Under the 2009 South Carolina guidance, who could claim the refundable college tuition income-tax credit and how was it calculated?

Plain-English summary

This 2009 South Carolina Revenue Ruling was an 18-question guide to the state's then-existing refundable individual income-tax credit for college tuition. It covered student eligibility, qualifying schools and expenses, scholarship offsets, required credit hours, the claim period, and who could claim the credit.

Under the ruling, a qualifying student generally had to be a recent South Carolina high-school graduate or qualifying resident dependent, qualify for in-state tuition, pursue an undergraduate degree or qualifying certificate or diploma, remain in good standing, and complete the required credit hours. GED recipients, Palmetto Fellows and LIFE Scholarship recipients, certain loan defaulters, and students with specified criminal or delinquency records were excluded under the stated rules.

The historical credit equaled 25% of qualifying tuition after applicable scholarship grants. The ruling capped it at $850 for a four-year institution and $350 for a two-year institution, with an overall $850 per-student annual maximum. The student or a person eligible to claim the student as a federal dependent could claim it, and the credit was refundable.

What this means for you

Students and families

The ruling required more than simply paying tuition. Eligibility depended on the student's high-school path, residency and in-state tuition status, academic program, credit hours, scholarships, and other statutory exclusions.

Tax preparers

Scholarship grants used toward tuition reduced the eligible amount, but loans, certain employer educational assistance, service payments, veterans' educational benefits, gifts, savings, and specified education accounts did not count as scholarship grants under this guidance.

Historical researchers

The ruling's school list, annual tuition limits, forms, contact details, credit-hour equivalencies, and dollar caps reflect 2008–2009 administration. They should not be treated as current filing instructions.

Common questions

Q: Was the credit refundable?
A: Yes. It could reduce tax owed and produce a refund when it exceeded the taxpayer's otherwise-due South Carolina income tax.

Q: What expenses counted as tuition?
A: Qualifying undergraduate tuition and required enrollment fees. Books, room and board, student activities, athletics, meal plans, insurance, equipment, transportation, and personal or family expenses did not count.

Q: Did scholarships reduce the credit base?
A: Yes, when scholarship grants were received toward tuition. Grants not used for tuition did not reduce it.

Q: Who could claim the credit?
A: The student who paid tuition or an individual who paid it and could claim the student as a dependent on the individual's federal return. The annual cap applied per student.

Q: How many credit hours were required?
A: Generally 30 hours during the tax year. A student attending only one regular semester generally needed 15 hours in that semester, subject to the ruling's special equivalency rules.

Q: How long could the credit be claimed?
A: The ruling described a four-consecutive-year period beginning with first enrollment, potentially spanning parts of five tax years, with medical and active-duty military exceptions.

Citations and references

• S.C. Code § 12-6-3385 (historical college tuition tax-credit requirements)
• S.C. Code § 59-103-5 (South Carolina public institutions)
• S.C. Code § 59-113-50 (qualifying independent institutions)
• Internal Revenue Code § 127 (educational assistance distinguished from scholarship grants)
• Internal Revenue Code § 529 (education-plan funds treated as tuition paid by the student under the ruling)
• SC Revenue Advisory Bulletin 00-1 (superseded by this ruling)

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR09-3.pdf

Original ruling text

State of South Carolina
Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC REVENUE RULING #09-3

SUBJECT:

College Tuition Tax Credit
(Income Tax)

EFFECTIVE DATE: Applies to all periods open under the statute.
SUPERSEDES:

SC Revenue Advisory Bulletin #00-1, and all previous advisory
opinions and any oral directives in conflict herewith.

REFERENCES:

S. C. Code Ann. Section 12-6-3385 (2008)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2008)
S. C. Code Ann. Section 1-23-10(4) (2008)
SC Revenue Procedure #05-2

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public
and to 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
Departmental advisory opinion.

