How did South Carolina Revenue Ruling 99-5 compute and claim the job tax credit?

View original ruling (PDF)

Plain-English summary

South Carolina Revenue Ruling #99-5 was a detailed historical manual for computing the job tax credit under S.C. Code § 12-6-3360. It has been expressly superseded by RR #25-5.

The ruling generally measured new jobs by comparing the taxpayer's monthly average of full-time employees in a county with the prior tax year's monthly average. Fractional increases were rounded down. The ordinary historical threshold was ten new full-time jobs, with different thresholds for specified tourism and qualifying service facilities.

For the law then in effect, the per-job credit depended on the county designation in the job-creation year, subject to rules for locking in a county designation and for multicounty industrial parks. The credit was first claimed in the year after job creation and generally continued for five years if the qualifying employment level was maintained.

The ruling also covered transferred employees, leased employees, half-time jobs, seasonal operations, short years, relocations, reorganizations, pass-through entities, additional jobs, the 50% income-tax-liability limit, a 15-year carryforward, and transitional rules for jobs created under pre-1996 law.

What this means for you

Employers and economic-development teams

The historical computation depended on much more than year-end headcount. The ruling used monthly averages, facility and industry qualifications, county location, creation timing, and job maintenance.

Payroll and tax departments

The taxpayer had to choose a consistent day each month for measuring full-time employees. Jobs shifted from another South Carolina location generally did not count, and leased workers generally were not employees of the taxpayer for this credit.

Tax professionals

This ruling is useful for understanding old credit periods and carryforwards, but RR #25-5 now supersedes it. Current eligibility, tier amounts, forms, and maintenance rules must be taken from current authority.

Common questions

Q: How did RR 99-5 measure new jobs?
A: It compared the tax year's monthly average full-time employment with the prior year's average and rounded the increase down to a whole number.

Q: Did hiring ten people late in the year automatically qualify?
A: No. The ruling's examples show that late-year hiring might not produce the required monthly average increase for the full tax year.

Q: When was the historical credit claimed?
A: Beginning on the return for the year after job creation, generally for five years if the jobs were maintained.

Q: Could the credit eliminate all income tax?
A: No. The ruling limited use of the job tax credit to 50% of the taxpayer's income-tax liability, after specified other credits.

Q: What happened to unused credit?
A: The ruling allowed a 15-year carryforward from the taxable year in which the credit was earned.

Q: Is RR 99-5 current?
A: No. RR #25-5 expressly superseded it.

Citations and references

• S.C. Code Ann. § 12-6-3360 — historical job tax credit rules addressed by RR #99-5
• S.C. Code Ann. § 12-6-3470 — family independence credit interaction discussed by the ruling
• S.C. Revenue Procedure #97-8 — cited authority for RR #99-5
• SC Revenue Ruling #25-5 — expressly superseded RR #99-5

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR99-5.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214

SC REVENUE RULING #99-5

SUBJECT:

Job Tax Credit Computation
(Income Tax)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous documents and any oral directives in conflict
herewith.

REFERENCES:

S. C. Code Ann. Section 12-6-3360 (Supp. 1998)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Supp. 1998)
SC Revenue Procedure #97-8

SCOPE:

A Revenue Ruling is the Department of Revenue’s official
advisory opinion of how laws administered by the Department
are to be applied to a specific issue or a specific set of facts, and
is provided as guidance for all persons or a particular group. It is
valid and remains in effect until superseded or modified by a
change in the statute or regulations or a subsequent court
decision, Revenue Ruling or Revenue Procedure.

INTRODUCTION
South Carolina Code §12-6-3360 provides a tax credit against South Carolina income tax
or insurance premium tax for a taxpayer creating new jobs in South Carolina.
Corporations, sole proprietorships, partnerships, S corporations, and limited liability
companies are eligible for the job tax credit.
To qualify for the job tax credit, a taxpayer must:

1. operate a manufacturing, tourism, processing, warehousing, distribution, research and
   development, qualifying service related facility, or a corporate office facility in South
   Carolina, or operate a retail facility or service related industry in a least developed
   county. Code §12-6-3360(A).

