit is available to qualifying new or expanding businesses creating a
minimum monthly average number of new, full time jobs (“new jobs”) in South Carolina. 1 Sole
proprietorships, partnerships, corporations, S corporations, and limited liability companies that
operate a qualifying business type in South Carolina (e.g., manufacturing, processing, etc.) are
eligible. The credit taken in one tax year may not exceed 50% of the taxpayer’s South Carolina
income tax, 2 bank tax, or insurance premium tax liability. Any unused credit may be carried
forward for 15 years. 3
An overview of the three job tax credit provisions is provided below. Because the qualifying
requirements, the credit amount and computation, and the time in which the credit may be first
claimed may differ depending on the specific credit provision, the applicable South Carolina job
tax credit statute should be carefully reviewed. Careful consideration should be given to which
specific credit the taxpayer will claim since that provision is applicable for the entire credit
period.
See the Appendix for a chart comparing the “traditional,” “annual” small business, and
“accelerated” small business job tax credit provisions.
Code Section 12-6-3360(C)(1) - “Traditional” annual job tax credit for any size business.
Code Section 12-6-3360(C)(1) provides a job tax credit for a qualifying taxpayer, regardless of
size, creating and maintaining a minimum monthly average increase of new, full time jobs in
South Carolina. For most taxpayers, the minimum monthly average increase for the tax year is

10. (See Question 4 for exceptions.) The credit amount depends, in part, on the county where the
    taxpayer’s business is located. The credit is claimed on the taxpayer’s tax return for 5 years
    (Years 2 through 6) beginning in the year following the year of the creation of the new jobs
    (Year 1), provided the jobs are maintained. During the original 5-year credit period, a taxpayer is
    also allowed a credit for additional new jobs created (even for increases less than 10) for 5 years
    beginning in the year following the year in which the new jobs were created.

1

The monthly average of full time employees is the cumulative total of full time employees for each month (number
of employees in January plus number in February, etc.) divided by the months in operation. It is not the number of
jobs created in each month, the total number of jobs created at the end of the year, or the total change in jobs from
year to year.
2
The job tax credit may be claimed against income tax imposed by Code Sections 12-6-510 (individuals, estates,
and trusts) or 12-6-530 (corporations).
3
The job tax credit is a nonrefundable credit. See Code Section 12-6-3360(I) for special situations when the credit
may be transferred. The credit may not be sold.

2

Code Section 12-6-3360(C)(2) - “Annual” small business job tax credit for a business with
99 or fewer total employees worldwide. 4 Code Section 12-6-3360(C)(2) provides a job tax
credit for a qualifying small business taxpayer creating and maintaining a minimum monthly
average of new, full time jobs in South Carolina. For most taxpayers, the minimum monthly
average increase for the tax year is 2. (See Question 4 for exceptions.) The credit amount
depends, in part, on the county in which the taxpayer is located and the amount of gross wages
paid to each employee. New jobs with gross wages paid at or above 120% of the county or State
average per capita income, 5 whichever is less, are eligible for 100% of the “traditional” credit
amount. New jobs with gross wages paid below 120% of the county or State average per capita
income, whichever is less, are eligible for 50% of the “traditional” credit amount. (Note: A
minimum monthly average of 2 new jobs must be created paying gross wages in the “at or
above” 120% wage threshold for the tax year to receive the 100% credit amount.) 6 The credit is
claimed on the taxpayer’s tax return for 5 years (Years 2 through 6) beginning in the year
following the year of the creation of the new jobs (Year 1), provided the new jobs are maintained
each year. During the original 5-year credit period, a taxpayer is also allowed a credit for
additional new jobs created and maintained (even for an increase of 1 new job) for 5 years
beginning in the year following the year in which the new jobs were created.
Code Section 12-6-3362 - “Accelerated” small business job tax credit for a business with 99
or fewer total employees worldwide. Code Section 12-6-3362 allows a small business
qualifying for the “annual” small business job tax credit in Code Section 12-6-3360(C)(2), an
“election” to accelerate the use of the credit by claiming the credit beginning in the year the new,
full time jobs are created. The credit is claimed on the taxpayer’s tax return for 5 years (Years 1
through 5) beginning in the year of the creation of the new jobs (Year 1). During the original 5year credit period, a taxpayer is allowed a credit for the jobs maintained and is also allowed a
credit for additional new jobs created (even if only 1 new job is created).
QUESTIONS AND ANSWERS