Code Section 12-6-3385 provides a refundable individual income tax credit for college tuition.
The purpose of this advisory opinion is to address some common questions concerning this
credit.
QUESTIONS:

1. Who is an eligible student?
   To qualify for the tuition tax credit, an individual enrolled in an institution of higher learning
   must meet all of the following requirements:
2. have graduated from high school during or after May 1997;

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2. within 12 months before enrolling in the institution of higher learning:
a. graduated from a South Carolina high school,
b. completed a South Carolina high school home school program, or
c. graduated from a preparatory high school outside of South Carolina while a dependent
of a parent or guardian who is a legal resident of South Carolina has custody of the
student;

3. be eligible for in-state tuition;
4. be admitted, enrolled, and classified as a degree-seeking undergraduate or be enrolled in
   a certificate or diploma program of at least 1 year and be in good standing at the
   institution (whether or not a student is in good standing is determined by the qualifying
   institution); and,

5. have completed at least 30 credit hours at the end of the taxable year for which the credit
   is claimed, or its equivalent as determined by the Commission on Higher Education. (A
   student is considered to have “completed” a course regardless of the grade achieved;
   however, a student receiving an incomplete or withdrawing from a course is not
   considered to have “completed” a course for purposes of the 30 credit hour requirement.)
   NOTE: There is not a minimum Scholastic Aptitude Test (SAT) requirement or grade point
   average requirement to qualify for the tuition credit; however, the student must be in good
   standing at the institution to claim the credit.

6. Who is not an eligible student?
   The tuition tax credit is not available to an individual enrolled in an institution of higher learning
   who:

7. obtained a GED;
8. is a Palmetto Fellows Scholarship recipient;
9. is a Legislative Incentives for Future Excellence (LIFE) Scholarship recipient;
10. is in default of a federal Title IV or South Carolina educational loan or owes a refund on
    a South Carolina student financial aid program; or,
11. has been adjudicated delinquent or been convicted or pled guilty or nolo contendere to
    any felonies, or any alcohol or drug related offenses.
    NOTE 1: This ineligibility requirement does not apply to a student whose record has
    been expunged.
    NOTE 2: If a student has been adjudicated delinquent or been convicted or pled guilty or

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nolo contendere to any alcohol or drug related misdemeanor offense, then this
ineligibility requirement applies only for the taxable year in which the adjudication,
conviction, or plea occurred.

3. Can a student who does not currently meet the credit requirements later qualify?
   Yes. A student may currently be a Palmetto Fellows or LIFE Scholarship recipient or be in
   default of a student loan, but later lose the scholarship or repay the loan. At such time if the
   student meets all the tuition credit eligibility requirements, the student is eligible for the tuition
   credit for the remaining time in the 4-year credit period. (See Question 12 for the maximum
   time period in which a credit may be claimed.)
   For example, a student is a LIFE Scholarship recipient for the 2007-2008 academic year (fall
   2007 and spring 2008 semesters), but does not qualify for the LIFE Scholarship in the 2008-2009
   academic year (fall 2008 and spring 2009 semesters). The student is a qualifying student
   meeting all requirements of the tuition tax credit in the fall 2008 semester and may claim the
   tuition tax credit for that semester provided the student completed 30 credit hours during the tax
   year 2008. The student may not claim the credit for the 2007 tax year or for the spring 2008
   semester since the student was a LIFE Scholarship recipient during that time.

4. What institutions qualify?
   Currently, tuition paid to the institutions of higher learning listed in Exhibit A qualifies for the
   credit. This list is derived from the following statutory criteria for qualifying institutions of
   higher learning and designated institutions:

5. A South Carolina public institution is any state-supported post-secondary educational
   institution, including technical and comprehensive educational institutions. See South
   Carolina Code Section 59-103-5.
6. An independent institution is any independent eleemosynary junior or senior college in
   South Carolina whose major campus and headquarters are located within South Carolina
   and which is accredited by the Southern Association of Colleges and Secondary Schools.
   See South Carolina Code Section 59-113-50.
7. A public or independent bachelor’s level institution chartered before 1962 whose major
   campus and headquarters are located within South Carolina.
8. An independent bachelor’s level institution which has attained an Internal Revenue Code
   Section 501(c)(3) tax status and is accredited by the Southern Association of Colleges and
   Secondary Schools or the New England Association of Colleges and Schools.
9. A public or independent 2-year institution which has attained an Internal Revenue Code
   Section 501(c)(3) tax status.

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5. What institutions do not qualify?
An institution does not qualify if its sole purpose is:

1. religious or theological training, or

2. granting professional degrees.