2. create the required monthly average minimum number of new jobs during a tax year.
In general, a facility of the taxpayer must increase employment by 10 new full time
jobs during a tax year. Code §12-6-3360(C). Exceptions to the 10 new full time job
requirement are:
(a) tourism facilities that consist of hotels and motels must create 20 new jobs. Code
§12-6-3360(K)(12).
(b) qualifying service related facilities must create at least:
(i) 250 jobs at a single location;
(ii) 125 jobs at a single location where the average cash compensation for those
jobs is 1.5 times the county average;
(iii) 75 jobs at a single location where the average cash compensation for those
jobs is 2 times the county average; or
(iv) 30 jobs at a single location where the average cash compensation for those
jobs is 2.5 times the county average. Code §12-6-3360(K)(13).
NOTE: A retail facility located in a least developed county, a service related industry
located in a least developed county, or a qualifying service related facility classified
as a health related facility under Standard Industrial Classification Code 80 located in
South Carolina must create only 10 new full time jobs. A qualifying service related
facility engaged in legal, accounting, investment services, or a taxpayer engaged in
retail sales qualifies for the credit only if located in a least developed county. Code
§§12-6-3360(A) and (M)(13).
A new job is a job created in South Carolina at the time a new facility or an expansion
is initially staffed, but generally does not include transferred or shifted employees.
Code §12-6-3360(M)(3).
The per capita income for each county is received annually from the Board of
Economic Advisors. The most recent data available is published annually by the
Department in a South Carolina Information Letter.
The amount of job tax credit available to a qualifying taxpayer is determined by the
following:
Ø the county where the taxpayer’s facility is located;
Ù the tax year in which the new jobs are created; and,
Ú the monthly average number of jobs created and maintained in a county. Code §12-63360(C).

2

The Department ranks South Carolina’s 46 counties each year for purposes of
determining the amount of the job tax credit.1 For jobs created in tax years beginning
after December 31, 1995 2 the amount of the credit for each new job is listed below.
Code §12-6-3360(B).
County Designation
(Location of Taxpayer)

Minimum New Jobs to Create

Credit Per New Job

Least Developed

10 (Note exceptions above)

$4,500 *

Under Developed

10 (Note exceptions above)

$3,500 *

Moderately Developed

10 (Note exceptions above)

$2,500 *

Developed

10 (Note exceptions above)

$1,500 *

*NOTE: The following are exceptions to the above credit amounts per new job:

1. A taxpayer located in a business or industrial park (“multi-county industrial park”)
   pursuant to Section 13 of Article VIII of the South Carolina Constitution is allowed an
   additional $1,000 credit per year for 5 years for each new job created. Code §12-63360(E).
2. The total credit that may be claimed in any tax year for an employee under the job tax
   credit and the family independence credit (Code §12-6-3470) is $5,500. However, an
   employer located in a least developed county who employs a former family
   independence payment recipient to work full time is allowed an additional $175
   family independence credit per qualifying employee for each full month during the 36
   months of employment without regard to the $5,500 limitation. Code §§12-6-3360(N)
   and 12-6-3470(B).

1

See Exhibit 1 for a list of county rankings and credit amounts for credits earned in tax years
beginning in 1996, 1997, and 1998 under the current law. The most recent rankings are published annually
in a South Carolina Information Letter.
2

CAUTION: For tax years beginning prior to 1996, South Carolina’s county designations and
credit amounts are substantially different than those listed. See the discussion in this document on
transitional rules and Exhibit 2 for a list of county rankings and credit amounts for 1987 through 1998 for
new jobs created before 1995 and increases in such jobs. The most recent rankings are published annually in
a South Carolina Information Letter.

3

The purpose of this ruling is to address some of the common questions that have arisen
concerning computation of the job tax credit. The Department is currently working on
another ruling concerning other aspects of the job tax credit, including a more detailed
analysis of the qualifications required to be eligible for the credit.
For ease of reading, this question and answer document is divided into the following
categories:
Ø Qualifying Taxpayers
Ù Determining Monthly Average
Ú Types of Qualifying New Jobs
Û County Designations and the Credit Amount
Ü Determining and Claiming the Credit
Ý Change in Business Operations
Þ Computing the Credit and Carryovers
ß Examples of Credit Computation Under the Current Law
à Pass Through Entity Rules
õ Transitional Rules
ìì Examples of Credit Computation for Transitional Rules
ìí Exhibits
Exhibit 1 - County Rankings from 1996 to 1998 (Current Law)
Exhibit 2 - County Rankings from 1987 to 1998 (Old Law)

