How does South Carolina's New Jobs Credit work for employers creating jobs at a new or expanded facility?

View original ruling (PDF)

Plain-English summary

South Carolina Revenue Ruling #25-5 is the Department's comprehensive guide to the New Jobs Credit under §§ 12-6-3360 and 12-6-3362. The credit can be used against South Carolina corporate or individual income tax, bank tax, and insurance premium tax by eligible taxpayers that operate a qualifying facility and create and maintain the required number of new jobs.

Under the traditional credit, an employer generally must create at least 10 new full-time jobs when initially staffing a new facility or expansion. A hotel or motel tourism facility must create 20. Certain service-related facilities have separate thresholds tied to job count, location, vacancy status, and compensation. A small business with 99 or fewer employees worldwide may qualify with at least two new full-time jobs.

A full-time job generally requires at least 35 hours per week for the employer's normal operating year. Two half-time jobs of at least 20 hours per week count as one full-time job; jobs below 20 hours do not qualify. The job increase is calculated from monthly average qualifying employees subject to South Carolina withholding in the county. Jobs moved from another South Carolina location generally are not new jobs, while jobs transferred into South Carolina from another state can qualify.

For jobs created beginning in 2019, the ruling lists these base amounts per new full-time job:

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

The county tier is generally the tier in effect when the job is created. A qualifying multi-county business or industrial park job, or a job on qualifying brownfields property, can receive an additional $1,000 for each of five years under the conditions described in the ruling.

The traditional credit starts in Year 2, the year after the jobs are created, and is taken for five years following creation as long as the qualifying jobs are maintained. Additional jobs created through Year 6 can qualify. If the average increase falls below the applicable minimum—generally 10 jobs—the traditional credit is lost for that year and future years. The annual credit used cannot exceed 50% of the taxpayer's tax liability, and unused credit may be carried forward 15 years.

Small businesses may use an annual or accelerated provision. Those with 99 or fewer worldwide employees can qualify with two new jobs; the ruling ties the full credit to wages of at least 120% of the lower of county or state per-capita income and reduces the initial amount by 50% when wages are below both measures. The accelerated election allows the credit to begin in the job-creation year. A taxpayer may satisfy more than one provision but may use only one for a credit period.

What this means for you

Employers planning a facility or expansion

Confirm that the operation is a qualifying facility before relying on the credit. Manufacturing, processing, warehousing, distribution, research and development, agribusiness, agricultural packaging, qualifying tourism, technology-intensive, corporate-office, and banking facilities are among the categories discussed. Retail and service businesses generally qualify only in Tier IV counties, subject to the ruling's rules.

Build the employee-count process before hiring. The calculation is county-based, uses monthly averages, and includes only employees at qualifying facilities who meet the statutory requirements. Choose an appropriate day of the month for counting and use it consistently in future months and years.

Small businesses

Determine whether you have 99 or fewer employees worldwide at the beginning or end of the job-creation year. Then compare the traditional, annual, and accelerated provisions before the credit period starts. The ruling says only one provision may be used for a credit period.

Passthrough entities

A partnership, S corporation, or LLC taxed as one of those entities may retain the credit or pass it through based on each owner's percentage interest. An S corporation with entity-level income tax must use the credit against that tax first. Once passed through, the credit is no longer available at the entity level, and each recipient remains subject to the 50% liability limit.

Tax return preparers

Use Schedule TC-4 for the traditional credit, TC-4SB for the annual small-business credit, and TC-4SA for the accelerated credit. Keep the full job calculation and any county-tier lock-in form with the return records. The ruling says advance approval is not required, but substantiation is.

Common questions

Q: Does the traditional credit usually require 10 new jobs?
A: Yes. Exceptions include 20 jobs for hotel and motel tourism facilities, separate thresholds for specified service facilities, and two jobs for qualifying small businesses.

Q: Can leased employees count?
A: No. They are employees of another company and are not the taxpayer's employees for South Carolina withholding. A person later hired directly can count if all other requirements are met.

Q: Can remote workers count?
A: They can if they are hired as part of the initial staffing of a qualifying facility or expansion and are included in withholding for that facility's county. A business with only remote or traveling workers and no qualifying South Carolina facility cannot qualify.

Q: Does the credit need advance approval?
A: No. It is claimed on the tax return—normally beginning the year after job creation, or in the creation year for the accelerated small-business credit.

Q: Is the credit refundable?
A: No. It is nonrefundable, is limited to 50% of tax liability for the year, and unused amounts may be carried forward for 15 years.

Q: Can the credit be sold?
A: Generally no. The ruling allows continuation or assignment in specified mergers, reorganizations, or transfers of all or substantially all relevant assets, and allows passthrough treatment, but says § 12-6-3360 provides no other sale or transfer authority.

Citations and references

• S.C. Code Ann. § 12-6-3360 — New Jobs Credit rules
• S.C. Code Ann. § 12-6-3362 — accelerated small-business credit
• S.C. Code Ann. § 12-6-3360(C) — thresholds, credit period, and maintenance
• S.C. Code Ann. § 12-6-3360(F) — monthly-average employee calculation
• S.C. Code Ann. § 12-6-3360(K) — passthrough entities
• S.C. Code Ann. § 12-6-3360(M) — facility, job, and employee definitions

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR25-5.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 REVENUE RULING #25-5
SUBJECT:

New Jobs Credit
(Income Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

S.C. Revenue Ruling #99-5
S.C. Revenue Ruling #05-5
S.C. Revenue Ruling #07-2
S.C. Revenue Ruling #19-11

REFERENCES:

S.C. Code Ann. § 12-6-3360 (2014 & Supp. 2024)
S.C. Code Ann. § 12-6-3362 (2014)

AUTHORITY:

S.C. Code Ann. § 12-4-320
S.C. Code Ann. § 1-23-10(4)
S.C. Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public.
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.

Section 12-6-3360 of the South Carolina Code provides a job tax credit (New Jobs Credit) for
eligible taxpayers creating new jobs in South Carolina. 1 To qualify for the credit, taxpayers must
operate a qualifying facility and create the required number of new jobs during a tax year. The
credit amount is based on the county where the facility is located, the tax year in which the new
jobs are created, and the number of new jobs created and maintained. Credits may be claimed
against South Carolina corporate and individual income taxes, bank taxes, and insurance
premium taxes. 2

1
This document discusses the job tax credit (New Jobs Credit) found in Sections 12-6-3360 and 12-6-3362. This
document does not discuss the Job Development Credit found in Section 12-10-80. The Job Development Credit
(JDC) contains similar provisions to the New Jobs Credit, but it is a separate credit administered by the Coordinating
Council for Economic Development.
2
Insurance premium tax returns are filed with the South Carolina Department of Insurance, not the Department of
Revenue.

1

There are three job tax credit provisions: the “traditional” credit in Section 12-6-3360(C)(1), the
“annual” small business credit in Section 12-6-3360(C)(2), and the “accelerated” small business
credit in Section 12-6-3362. This document provides a general overview of the “traditional”
credit requirements, with additional details on the “annual” and “accelerated” credits provided in
the Small Business Credit Provisions section. The chart in Appendix B provides a comparison
of the three credit provisions. Although a taxpayer may meet the requirements of all three credit
provisions, they may only use one credit provision for each credit period. The total amount of job
tax credit taken in a tax year may not exceed 50% of the taxpayer’s South Carolina income tax,
bank tax, or insurance premium tax liability. Unused credits may be carried forward for 15 years.
The purpose of this ruling is to address common questions about the job tax credits. The credit’s
rules and requirements can be complex. Taxpayers and their tax advisors should carefully review
this document, previous guidance issued by the South Carolina Department of Revenue
(SCDOR), and the relevant tax credit statutes to determine if they qualify for the credit.
This document is divided into the following sections:
I. Qualifying Facilities: defines the types of facilities that may be eligible for the credit
II. Creation of New Jobs: provides the number of new jobs that must be created to
qualify for the credit
III. New Full-Time Job Definition: defines a new full-time job that qualifies for the
credit
IV. Credit Amount: provides credit amounts based on tax year and facility location
V. County Designations: provides county tier designations and describes the process for
locking in a county tier
VI. Determining and Claiming the Credit: provides instructions on how to calculate
the credit and how to claim the credit on a South Carolina tax return
VII. Large Investors: describes the special rules available for certain large investors
VIII. Passthrough Entities: provides instructions on how credits are taken by
passthrough entities and passed to owners of the entities
IX. Small Business Credit Provisions: provides information on the “annual” and
“accelerated” credits available for small business taxpayers
X. Frequently Asked Questions

1. Is the credit computed on a statewide basis?
2. Does the taxpayer use the county designation for the year the jobs are created or the
   year the credit is taken?
3. Does the credit need to be approved in advance?
4. Can credits be sold or transferred to another taxpayer?
5. Can taxpayers claim the credit if they do not have a tax liability?
6. Can unused credits be carried forward?

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7. Can taxpayers amend returns to claim credits they failed to claim on original returns?

8. How long should taxpayers keep records for the credit, and which records should they
   keep?
9. Is there recapture of the credit if the taxpayer has a decrease in the number of jobs?
10. Can taxpayers claim multiple job tax credits in one year?
11. Should a taxpayer include all employees located in the county in the job tax credit
    calculation, such as retail employees who are not at the qualifying facility?
12. Do leased employees qualify as a new job created for purposes of the credit?
13. Do remote workers or traveling workers qualify for the credit?
14. Are employees who leave during a year still included in the number of new jobs
    created during that year?
15. Do employees transferred from a facility outside of South Carolina to a South
    Carolina facility qualify?
16. What is a new facility qualifying for the credit?
17. Can a single physical location have multiple facilities qualifying for the credit?
18. What is an expansion that qualifies for the credit?
19. How does a short year affect the computation of the credit?
20. Is a taxpayer required to own the facility to be able to qualify for the credit?
21. Can the same facility qualify for the credit more than once?
22. How does a taxpayer who relocates its qualifying facility from one county to another
    county with a different tier ranking calculate the credit amount?
23. Are owners of a passthrough entity considered new employees for the credit?
24. Are passthrough entities required to pass credits through to their owners?
25. Can a partnership pass all credits through to one partner?
26. Can electing passthrough entities take the credit against the entity-level tax on active
    trade or business income?
    XI. Examples
    A. Determining the monthly average number of full-time employees
    B. Methods for calculating the monthly average number of full-time employees in the
    first year of operation
    C. Taxpayer with full-time and half-time jobs
    D. Completing the TC-4 (or similar schedule) – Jobs increase and maintained
    E. Completing the TC-4 (or similar schedule) – All jobs not maintained
    F. Completing the TC-4SA (or similar schedule)
    G. Determining annualized gross wages and the 120% threshold
    H. Small business with employees not at 120% threshold
    I. Taxpayer schedule showing available credit carryforward
    J. County designation changes during credit period
    K. SC616 filed to lock in county designation
    L. Calculating the credit for a short year
    M. Credit transfer on business reorganization
    N. Employment increase falls below minimum new job requirement
    O. Partnership passes credit through to partners
    3

P. S Corporation uses portion of credit and passes remainder through to shareholders
Q. Individual with credits from multiple passthrough entities
R. Taxpayers with multiple locations
S. Relocation to different South Carolina county
Appendix A: Qualifying Businesses
Appendix B: Comparison of Credit Provisions
I. Qualifying Facilities
To be eligible for the credit, new jobs must be created by taxpayers operating a qualifying
facility. Qualifying facilities, as defined in Section 12-6-3360, include the following: 3

1. Manufacturing facility: Establishment where tangible personal property is produced or
   assembled. Section 12-6-3360(M)(5).
2. Tourism facility: Establishment used for a theme park; amusement park; historical,
   educational, or trade museum; botanical garden; cultural center; theater; motion picture
   production studio; convention center; arena; auditorium; spectator or participatory sports
   facility; and similar establishments where entertainment, education, or recreation is
   provided to the general public. New hotel and motel construction is considered a tourism
   facility, but 20 or more new jobs must be created to qualify for the credit. A tourism
   facility does not include the portion of an establishment where retail merchandise or retail
   services are sold directly to retail customers. Section 12-6-3360(M)(12).
3. Processing facility: Establishment that prepares, treats, or converts tangible personal
   property into finished goods or another form of tangible personal property, including a
   business engaged in processing agricultural, aquacultural, or maricultural products,
   including food processing operations. A processing facility does not include an
   establishment in which retail sales of tangible personal property are made to retail
   customers. Section 12-6-3360(M)(6).
4. Agricultural packaging facility: Establishment providing a coordinated system of
   preparing agricultural goods for transport, warehousing, logistics, sale, and end use. This
   includes technology of enclosing, protecting, or preserving agricultural products for
   distribution, storage, sale, and use as well as the process of designing, evaluating, and
   producing packages used for agricultural products. Section 12-6-3360(M)(16).