1. Q. What are the job tax credit amounts for new jobs created in South Carolina following the
   enactment of Act No. 83?
   A. The credit amount for each eligible new job is determined, in part, by the county in which
   the taxpayer’s business is located. South Carolina’s 46 counties are ranked annually as a
   Tier I, II, III, or IV county, with equal weight given to unemployment rate and per capita
   4

A small business taxpayer may qualify for the “traditional” annual job tax credit. Although the taxpayer may meet
the requirements of all three of the credit provisions, only one credit provision may be used for each credit period.
Note: The taxpayer has the option to determine whether it has 99 or fewer total employees at all locations
worldwide at either the beginning or the end of its tax year in which the new jobs are created in Year 1. The
determination is made each time a credit period begins.
5
Generally, the federal government releases the South Carolina per capita figure in March and September and the
county per capita figures in November. The Department publishes Information Letters each year listing the per
capita figures upon release.
6
A taxpayer creating a monthly average of 2 new, full time jobs for the tax year paying one new job in the “at or
above” 120% threshold and paying the other new job in the “below” 120% threshold qualifies only for the 50%
credit amount for these 2 new jobs. The credit amount for additional new jobs created during the original credit
period is determined separately.

3

income. Act No. 83 increased the credit amounts for Tier III and Tier IV counties only.
The credit amounts for Tier I and Tier II counties were not changed by Act No. 83. The
credit amount for each county ranking prior to, and following, Act No. 83 are provided
below. 7
County Ranking

Tier IV
Tier III
Tier II
Tier I

Credit Amount before
Act No. 83
(i.e., the “old” credit amount)
$8,000
$4,250
$2,750
$1,500

Credit Amount as amended
by Act No. 83
(i.e., the “new” credit amount)
$25,000
$20,250
$2,750
$1,500

2. Q. What are the county rankings for 2019 and 2020?
   A. The Department publishes an Information Letter each December to announce the county
   rankings to use for calculating the credit amount for new job increases created during the
   next tax year. The county rankings for 2019 and 2020 are listed below: 8
   County Rankings for New, Full Time Jobs Created in Tax Years that Begin in 2019
   Tier IV

Tier III

Tier II

Tier I

Allendale
Bamberg
Barnwell
Chester
Clarendon
Dillon
Lee
Marion
Marlboro
Orangeburg
Union
Williamsburg

Abbeville
Calhoun
Cherokee
Chesterfield
Colleton
Darlington
Edgefield
Fairfield
Hampton
Horry
Jasper
McCormick

Aiken
Florence
Georgetown
Greenwood
Kershaw
Lancaster
Laurens
Newberry
Oconee
Pickens
Saluda
Sumter

Anderson
Beaufort
Berkeley
Charleston
Dorchester
Greenville
Lexington
Richland
Spartanburg
York

For new, full time jobs created in tax years that begin in 2020, the following tier changes
occurred from the 2019 rankings listed above:
County
Edgefield
Laurens

2020
Tier II
Tier III

2019
Tier III
Tier II

7

These amounts are the “basic” credit amounts. A qualifying taxpayer may also be eligible for an “additional” credit
amount of $1,000 per new job for a business located in a multicounty park or an “additional” credit amount for a
business meeting the requirements for location at a brownfields site. See Code Section 12-6-3360(E) for the
requirements.
8
See Information Letters #19-2 and #19-29.

4

3. Q. Does the “old” credit amount or the “new” credit amount apply to jobs created in a Tier III
or Tier IV county?
A. The job tax credit amount is generally based on the county ranking and dollar amount
during the year in which the new jobs are actually created. 9 As such, the credit amount for
new jobs created in a Tier III or a Tier IV county may be the “old” credit amount or the
“new” credit amount, depending on the tax year in which the new jobs were created. For a
taxpayer creating new jobs in a Tier III or Tier IV county in a tax year which begins on or
after January 1, 2019, the “new” credit amount applies. For a taxpayer in an existing credit
period, the “old” credit amount continues to apply for jobs created in a tax year which
began before 2019.
The examples below illustrate the transitional provisions of Act No. 83 and the
determination of the credit amount.
Example 1 - A business first creating new jobs in 2019.
Assume new Company X is a calendar year taxpayer who begins operations in South Carolina in
2019. Company X creates a monthly average of 10 new jobs in a Tier IV county in 2019,
maintains all the new jobs for the 5-year credit period, and does not create any additional new
jobs during the credit period.
For new jobs created in tax years beginning January 1, 2019, the credit amount is based on the
“new” credit amount as indicated below.
New jobs created in Year 1
Credit amount to be claimed in
Years 2 – 6 for each new job
created in Year 1 and maintained
Total Credit