3. What qualifies as tuition?
   Qualifying tuition is the amount charged by a 2-year or 4-year public institution of higher
   learning, including required fees, necessary for undergraduate enrollment.
   Qualifying tuition at an independent institution is, however, defined as the “average tuition at the
   4-year public institutions of higher learning,” not to exceed the actual tuition charged. This
   amount is revised annually by the Commission on Higher Education; the current amounts are
   reflected annually on applicable South Carolina individual income tax forms and/or instructions.
   (See Questions 16, 17, and 18 for credit computations for schools on a traditional semester
   system and for schools not on a traditional semester system.)
   Required fees do not include fees or charges for books, room and board, student activities,
   athletics, meal plans, insurance, equipment, transportation, or personal, living, or family
   expenses.

4. Which scholarship grants reduce tuition?
   Any amounts received toward tuition payment by scholarship grants must be deducted before
   calculating the credit. Examples of scholarship grants include academic scholarships, athletic
   scholarships, South Carolina tuition grants, Pell grants, and Supplemental Educational
   Opportunity Grants. Grants that do not reduce tuition and are not used to pay tuition (e.g., a grant
   for room and board) are not deducted from tuition before calculating the credit.
   Scholarship grants do not include student loans, educational assistance plans under Internal
   Revenue Code Section 127, payments for teaching, research, or other services performed by the
   student, or veteran educational assistance benefits. Therefore, tuition amounts paid with the
   student’s earnings, personal savings, or inheritance; a loan or gift to the student; or with a South
   Carolina Tuition Prepayment Program fund, Internal Revenue Code Section 529 plan fund, or
   Uniform Gift to Minors Act account constitute tuition paid by the student for purposes of the
   tuition tax credit.

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8. What is the credit amount?
For a student attending a 4-year institution, the credit is equal to 25% of the tuition paid during a
taxable year, not to exceed $850.
For a student attending a 2-year institution, the credit is equal to 25% of the tuition paid during a
taxable year, not to exceed $350.
For a student attending both a 2-year and a 4-year institution in the same tax year, the credit is
equal to 25% of the tuition paid during the taxable year, not to exceed $850.
The credit amount for any student per tax year may not exceed $850 in any circumstance.
NOTE: Before calculating the credit amount two adjustments may be necessary:

1. Students attending an independent institution must reduce the actual tuition paid to that
   of the “average tuition at the 4-year public institutions of higher learning,” not to exceed
   the actual tuition charged. (See the individual income tax forms and/or instructions for a
   list of the current average tuition amount and a list of 4-year independent institutions,)
   and

2. Scholarship grants received toward tuition payments must be deducted from qualifying
   tuition.
   If both adjustments apply, they must be made in the order listed above.

3. What tuition payments and credit hours are used to compute the credit?
   Tuition Payments:
   Amounts paid for tuition during the current tax year (winter/interim 2008 term, spring 2008
   semester, summer 2008 session, fall 2008 semester, and tuition prepaid in 2008 for the spring
   2009 semester by students attending a qualifying institution in the current tax year) for
   qualifying students should be used to determine the tuition tax credit claimed on the 2008 South
   Carolina individual income tax return due April 15, 2009.
   Students Attending a Full Year at a Traditional Semester School:
   The Commission on Higher Education, in accordance with Code Section 12-6-3385, has
   authorized that the 30 credit hour requirement can be met by any combination of hours
   completed during the winter, interim, spring, summer, and fall terms in the current tax year.

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Students Attending One Regular Semester at a Traditional Semester School:
The Commission on Higher Education, in accordance with Code Section 12-6-3385, has
authorized that a student enrolled in either the fall or spring semester (but not both) at a
traditional semester school in the current tax year must complete 15 credit hours in the one
regular semester in order to be eligible for the tax credit. 1 Further, the Commission on Higher
Education has determined that summer school hours do not count in meeting this 15 hour per
regular semester requirement.
Students Attending a Full Year at a NonTraditional Semester School:
The Commission on Higher Education, in accordance with Code Section 12-6-3385, has
authorized that the 30 credit hour requirement, or its equivalent, can be met by any combination
of hours completed during the winter, interim, spring, summer, and fall terms in the current tax
year for the following institutions:
Institution

“Equivalent Hour” Requirements

Converse

Must earn 30 hours in the tax year

Erskine

Must earn 30 hours in the tax year

Wofford

Must earn 30 hours in the tax year

Students Attending One Regular Semester at a NonTraditional Semester School:
The Commission on Higher Education, in accordance with Code Section 12-6-3385, has
authorized that a student not enrolled in both the fall and spring semesters of a tax year in one of
the following institutions must complete the following credit hours in either the fall or spring
semester:
Institution