Professional sports teams are included in the list of qualifying taxpayers in Section 12-6-3360(A), but no
professional sports team met the provisions of Section 12-6-3360(P) by July 1, 2022 as required under the statute, so
no professional sports team is a qualifying taxpayer for the job tax credit.
3

4

5. Warehousing facility: Establishment where tangible personal property is stored, but not
any establishment where retail sales of tangible personal property are made to retail
customers. Section 12-6-3360(M)(7).

6. Distribution facility: Establishment where shipments of tangible personal property are
   processed for delivery to customers. A distribution facility does not include an
   establishment where retail sales of tangible personal property are made to retail
   customers on more than 12 days a year, unless the facility processes customer sales
   orders by mail, telephone, or electronic means and also processes shipments of tangible
   personal property to customers and at least 75% of the dollar amount of goods sold
   through the facility are to customers outside of South Carolina. Retail sales made inside
   the facility to employees working at the facility are not considered for the 12-day and
   75% limitations. Section 12-6-3360(M)(8).
7. Research and development facility: Establishment engaged in laboratory, scientific, or
   experimental testing and development related to new products, new uses for existing
   products, or improving existing products. A research and development facility does not
   include an establishment engaged in efficiency surveys, management studies, consumer
   surveys, economic surveys, advertising, promotion, banking, or research in connection
   with literary, historical, or similar projects. Section 12-6-3360(M)(9).
8. Corporate office facility: Facility or portion of facility where headquarters staff
   employees are employed, and where the taxpayer’s or a business unit of the taxpayer’s
   financial, personnel, legal, planning, information technology, or other headquartersrelated functions are handled on either a regional, national, or global basis. A
   headquarters must be a regional headquarters or a national headquarters to qualify, unless
   it is the headquarters of a general contractor licensed by the South Carolina Department
   of Labor, Licensing, and Regulation. A national headquarters must be the sole office or
   location in the nation or world for the taxpayer or business unit with multistate operations
   and must handle headquarters-related functions on a national or global basis. The
   function and purpose of the national headquarters is to plan, direct, and control all aspects
   of the taxpayer or business unit’s operations, and it has final authority over regional
   offices, operating facilities, or any other office of the taxpayer or business unit. A regional
   headquarters must be the sole office or location in the region for the taxpayer or a
   business unit with multistate operations within the region and must handle headquartersrelated functions on a regional basis. The regional headquarters performs a function
   separate from the management of operational facilities within the region, and instead
   performs functions similar to the national headquarters but within a more limited area. A
   region, or regional, means a geographic area comprised of either at least five states,
   including South Carolina, or two or more states including South Carolina if the entire
   business operations of the taxpayer or business unit are performed within fewer than five
   states. Sections 12-6-3360(M)(10) and 12-6-3410(J)(1).

5

9. Qualifying service-related facility: Establishment engaged in an activity under NAICS
code sections 621 (ambulatory health care); 622 (hospitals); 623 (residential care
facilities); or 488190 (support activities for air transportation); or another business not
engaged in legal, accounting, banking, or investment services or retail sales that has a net
increase of:
a. 175 jobs at a single location;
b. 150 jobs at a single location that is a building that was vacant for at least 12
consecutive months before the taxpayer’s investment;
c. 100 jobs at a single location with an average cash compensation level of more
than 150% of the lower of state per capita income or the per capita income of the
county where the jobs are located;
d. 50 jobs at a single location with an average cash compensation level of more
than 200% of the lower of state per capita income or the per capita income of the
county where the jobs are located; or
e. 25 jobs at a single location with an average cash compensation level of more
than 250% of the lower of state per capita income or the per capita income of the
county where the jobs are located.
The per capita income is based on the most recent data available at the end of the tax year
in which the jobs are filled. Information letters with per capita income data can be found
at dor.sc.gov/policy. Section 12-6-3360(M)(13).

10. Agribusiness operation: Establishment engaged in the producing operations of a farm; the
    manufacture and distribution of farm equipment and supplies; or the processing, storage,
    and distribution of farm commodities. 4
11. Extraordinary retail establishment: A single store located in South Carolina within two
    miles of an interstate highway or in a county with at least 3.5 million visitors a year that
    is a destination retail establishment attracting at least 2 million visitors a year, at least
    35% of whom travel at least 50 miles to the establishment. The South Carolina
    Department of Parks, Recreation, and Tourism determines and certifies qualifying
    extraordinary retail establishments. Sections 12-6-3360(M)(15), 12-21-6520(14), and 1221-6590.
12. Qualifying technology intensive facility: Facility at which a firm engages in the design,
    development, and introduction of new products, innovative manufacturing processes, or
    both, through the systemic application of scientific and technical knowledge. This
    includes NAICS codes 5114 (database and directory publishers); 5112 (software
    publishers); 54151 (computer systems design and related services); 541511 (custom

Section 12-6-3360 does not provide a definition of agribusiness operations. The definition provided is from
Merriam-Webster dictionary. “Agribusiness.” Merriam-Webster.com Dictionary, Merriam-Webster,
https://www.merriam-webster.com/dictionary/agribusiness. Accessed 12 Feb. 2025.
4

6

computer programming services); 541512 (computer systems design services); 2007
NAICS 541711 (research and development in biotechnology); 2007 NAICS 541712
(research and development in physical, engineering, and life sciences); 518210 (data
processing, hosting, and related services); 9271 (space research and technology); or 2002
NAICS 51811 (internet service providers and web search portals). Section 12-63360(M)(14).

13. Bank: Establishment engaged in a banking business, whether incorporated under the laws
    of South Carolina, any other state, the United States, or unincorporated, except cash
    depositories. 5
    Retail facilities and service-related industries, including but not limited to businesses such as
    restaurants, gas stations, retail stores, landscaping, construction sites, law firms, and accounting
    firms, will qualify for the credit only if located in Tier IV counties. See the chart in Appendix A
    for a summary of the types of facilities and businesses that qualify in each county tier and the
    new job eligibility requirements.
    II. Creation of New Jobs
    The credit is available for taxpayers operating qualifying facilities who create and maintain the
    minimum level of new jobs when a new facility or expansion is initially staffed. 6 Typically,
    taxpayers must increase employment by 10 or more new full-time jobs at the qualifying facility.
    Section 12-6-3360(C)(1).
    The number of new full-time jobs is determined by comparing the monthly average number of
    full-time employees subject to South Carolina income tax withholding in the county with the
    monthly average in the prior tax year. Section 12-6-3360(F)(1).
    To be included in the monthly average, employees must meet all the credit requirements in
    Section 12-6-3360, so they must be employed in a facility type that qualifies for the credit.
    Question 11 and Example R provide more information about which employees are included in
    the monthly average when a taxpayer has multiple locations in a county.
    When computing the increase in full-time employees each year, the taxpayer must round the
    monthly average number of employees down to the lowest whole number of jobs. Example A
    demonstrates how a taxpayer calculates the average increase in full-time employees.
    Exceptions to the 10 new jobs requirement are:
14. Tourism facilities consisting of hotels and motels must create 20 new jobs. Section 12-63360(M)(12).

Section 12-6-3360 does not provide a definition of banks. This definition is from Section 12-11-10 providing for
tax on the income of banks.
6
See New Full-Time Job Definition section.
5

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2. Certain qualifying service-related facilities listed in Section 12-6-3360(M)(13) must
create at least:
a. 175 jobs in a single location;
b. 150 jobs at a single location that is a building that was vacant for at least 12
consecutive months before the taxpayer’s investment;
c. 100 jobs at a single location with an average cash compensation level of more
than 150% of the lower of state per capita income or the per capita income of the
county where the jobs are located;
d. 50 jobs at a single location with an average cash compensation level of more than
200% of the lower of state per capita income or the per capita income of the
county where the jobs are located; or
e. 25 jobs at a single location with an average cash compensation level of more than
250% of the lower of state per capita income or the per capita income of the
county where the jobs are located.

3. Small business taxpayers with 99 or fewer employees worldwide qualify if they increase
   employment by two or more new full-time jobs. Section 12-6-3360(C)(2). See the Small
   Business Credit Provisions section for more information about the credits for taxpayers
   with 99 or fewer employees.
   Hotels and motels, qualifying service-related facilities, and small businesses will compute the
   credit in the same way as taxpayers required to create 10 new full-time jobs but should substitute
   any references to 10 new jobs with the required job creation number based on the type of
   qualifying business.
   III. New Full-Time Job Definition
   A new job is a job created in South Carolina at the time a new facility or expansion is initially
   staffed. It does not include a job created when an employee is shifted from an existing location in
   South Carolina to a new or expanded facility whether the job is transferred to or from another
   facility of the taxpayer or a related person, unless the job is transferred to a county where a
   federal facility has reduced its permanent employment by 3,000 or more jobs after December 31,
4. Currently, the only county with an applicable federal facility is Aiken County.
   New jobs also include existing jobs at a facility that are reinstated after the employer has rebuilt
   the facility when:
5. More than 50% was destroyed by accidental fire, natural disaster, or act of God; or
6. Involuntary conversion took place through condemnation or exercise of eminent domain
   by the federal government or by South Carolina or one of its political subdivisions.
   The year of reinstatement is the year a reinstated job was created. All reinstated jobs qualify for
   the credit. The taxpayer is not required to compare the number of full-time jobs in the tax year
   with the number of full-time jobs in the prior taxable year. Section 12-6-3360(M)(3).

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A full-time job is one requiring a minimum of 35 hours of an employee’s time a week for the
entire normal year of company operations or for a year in which the employee was initially hired
for or transferred to the South Carolina facility. Two half-time jobs, requiring at least 20 hours of
an employee’s time per week, are considered one full-time job. Section 12-6-3360(M)(4). Jobs
that do not require at least 20 hours of an employee’s time per week will not qualify for the
credit. Example C shows how to determine the total number of new jobs for a taxpayer who has
both full-time and half-time employees.
For agricultural packaging and agribusiness operations, seasonal workers may be considered fulltime employees. Seasonal workers are counted as a fraction of a full-time worker, calculated by
multiplying the number of hours worked a week by the number of weeks worked and then
dividing that total by 1,820. Section 12-6-3360(M)(4).
IV. Credit Amount
The amount of credit available is based on the county where the facility is located, the tax year in
which the new jobs are created, and the number of new jobs created and maintained during the
tax year.
Beginning in 2019, the amount of credit for each new full-time job created is:
•
•
•
•

$25,000 for Tier IV counties
$20,250 for Tier III counties
$2,750 for Tier II counties
$1,500 for Tier I counties

For new full-time jobs created in tax years from 2011 through 2018, the amount of credit for
each new job is:
•
•
•
•

$8,000 for Tier IV counties
$4,250 for Tier III counties
$2,750 for Tier II counties
$1,500 for Tier I counties

Refer to previous advisory opinions, found at dor.sc.gov/policy, for credit amounts for tax years
before 2011.
Taxpayers can receive an additional $1,000 credit for each new full-time job located in a multicounty business or industrial park jointly established and developed by two or more counties.
See Section 4-1-170 for multi-county park requirements. The additional credit is available for
five years beginning in the tax year following the creation of the job. Section 12-6-3360(E)(1).
The credit amount for jobs created in a multi-county park is based on the county where the new
jobs are actually located, not the county rankings of other counties in the park. If a multi-county
industrial park is designated during the tax year, all new jobs created during that year will receive
the additional $1,000 credit. Any jobs created in a year prior to the multi-county park designation
will not qualify for the additional credit amount.