IMPORTANT POINTS TO REMEMBER AND
ASSUMPTIONS USED IN EXAMPLES
T This ruling uses county designations, employment requirements, and credit amounts
effective for credits first earned in tax years beginning after 1995, unless otherwise
indicated. Be aware that the statute has been amended substantially since 1995 and
transitional rules may apply to jobs created before 1995 and increases in such jobs
occurring in or after 1995. The term “current law” is used to refer to the statute
currently in effect for new jobs and “old law” is used to refer to the statute prior to its
substantial amendment in 1995. Examples assume:

1. A taxpayer is a qualifying taxpayer required to create 10 new full time jobs and the
   taxpayer maintains all jobs in future years.
2. All new jobs are created by the taxpayer at the time the taxpayer’s new facility or
   expansion is initially staffed. For the purpose of this ruling, the word “job” means
   “new job.”
   4

3. Year 1 is the year of job creation that generates a job tax credit. Year 2
through Year 6 is the 5 year period the credit may be claimed on the income
tax return.

4. The jobs referred to are the total employees subject to withholding in the
   applicable county per month of the taxable year or per taxable year.
5. “Total employees” is the cumulative total of full time employees in each county
   for each month (number of employees in January plus the number in February,
   etc.). It is not the number of new jobs created each month. The term does not
   include any leased employees, transferred employees, or half time employees that
   do not qualify for the credit.
6. “Monthly average of full time employees” is the “total employees” divided by 12
   months or the actual number of months in operation during the current tax year.
7. The taxpayer is a calendar year taxpayer and is not located in a multi-county park,
   unless otherwise stated.

ØQUALIFYING TAXPAYERS
Question 1 - Definitions of Types of Taxpayers:
The job tax credit statute requires a taxpayer to operate a “manufacturing facility,”
“processing facility,” “warehousing facility,” “distribution facility,” “research and
development facility,” “corporate office facility,” “tourism facility,” or “qualifying
service related facility.” Each of these terms is defined in Code §§12-6-3360(M)(5)
through (13). In addition, the statute provides that taxpayers that operate retail facilities
and service related industries qualify for the job tax credit in least developed counties.
Code §12-6-3360(A).

5

ÙDETERMINING MONTHLY AVERAGE
Question 2 - Prior Year:
Q. What is the base or “prior” year?
A. The base year is the year preceding the first year a taxpayer creates the number of new
jobs necessary to qualify for the job tax credit, regardless of whether that year was the
first year of operation of the facility.
Question 3 - Number of New Jobs Required to Create:
Q. How is the number of new jobs determined?
A. In addition to the other requirements summarized in the introduction, the law requires
that a monthly average increase of 10 jobs or more for the tax year be created and
maintained for a taxpayer to qualify for the credit. Code §§12-6-3360(F)(1) and (M)(3).
See exceptions noted in the introduction of this ruling when a monthly average increase
of 20, 30, 75, 125, or 250 jobs must be created and maintained as required in Code §§126-3360(M)(12) or (13).
NOTE: When computing the increase in full time employees each year, the taxpayer must
round down to the lowest whole number of jobs, as illustrated below in Example A.

6

EXAMPLE A
This example is based on the following facts. The taxpayer:
Tis a manufacturer with one location in South Carolina
Tis a calendar year taxpayer
Tis initially staffing a new South Carolina facility and begins Year 1 with 0 employees
Tmaintains all jobs in Year 2

• Reminder: “Total employees” refers to the cumulative total of full time employees in each county for each
  month (number of employees in January plus number in February, etc.). It is not the number of new jobs
  created in each month.
  Case 1