2

“Equivalent Hours”

Converse

12 hours

Erskine

13 hours

Wofford

12 hours

1

Special Rule for Furman. The Commission on Higher Education has determined the May Experience term hours
count in meeting this 15 hour per regular semester for a student attending only the spring semester and May
Experience term.
2
Transition Rule in 2008 for Furman. Beginning with the fall 2008 academic year, Furman University changed to a
traditional semester system from a nontraditional semester system. Because of this change, a student at Furman
attending only the spring 2008 semester may complete 8 “equivalent hours” as authorized by the Commission on
Higher Education to qualify for the tuition tax credit.

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EXAMPLES:
Examples best explain when the credit is first available. The examples assume the students are
qualifying students enrolled in a qualifying institution on a traditional semester system.
EXAMPLES

TAX YEAR
TUITION PAID

SEMESTERS
ENROLLED

HOURS COMPLETED
DURING TAX YEAR

CREDIT ALLOWED FOR
TUITION PAID DURING
TAX YEAR

Student A

2008
2008

spring 08
fall 08

15
15

yes

Student B

2008

fall 08

12

no

Student C

2008

fall 08

15

yes

Student D

2008
2008

fall 08
spring 09

15
15 to be completed in 2009

yes

Student E

2008
2008
2008

spring 08
summer 08
fall 08

12
6
12

2008
2008

summer 08
fall 08

6
9

2008
2008
2008

spring 08
summer 08
fall 08

8
6
15

no

Student H

2008

summer 08
fall 08

6
15

yes

Student I

2008

spring 09

0 (15 to be completed in
tax year 2009)

no

Student F
Student G

yes

no

These examples illustrate that a student must complete at least 30 semester hours during the tax
year. The 30 hour requirement can be met in any combination of hours completed during
the winter, interim, spring, summer, and fall terms. If the student enrolls in only one regular
semester in a tax year, but not both, it does not affect the student’s qualification for the credit
provided the student completes at least 15 semester hours during the regular semester attended
(see example of Students B and C.) Further, unlike the 30 hour requirement, summer school
hours do not enter into the calculation of the 15 hour requirement when a student attends only
one regular semester in a tax year (see example of Student F.)
Students A and E completed 30 hours during the tax year (each in different combinations) and
qualify for the credit. Student G, however, completed only 29 hours during the tax year and does
not qualify for the credit.
Students B, C, F, and H attended only one regular semester in 2008. Student B does not qualify
for the credit in 2008 since only 12 hours (not the required 15 “equivalent hours” per regular
semester when only one regular term is attended) were completed in 2008. Student C qualifies
for the credit since the 15 “equivalent hours” requirement was met. Student F completed 15
hours in the summer and fall semesters, but does not qualify for the credit in 2008 because the
required 15 “equivalent hours” per regular semester when only one regular semester is attended
is not met (summer school hours are not counted in determining the 15 semester hour

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requirement.) Student H, however, completed 15 hours in the fall semester and qualifies for the
credit for the summer and fall semesters. Students B, F, and G may qualify for the remaining
portion of the credit in future years. (See Question 12 for the maximum years the credit may be
claimed.)
Student D is allowed a credit for tuition paid for the fall 2008 semester and prepaid in the 2008
tax year for the spring 2009 semester since the student completed 15 semester hours for the one
regular semester enrolled for in 2008 (the fall semester). The number of hours Student D is
enrolled for in 2009 is not used in the 2008 credit calculation.
Student I does not qualify for the credit in 2008 for tuition prepaid in 2008 for the spring 2009
semester since the student did not attend college during the tax year.
Also, see Questions 16, 17, and 18 for computation of the credit.