9

Taxpayers can receive an additional $1,000 credit for each new full-time job located on a
property where a response action has been completed pursuant to a non-responsible party
voluntary cleanup contract under the Brownfields Voluntary Cleanup Program. The additional
credit is available for five years beginning in the tax year following creation of the job. Section
12-6-3360(E)(2).
Taxpayers in Tier I and Tier II counties who claim the credit for hiring recipients of family
independence payments as provided in Section 12-6-3470 in addition to the job tax credit are
limited to a total credit amount of $5,500 per employee. Sections 12-6-3360(N) and 12-63470(A)(2). For Tier III and Tier IV counties, the job tax credit amount per employee is greater
than $5,500. Therefore, taxpayers in Tier III and Tier IV counties who would qualify for both
credits will be limited to the job tax credit amounts per employee.
V. County Designations
The SCDOR ranks and designates South Carolina’s 46 counties by December 31 each year using
data from the South Carolina Department of Employment and Workforce and the U.S.
Department of Commerce. The 12 counties with a combination of the highest unemployment rate
and lowest per capita income are designated as Tier IV counties. The 12 counties with a
combination of the next highest unemployment rate and next lowest per capita income are
designated as Tier III counties. The 11 counties with a combination of the next highest
unemployment rate and the next lowest per capita income are designated as Tier II counties. The
11 counties with a combination of the lowest unemployment rate and the highest per capita
income are designated as Tier I counties. Section 12-6-3360(B). The criteria for the rankings
provided in the statute are mandatory, and the SCDOR has no authority to modify the county
rankings in any manner.
Information Letters with the county rankings for each year are available at dor.sc.gov/policy.
County designations are effective for tax years that begin in the following calendar year.
Taxpayers operating on a fiscal year will use the county designation based on the first month of
the fiscal year. For example, a taxpayer using the fiscal year of July 1, 2023 through June 30,
2024 would use the county designations for 2023.
The credit amount is based on the county designation at the time the jobs are created. If the
county designation changes in a future year, the credit amount does not change for jobs that have
already been created, but if additional new jobs are created in future years, the credit amount for
those jobs is based on the county designation at the time the jobs are created. See Example J for
a taxpayer with credit amount changes during the credit period.
A taxpayer planning a significant expansion can file the Notification to Lock In County
Designation (SC616) with the SCDOR before creating the new jobs to lock in the current year
Tier II, III, or IV county designation. The SC616 can be found at dor.sc.gov/forms. Filing the
SC616 notifies the SCDOR of the county in which the new facility or expansion is planned, the
number of new jobs expected to be created, and when the new facility or expansion is planned. A
new facility or expansion in a county must be planned in order to lock in the tier designation.
Once locked-in at the current year designation, the taxpayer may continue using that designation

10

when the new jobs are created, even if a county is subsequently moved to a different tier. The
SC616 is valid for all new jobs created during the five-year credit period. See Example K for a
taxpayer who files the SC616 to lock in a Tier III county designation.
If the actual county designation in the year of job creation is more favorable, the taxpayer is not
required to use the designation locked in by the SC616. The examples below show that using the
SC616 to lock in a county designation can be beneficial to a taxpayer when the county
designation moves to a higher tier county in years of job creation, but it will not be detrimental to
the taxpayer if the county designation moves to a lower tier county in years of job creation.

County designation at time planning
expansion in South Carolina
Credit amount per job
County designation at time of job
creation
Credit amount per job
SC616 filed
County designation used to determine
credit
Credit amount per job to be claimed by
taxpayer

Taxpayer
1
Tier III

Taxpayer
2
Tier III

Taxpayer
3
Tier II

Taxpayer
4
Tier II

$20,250
Tier II

$20,250
Tier II

$2,750
Tier III

$2,750
Tier III

$2,750
Yes
Tier III

$2,750
No
Tier II

$20,250
Yes
Tier III

$20,250
No
Tier III

$20,250

$2,750

$20,250

$20,250

VI. Determining and Claiming the Credit
The SCDOR provides the Schedule TC-4 (New Jobs Credit) for taxpayers to use when claiming
the credit on a return. Taxpayers who need more space than provided on a single TC-4, such as
taxpayers with multiple locations qualifying for the credit, can use multiple TC-4s or may create
a separate schedule that includes the information contained on the TC-4. Taxpayers filing a paper
return should attach all TC-4s or other schedules showing the full credit calculation. Taxpayers
filing electronically who are unable to attach documents to their electronic return submission
should keep a copy of the TC-4 and credit calculation schedules with their return documentation.
Taxpayers who filed an SC616 to lock in a county designation should continue to include a copy
of the SC616 with their tax credit schedules on each return claiming the credit.
The credit is allowed beginning in Year 2 after the creation of the new jobs in Year 1. 7 Section
12-6-3360(C)(1). Additional jobs created in Year 2 through Year 6 also qualify for the credit.
Section 12-6-3360(D). The credit is taken for five years following the year in which the job is
created as long as the new jobs are maintained. To determine the number of new jobs created
each year, the taxpayer compares the monthly average number of eligible full-time employees
subject to income tax withholding in the county in the year the jobs are created with the monthly
average in the prior tax year. For the first year of new job creation, the taxpayer compares the
Small businesses may be able to take the “accelerated” credit in the year of the creation of new jobs. See the Small
Business Credit Provisions section.
7

11

monthly average number of employees with the monthly average number of full-time employees
in the base year, or the year preceding the year of the staffing of the new facility or expansion.
The base year is not required to be the first year of operation of the facility, and the taxpayer is
not required to have any employees in the base year. Example D shows how the TC-4 is
completed to show the new jobs and additional new jobs created for each year of the credit
period.
The periods used to compute the monthly average are the months corresponding to the taxpayer’s
tax year. A taxpayer may not choose a 12-month period other than the months corresponding to
the tax year. The taxpayer may use any appropriate and justifiable day in the month to determine
the monthly number of full-time employees, such as the last day of the month, the 12th day of the
month as reflected on the South Carolina Unemployment tax return, or a regular pay day as
reflected on the withholding tax return. Once a day of the month is determined, it must be used
for all future months and years.
In the first year of operation, a taxpayer may use the actual months in operation or a full 12month period. Example B provides a comparison of the two methods for calculating the number
of new jobs for the first year of operation.
If a business is in operation for less than 12 months a year, the number of new full-time jobs is
determined using the monthly average for the months the business is in operation. See Example
L for a short year credit calculation.
The credit is allowed if the minimum level of new jobs (generally 10) is maintained. If the
average job increase falls below the minimum level of 10 new jobs, the credit is not allowed in
that year or any future year. Section 12-6-3360(C)(1). See Example N for a taxpayer who does
not maintain the minimum level of new jobs.
The amount of credit that may be taken in a year is limited to 50% of the tax liability. Unused
credits may be carried forward for 15 years.
VII. Large Investors
A taxpayer who makes a capital investment of at least $50 million at a single site within a threeyear period may elect to determine the number of new jobs created by using the monthly average
number of jobs created at that site, instead of the number of all employees subject to withholding
in the county. A single site is defined as a stand-alone building whether or not several stand-alone
buildings are located in one geographical location. New jobs do not include jobs transferred from
one site to another site by the taxpayer or by a related person as defined in IRC Section 267. The
calculation of new and additional jobs is allowed for a five-year period beginning in the year in
which the $50 million of capital investment is completed. Section 12-6-3360(F)(2). After the fiveyear period expires, a taxpayer must invest an additional $50 million at a single site to take
advantage of this provision again.

12

VIII. Passthrough Entities
A partnership, S Corporation, or Limited Liability Company (LLC) taxed as a partnership or S
Corporation may pass the credit earned to each partner, shareholder, or member based on their
percentage of stock ownership or interest in the partnership or LLC. An S Corporation with
income tax due at the entity level, including an S Corporation that makes the election to pay tax
at the entity level on active trade or business income, must use the credit against the entity-level
tax first before passing any remaining credit through to the shareholders.
Passthrough entities report the amount of credit passed through to partners, shareholders, or
members using the Schedule SC K-1. Credits that pass through to partners, shareholders, or
members are not carried forward at the entity level. See Example O for credits earned by a
partnership and passed through to partners. See Example P for credits earned by an S
Corporation and taken first against the S Corporation’s tax and then passed through to the
shareholders.
The partners, shareholders, or members will report the credit amounts from the SC K-1s on their
South Carolina returns using the TC-4. The instructions for the TC-4 provide more specific
information about how partners, shareholders, or members report their portion of the New Jobs
Credit received from the entity. Partners, shareholders, or members receiving credits from
multiple passthrough entities should include a schedule showing the amount of credit received
from each entity and the total credit received for the tax year, along with a copy of the SC K-1s
showing the tax credit. See Example Q for a schedule the partner, shareholder, or member might
prepare to include with their return. Taxpayers who file electronically and are unable to attach
schedules to their return should include copies with their tax records to provide if requested by
the SCDOR as part of an audit or review of the return.
The credit is limited to 50% of the partner, shareholder, or member’s tax liability. If the partner,
shareholder, or member files a joint income tax return, the credit is limited to 50% of the entire
income tax liability, even if only one spouse is a partner, shareholder, or member. Any unused
credit is carried forward by the partner, shareholder, or member for up to 15 years from the close
of the tax year in which the entity earned the credit. Section 12-6-3360(K).
IX. Small Business Credit Provisions
Taxpayers with 99 or fewer employees worldwide can qualify for the credit if they increase
employment by two or more full-time jobs with gross wages of at least 120% of the county’s or
state’s average per capita income, whichever is lower. If the gross wages are less than 120% of
both the county and state per capita income, the initial amount of the credit is reduced by 50%.
No credit is allowed if the net employment increase falls below two jobs. Section 12-63360(C)(2).
Gross wages are net wages subject to income tax withholding. To determine if the 120%
threshold is met, gross wages are annualized by dividing the gross wages by the number of
months worked, then multiplying the result by 12. To annualize gross wages for a half-time job,
then divide by the number of hours the half-time employee works in a week and multiply by 40.
See Example G for more information about annualization of wages and the 120% threshold.
13

Taxpayers must use the most recent per capita income figures published by the SCDOR as of the
end of the tax year in which the new jobs are created. The South Carolina Revenue and Fiscal
Affairs Office provides the county and state per capita income figures. Typically, the SCDOR
publishes an Information Letter in November of each year with the county per capita income
figures for the year and publishes two Information Letters, in April and November of each year,
with the most recent state per capita income figures for the year. These Information Letters can
be found at dor.sc.gov/policy.
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 the tax year in which the new full-time
jobs are created (Year 1). The determination is made in the first year of the credit period and is
not changed for the subsequent years of the same credit period (Year 2 through Year 5), even if
the number of employees exceeds 99 worldwide during a subsequent year.
Taxpayers with 99 or fewer employees may elect to claim the credit beginning in the year the
new full-time jobs are created (Year 1) instead of in the year following the year of job creation
(“accelerated credit”). The credit for a job is still claimed for no more than five years and is not
allowed if the total of new jobs falls below two. Section 12-6-3362. The “accelerated” credit is
taken using the Sch. TC-4SA (Accelerated Small Business Jobs Tax Credit). Example F and
Example H show how to complete the TC-4SA.
Taxpayers with 99 or fewer employees who do not choose to take the “accelerated” credit use the
Sch. TC-4SB (Small Business Jobs Credit) to claim the “annual” small business credit beginning
in the year after the year of job creation (Year 2).
A taxpayer with 99 or fewer employees that creates at least 10 new full-time jobs may qualify for
the “traditional” job tax credit under Section 12-6-3360(C)(1). Although a taxpayer may meet the
requirements of multiple different credit provisions, only one may be used for each credit period.
The determination of the credit provision a taxpayer will use is made when the credit period
begins.
See the chart in Appendix B for a comparison of the credit provisions.
X. Frequently Asked Questions
Unless stated otherwise, the Frequently Asked Questions refer to the “traditional” credit
provisions. The answers to these questions will generally apply to the “annual” or “accelerated”
small business credits as well, but taxpayers not using the “traditional” credit provisions should
consider how the answers may change based on differences in the credit provisions.

1. Is the credit computed on a statewide basis?
   Qualifying new jobs are those created with the initial staffing of a new facility or an
   expansion, and the taxpayer must create at least 10 new full-time jobs at a facility to
   qualify for the credit. Under the statute, taxpayers must calculate the number of new jobs
   qualifying for the credit based on the county where the qualifying facility is located.
   Taxpayers may have South Carolina facilities in different tiered counties. The credit
   14

amount is based on the county tier for each facility where the required number of new
jobs are created. Taxpayers qualifying in multiple counties may complete a separate TC-4
for each county, or may create a schedule with the information included on the TC-4.
The following example shows how taxpayers determine if they qualify for the credit
based on the number of new jobs created when they have qualifying facilities in different
South Carolina counties.
Counties in Operation
Average Increase or
(Decrease) in Full-Time
Employees
Qualify for Credit?

Taxpayer 1
Tier I
Tier IV
County County

Taxpayer 2
Tier I
Tier IV
County County

Taxpayer 3
Tier I Tier IV
County County

5

5

20

5

20

(50)

No

No

Yes

No

Yes

No

Taxpayer 1 does not qualify for the credit, because neither facility has the minimum
level of 10 new full-time jobs required to qualify for the credit, even though statewide the
taxpayer created 10 new full-time jobs.
Taxpayer 2 qualifies for the credit for the 20 new jobs created at the facility in the Tier I
county, but not for the 5 new jobs created at the facility in the Tier IV county.
Taxpayer 3 qualifies for the credit for the 20 new jobs created at the facility in the Tier I
county, even though the taxpayer reduced employment in the other county and had a
statewide aggregate job decrease. However, the new jobs at the facility in the Tier I
county will not qualify for the credit if they were transferred from the Tier IV facility or
from any other facility in South Carolina.