Case 2

Case 3

MONTHS IN YEAR 1

CUMULATIVE
TOTAL OF
EMPLOYEES

CUMULATIVE
TOTAL OF
EMPLOYEES

CUMULATIVE
TOTAL OF
EMPLOYEES

January

10

2

25

February

10

3

25

March

10

4

25

April

10

4

30

May

10

5

35

June

10

5

50

July

10

6

50

August

10

8

15

September

10

9

10

October

10

10

9

November

10

20

8

December

10

30

8

TOTAL EMPLOYEES *

120

106

290

Divided by Months in Operation

12

12

12

Monthly Average of Full Time
Employees

10

8.83

24.17

Less: Prior Year Monthly Average

0

0

0

AVERAGE INCREASE IN FULL
TIME EMPLOYEES

10

8 **

24 **

QUALIFY FOR CREDIT

Yes

No

Yes

** NOTE: The increase in new jobs is determined by rounding down to the lowest whole number.

7

Case 1 illustrates that a monthly average of 10 jobs is required to qualify for the
credit.
Case 2 illustrates that creating more than 10 jobs near the end of the year does not
result in the creation of a monthly average of 10 jobs for the tax year as required to
qualify for the credit.
Case 3 illustrates that a taxpayer with less than 10 jobs at the end of the tax year may
qualify for the credit. However, for the credit to be claimed in Year 2 and subsequent
years, the monthly average total employment must be 10 or more in Years 2 - 6.
Question 4 - Periods to Use in Computing Monthly Average:
Q. What monthly periods are used to compute the monthly average?
A. The periods to compute the monthly average are the months that correspond to the
tax year of the taxpayer. A taxpayer may not choose any other 12 month period. (See
Question 5 for computing the monthly average when Year 1 is less than 12 months.)
The monthly average number of full time employees subject to withholding in the
applicable county for the taxable year is compared to the monthly average for the
prior taxable year. Code §12-6-3360(F)(1).
EXAMPLE B
Taxpayer

Tax Year

Monthly Periods to
Reflect on Form TC4

Calendar Year Taxpayer A

January 1 to December 31

January - December

Fiscal Year Taxpayer B

July 1 to June 30

July - June

This example illustrates that a taxpayer may not choose “any” 12 month period for
purposes of computing the job tax credit. For example, a calendar year corporation
hiring a majority of new employees in the fall and winter cannot choose to use any 12
month period, such as May to April or September to August to compute the monthly
average number of employees.
The Department has determined that a taxpayer must use an appropriate and justifiable
day in the month to determine the monthly number of full time employees, such as the
last day of each month. A taxpayer may also consider using the 12th day of each
month, since this employment total is a number reflected on the South Carolina
8

Unemployment Tax return, or consider using a regular pay day 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.
Question 5 - Computing Monthly Average if First Year in Operation is Less Than
12 Months:
Q. How is the monthly average number of jobs computed if a taxpayer’s first year in
operation is not a full 12 months?
A. The taxpayer may elect to compute the monthly average of full time employees in
the first year of operation by either of two methods:

1. Divide the total number of full time employees for “Year 1” on Form TC4, New
   Jobs Credit Form, by 12 months; or
2. Divide the total number of full time employees for “Year 1” on Form TC4 by the
   actual number of months in operation. Code §12-6-3360(F)(1).

9

EXAMPLE C
This example is based on the following facts. The taxpayer:
Tbegan operation at a new manufacturing facility on July 25, Year 1 (i.e., in operation for 6 months)
Tis a calendar year taxpayer
Method 1

Method 2

Data for Year 2

MONTH

Year 1

Year 1

Year 2

January

0

0

19

February

0

0

19

March

0

0

19

April

0

0

19

May

0

0

19

June

0

0

19

July

8

8

19

August

8

8

19

September

9

9

19

October

9

9

19

November

19

19

19

December

19

19

19

TOTAL EMPLOYEES

72

72

228

Divided by 12 Months or by
Months in Operation

12

6

12

Monthly Average for Year 1

6

12

Monthly Average for Year 2
Qualify for Credit

19
No

Yes

10

The taxpayer may elect to compute the monthly average using either Method 1 or
Method 2. The relevant lines on Form TC4, New Jobs Credit Form, for the taxpayer in
this example for Year 1 and Year 2 are completed as follows.
Method 1

Method 2

Prior
Year

Year 1

Year 2

Prior
Year

Year 1

Year 2

0

6

19

0

12

19

LINE 4: Previous
year average

0

6*

0

12 *

LINE 5: Average
increase in full
time employees
(Line 3 less 4)