10. Whom do I contact for questions concerning the “equivalent hour” requirement for
    institutions not on a traditional semester system?
    Code Section 12-6-3385(B)(3)(b) provides that a qualifying student must complete at least 30
    credit hours each year, or its equivalent, as determined by the Commission on Higher Education,
    at the end of the tax year for which the credit is claimed. See Question 9 above for a list of
    “equivalent hours” approved by the Commission on Higher Education.
    Questions concerning equivalent hours for any school not on a traditional semester system
    should be directed to:
    Director, Student Services
    Commission on Higher Education
    1333 Main Street, Suite 200
    Columbia, South Carolina 29201-3245
    Phone - 803-737-2260 Fax - 803-737-2297

11. What is the semester hour equivalent for a student with a disability?
    The Americans with Disabilities Act may permit certain disabled students to qualify for the
    credit by completing a lesser number of “equivalent hours.” The Commission on Higher
    Education determines “equivalent hours.” The Commission on Higher Education has informed
    the Department to instruct each student with a disability to contact the Disability Services
    Provider at the qualifying institution for approval of the required “equivalent hours.” South
    Carolina Commission on Higher Education Form CHE-400, “Students With Disabilities
    Verification - Tuition Tax Credit,” must be completed each year the tuition credit is claimed. A
    copy of Form CHE-400 is available on the Department’s website at www.sctax.org.

12. How many years can the credit be claimed?

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General Rule:
The credit may be claimed for no more than 4 consecutive years after the qualifying student first
enrolls in an eligible institution. The credit is available for a total of no more than 5 tax years
since the maximum 4-year credit period runs from the date the student first enrolls and continues
for 4 years from that date so that the credit is allowed for tuition paid for no more than 8
consecutive regular semesters and any summer school or interim period tuition paid during the 4year period.
For example, if a student graduates from high school in May 2008 and enrolls in a qualifying 4year institution on August 18, 2008, the credit period is for qualifying tuition paid for school
enrollment from August 18, 2008 to August 17, 2012, a period of 4 consecutive years. The
credit may be claimed on the 2008, 2009, 2010, 2011, and 2012 South Carolina income tax
returns.
Exceptions to the General Rule:
The following two exceptions to the general rule discussed above are provided in the statute:

1. Medical Exception. An extension of the 4-year credit period may be granted due to
   medical necessity as defined by the Commission on Higher Education. The Commission
   on Higher Education recommends that students direct questions concerning medical
   necessity to their institution of higher learning’s Office of Disability Services.
2. Military Exception. The 4-year credit period is suspended for qualifying students
   required to withdraw from a qualifying institution to serve on active military duty on or
   after January 1, 2000. To qualify, the student must re-enroll in an eligible institution
   within 12 months upon demobilization and provide official documentation from the
   Armed Forces to verify the dates of active duty military service.

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Examples:
The following examples indicate the tax years the tuition credit may be claimed under the
general rule. The examples assume, unless stated otherwise, the students are qualifying students
graduating from high school in May 2008 and enrolled in fall semesters August 18 through
December 15 and spring semesters from January 7 through May 12 for the years indicated.
Tax
Year

School
Semester

Student A

Student B

TAX YEARS TUITION PAID

2008

fall 08

2008

2008

2008-2 yr
school

2008-2 yr
school

did not attend

2009

spring 09
fall 09

2009
2009

2008
2009

withdraws
from school

2008-2 yr
school
2009-2 yr
school

did not attend

2010

spring 10
fall 10

2010
2010

2009
2010

2010-2 yr
school
2010-2 yr
school

2010-4 yr
school

2009
2010

2011

spring 11
fall 11

2011
2011

2010
2011

2011-2 yr
school
2011-2 yr
school

2011-4 yr
school

2010
2011

2012

spring 12
fall 12

2012
N/A

2011
N/A

2012-2 yr
school
2012-2 yr
school

2012-4 yr
school
2012-4 yr
school

2011
2012

2013

spring 13
fall 13

N/A
N/A

N/A
N/A

2013-2 yr
school
2013-2 yr
school

2013-4 yr
school
2013-4 yr
school

2013
2013

Student C

Student D

Student E

Student A - The credit may be claimed for all tuition payments made in 5 tax years - 2008, 2009,
2010, 2011, and 2012 (but only for tuition paid for semesters and any summer sessions ending
on or before August 17, 2012).
Student B - The credit may be claimed for all tuition payments made in 4 consecutive years years beginning August 18, 2008, 2009, 2010, 2011 and ending August 17, 2012. The
prepayment of the spring 2012 tuition in the tax year 2011, however, results in the acceleration
of the credit. No credit may be claimed in 2012 and thereafter.
Student C - The credit may be claimed only for tax years 2008, 2010, 2011, and 2012 (but only
for tuition paid for semesters ending on or before August 17, 2012). The semesters the student
did not attend in 2009 still constitute a year for purposes of counting the 4 consecutive years of
the credit period. NOTE: The attendance at a 2-year college for more than 2 years does not
affect the 4 consecutive years of the credit period.
Student D - The credit may be claimed in tax years 2008, 2009, 2010, 2011, and 2012 (but only