2. Does the taxpayer use the county designation for the year the jobs are created or the
   year the credit is taken?
   The credit is taken on a return in the year following the year of job creation (Year 2). If
   the county designation changes from Year 1 to Year 2, taxpayers will use the county
   designation in the year the jobs are created (Year 1) instead of the county designation in
   the year the credit is taken (Year 2). Taxpayers can use the SC616 to lock in a county
   designation before the new jobs are created. See the County Designations section for
   more information about filing the SC616.
3. Does the credit need to be approved in advance?
   No, the job tax credit is not approved in advance. It is claimed on the taxpayer’s tax
   return beginning in the year after the creation of the new jobs (or the year of new job
   creation for the “accelerated” credit).

15

4. Can credits be sold or transferred to another taxpayer?
Unused credits may be transferred and continued by the succeeding taxpayer in the case
of a merger, consolidation, or reorganization of a taxpayer where tax attributes survive.
Additionally, a taxpayer may assign its rights to job tax credits to another taxpayer if it
transfers all, or substantially all, of its assets, or the assets of a trade or business or
operating division related to the generation of the job tax credits, to that taxpayer. The
number of new jobs must be maintained for the credit amount being claimed. Section 126-3360(I). See Example M for a taxpayer transferring credits as part of a merger.
An S Corporation, partnership, or limited liability company taxed as an S Corporation or
partnership may pass the credit through to its shareholders, partners, or members as
described in the Passthrough Entities section.
There are no other provisions in Section 12-6-3360 allowing for the transfer or sale of the
job tax credits in any other situation.

5. Can taxpayers claim the credit if they do not have a tax liability?
   The job tax credit is a nonrefundable credit. Therefore, taxpayers will not be able to use
   the credit in a year in which they do not have a tax liability. However, a taxpayer with
   zero tax liability who earns the credit should still claim it on a South Carolina tax return
   to establish credit carryforwards that may be available in future years when the taxpayer
   does have a tax liability.
6. Can unused credits be carried forward?
   Yes, unused credits may be carried forward for 15 years from the tax year in which the
   credit was earned by the taxpayer. The credit is considered earned in the first year the
   taxpayer is able to claim the credit on a South Carolina tax return (Year 2 for the
   “traditional” or “annual” credit or Year 1 for the “accelerated” credit). Credits carried
   forward are used in the order earned and before jobs credits first claimed in the current
   year. Taxpayers with credit carryforwards should create a schedule to keep with their tax
   records showing the amounts earned, used, carried forward, and lost due to the 15-year
   limit each year. Example I provides a sample of the type of schedule a taxpayer may
   create.
   A taxpayer eligible for the tax moratorium in Section 12-6-3367 may claim the job tax
   credit and may carry forward unused credits beginning after the moratorium expires. 8
   Section 12-6-3360(H).
7. Can taxpayers amend returns to claim credits they failed to claim on original
   returns?
   Yes. A taxpayer may file amended returns and claim credits to reduce tax or request a
   refund for tax periods open under the statute of limitations. If credits were not claimed in
   8

The moratorium may be for either 10 or 15 years, depending on the qualifying project.

16

a year that is closed under the statute of limitations, the taxpayer can determine the credit
that should have been claimed in the closed years. The taxpayer will be treated as if the
credit had been properly claimed in the closed years. Only the amount of credit that
would have been available for a carryforward if the credit had been properly claimed in
the closed years is eligible for carryforward to the years open under the statute of
limitations.
For example, Taxpayer is a calendar year corporation that files all returns timely on the
original due date. As part of a facility expansion, Taxpayer created 10 qualifying new
full-time jobs in a Tier I county in 2017 and maintained those new jobs, but did not claim
a New Jobs Credit on any of the original returns. On April 15, 2024, Taxpayer filed the
2023 return and amended the 2022, 2021, and 2020 returns to claim the credit and unused
credit carryforward.
Taxpayer provides the following information:

Tax
Year
2018
2019
2020
2021
2022
2023

Original
Credit
Earned
$15,000
$15,000
$15,000
$15,000
$15,000
$0

Original
Return
Statute of
Date
Limitations
Filed
Date
4/15/2019 4/15/2022
4/15/2020 4/15/2023
4/15/2021 4/15/2024
4/15/2022 4/15/2025
4/15/2023 4/15/2026
4/15/2024 4/15/2027

Tax
Liability
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000

Credit
Limited
to 50%
of Tax
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000

Total Credit
Carryforward
Available
$5,000
$10,000
$15,000
$20,000
$25,000
$15,000

Taxpayer became eligible to take the credit in 2018 for the jobs created in 2017. Because
the jobs were maintained throughout, Taxpayer earned a credit for each year of the fiveyear credit period.
Tax years 2018 and 2019 are closed due to the statute of limitations, so Taxpayer cannot
file amended returns claiming the credit (and requesting a refund of taxes paid) for those
years. The $10,000 of credit that should have been claimed in each of those years is lost
and not available for carryforward. However, the remaining credits can be carried
forward and taken in the years that are still open. Taxpayer can claim a $10,000 credit on
the amended returns for 2020, 2021, and 2022; a $10,000 credit on the 2023 return
(attributable to the carryforwards from earlier years); and has a $15,000 carryforward
available for future years.
When filing the returns, Taxpayer should use the TC-4, or a schedule with the same
information as the TC-4, to show the number of new full-time jobs created during each
year of the credit period.

17

8. How long should taxpayers keep records for the credit, and which records should
they keep?
Taxpayers are required to keep books and records as the SCDOR prescribes. Section 1254-210. The SCDOR is authorized to examine a taxpayer’s books and records to
determine the correctness of the tax liability. Section 12-54-100. Taxpayers claiming a tax
credit should keep records that are sufficient to establish the credit amount. This may
include copies of the TC-4 schedules, a listing of the employees claimed for the monthly
averages used in the new job calculations, and the employees’ number of hours worked
and salary or wages earned during the year.
Records should be retained for at least four years after the return claiming the credit was
filed or due to be filed. Regulation 117-200.1. Since this credit has a 15-year
carryforward period, records for the credit should be retained during the carryforward
period and for four years after the credit is claimed on a return.

9. Is there recapture of the credit if the taxpayer has a decrease in the number of jobs?
   No. After credits have been earned and claimed on the return, there is no provision
   requiring a recapture of the credits if the number of jobs decreases in a future year.
   However, credits are only allowed if the job level is maintained in the tax year the credit
   is claimed. Therefore, if the taxpayer had an increase in jobs in Year 1, but then did not
   maintain all of those jobs in Year 2, the taxpayer will only consider the jobs that were
   maintained when calculating the credit on the Year 2 return. See Example D and
   Example E for taxpayers who do not maintain all jobs created.
10. Can taxpayers claim multiple job tax credits in one year?
    Yes. There are several scenarios in which a taxpayer may have multiple job tax credits
    available in one year. For example, taxpayers may have multiple facilities in different
    counties that each qualify for job tax credits. The credit is calculated separately for each
    county in which the taxpayer is creating new jobs at a qualifying facility.
    Additionally, the taxpayer may calculate the credit for different facilities using different
    credit provisions. For instance, the taxpayer may have one credit period at a facility using
    the “accelerated” small business provisions and a second credit period at a different
    facility using the “traditional” provisions. Finally, taxpayers may receive credits passed
    through from one or more partnerships or S Corporations.
    Taxpayers who have more than one facility claiming the credit or who receive credits
    from multiple passthrough entities should combine the credits to arrive at one total “New
    Jobs Credit” amount for the tax year and use this amount when determining credit
    limitations and carryforwards. Taxpayers may need to use multiple TC-4s, or similar
    schedules, to arrive at the credit amounts for qualifying facilities, but the totals should be
    combined into one credit amount claimed on the tax return. The total “New Jobs Credit”
    taken cannot exceed 50% of the tax liability in a tax year.

18

11. Should a taxpayer include all employees located in the county in the job tax credit
calculation, such as retail employees who are not at the qualifying facility?
Taxpayers use the monthly average number of full-time employees subject to South
Carolina withholding in the county to determine the number of new full-time jobs for the
credit. Section 12-6-3360(F)(1). To qualify for the credit, employees must meet all the
requirements found in Section 12-6-3360. Therefore, the employees must be employed at
a qualifying facility in the county. Employees who are subject to withholding in the
county but are not at a qualifying facility, such as retail employees at a separate retail
location in the county, will not be included in the monthly average number of full-time
employees used to determine the credit. Taxpayers who create new jobs at a qualifying
facility in the county, such as a distribution facility, and who also create new jobs at a
separate qualifying facility in the same county, such as a separate manufacturing facility
in the county, will aggregate all of the jobs at the qualifying facilities for purposes of
determining the monthly average. See Example R.

12. Do leased employees qualify as a new job created for purposes of the credit?
    No. Only employees of the taxpayer operating the eligible facility qualify for the credit,
    and the number of new jobs is based on the number of employees the taxpayer has who
    are subject to South Carolina withholding. Leased employees or other employees of
    another company who are working for the taxpayer will not qualify for the credit, since
    they are not the taxpayer’s employees for South Carolina withholding purposes. If the
    taxpayer hires full-time employees who were previously leased or temporary employees
    at the business, those employees are considered new employees eligible for the credit, if
    all other statutory requirements are met.
    A leasing company or temporary agency is considered to be a service facility, so it can
    only qualify for the credit itself if it is located in a Tier IV county and creates and
    maintains a minimum of 10 new full-time jobs at the time a new facility or expansion is
    initially staffed. Only employees working exclusively for and at the facility of the leasing
    company or temporary agency would qualify as new jobs for the credit. Employees
    leased to other taxpayers would not qualify.
13. Do remote workers or traveling workers qualify for the credit?
    Section 12-6-3360 does not address remote employees directly. However, new jobs are
    those created in South Carolina at the time a new facility or expansion is initially staffed, 9
    and the number of new full-time jobs is determined using the monthly average number of
    full-time employees subject to South Carolina income tax withholding in the applicable
    county. 10 Therefore, remote workers who are hired as part of the initial staffing of a new
    facility or expansion and who are included in the number of employees subject to
    withholding in the county of the facility can qualify as new jobs for the credit. Similarly,
    9

Section 12-6-3360(M)(3)
Section 12-6-3360(F)(1)

10

19

workers who are based out of an eligible facility but travel during their workday can
qualify as new jobs for the credit if they are hired as part of the initial staffing of the new
facility or expansion and are included in the employees subject to withholding in the
county where the facility is located.
A taxpayer must have a qualifying facility in South Carolina to be eligible for the credit.
Taxpayers who only have remote workers or traveling workers in South Carolina but do
not have a qualifying facility in the state will not be able to qualify for the credit.

14. Are employees who leave during a year still included in the number of new jobs
    created during that year?
    The number of new full-time jobs is determined based on the monthly average number of
    full-time employees subject to South Carolina withholding in the county. Section 12-63360(F)(1). Employees who are only employed for a portion of the year will be included
    in the monthly average calculation for the months during which they are full-time
    employees subject to South Carolina withholding.
    Taxpayers may choose any appropriate and justifiable day in the month to determine the
    monthly number of full-time employees, such as the last day of the month, the 12th day of
    the month as reflected on the South Carolina Unemployment tax return, or a regular pay
    day as reflected on the withholding tax return. However, once a day of the month is
    determined, it must be used for all future months and years. Employees who leave
    employment mid-month will be included in the monthly average calculation for the
    months during which they are full-time employees subject to South Carolina withholding,
    but they must be employed on the day used to determine the monthly average of
    employees to be included in the number of employees for that month.
15. Do employees transferred from a facility outside of South Carolina to a South
    Carolina facility qualify?
    Yes. Jobs transferred from one location in South Carolina to another generally do not
    qualify as new jobs for the purposes of the credit, but jobs transferred from a location
    outside of South Carolina to this state will qualify as new jobs for the credit.
16. What is a new facility qualifying for the credit?
    A new job is one created at the time a new facility or an expansion is initially staffed.
    Section 12-6-3360(M)(3). A new facility is a new physical location where a taxpayer’s
    business is conducted or where its services or industrial operations are performed.
    Regulation 117-750.1. To qualify for the credit, the new facility must be for a qualifying
    business type as listed in Section 12-6-3360(A) or found in the summary chart in
    Appendix A.