2019
10

2020

2021

2022

2023

2024

$25,000

$25,000

$25,000

$25,000

$25,000

$250,000

$250,000

$250,000

$250,000

$250,000

Example 2 - A business in a 5-year credit period (i.e., the new jobs were created prior to tax year
2019) that does not create additional new jobs.
Assume existing Company Y created a monthly average of 10 new jobs in a Tier IV county in
2017. Company Y qualifies for the traditional job tax credit, maintains all the new jobs for the 5year credit period, and does not create any additional new jobs during the credit period.

9
See Code Section 12-6-3360(J) that provides for a certification process of the credit amount for taxpayers planning
a significant expansion in its labor force. South Carolina Form 616 “locks in” the beneficial credit designation for
the years indicated, regardless of whether the county designation changes to a lower credit amount during the year in
which the jobs are actually created. It is valid for all new jobs created during the original 5-year credit period and for
any increases during this 5-year credit period. See Example 3.

5

For the new jobs created in 2017, the credit amount is based on the “old” credit amount as
indicated below.
New jobs created in Year 1
Credit amount to be claimed in
Years 2 – 6 for each new job created
in Year 1 and maintained
Total Credit

2017
10

2018

2019

2020

2021

2022

$8,000

$8,000

$8,000

$8,000

$8,000

$80,000

$80,000

$80,000

$80,000

$80,000

This example illustrates that the job tax credit amount for each of the 10 new jobs created prior
to January 1, 2019 is fixed at $8,000 - the credit amount available when the new jobs were
initially created in Year 1 (2017 in this example). The credit amount for these jobs during the 5year credit period is not affected by the increase in the Tier IV credit amount to $25,000 in 2019
by Act No. 83.
Example 3 - A business in an existing 5-year credit period (i.e., the new jobs were created prior
to tax year 2019) that creates additional new jobs in 2019 and 2020. The county ranking changes
during the credit period.
Assume existing Company Z is a business qualifying for the traditional job tax credit and created
a monthly average of 10 new jobs in 2018, added 2 more new jobs in 2019, and added 8 more
new jobs in 2020. All new jobs were maintained. The county was ranked as a Tier III county in
2018 and 2019, and a Tier II county in 2020.
New Jobs Created in Tax
Year and Credit Per Job
2018 – 10 new jobs
(Tier III - $4,250 per job)
2019 - 2 new jobs
(Tier III - $20,250 per job)
2020 - 8 new jobs
(Tier II - $2,750 per job) 10
Total Credit

2018

2019

2020

2021

2022

2023

$0

$4,250

$4,250

$4,250

$4,250

$4,250

$20,250

$20,250

$20,250

$20,250

$20,250

$2,750

$2,750

$2,750

$2,750

$2,750

$105,000

$105,000

$105,000

$62,500

$22,000

$42,500

$83,000

2024

2025

During the original credit period, a taxpayer is eligible to claim a credit for additional new jobs
created even if fewer than 10 additional new jobs are created. The additional credit is claimed for
5 years beginning in the year following the year the additional new jobs are created, provided the
jobs are maintained. Generally, the credit amount for any number of additional new jobs is based
on the credit amount for the year the additional new jobs are created. 11

10

In this example, the county ranking changed from Tier III to Tier II in 2020.
Note: The answer is different if the taxpayer files a SC Form 616, “Notification to Lock in County Designation,”
before the initial staffing of the new facility or expansion. South Carolina Form 616 “locks in” the beneficial credit
designation for the years indicated, regardless of whether the county designation changes to a lower credit amount
during the year in which the jobs are actually created. It is valid for all new jobs created during the original 5-year
credit period and for any increases during this 5-year credit period.
11

6

In this example, the taxpayer will claim a job tax credit using three credit amounts:
•

$4,250 Tier III “old” credit amount from 2019 – 2023 for the initial 10 new jobs created
in 2018;

•

$20,250 Tier III “new” credit amount increased by Act 83 from 2020 – 2024 for the
additional 2 new jobs created in 2019; and