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for tuition paid for the spring or summer 2012 semesters). The transfer from a 2-year to a 4-year
school does not affect the 4 consecutive years of the credit period. No credit is allowed,
however, for tuition paid for fall 2012 or spring and fall 2013.
Student E - The credit may not be claimed for this student in any tax year. Since the student
graduated from high school in May 2008, and did not enroll in college until spring 2010, over 12
months have elapsed before enrolling and the student is not a “qualifying” student.

13. Who may claim the credit?
    The credit may be claimed by either:
14. the student paying the tuition (see Questions 6 and 7), or

15. an individual paying the tuition who is eligible to claim the student as a dependent on his
    or her federal income tax return.
    Since the credit is per student, an individual paying the tuition for more than one dependent
    claimable on the taxpayer’s federal income tax return can claim a tuition tax credit for each
    qualifying student dependent.
    If a parent makes tuition payments in tax years 2008 and 2009 and the student makes tuition
    payments in tax years 2010 and 2011, then the parent may claim the credit in 2008 and 2009 and
    the student may claim the credit in 2010 and 2011.
    Further, if the parent and student each pay a portion of the tuition payments, 50% each for
    example, then 50% of the appropriate credit amount may be claimed by the parent and 50% of
    the appropriate credit amount may be claimed by the student. In no case can the total credit
    claimed for a student each year exceed the maximum credit amount. See Question 8.

16. What is a refundable credit?
    A refundable credit reduces South Carolina income tax owed and provides a refund to the extent
    the credit is larger than the tax otherwise owed. The credit is not related to adjusted gross
    income or tax liability. A tax credit is only refundable when specifically provided in the statute.
    The tuition tax credit is a refundable credit.

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15. How is the credit claimed?
The credit is computed on Form I-319 and claimed on the South Carolina individual income tax
return - SC1040. (The credit cannot be claimed on a SC1040A-short form.)

16. How is the credit computed for a qualifying student attending a public or independent
    institution on a traditional semester system?
    An example best explains the computation. This example is based on the following facts: (1)
    institutions are qualifying 4-year institutions and (2) students are qualifying students paying one
    semester of tuition during the tax year.
    CREDIT COMPUTATION

PUBLIC INSTITUTION

INDEPENDENT INSTITUTION*

Tuition charged for semester during tax
year

$3,500

$8,500

Required enrollment fees

$ 100

$ 200

*Total qualified tuition & fees charged
during taxable year (not to exceed an
amount determined annually by the
Commission on Higher Education; for
illustrative purposes, assume this amount
cannot exceed $8,537 per year or $4,269
per regular semester for independent
institutions this year – special rules apply
for schools not on a traditional system – see
Question 18)

$3,600

$4,269*

Scholarship (applied toward tuition
payment)

$2,300

$3,000

SC Tuition & Pell Grants (applied toward
tuition payment)

$ 500

$0

Less: Total scholarship grants received
during the taxable year

($2,800)

($3,000)

Tuition qualifying for the credit

$ 800

$1,269

Tuition Credit - 25% of qualifying tuition,
not to exceed $850 per tax year

$ 200

$ 317

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17. How is the credit computed for a qualifying student also attending summer school?
An example best explains the computation. This example is based on the following facts: (1)
institutions are qualifying 4-year institutions and (2) students are qualifying students also paying
for 6 credit hours of summer school tuition during the tax year.

CREDIT COMPUTATION

PUBLIC INSTITUTION

INDEPENDENT INSTITUTION*

Tuition charged for summer semester
during tax year

$700

$2,200

Required enrollment fees

$100

$ 100

*Total qualified tuition & fees charged for
summer school (for independent
institutions this may not exceed an amount
determined annually by the Commission
on Higher Education; for illustrative
purposes, assume this amount cannot
exceed $8,537 per year ) times the number
of credit hours completed in summer
school divided by 30

$800

$1,707*

Less: Total scholarship grants received
during the taxable year

($0)

($0)

Tuition qualifying for the credit

$800

$1,707

Tuition Credit - 25% of qualifying tuition,
not to exceed $850 per tax year

$200

$426

*In determining the total qualifying summer school tuition and fees that are eligible for the credit
for independent institutions, the average tuition at 4-year public institutions of higher learning
must be determined as required in Section 12-6-3385(B)(4). This average tuition as determined
by the Commission on Higher Education is multiplied by a fraction. The numerator of the
fraction is the actual number of hours completed in summer school, and the denominator is 30
hours (the total number of hours required to qualify for the credit).
NOTE: In the above examples, tuition for public schools is based on the actual tuition paid.
NOTE: See Question 9 for examples of the required number of hours to complete in order to
claim the credit.