20

17. Can a single physical location have multiple facilities qualifying for the credit?
Regulation 117-750.1 provides that if multiple distinct and separate economic activities
are performed at a single physical location, each separate economic activity will be
treated as a separate facility when:

1. each activity has its own separate and dedicated personnel;
2. separate reports can be prepared on the numbers of employees, their wages and
   salaries, sales, or receipts and expenses; and
3. employment and output are significant as to the activity.
4. What is an expansion that qualifies for the credit?
   A new job is one created at the time a new facility or an expansion is initially staffed.
   Section 12-6-3360(M)(3). Section 12-6-3360 does not provide a definition of
   “expansion,” but the SCDOR has interpreted “expansion” to include a physical
   expansion, a capital expansion, or a labor force expansion.
   A physical expansion is a physical enlargement by increasing square footage of an
   existing building or facility or by constructing, leasing, or acquiring a new building. A
   capital expansion involves capital expenditures, such as purchases of equipment and
   machinery, that necessitates the hiring of new employees. A labor expansion is an
   increase in the labor force at an existing facility of at least the minimum monthly average
   number of new, full-time jobs required to qualify for the credit.
5. How does a short year affect the computation of the credit?
   A short year counts as one of the five credit years. To determine the monthly average for
   a short tax year, the taxpayer should divide the total employees by the number of months
   in the short year. See Example L.
6. Is a taxpayer required to own the facility to be able to qualify for the credit?
   No. To qualify a taxpayer must operate a qualifying type of facility 11 but is not required
   to own the facility or the machinery and equipment used in the facility. The entity who
   hires and controls the employees will be considered the employer for South Carolina
   withholding and employment tax purposes and will be considered the taxpayer operating
   the qualifying facility, even if the facility and the machinery and equipment are owned by
   another company.
   If the taxpayer uses leased employees in its operations, the employee leasing company
   will be considered the employer of record for South Carolina withholding tax purposes
   while the taxpayer will be considered as operating the facility. In this example neither the
   employee leasing company nor the taxpayer will qualify for the job tax credit.
   11

Section 12-6-3360(A)

21

21. Can the same facility qualify for the credit more than once?
Yes. A taxpayer operating a facility could have additional expansions that qualify for
another jobs credit, and begin a new five-year credit period, after the original credit
period has ended. If expansions overlap, the taxpayer can choose to end the original
credit period and begin a new credit period, provided the taxpayer creates the required
number of qualifying new jobs to begin a new credit period. The same new jobs cannot
be included in multiple credit periods.

22. How does a taxpayer who relocates its qualifying facility from one county to another
    county with a different tier ranking calculate the credit amount?
    A taxpayer who relocates during the five-year credit period will claim the job tax credit
    for existing jobs created at the former location based on the county designation of the
    new location. For the year of relocation, the credit is based on the county designation for
    that year, not the year the jobs were created. Additional new jobs created at the new
    location during the credit period are based on the county designation of the new county
    for the year the new jobs are created. An SC616 previously filed for the former county is
    disregarded upon permanent relocation to a new county. See Example S.
23. Are owners of a passthrough entity considered new employees for the credit?
    Shareholders of an S Corporation who are employees of the S Corporation and included
    in the South Carolina withholding may be included in the count of employees if they are
    employed at the qualifying facility. Partners in a partnership are not employees of the
    partnership and so cannot be included in the number of new employees for the credit.
24. Are passthrough entities required to pass credits through to their owners?
    No. Section 12-6-3360(K)(1) provides that a passthrough entity may pass the credit
    through to its shareholders, partners, or members, but does not require the credit to be
    passed through.
    Entities that pass the credit through to their owner must pass credits to each shareholder,
    partner, or member in an amount equal to the percentage of the stock ownership of the S
    Corporation or interest in the partnership or LLC. See Question 25.
    Credits that are not passed through to shareholders, partners, or members in the year
    earned are retained by the entity. They may be used or carried forward at the entity level.
    Credits carried forward at the entity level in one year may be passed through to owners in
    a future year. Once a credit is passed through to shareholders, partners, or members, it is
    no longer available to be used or carried forward at the entity level. The 15-year
    carryforward period is based on the year the credit is earned by the passthrough entity.

22

25. Can a partnership pass all credits through to one partner?
No. Section 12-6-3360(K)(2) provides that the amount of credit allowed a partner is equal
to the partner’s interest in the partnership. The partner’s interest in the partnership is his
share of the partnership’s profits and surplus, as based on the partnership agreement. 12

26. Can electing passthrough entities take the credit against the entity-level tax on
    active trade or business income?
    Yes. The credit can be taken against income taxes imposed by Section 12-6-510 or 12-6350. Section 12-6-3360(A). Section 12-6-545(F) provides that income tax credits
    available to offset taxes due pursuant to Section 12-6-510 also apply against the 3%
    tax on active trade or business income found in Section 12-6-545. Therefore,
    passthrough entities who make the election to pay tax on active trade or business income
    at the entity level can take the job tax credit against the entity-level tax. Credits taken at
    the entity level are not passed through to the partners, shareholders, or members of the
    passthrough entity.
    XI. Examples
    Unless stated otherwise, examples assume the taxpayer is a qualifying taxpayer required to create
    10 new full-time jobs, all new jobs are created at the time a new facility or expansion is initially
    staffed, and the taxpayer maintains all jobs in future years.
    Example A: Determining the monthly average number of full-time employees
    Each taxpayer is a manufacturer with one location in South Carolina; is a calendar year taxpayer;
    is initially staffing a new facility in South Carolina; begins Year 1 with zero employees; and
    maintains all jobs in Year 2. Total employees refers to the cumulative total of full-time
    employees in the county each month.
    Months in Year 1
    January
    February
    March
    April
    May
    June
    July
    August
    September
    October
    November
    December
    12

Number of Full-Time Employees
Taxpayer 1 Taxpayer 2
Taxpayer 3
10
2
25
10
3
25
10
4
25
10
4
30
10
5
35
10
5
50
10
6
50
10
8
15
10
9
10
10
10
9
10
20
8
10
30
8

Section 33-41-730 and IRC Section 704

23

Year 1 Total Employees
Divide by Months in Operation
Monthly Average of Full-Time
Employees
Subtract Prior Year Monthly Average
Average Increase in Full-Time
Employees
Qualify for Credit?

120
12

106
12

290
12

10

8.83

24.17

0

0

0

10

8

24

Yes

No

Yes

Taxpayer 1 increased employment by the monthly average of 10 new full-time jobs required to
qualify for the credit.
Taxpayer 2 created more than 10 new full-time jobs in the end of the year but did not have a
monthly average of 10 new jobs for the tax year as required to qualify for the credit. The
taxpayer must round down to the lowest whole number of jobs when computing the increase in
full-time employees for the year.
Taxpayer 3 had a monthly average of more than 10 new jobs for the tax year so may qualify for
the credit, even though there are fewer than 10 new jobs at the end of the tax year. However, for
the credit to be claimed in Year 2 13 and later years, the monthly average of total employees must
continue to be 10 or more.
Example B: Methods for calculating the monthly average number of full-time employees in
the first year of operation
The taxpayer is a calendar year taxpayer who began operations at a new manufacturing facility
on July 1, Year 1 so was in operation for six months during the year.
Method 1
Divide by 12
Months
0
0
0
0
0
0
8
8
9
9
19
19
72

Months in Year 1
January
February
March
April
May
June
July
August
September
October
November
December
Year 1 Total Employees

Method 2
Divide by Months
in Operation
0
0
0
0
0
0
8
8
9
9
19
19
72

The credit is not claimed in the year the jobs are created (Year 1) but is first claimed in the year after the year in
which jobs are created (Year 2).
13

24

Divide by 12 Months or Months in Operation
Monthly Average of Full-Time Employees
Subtract Prior Year Monthly Average
Average Increase in Full-Time Employees
Qualify for Credit?

12
6
0
6
No

6
12
0
12
Yes

Months in Year 2
January
February
March
April
May
June
July
August
September
October
November
December
Year 2 Total Employees
Divide by Months in Operation
Monthly Average of Full-Time Employees
Subtract Prior Year Monthly Average
Average Increase in Full-Time Employees
Qualify for Credit?

Method 1
19
19
19
19
19
19
19
19
19
19
19
19
228
12
19
6
13
Yes

Method 2
19
19
19
19
19
19
19
19
19
19
19
19
228
12
19
12
7
Yes

Method 1 computes the monthly average increase for Year 1 using 12 months of operation
instead of the actual months in the first year of operation. The taxpayer does not qualify for the
credit in Year 1, because they did not create the minimum of 10 new jobs. In Year 2, the taxpayer
has an increase of more than 10 jobs over the prior year so is eligible to claim the credit for a
five-year period (Years 3-7) if the jobs are maintained.
Method 2 computes the monthly average increase for Year 1 using the six months of actual
operation. The taxpayer would qualify for the credit in Year 1, because they created more than
the minimum of 10 new jobs during the year. The taxpayer will be able to claim the credit in
Years 2-6 for the 12 jobs created in Year 1, provided the jobs are maintained. The taxpayer will
also be able to claim the credit for the 7 additional jobs created in Year 2 during the period of
Years 3-7 provided the jobs are maintained during the five-year period.
In this example, Method 2 enables the taxpayer to take the credit beginning in Year 2 (for the
jobs created in Year 1) and seems more advantageous, but the timing and number of new jobs
created in Year 1 could result in advantages to using Method 1 instead.

25

Example C: Taxpayer with full-time and half-time jobs
The taxpayer is a calendar-year corporation who began operations at a new manufacturing
facility in South Carolina in Year 1. During Year 1, the taxpayer employs 20 full-time employees
and 25 half-time employees each month.
Number of
Full-time Jobs

Number of
Half-time Jobs

Months in Year 1
January
20
February
20
March
20
April
20
May
20
June
20
July
20
August
20
September
20
October
20
November
20
December
20
Year 1 Total Employees
Divide by 12 Months
Monthly Average of Full-Time and Equivalent Employees
Subtract Prior Year Monthly Average
Average Increase in Full-Time Employees

25
25
25
25
25
25
25
25
25
25
25
25

Total New
Jobs for
Credit
32.5
32.5
32.5
32.5
32.5
32.5
32.5
32.5
32.5
32.5
32.5
32.5
390
12
32
0
32

The taxpayer has 32 new full-time jobs created in Year 1 that will qualify for the credit in Year 2
through Year 6 if the jobs are maintained. The taxpayer must round down to the lowest whole
number of full-time jobs when computing the monthly average number of full-time employees.
In Year 2, the taxpayer hires 10 of the half-time employees as full-time employees. The other 15
continue as half-time employees.

Months in Year 2
January
February
March
April
May
June
July
August
September

Number of
Full-time Jobs

Number of
Half-time Jobs

30
30
30
30
30
30
30
30
30

15
15
15
15
15
15
15
15
15

26

Total New
Jobs for
Credit
37.5
37.5
37.5
37.5
37.5
37.5
37.5
37.5
37.5

October
30
November
30
December
30
Year 2 Total Employees
Divide by 12 Months
Monthly Average of Full-Time and Equivalent Employees
Subtract Prior Year Monthly Average
Average Increase in Full-Time Employees

15
15
15

37.5
37.5
37.5
450
12
37
32
5

The taxpayer has 5 new full-time jobs created in Year 2 that will qualify for the credit in Year 3
through Year 7 if the jobs are maintained. The taxpayer must round down to the lowest whole
number of full-time jobs when computing the monthly average number of full-time employees.
Example D: Completing the TC-4 (or similar schedule) – Jobs increase and maintained
The taxpayer is a calendar-year corporation who began operations at a new manufacturing
facility in South Carolina in 2014.
Number of full-time employees subject to withholding during each month:
Month

Base
Year
2013
0
0
0
0
0
0
0
0
0
0
0
0
0

1. January
2. February
3. March
4. April
5. May
6. June
7. July
8. August
9. September
10. October
11. November
12. December
    Total employees
    Number of
    months in
    12
    operation
    Monthly average
    of full-time
    0
    employees 14
    Previous year average
    Average increase in fulltime employees

Year
1
2014
3
3
12
12
15
15
20
20
25
25
30
30
210

Year
2
2015
30
30
30
30
25
25
25
25
25
25
25
25
320

Year
3
2016
25
24
24
23
23
22
22
22
20
20
20
20
265

Year
4
2017
20
20
20
20
22
22
22
24
25
25
25
25
270

Year
5
2018
25
25
25
25
26
26
26
26
26
30
30
30
320

Year
6
2019
30
30
30
30
30
30
30
30
30
30
30
30
360

Year
7
2020
30
32
34
36
38
40
42
44
46
48
50
50
490

Year
8
2021
48
48
50
50
52
52
50
50
50
50
50
50
600

Year
9
2022
50
50
50
50
50
50
50
50
50
50
50
50
600

Year
10
2023
50
50
50
50
50
50
50
52
52
52
52
52
610

Year
11
2024
52
52
52
52
52
52
52
52
52
52
52
52
624

12

12

12

12

12

12

12

12

12

12

12

17

26

22

22

26

30

40

50

50

50

52

0

17

26

22

22

26

30

40

50

50

50

17

9

(4)