•

$2,750 Tier II credit amount from 2021 – 2025 for the additional 8 new jobs created in
2020. 12

Example 4 – A business using the “accelerated” small business job tax credit who first creates
new jobs in 2018 and creates additional new jobs in 2019.
Assume Company A is a business with 99 or fewer employees worldwide meeting all
requirements to qualify for the job tax credit. In 2018, Company A creates a monthly average of
5 new, full time jobs paying below 120% of the per capita gross wage threshold. In 2019,
Company A creates 3 more new jobs - 2 new jobs paying greater than the 120% gross wage
threshold and 1 new job paying less than the 120% gross wage threshold. Company A maintains
all the new jobs in subsequent years and does not create any additional new jobs during the credit
period. The county was ranked as a Tier IV county in 2018 and 2019. Company A “elects” to use
the accelerated small business job tax credit and is eligible to claim the credit immediately in
Years 1 through 5 (instead of Years 2 through 6 as provided in the “annual” small business credit
in Code Section 12-6-3360(C)(2)).
Number of New Jobs
Created in Tax Year
in a Tier IV County
2018 – 5 new jobs
paying below the
120% wage threshold
(Tier IV - $8,000 per
job “old” amount)
2019 –
2 new jobs paying
above the 120% wage
threshold

2018

2019

2020

2021

2022

$4,000
(50% of
“old” Tier
IV credit
amount)

$4,000

$4,000

$4,000

$4,000

$25,000
(100% of
“new” Tier
IV credit
amount)
$12,500
(50% of
“new” Tier
IV credit
amount)

$25,000

$25,000

$25,000

$25,000

$12,500

$12,500

$12,500

$12,500

$82,500

$82,500

$82,500

$82,500

$62,500

1 new job paying
below the 120% wage
threshold

(Tier IV - $25,000 per
job “new” amount)
Total Credit

$20,000

12

2023

In this example, if the taxpayer had filed a timely SC Form 616, the Tier III ranking would be “locked in” and the
taxpayer would claim the higher credit amount for the additional 8 new jobs created in 2020 (i.e., $20,250 “new”
credit amount).

7

This example illustrates the “accelerated” small business job tax credit gross wage threshold
requirements and credit amounts. Under the “accelerated” credit, new jobs paid gross wages at or
above 120% of the county or State average per capita income (whichever is less) are eligible for
100% of the “traditional” credit amount, and new jobs paid gross wages below 120% of the
county or State average per capita income (whichever is less) are eligible for 50% of the
“traditional” credit amount.
In this example, the taxpayer will claim a job tax credit using three credit amounts for the two
credit periods: 13
•

$4,000 Tier IV “old” credit amount from 2018 – 2022 for the initial 5 new jobs created in
2018 paying below the wage threshold (50% “old” credit amount);

•

$25,000 Tier IV “new” credit amount provided by Act No. 83 from 2019 – 2023 for the
additional 2 new jobs created in 2019 paying above the wage threshold; and

•

$12,500 “new” Tier IV credit amount (50% “new” credit amount) provided by Act No.
83 from 2019 – 2023 for the additional 1 new job also created in 2019 paying below the
wage threshold.

4. Q. What types of businesses qualify for the job tax credit and what are the job requirements
   for each type of business?
   A. Code Section 12-6-3360 provides for the types of businesses that qualify for the job tax
   credit. In general, a qualifying business is eligible for the credit when creating and
   maintaining a required number of jobs in any South Carolina county. However, there are
   two business types – a service related industry and a retail facility – that only qualify for
   the credit if located in a Tier IV county. See Code Section 12-6-3360 (A) and (M) for
   definitions of eligible businesses.
   In general, the minimum monthly average job increase requirement for a qualifying
   business is 10 to be eligible for the “traditional” job tax credit and 2 to be eligible for the
   “small business” job tax credit. A higher job requirement, however, exists for three
   business types - qualifying service related facility, new hotel or motel (tourism), and
   professional sports team - whether the taxpayer claims the “traditional” or the “small
   business” job tax credit.
   The following chart summarizes the types of businesses that qualify in each county tier
   and the new job eligibility requirements (and exceptions) for both the “traditional” and
   “small business” job tax credit.

13

A taxpayer adding a new facility or expanding may choose to treat these new jobs as additional increases of the
existing credit or choose to start a new 5-year credit period.