6

13

12

7

LINE 3: Monthly
average of full
time employees

Summary of Method 1: In computing the monthly average increase for Year 2, the
monthly average of 6, the previous year (see Line 4, Year 2) is based on the monthly
average for Year 1 using a 12 month year of operation, instead of the actual months in
the first year of operation. The taxpayer does not qualify for the credit in Year 1, since
a minimum of 10 new jobs was not created, however, in Year 2, the taxpayer is eligible
to claim a credit for a 5 year period (Years 3 - 7) for 13 jobs, providing the jobs are
maintained.
Summary of Method 2: In computing the monthly average increase for Year 2, the
monthly average of 12, the previous year (see Line 4, Year 2) is based on the monthly
average for Year 1 using a 6 month year of actual operation. The taxpayer would
qualify for the credit in Year 1, since more than the minimum of 10 new jobs was
created and would be eligible to claim a credit in Years 2 - 6 for the 12 jobs created in
Year 1, providing the jobs are maintained. The 7 additional jobs created in Year 2
also qualify for the job tax credit for a 5 year period (Years 3 - 7), providing the jobs
are maintained.
NOTE: Although Method 2 is most advantageous in this example, the timing and
number of new jobs created in Year 1 could result in advantages in using Method 1.

11

Question 6 - Computing Monthly Average for a Seasonal Business:
Q. How is the monthly average number of new jobs computed if a business is
seasonal?
A. If a qualifying taxpayer is in operation for less than 12 months each year (e.g., a
seasonal business), the monthly average of full time employees is computed by
dividing the total number of full time employees by the actual number of months the
business is in operation. Code §12-6-3360(F)(1).
Question 7 - Creating Minimum Number of New Jobs in Several Years:
Q. If a taxpayer has an average increase of 8 new full time employees in Year 1 and
12 new full time employees in Year 2 (for a total of 20 jobs), what number of new jobs
qualify for the credit?
A. Since a monthly average of 10 new jobs is required in a year to qualify for the
credit, the 8 new job increase in Year 1 does not qualify for the credit. The 12 new job
increase in Year 2 (not the total increase of 20 new jobs) qualifies for the credit for 5
years beginning in Years 3 - 7. Code §12-6-3360(F)(1).

ÚTYPES OF QUALIFYING NEW JOBS
Question 8 - Transferred Jobs:
Q. Do jobs transferred from another facility or a related party qualify for the credit?
A. No. A “new job” 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 to or from a related party’s
facility. Code §12-6-3360(M)(3).
There is, however, an exception to this provision. Effective for tax years beginning
with 1997, a taxpayer may transfer jobs from one facility in South Carolina to another
facility of the taxpayer in a county in which an applicable federal facility, as defined in
Code §12-6-3450(A)(1)(b), is located. Currently, the only county with an applicable
federal facility is Aiken County. Code §12-6-3360(F)(2)(d).

12

Question 9 - Leased Employees:
Q. Do leased employees qualify as a new job for purposes of the credit?
A. Generally, leased employees do not qualify as a new job. Leased employees or
other employees of another company who are working for a qualifying taxpayer, such
as a manufacturing facility, do not qualify for the job tax credit. Only employees of
the taxpayer qualify for the credit.
However, a leasing company or temporary agency, i.e., a qualifying service related
facility, may qualify for the credit if it is located in a least developed county and it
creates and maintains a minimum monthly average of 10 jobs at the time its new
facility or expansion is initially staffed. Only employees working exclusively for and
at the facility of the leasing company or temporary agency qualify as a “new job”
under the job tax credit statute. Persons leased to other taxpayers do not qualify for the
credit. Code §§12-6-3360(A) and (F)(1).
Question 10 - Half Time Jobs:
Q. Do half time jobs qualify as a new job for purposes of the credit?
A. Effective April 6, 1995, the job tax credit statute was expanded to provide that 2
“half time” jobs are considered 1 “full time” job for purposes of the job tax credit. A
half time job requires at least 20 hours of an employee’s time a week. Code §12-63360(M)(4).

13

EXAMPLE D
This example is based on the following facts. The taxpayer:
Tis a manufacturer beginning operation in South Carolina in 1996
Thas a monthly average of 20 full time employees and 0 half time employees in calendar year 1996
Temploys 50 half time employees beginning in January 1997 and employment figures remain level for
subsequent years.
Reminder: Effective April 6, 1995, the statute was expanded to provide that two half time jobs qualify as
one full time job.