0

4

4

10

10

0

0

2

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
14

27

Employees eligible for credit:

Year 1 increase
Year 2 increase 15
Year 3 increase
Year 4 increase
Year 5 increase
Year 6 increase
Number of new jobs for credit

Year
2
2017
17

17

Year
3
2018
17
5

Year
4
2019
17
5
0

22

22

Year
5
2020
17
5
0
0
22

Year
6
2021
17
5
0
0
4
26

Year
7
2022

Year
8
2023

Year
9
2024

Year
10
2025

Year
11
2026

5
0
0
4
4
13

0
0
4
4
8

0
4
4
8

4
4
8

4
4

The new jobs added in Year 7 will not qualify for the credit since the 5-year credit period for the
initial job increase from the opening of the facility in Year 1 has expired. However, the increase
of 10 new jobs in Year 7 is the result of a new expansion and creates a new credit period. The
taxpayer will begin a new 5-year credit period using 2022 as Year 1 and will compute the new
credit on a separate TC-4.
Example E: Completing the TC-4 (or similar schedule) – All jobs not maintained
The taxpayer is a calendar-year corporation who began operations at a new manufacturing
facility in South Carolina in 2014.
Number of full-time employees subject to withholding during each month:
Month

1. January
2. February
3. March
4. April
5. May
6. June
7. July
8. August
9. September
10. October
11. November
12. December
    Total employees
    Number of
    months in
    operation

Base
Year
2013
0
0
0
0
0
0
0
0
0
0
0
0
0

Year
1
2014
3
3
12
12
15
15
20
20
25
25
30
30
210

Year
2
2015
30
30
30
30
25
25
25
25
25
25
25
25
320

Year
3
2016
25
24
24
23
23
22
22
22
20
20
20
20
265

Year
4
2017
20
20
20
17
17
13
13
15
15
15
15
15
195

Year
5
2018
15
15
15
15
16
16
16
16
16
20
20
20
200

Year
6
2019
20
20
20
20
20
20
20
20
20
20
20
20
240

Year
7
2020
20
20
20
18
18
18
16
15
15
15
15
15
205

Year
8
2021
15
15
15
15
15
15
15
15
15
15
15
15
180

Year
9
2022
15
15
15
15
15
15
15
15
16
16
16
22
190

Year
10
2023
22
22
22
22
22
20
20
20
20
20
20
20
250

Year
11
2024
20
20
20
20
20
22
22
22
22
22
20
20
250

12

12

12

12

12

12

12

12

12

12

12

12

The decrease in Year 3 must be considered in determining the Year 2 amount. The increase of 9 jobs from Year 2 is
combined with the decrease of 4 jobs from Year 3 to arrive at the total of 5 new jobs for Year 2.
15

28

Monthly
average of full0
time
employees 16
Previous year average
Average increase in fulltime employees

17

26

22

16

16

20

17

15

15

20

20

0

17

26

22

16

16

20

17

15

15

20

17

9

(4)

(6)

0

4

(3)

(2)

0

5

0

Year
2
2017
17

Year
3
2018
17
5

Year
4
2019
17
5
(6)

Year
5
2020
17
5
(6)
0

Year
6
2021
17
5
(6)
0
0

16

16

Employees eligible for credit:

Year 1 increase
Year 2 increase
Year 3 increase
Year 4 increase
Year 5 increase
Year 6 increase
Number of new jobs for credit

17

22

16

Year
7
2022

Year
8
2023

Year
9
2024

Year
10
2025

Year
11
2026

5
(6)
0
0
1
0

(6)
0
0
(2)
0

0
0
(2)
0

0
0
0

0
0

Jobs that are not maintained do not qualify for the credit. The increase of nine jobs in Year 2 is
reduced by the four jobs that were not maintained in Year 3. The number of jobs for the credit is
then further reduced by the six job decrease in Year 3.
Of the four new jobs created in Year 6, only one was still maintained in Year 7, and this job was
not maintained in Year 8. For the returns filed in Year 8 and Year 9, the “number of new jobs for
credit” will not be a negative number. Taxpayers are not required to amend returns or recapture
credits if jobs are not maintained in years after the credit is claimed.
The new jobs created in Year 10 are created outside of the original five-year credit period so will
not qualify for the credit.
Example F: Completing the TC-4SA (or similar schedule)
The taxpayer is a calendar-year corporation with fewer than 99 employees worldwide who began
operations at a new manufacturing facility in South Carolina in 2016. All employees are hired
with gross wages greater than 120% of the state per capita income.
Number of full-time employees subject to withholding during each month:
Month

1. January
2. February
3. March

Base
Year
2013
0
0
0

Year
1
2014
3
3
12

Year
2
2015
30
30
30

Year
3
2016
25
25
25

Year
4
2017
25
24
24

Year
5
2018
20
20
20

Year
6
2019
25
25
25

Year
7
2020
30
30
30

Year
8
2021
30
30
30

Year
9
2022
30
30
30

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
16

29

Year
10
2023
30
30
30

Year
11
2024
30
30
30

4. April
0

5. May
   0
6. June
   0
7. July
   0
8. August
   0
9. September
   0
10. October
    0
11. November
    0
12. December
    0
    Total employees
    0
    Number of
    months in
    12
    operation
    Monthly
    average of full0
    time
    17
    employees
    Previous year average
    Average increase in fulltime employees

12
15
15
20
20
25
25
30
30
210

30
25
25
25
25
25
25
25
25
320

25
25
25
25
25
25
25
25
25
300

23
23
22
22
22
20
20
20
20
265

20
22
22
22
24
25
25
25
25
270

25
26
26
26
26
26
30
30
30
320

30
30
30
30
30
30
30
30
30
360

30
30
30
30
30
30
30
30
30
360

30
30
30
30
30
30
30
30
30
360

30
30
30
30
30
30
30
30
30
360

30
30
30
30
30
30
30
30
30
360

12

12

12

12

12

12

12

12

12

12

12

17

26

25

22

22

26

30

30

30

30

30

0

17

26

25

22

22

26

30

30

30

30

17

9

(1)

(3)

0

4

4

0

0

0

0

The four new jobs created in Year 7 will not qualify for the credit since the 5-year credit period
for the initial job increase due to the opening of the facility in Year 1 has expired.
Example G: Determining annualized gross wages and the 120% threshold
Taxpayer is a calendar year corporation with fewer than 99 employees who begins operations at a
new manufacturing facility in Florence County, a Tier II County, in 2022. The state per capita
income for 2022 is $52,467 and the county per capita income is $51,554. 18 The 120% of the
lower of state or county per capita income threshold for 2022 is $61,865. Taxpayer has the
following employees who qualify as new jobs for the credit:
•

Employee A was employed for the entire year. She was paid an annual salary of $55,000
and had pre-tax medical coverage of $100 per week ($5,200 total) and a $4,000 pre-tax
contribution to a 401(k) plan for the year. Employee A’s gross wages subject to
withholding for the year are $45,800, which is less than 120% of the county or state per
capita income for the year. The new job created by Employee A would only be eligible
for the 50% credit amount.

•

Employee B was hired March 1. He was paid $42 per hour and worked 40 hours each
week for 44 weeks, for a total of $73,920. He had pre-tax medical coverage of $100 per
week ($4,400 total) and a $7,000 pre-tax contribution to a 401(k) plan for the year.
Employee B’s gross wages subject to withholding are $62,520. The annualized gross
wages for the 120% threshold test are $75,024 ($62,520 ÷ 10 months worked x 12

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
18
See SC Information Letter #22-24 for the 2022 state and county per capita income amounts.
17

30

months in the year). This is greater than 120% of the county per capita income for the
year, so the new job created by Employee B would be eligible for the full 100% credit
amount.
•

Employee C was employed for the entire year as a part-time employee 19 who worked 25
hours each week with no benefits and was paid $30 per hour, for a total of $39,000 gross
wages. The annualized gross wages for the 120% threshold test are $62,400 ($39,000 ÷
25 hours worked per week x 40 full-time hours). This is greater than 120% of the county
per capita income for the year, so the new job created by Employee C would be eligible
for the 100% credit amount.

•

Employee D was hired January 1 as a part-time employee with no benefits and was paid
$27 per hour. Employee D worked 20 hours a week for 12 weeks as a part-time employee
and earned gross wages of $6,480. The annualized gross wages for this part-time position
are $51,840 ($6,480 ÷ 3 months worked x 12 months in the year ÷ 20 hours worked per
week x 40 full-time hours). This is less than 120% of the county per capita income for the
year, so the new part-time job would only be eligible for the 50% credit amount.
Beginning April 1, Employee D moved to full-time employment and was paid $6,000 per
month, or $54,000. Employee D had $4,000 in pre-tax medical contributions and $2,500
in pre-tax contributions to a 401(k) plan for the year, for $47,500 in gross wages. The
annualized gross wages for this position are $63,333 ($47,500 ÷ 9 months worked x 12
months in the year). This is greater than 120% of the county per capita income for the
year ($61,865) so this new job would be eligible for the 100% credit amount beginning in
April.

Example H: Small business with employees not at 120% threshold
Taxpayer is a calendar year corporation with fewer than 99 employees who begins operations at a
new manufacturing facility in Florence County, a Tier II County, in 2022 (see Example G). The
jobs are created in a multi-county industrial park so qualify for an additional $1,000 credit per
job. Taxpayer is electing to take the “accelerated” credit using the TC-4SA. Taxpayer’s income
tax liability for 2022 is $12,000.
Number of full-time employees subject to withholding during each month: 20
Base Year
Year 1
Month
2021
2022

1. January
   0
   2
2. February
   0
   2
3. March
   0
   3
   19
   Two part-time/half-time jobs equal one full-time job. If a taxpayer has only one half-time job, that job does not
   qualify for the job tax credit.
   20
   See Example G. The 2 employees in January and February include Employee A (full-time employee) and
   Employees C and D (half-time employees). Beginning in March, Employee B is included as a full-time employee.
   Beginning in April, Employee D changes from a half-time employee to a full-time employee.

31

4. April

5. May
6. June
7. July
8. August
9. September
10. October
11. November
12. December
    Total employees
    Number of months in operation
    Monthly average of full-time employees
    Previous year average

0
0
0
0
0
0
0
0
0
0
12
0

Average increase in full-time employees
Employees eligible for credit:
Year 1 increase
Year 2 increase
Year 3 increase
Year 4 increase
Year 5 increase
Year 6 increase
Number of new jobs for credit

3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
38.5
12
3
0
3

Year 1
2022
3

3

Number of full-time employees over the 120% threshold in each month:
Month
Base Year
Year 1
2021
2022

1. January
   0
   0.5
2. February
   0
   0.5
3. March
   0
   1.5
4. April
   0
   2.5
5. May
   0
   2.5
6. June
   0
   2.5
7. July
   0
   2.5
8. August
   0
   2.5
9. September
   0
   2.5
10. October
    0
    2.5
11. November
    0
    2.5
12. December
    0
    2.5
    Total employees over the 120% threshold
    0
    25
    Number of months in operation
    12
    12

32

Monthly average of employees over threshold 21
Previous year average

0

Average increase in employees over threshold
Employees eligible for 100% credit:
Year 1 increase
Year 2 increase
Year 3 increase
Year 4 increase
Year 5 increase
Year 6 increase
Jobs qualifying for 100% credit

2
0
2

Year 1
2022
2

2

Determining the allowable credit
100% allowable credit
100% credit amount for each job
Additional credit amounts
Total credit for each job
Number of qualifying jobs
Allowable 100% credit
50% allowable credit
50% credit amount for each job
Additional credit amounts
Total credit for each job
Total qualifying jobs
Jobs eligible for 50% credit
Allowable 50% credit
Total allowable credit
Total current year credit
Credit carryover from prior year
Total credit available
Tax liability
Credit limit
Allowable credit
Credit carryforward

$2,750
$1,000
$3,750
2
$7,500
$1,375
$1,000 22
$2,375
3
1
$2,375
$9,875
$0
$9,875
$12,000
$6,000
$6,000
$3,875

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
22
The additional $1,000 credit for jobs in a multi-county park is not reduced even if the associated job is at the 50%
threshold.
21

33

Taxpayer earned a total credit of $9,875 in 2022. The credit was limited to 50% of the tax
liability, or $6,000. Taxpayer has $3,875 of credit available to carry forward to the next tax year.
Example I: Taxpayer schedule showing available credit carryforward
Taxpayer is a calendar-year corporation who began operations at a manufacturing facility in a
Tier I county in 2018. The taxpayer created 10 qualifying new full-time jobs in 2018, and
maintained those jobs throughout the credit period so earns a $15,000 credit in each year of the
five-year credit period. The taxpayer has a $10,000 tax liability each year, so the amount of
credit the taxpayer can take is limited to $5,000. The taxpayer provides the following schedule
with the 2023 return showing the amounts of credit earned, taken, and available for carryforward
for each tax year during the credit period.
Tax Year
Credit Carryforward Available
Credit Earned
Amount Used:
2019
2020
2021
2022
2023
Carryforward Available for 2024
Carryforward Expiration Date

2019
0
15,000

2020
10,000
15,000

2021
20,000
15,000

2022
30,000
15,000

2023
40,000
15,000

0

(5,000)
(5,000)
5,000

15,000

15,000

15,000

12/31/2034

12/31/2035

12/31/2036

12/31/2037

12/31/2038

(5,000)
(5,000)
(5,000)

A total of $50,000 credit carryforward is available for the 2024 tax year.
Taxpayers are not required to create this schedule or provide it with their return, but they should
have a copy of this schedule, or a similar schedule, included with their records for each tax year
to show the amounts of credits earned, taken, and carried forward.
Example J: County designation changes during credit period
Taxpayer is a calendar year corporation who begins operations at a manufacturing facility in
South Carolina in 2017. The facility is located in a county designated as a Tier III county in
2017. In 2020, the county designation is changed to Tier II. Taxpayer creates 10 new jobs in
2018 and creates 5 additional new jobs in each year of the five-year credit period.