8

Qualifying Businesses (as of December 2019)
Qualifying Businesses and Definitions

County Ranking
Tier IV Tier III, II,
County or I County

Monthly Average Increase
for Tax Year Requirement

Manufacturing –
Code Section 12-6-3360(M)(5)
Processing –
Code Section 12-6-3360(M)(6)
Warehousing –
Code Section 12-6-3360(M)(7)
Distribution –
Code Section 12-6-3360(M)(8)
Research and Development –
Code Section 12-6-3360(M)(9)
Corporate Office –
Code Section 12-6-3360(A) and (M)(10)
Technology Intensive –
Code Section 12-6-3360(M)(14)
Banks –
Code Sections 12-6-3360(A) and 12-11-10
Agribusiness Operations –
Code Section 12-6-3360(A)
Agricultural Packaging –
Code Section 12-6-3360(M)(16)
Extraordinary Retail Establishment –
Code Section 12-6-3360(M)(15)
Qualifying Service Related Facility –
(a) health care (e.g., hospital, health related services)
(b) air transportation support
Code Section 12-6-3360(M)(13)(a)
Qualifying Service Related Facility – Other
(e.g., call centers, mortgage processing centers)

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit
10 - traditional credit
2 - small business credit

Yes

Yes

25 - 175 in a single location
based on specified average
cash compensation amounts
or other criteria. See Code
Section 12-63360(M)(13)(b).

Yes

No

10 - traditional credit
2 - small business credit

Yes

No

10 - traditional credit
2 - small business credit

Yes

Yes

Yes

Yes

10 - traditional credit
2 - small business credit
Exception: 20 if a new hotel
or motel
150 and annual federal
payroll of $190 million

Note: Legal, accounting, banking, investment services, or
retail sales do not qualify as a “qualifying service related
facility”
Code Section 12-6-3360(M)(13)(b)
Service Related Industry –
(e.g., seamstress, hair stylist, lawn care, child care,
construction contractor, painter, repair services, trucking
or hauling, roofer, janitorial services, courier services,
security services, accounting, legal, investment services,
call center, mortgage processing)
Code Section 12-6-3360(A)
Retail Facility –
(e.g., convenience store, restaurant, florist, photographer,
machine shop, interior design, repair shop selling tangible
personal property)
Code Section 12-6-3360(A)
Tourism –
Code Section 12-6-3360(M)(12)

Professional Sports Team (if jobs are created by, or
revitalization agreement entered into before, July 1, 2022)
Code Section 12-6-3360(M)(17)

9

5. Q. How is the job tax credit reported if more than one credit amount applies each year?
A. For ease of computing the credit, it is suggested that a separate South Carolina Form TC4, “New Jobs Credit,” TC-4SB, “Small Business Jobs Credit,” or TC-4SA, “Accelerated
Small Business Jobs Credit” be filed for each credit amount when claiming the credit for
years in which the credit amount differs. Note: Once a credit period begins, the “annual”
or “accelerated” method must be used for the entire credit period.
Computer designed forms or spreadsheets are acceptable in lieu of Forms TC-4, TC-4SB,
or TC-4SA, provided all information on the applicable credit form is reflected on the
substitute form.

6. Q. Who completes and files the job tax credit form?
   A. South Carolina Form TC-4, TC-4SB, or TC-4SA is completed and retained by the entity
   creating the new jobs. The form is not required to be attached to the entity’s electronically
   filed tax return, but should be retained and made available upon request. The form,
   however, is required to be attached to the entity’s tax return if it is paper filed. The entity
   creating the new jobs, including a pass through entity, does not provide its Form TC-4,
   TC-4SB, or TC-4SA to the partner, shareholder, or member claiming the credit.
7. Q. How does a partner, shareholder, or member report the job tax credit received from a pass
   through entity?
   A. The job tax credit passed from a partnership, S corporation, or limited liability company to
   its partners, shareholders, or members is reported on Schedule SC K-1. The job tax credit
   claimed by the individual, trust, or corporation is limited to 50% of its income tax liability.
   To facilitate processing of the South Carolina tax return, it is recommended that the
   Schedule SC K-1 or a supporting schedule be attached to the tax return of the partner,
   shareholder, or member. See the Appendix for a sample supporting schedule.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
December 11
, 2019
Columbia, South Carolina

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COMPARISON OF JOB TAX CREDIT PROVISIONS - SC Rev. Rul. #19-11
CAVEAT: This comparison is written in general terms and should not be relied on as a substitute
for researching original sources of authority.