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18. How is the credit computed for a qualifying student attending an institution on a system other
than a traditional semester system?
An example best explains the computation. This example is based on the following facts: (1) the
student attends 30 “equivalent hours” in the tax year, as determined by the Commission on
Higher Education, at a nontraditional semester school (e.g., Converse College), (2) the student is
a qualifying student, and (3) the student pays all tuition in 2008 for winter, spring, and fall terms.
CREDIT COMPUTATION

TERM 1
Winter 2008

TERM 2
Spring 2008

TERM 3
Fall 2008

TOTAL

Tuition charged for term during tax
year

$ 10,000

$7,000

$10,000

$27,000

Required enrollment fees

$

100

$ 100

$

$

*Total qualified tuition & fees
charged during taxable year (limited
by an amount each year as
determined by the Commission on
Higher Education; for illustrative
purposes assume the limit is $8,537)

$

1,707*

$ 3,415*

$3,415*

$ 8,537*

0

0

0

$ 3,415

$3,415

$ 8,537

Less: Total scholarship grants
received during the taxable year
Tuition qualifying for the credit

0
$

1,707

100

Tuition Credit - 25% of tuition paid,
not to exceed $850 per tax year

300

limited to
$ 850

*Special rules apply to the total qualified tuition and fees for schools not on a traditional
semester system. Based on the “equivalent hours” required by the Commission on Higher
Education, the maximum tuition that may be claimed for each term enrolled in by a qualifying
student will be prorated based on approved equivalent hours listed below. For example, the
$1,707 interim term amount for Converse College where students take 6 hours in the winter term
was calculated as $8,537 average tuition in tax year 2008 times 6/30 “equivalent hours.” The
Commission on Higher Education has authorized the following full time “equivalent hours” for
student’s attending the following institutions to use in computing the credit:
Institution

Fall and Spring

Interim/Other

Notes

Converse

12 hours

6 hours

Must earn 30 hours in the tax
year

Erskine

13 hours

3 hours

Must earn 30 hours in the tax
year

Wofford

12 hours

4 hours

Must earn 30 hours in the tax
year

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EXHIBIT A*
4-year Public Institutions

4-year Independent Institutions**

2-year Institutions

Credit - 25% of tuition paid,
not to exceed $850 per tax year

Credit - 25% of tuition paid, not to
exceed $850 per tax year

Credit - 25% of tuition paid, not to
exceed $350 per tax year

Citadel
Clemson University
Coastal Carolina University
College of Charleston
Francis Marion University
Lander University
Medical University of SC
SC State University
University of South Carolina
USC Aiken
USC Beaufort
USC Upstate
Winthrop University

Allen University
Anderson University
Benedict College
Bob Jones University
Charleston Southern University
Claflin University
Coker College
Columbia College
Columbia International University
Converse College
Erskine College
Furman University
Limestone College
Morris College
Newberry College
North Greenville University
Presbyterian College
Southern Wesleyan University
Voorhees College
Wofford College

Aiken Technical College
Central Carolina Technical College
Denmark Technical College
Florence-Darlington Technical College
Greenville Technical College
Horry-Georgetown Technical College
Midlands Technical College
Northeastern Technical College
Orangeburg-Calhoun Technical College
Piedmont Technical College
Spartanburg Community College
Spartanburg Methodist College
Technical College of the Lowcountry
Tri-County Technical College
Trident Technical College
USC Lancaster
USC Salkehatchie
USC Sumter
USC Union
Williamsburg Technical College
York Technical College

Any subsequent changes to Exhibit A will be published in an Information Letter, income tax
form and/or instructions.
*Tuition expenses are limited per school year for 4-year independent institutions.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Ray N. Stevens
Ray N. Stevens, Director
March 12
, 2009
Columbia, South Carolina

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