New Jobs Created

23

Year 1
2017
10

Year 2
2018
5

Year 3
2019
5

Year 4
2020
5

Jobs created in Year 7 are outside of the five-year credit period and do not qualify.

34

Year 5
2021
5

Year 6
2022
5

Year 7
2023
0 23

Credit Claimed 24
2017: 10 jobs
at Tier III
$4,250
2018: 5 jobs
at Tier III
$4,250
2019: 5 jobs
at Tier III
$20,250 25
2020: 5 jobs
at Tier II
$2,750 26
2021: 5 jobs
at Tier II
$2,750
Total Credit
Available

$42,500

$42,500

$42,500

$42,500

$42,500

$42,500

$21,250

$21,250

$21,250

$21,250

$21,250

$101,250

$101,250

$101,250

$101,250

$13,750

$13,750

$13,750

$13,750

$13,750

$192,500

$150,000

$63,750

$165,000

$178,750

Because the taxpayer did not file the SC616 to lock in the county designation, the credit amount
is based on the county designation for the year in which the new jobs are originally created.
Example K: SC616 filed to lock in county designation
Taxpayer is a calendar year corporation who begins operations at a manufacturing facility in
South Carolina in 2017. The facility is located in a county designated as a Tier III county in
2017. Before beginning the facility, the taxpayer filed a SC616 with the SCDOR to lock in the
Tier III county designation. In 2020, the county designation is changed to Tier II. Taxpayer
creates 10 new jobs in 2018 and creates 5 additional new jobs in each year of the five-year credit
period.

New Jobs Created

Year 1
2017
10

Year 2
2018
5

Year 3
2019
5

Year 4
2020
5

Year 5
2021
5

Year 6
2022
5

Credit Claimed 28

Credits are first claimed in the year after the year in which the jobs are created.
New jobs created in 2019 use the new 2019 credit amount for Tier III counties. The credit for jobs created in 2017
and 2018 will continue to be calculated using the “old” amounts.
26
New jobs created in 2020 will use the credit amount for Tier II counties, since the county designation changed in
2020. The credit for jobs created in 2018 through 2019 will continue to be calculated using the amount for the
county designation in the year the jobs were originally created.
27
Jobs created in Year 7 are outside of the five-year credit period and do not qualify. If the taxpayer has a new
facility or expansion in Year 7 that qualifies for a new credit, the taxpayer would be required to file a new SC616 if
they wanted to lock in the county designation for the new credit period.
28
Credits are first claimed in the year after the year in which the jobs are created.
24
25

35

Year 7
2023
10 27

2017: 10 jobs
at Tier III
$4,250
2018: 5 jobs
at Tier III
$4,250
2019: 5 jobs
at Tier III
$20,250 29
2020: 5 jobs
at Tier III
$20,250 30
2021: 5 jobs
at Tier III
$20,250
Total Credit
Available

$42,500

$42,500

$42,500

$42,500

$42,500

$42,500

$21,250

$21,250

$21,250

$21,250

$21,250

$101,250

$101,250

$101,250

$101,250

$101,250

$101,250

$101,250

$101,250

$101,250

$367,500

$325,000

$63,750

$165,000

$266,250

Since the taxpayer filed the SC616 to lock in the county designation, the credit amount is based
on the Tier III designation for each year in which new jobs are created.
Example L: Calculating the credit for a short year
Taxpayer A is a calendar-year corporation who began operations at a new manufacturing facility
in South Carolina in June 2018. On June 30, 2021, Taxpayer A merges with another corporate
taxpayer, Taxpayer B, to create Corporation AB. Corporation AB maintains all the new jobs
created by Taxpayer A (see Example M).
Month

1. January
2. February
3. March
4. April
5. May
6. June
7. July
8. August
9. September
10. October
11. November

Base Year
2017
0
0
0
0
0
0
0
0
0
0
0

Year 1
2018

5
10
10
15
15
20

Year 2
2019
20
20
20
25
25
30
30
30
30
30
30

Year 3
2020
30
30
30
30
30
30
30
30
30
30
30

Year 4
2021
30
32
32
32
32
32

New jobs created in 2019 use the new 2019 credit amount for Tier III counties. The SC616 locks in the county
designation but does not lock in the credit amount if it changes during the credit period. The credit for jobs created
in 2017 and 2018 will continue to be calculated using the “old” amounts.
30
New jobs created in 2020 and 2021 will continue to use the credit amount for Tier III counties, since the county
designation was locked-in by the SC616. The credit for jobs created in 2018 through 2019 will continue to be
calculated using the amount for the county designation in the year the jobs were originally created.
29

36

12. December
0
Line 1: Total employees
0
(add months 1 through 12)
Line 2: Number of months
12
in operation
Line 3: Monthly average of
full-time employees (divide
0
line 1 by line 2) 31
Line 4: Previous year average
Line 5: Average increase in full-time
employees (subtract line 4 from line 3)
Employees eligible for credit:
Year 1 increase
Year 2 increase
Year 3 increase
Number of new jobs for
credit

20

30

30

120

320

360

190

7

12

12

6

17

26

30

31

0

17

26

30

17

9

4

1

Year 2
2019
17

Year 3
2020
17
9

Year 4
2021
17
9
4

17

26

30

In Year 4 (the short period) Taxpayer A can take the full amount of the available credit, including
the new jobs created and maintained in Years 1 through 3. Taxpayer A is not required to prorate
the credit amount for a short period.
Taxpayer A calculates the increase in full-time employees for the 2021 short year using only the
six months in operation. Any new jobs created in the short period ended June 30, 2021 and
maintained would be available to be claimed on a tax return for the following year. See Example
M.
Example M: Credit transfer on business reorganization
On July 30, 2021, Taxpayer A merged with Taxpayer B and created new corporation AB (see
Example L). The new job credits earned by Taxpayer A are transferred to Corporation AB,
which maintains the jobs and continues to create jobs at the qualifying manufacturing facility.
Month
1.
2.
3.
4.

January
February
March
April

Base
Year
2017
0
0
0
0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

2018

2019
20
20
20
25

2020
30
30
30
30

2021
30
32
32
32

2021

2022
32
32
32
32

2023
35
35
35
35

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
31

37

5. May
0

6. June
   0
7. July
   0
8. August
   0
9. September
   0
10. October
    0
11. November
    0
12. December
    0
    Line 1: Total
    employees (add
    0
    months 1 through 12)
    Line 2: Number of
    12
    months in operation
    Line 3: Monthly
    average of full-time
    0
    employees (divide line
    1 by line 2) 32
    Line 4: Previous year average
    Line 5: Average increase in fulltime employees (subtract line 4
    from line 3)
    Employees eligible for credit:
    Year 1 increase
    Year 2 increase
    Year 3 increase
    Year 4 increase
    Year 5 increase
    Year 6 increase
    Number of new jobs for
    credit

5
10
10
15
15
20
20

25
30
30
30
30
30
30
30

30
30
30
30
30
30
30
30

32
32

32
32
32
32
32
32

32
33
33
34
35
35
35
35

35
35
35
35
35
35
35
35

120

320

360

190

192

400

420

7

12

12

6

6

12

12

17

26

30

31

32

33

35

0

17

26

30

31

32

33

17

9

4

1

1

1

2

Year 3
2020
17
9

Year 4
2021
17
9
4

Year 5
2021
17
9
4
1

Year 6
2022
17
9
4
1
1

Year 7
2023

Year 8
2024

9
4
1
1
1

4
1
1
1

26

30

31

32

16

7

Year 2
2019
17

17

Subject to IRC Section 383, if applicable, 33 Corporation AB can claim the credit beginning with
the Year 5 return for the jobs created by Taxpayer A in Year 1 through Year 4 and maintained by
Corporation AB. Corporation AB can also continue to use any credit carryforwards transferred
by Taxpayer A.
The two new jobs created in 2023 (Year 7) will not qualify for the credit because they are outside
of the five-year credit period. The two short period returns each count as tax years for the fiveyear credit period.
The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
33
Section 12-6-3320
32

38

Example N: Employment increase falls below minimum new job requirement
The taxpayer is a calendar-year corporation who began operations at a new manufacturing
facility in South Carolina in 2019.
Month

Base Year
2018
0
0
0
0
0
0
0
0
0
0
0
0

1. January
2. February
3. March
4. April
5. May
6. June
7. July
8. August
9. September
10. October
11. November
12. December
    Line 1: Total employees
    0
    (add months 1 through 12)
    Line 2: Number of months
    12
    in operation
    Line 3: Monthly average of
    full-time employees (divide
    0
    line 1 by line 2) 34
    Line 4: Previous year average
    Line 5: Average increase in full-time
    employees (subtract line 4 from line 3)
    Employees eligible for credit:

Line 6: Year 1 increase
Line 7: Year 2 increase
Line 8: Year 3 increase
Line 9: Year 4 increase
Line 10: Year 5 increase
Line 11: Year 6 increase
Line 12: Number of new jobs for credit
(add line 6 through line 11)

Year 1
2019
3
3
12
12
15
15
20
20
25
25
30
30

Year 2
2020
30
25
20
20
20
15
15
15
12
12
12
12

Year 3
2021
12
11
11
10
10
9
9
8
8
8
8
8

Year 4
2022
12
12
13
13
15
15
15
15
15
15
15
15

210

208

112

170

12

12

12

12

17

17

9

14

0

17

17

12

17

0

(8)

0

Year 2
2020
17

Year 3
2021

Year 4
2022

Year 5
2023

17

0

0

0

The monthly average number of full-time employees is rounded down to the lowest whole number of full-time
employees.
34

39

In Year 3 (2021) the increase in full-time employment fell below the required minimum of 10
new jobs created, so the credit is not allowed for 2021 or subsequent tax years.
If the taxpayer was unable to use the full amount of the credit earned in the 2020 tax year, they
can continue to carry the unused credits forward to future tax years. There is no requirement to
recapture credits earned in previous tax years when the employment level falls below the
required amount of new jobs. See Question 9.
Example O: Partnership passes credit through to partners
The taxpayer is a calendar year partnership who began operations at a new manufacturing facility
in a Tier I county in 2021. The partnership has two equal partners, Individual A and Individual B,
and passes the entire amount of the credit earned each year on to each partner in proportion to
their ownership percentage (50% to each partner).
For tax year 2022, the partnership fills out the TC-4 as follows:
Number of full-time employees subject to withholding during each
month:
Month
Base Year
Year 1
Year 2
2020
2021
2022

1. January
   0
   5
   30
2. February
   0
   5
   30
3. March
   0
   10
   30
4. April
   0
   10
   30
5. May
   0
   10
   30
6. June
   0
   10
   30
7. July
   0
   15
   30
8. August
   0
   15
   30
9. September
   0
   15
   30
10. October
    0
    15
    30
11. November
    0
    20
    30
12. December
    0
    26
    30
    Line 1: Total employees
    0
    156
    360
    (add months 1 through 12)
    Line 2: Number of months
    12
    12
    12
    in operation
    Line 3: Monthly average of
    full-time employees (divide
    0
    13
    30
    line 1 by line 2)
    Line 4: Previous year average
    0
    13
    Line 5: Average increase in full-time
    13
    17
    employees (subtract line 4 from line 3)

40

Employees eligible for credit:
Line 6: Year 1 increase
Line 7: Year 2 increase
Line 8: Year 3 increase
Line 9: Year 4 increase
Line 10: Year 5 increase
Line 11: Year 6 increase
Line 12: Number of new jobs for
credit (add line 6 through line 11)