Code Section
Form
Qualifying Type
Business

Size Requirement

Taxes Credit Used
Against
Entities Qualifying

Credit Amount –
Basic

“Traditional” Job Tax
Credit
12-6-3360(C)(1)
TC-4
Manufacturing, processing,
warehousing, distribution,
research and development,
corporate office, technology
intensive, banking,
agribusiness operations,
agricultural packaging,
qualifying health care related
facilities, air transportation
support, qualifying service
related facility, tourism, and
professional sports team

“Small Business” Job Tax Credit
“Annual”
“Accelerated”
12-6-3360(C)(2)
12-6-3362
TC-4SB
TC-4SA
Same
Same

A retail facility in a Tier IV
county or a service related
industry in a Tier IV county

Same

Same

99 or fewer
employees
worldwide
Same

99 or fewer
employees
worldwide
Same

Same

Same

$1,500 - $25,000
(100% credit
amount) or
$750 - $12,500 (50%
credit amount),
depending on county
designation and
annualized
compensation

$1,500 - $25,000
(100% credit
amount) or
$750 - $12,500 (50%
credit amount),
depending on county
designation and
annualized
compensation

See Code Section 12-63360(M)(5) through (17)
None

Corporate, individual, or trust
income tax; bank franchise
tax; or insurance premium tax
C corporation, S corporation,
Partnership, Sole
proprietorship, or Limited
Liability Company
$1,500 - $25,000 per year for
each new, full time job
created, depending on county
designation

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“Traditional” Job Tax
Credit
Credit Amount –
$1,000 multicounty park
Additional
$1,000 Brownfields Voluntary
Cleanup Program
“Monthly Average” 10
Increase for Tax
Exception: 25-175 for
Year Requirement
qualifying service related
facilities; 20 for new hotels or
motels; and 150 for
professional sports teams
Compensation/Gross No, except for certain
Wage Requirement
qualifying service related
facilities

Tax Limitation
Carryforward
Credit Duration
Period to Claim

Base Year

Exception: A qualifying
service related facility’s job
and pay requirement at a
single location is:
100 jobs paying 1.5 times the
county or State average;
50 jobs paying 2 times the
county or State average; or
25 jobs paying 2.5 times the
county or State average
50% of tax liability
15 years
5 years
Years 2 – 6 after job creation
in Year 1, if jobs are
maintained
Year preceding first year a
taxpayer creates the number
of new jobs to qualify,
regardless of whether it is the
first year of operation

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“Small Business” Job Tax Credit
“Annual”
“Accelerated”
Same
Same

2
Exception: Same

2
Exception: Same

Yes (determines if
jobs qualify for
100% or 50% credit
amount)

Yes (determines if
jobs qualify for
100% or 50% credit
amount)

Based on ≥ 120% or
< 120% per capita
income for State or
county (whichever is
lower)

Based on ≥ 120% or
< 120% per capita
income for State or
county, (whichever is
lower)

Same
Same
Same
Years 2 – 6 after job
creation in Year 1, if
jobs are maintained
Same

Same
Same
Same
Years 1 – 5, if jobs
are maintained
Same

Job Tax Credit – Supporting Schedule
Tax Year __
For Use by a Partner, Shareholder, or Member
Credit from Entity 1

Credit from Entity 2

Credit from Entity 3

1. Name of Entity Generating Credit
   from Schedule SCK-1
2. FEIN of Entity Generating Credit
3. Amount of Credit Allocated in
   Tax Year from Schedule SCK-1
4. Credit Carryforward Available
   from Prior Year

5. Total Credit Available (Line 3+4)

6. Aggregate Job Tax Credit from all Entities
   (Sum of all columns of Line 5)

7. Income Tax Liability from Form SC1040 Line _,
   SC1120 Line _, or SC1041 Line ____.
8. Tentative Job Tax Credit - 50% of Line 7

9. Job Tax Credit Claimed in Tax Year
   (Lesser of Line 6 or 8)

10. Job Tax Credit Carryforward
    (Line 6 less Line 9)
    Note: This schedule is not required and is not an official SCDOR form. However, to facilitate processing
    of the South Carolina tax return of a partner, shareholder, or member receiving a job tax credit from a
    pass through entity, it is recommended that the Schedule SC K-1 or this supporting job tax credit schedule
    (or one containing the same information) be attached to the tax return.

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