Year 2
2022
13

13

Credit calculation:
Line 13: Amount of credit per employee
Line 14: Eligible credit (multiply line 12 by line 13)
Line 15: Credit carryover from prior year
Line 16: Total credit available (add line 14 and line 15)
Line 17: Tax liability
Line 18: Credit limit (multiply line 17 by 50%)
Line 19: Allowable credit (lesser of line 16 or line 18)
Line 20: Credit carryforward (subtract line 19 from line 16)

Year 2
2022
$1,500
$19,500
$0
$19,500

The partnership does not have a tax liability, so does not complete line 17 through line 20 of the
TC-4. The partnership provides each partner with a SC1065 K-1 showing a New Jobs Credit in
the amount of $9,750.
Individual A has a 2022 South Carolina individual income tax liability before credits of $5,000.
Individual A provides a TC-4 with the partnership’s name and FEIN entered at the top, and with
the following credit calculation:
Credit calculation:
Line 13: Amount of credit per employee
Line 14: Eligible credit (multiply line 12 by line 13)
Line 15: Credit carryover from prior year
Line 16: Total credit available (add line 14 and line 15)
Line 17: Tax liability
Line 18: Credit limit (multiply line 17 by 50%)
Line 19: Allowable credit (lesser of line 16 or line 18)
Line 20: Credit carryforward (subtract line 19 from line 16)

41

Year 2
2022
$9,750
$0
$9,750
$5,000
$2,500
$2,500
$7,250

Individual A is not required to complete the employee information (line 1 through line 13) on the
TC-4 since the credit is being passed through by a partnership. Individual A should include a
copy of the SC1065 K-1 showing the amount of credit received from the partnership.
Example P: S Corporation uses portion of credit and passes remainder through to
shareholders
The taxpayer is a calendar year S Corporation who began operations at a new manufacturing
facility in a Tier II county in 2021. The S Corporation has two equal shareholders, Individual B
and Individual C. In 2022, the S Corporation makes the election to pay tax at the entity level and
owes a corporate-level tax of $4,000. The S Corporation passes all credits not used at the
corporate level through to its shareholders based on their ownership percentage (50% to each
shareholder).
For tax year 2022, the S Corporation fills out the TC-4 as follows:
Number of full-time employees subject to withholding during each
month:
Month
Base Year
Year 1
Year 2
2020
2021
2022

1. January
   0
   5
   30
2. February
   0
   5
   30
3. March
   0
   10
   30
4. April
   0
   10
   30
5. May
   0
   10
   30
6. June
   0
   10
   30
7. July
   0
   15
   30
8. August
   0
   15
   30
9. September
   0
   15
   30
10. October
    0
    15
    30
11. November
    0
    20
    30
12. December
    0
    26
    30
    Line 1: Total employees
    0
    156
    360
    (add months 1 through 12)
    Line 2: Number of months
    12
    12
    12
    in operation
    Line 3: Monthly average of
    full-time employees (divide
    0
    13
    30
    line 1 by line 2)
    Line 4: Previous year average
    0
    13
    Line 5: Average increase in full-time
    13
    17
    employees (subtract line 4 from line 3)

42

Employees eligible for credit:
Line 6: Year 1 increase
Line 7: Year 2 increase
Line 8: Year 3 increase
Line 9: Year 4 increase
Line 10: Year 5 increase
Line 11: Year 6 increase
Line 12: Number of new jobs for credit
(add line 6 through line 11)

Year 2
2022
13

13

Credit calculation:
Line 13: Amount of credit per employee
Line 14: Eligible credit (multiply line 12 by line 13)
Line 15: Credit carryover from prior year
Line 16: Total credit available (add line 14 and line 15)
Line 17: Tax liability
Line 18: Credit limit (multiply line 17 by 50%)
Line 19: Allowable credit (lesser of line 16 or line 18)
Line 20: Credit carryforward (subtract line 19 from line 16)

Year 2
2022
$2,750
$35,750
$0
$35,750
$4,000
$2,000
$2,000
$33,750

The S Corporation provides the following information on the SC1120TC included with its
corporate income tax return:
Corporate Income Tax Credits
Column A Column B
Credit
Previously
Earned
Description
Code
Accrued
This Year
New Jobs
004
0
35,750
Total Income Tax Credits
0
35,750

Column C
Taken
This Year
35,750
35,750

Column D
Lost Due
To Statute
0
0

Column E
Carried
Forward
0
0

The S Corporation includes the entire amount of credit taken on the S Corporation return
($2,000) and passed through to its shareholders ($33,750) in Column C of the SC1120TC. The S
Corporation provides each shareholder with a SC1120S K-1 showing a New Jobs Credit in the
amount of $16,875.
Individual C has a 2022 South Carolina individual income tax liability before credits of $6,000.
Individual C provides a TC-4 with the S Corporation’s name and FEIN entered at the top, and
with the following credit calculation:

43

Credit calculation:
Line 13: Amount of credit per employee
Line 14: Eligible credit (multiply line 12 by line 13)
Line 15: Credit carryover from prior year
Line 16: Total credit available (add line 14 and line 15)
Line 17: Tax liability
Line 18: Credit limit (multiply line 17 by 50%)
Line 19: Allowable credit (lesser of line 16 or line 18)
Line 20: Credit carryforward (subtract line 19 from line 16)

Year 2
2022
$16,875
$0
$16,875
$6,000
$3,000
$3,000
$13,875

Individual C is not required to complete the employee information (line 1 through line 13) on the
TC-4 since the credit is being passed through by an S Corporation. Individual C should include a
copy of the SC1120S K-1 showing the amount of credit received from the S Corporation.
Example Q: Individual with credits from multiple passthrough entities
In tax year 2022, Individual B received New Jobs Credits of $9,750 from a partnership (see
Example O) and $16,875 from an S Corporation (See Example P). Individual B has a 2022
South Carolina individual income tax liability before credits of $16,000. Individual B provides a
TC-4 with the following credit calculation:
Credit calculation:
Line 13: Amount of credit per employee
Line 14: Eligible credit (multiply line 12 by line 13)
Line 15: Credit carryover from prior year
Line 16: Total credit available (add line 14 and line 15)
Line 17: Tax liability
Line 18: Credit limit (multiply line 17 by 50%)
Line 19: Allowable credit (lesser of line 16 or line 18)
Line 20: Credit carryforward (subtract line 19 from line 16)

Year 2
2022
$26,625
$0
$26,625
$16,000
$8,000
$8,000
$18,625

Individual B also provides the following supporting schedule with his individual income tax
return:
Name of Entity Generating Credit (from SC K-1)
FEIN of Entity Generating Credit

Partnership
Partnership
FEIN
Amount of Credit Allocated in 2022 (from SC K-1) $9,750

S Corporation
S Corporation
FEIN
$16,875

Individual B combines the two credits onto one TC-4 and is not required to complete the
employee information (line 1 through line 13) since the credit is being passed through. Individual
B should include copies of the SC K-1s showing the amount of credit received from passthrough
entities.
44

If Individual B sells his interest in the partnership or his S Corporation stock to another taxpayer
(Individual D), he will retain any credit carryforwards remaining from credits passed through to
him by the partnership or S Corporation. Individual B cannot sell jobs tax credit carryforwards to
Individual D. The partnership or the S Corporation will pass future credits earned through to
Individual D based on her interest in the partnership or her percentage of stock ownership of the
S Corporation.
Example R: Taxpayers with multiple locations
Taxpayer A has two retail locations in a Tier I county and opens a new warehousing facility in
the county during the tax year. During the year, Taxpayer A increases their total monthly average
of full-time employees in the county as follows:
•
•

•

•
•

25 employees working in person at the new warehouse facility in the Tier I county
3 employees working 100% remotely from their homes in another state, not subject to
South Carolina withholding in the Tier I county, in support of operations at the warehouse
facility
2 employees working 100% remotely from their homes in the Tier I county, subject to
South Carolina withholding in the county, in support of operations at the warehouse
facility
10 employees working in person at the existing retail locations in the Tier I county
5 employees working at an existing distribution facility in a separate Tier II county

When calculating the monthly average of employees, Taxpayer A will include the 25
employees at the qualifying warehouse facility and the 2 remote employees subject to
withholding in the Tier I county. Taxpayer A will not include the 3 remote employees who are
not subject to South Carolina withholding in the Tier I county; the 10 employees working in
the retail locations in the county (because the retail facilities are not qualifying facilities for
the purpose of the credit); or the 5 employees working at a facility in a different county.
Taxpayer B has a warehouse facility in a Tier I county, and opens a new distribution facility in
the same county. During the year, Taxpayer B increases their total monthly average of full-time
employees in the county as follows:
•
•

•

•
•

25 employees working in person at the new distribution facility in the Tier I county
2 employees working 100% remotely from their homes in the Tier I county, subject to
South Carolina withholding in the county, in support of operations at the distribution
facility
2 employees working 100% remotely from their homes in the Tier I county, subject to
South Carolina withholding in the county, in support of operations at the warehouse
facility
10 employees working in person at the existing warehouse facility in the Tier I county
5 employees working at an existing distribution facility in a separate Tier II county

45

When calculating the monthly average of employees, Taxpayer B will include the 25
employees at the qualifying new distribution facility, the 4 remote employees subject to
withholding in the Tier I county, and the 10 employees working at the existing warehouse
facility. Jobs located at the warehouse facility and subject to withholding in the county are
included in the monthly average job calculation because a warehouse facility is a qualifying
facility type for the job tax credit. Taxpayer B will not include the 5 employees working at a
facility in a different county.
Example S: Relocation to different South Carolina county
The taxpayer is a calendar year corporation who begins operations at a new manufacturing
facility in a Tier II county (County A) and creates 10 new jobs in Year 1. In Year 4, they relocate
the facility to a new county. They maintain all 10 jobs from the original location and create 5
additional new jobs in the facility in the new county.

County A designation at time of job creation (Year 1)
Credit per job in County A
New jobs created Year 1
Credit claimed in Years 2 and 3
County designation of new location in Year 4
Credit per job in new location
New jobs created in Year 4
Credit claimed in Years 4, 5, and 6 for jobs created in Year
1
Credit claimed in Years 5-9 for jobs created in Year 4

Relocation to
County B
Tier II
$2,750
10
$27,500
Tier I
$1,500
5
$15,000

Relocation to
County C
Tier II
$2,750
10
$27,500
Tier III
$20,250
5
$202,500

$7,500

$101,250

The taxpayer will claim the credit amount based on the Tier designation of the new location for
the year of the relocation and for the remaining years of the five-year credit period for jobs
created at the original location.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
July 11
,2025
Columbia, South Carolina

46

Appendix A: Qualifying Businesses
Qualifying Businesses and Definitions
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)

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

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

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)

Monthly Average Increase for Tax
Year Requirement
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

25 - 175 in a single location based on
specified average cash compensation
amounts or other criteria.
Code Section 12-6-3360(M)(13)(b)

Yes

No

10 - traditional credit
2 - small business credit

Yes

No

10 - traditional credit
2 - small business credit

Yes

Yes

10 - traditional credit
2 - small business credit
Exception: 20 if a new hotel or motel

47

Appendix B: Comparison of Credit Provisions
CAVEAT: This comparison is written in general terms and should not be relied on as a substitute
for researching original sources of authority.
“Traditional” Job Tax Credit
Code Section
Qualifying Business Types

12-6-3360(C)(1)
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

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

A retail facility in a Tier IV county or a service
related industry in a Tier IV county
Size Requirement
Taxes Credit Used Against
Entities Qualifying
Credit Amount – Basic

Credit Amount – Additional
“Monthly Average” Increase
for Tax Year Requirement
Compensation/Gross Wage
Requirement

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

$1,000 multicounty park
$1,000 Brownfields Voluntary Cleanup Program
10
Exception: 25-175 for qualifying service related
facilities; 20 for new hotels or motels
No, except for certain qualifying service related
facilities
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

Tax Limitation
Carryforward
Credit Duration
Period to Claim

50% of tax liability
15 years
5 years
Years 2 – 6 after job creation in Year 1, if jobs are
maintained

Base Year

Year preceding first year a taxpayer creates the
number of new jobs to qualify, regardless of
whether it is the first year of operation

48

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
Same

$1,500 - $25,000
(100% credit amount)
or $750 - $12,500
(50% credit amount),
depending on county
designation and
annualized
compensation
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)
Same
Same
Same
Years 2 – 6 after job
creation in Year 1, if
jobs are maintained
Same

Based on ≥ 120% or
< 120% per capita
income for State or
county (whichever is
lower)
Same
Same
Same
Years 1 – 5, if jobs
are maintained
Same