For the 1997 tax year, what is the average increase in full time employees for job tax
credit purposes?
Monthly
Average of Full
Time Jobs in
1996

Number of
Full Time Jobs

Number of
Half Time Jobs

Total Jobs for
Credit Purposes

20

0

20

Month in 1997

Number of
Full Time Jobs

Number of
Half Time Jobs

Total Jobs for
Credit Purposes

January
February
March
April
May
June
July
August
September
October
November
December

20
20
20
20
20
20
20
20
20
20
20
20

50
50
50
50
50
50
50
50
50
50
50
50

45 (See Note a)
45
45
45
45
45
45
45
45
45
45
45

Total Employees

540

NOTE a: The 50 half time jobs created are equivalent to 25 full time jobs and are
added to the 20 full time jobs. This results in a total of 45 “full time” jobs counted for
credit purposes.

14

For the 1997 tax year, the average increase in full time employees, 25, that qualify for
the credit is determined as follows:
Total employees

540

Divided by months in operation

12

Monthly average of full time and equivalent employees

45

Less: Previous year average

20

Average increase in full time and equivalent employees

25

EXAMPLE E
Same facts as above in Example D. Additional facts are:
Tin 1998, the taxpayer hires 40 of the 50 half time employees as full time employees
Tthe other 10 half time employees continue as half time employees
Temployment figures remain level for subsequent years

For the 1998 tax year, what is the average increase in full time employees for job tax
credit purposes?
Year

Monthly Average
Number of Jobs

Year

Monthly Average
Number of Jobs

1997

20 full time
25 full time equivalents (50 half
time jobs)
45 jobs for credit purposes

1998

20 full time
40 full time that were former half time
5 full time equivalents (10 half time)
65 jobs for credit purposes

In this example, the taxpayer created 20 new jobs in 1998 (monthly average of full
time employees of 65 in 1998 less the 1997 monthly average of 45 jobs). If
maintained, these 20 jobs will result in a job tax credit in 1999.

15

Question 11 - Tourism Facility:
Q. How is the credit computed for a tourism facility required to create 20 new jobs?
A. The credit is computed in the same way as explained in this document for a
taxpayer required to create a monthly average increase of 10 new jobs. All references
to 10 new jobs should be substituted with 20 new jobs. Code §§12-6-3360(C), (F)(1),
and (M)(13).
Question 12 - Qualifying Service Related Facility:
Q. How is the credit computed for a qualifying service related facility required to
create 30, 75, 125, or 250 new jobs?
A. The credit is computed in the same way as explained in this document for a
taxpayer required to create a monthly average increase of 10 new jobs. All references
to 10 new jobs should be substituted with 30, 75, 125, or 250 new jobs at a single
location depending on the average cash compensation level for those jobs. Code §§126-3360(C), (F)(1), and (M)(13). An Information Letter has been issued providing the
per capita income for each county and will be updated annually as information is
received from the Board of Economic Advisors.

ÛCOUNTY DESIGNATIONS AND THE CREDIT AMOUNT
Question 13 - Credit Computed by County:
Q. Is the credit computed on a county or statewide basis?
A. Generally, the credit is computed on a county by county basis. For administrative
ease of computing the credit, it is suggested that a separate Form TC4, New Jobs
Credit Form, be filed for each county in which a taxpayer has a facility qualifying for
the job tax credit. Code §§12-6-3360(C) and (F)(1). See Question 14 for an exception
to the county by county netting rule for jobs created by a taxpayer investing $50
million or more.

16

EXAMPLE F
Case 1
Counties in operation

Case 2

Case 3

ABC
County

DEF
County

ABC
County

DEF
County

ABC
County

DEF
County

Average increase or
(decrease) in full time
employees

5

5

20

(15)

20

(50)

Jobs qualify for credit

No

No

Yes

No

Yes

No

County rankings:
ABC - Least developed
DEF - Developed

Case 1 illustrates that a taxpayer may not aggregate new jobs in more than one county
to show a net increase of 10 jobs statewide.
Case 2 illustrates that a taxpayer may qualify for a job tax credit in one county with an
average increase in employment of 10 or more new jobs even if the taxpayer reduced
employment in another county that resulted in a statewide aggregate job increase of
less than 10 jobs.
Case 3 illustrates that a taxpayer may qualify for a job tax credit in one county with an
average increase in employment of 10 or more new jobs even if the taxpayer reduced
employment in another county that resulted in a statewide aggregate job decrease.
NOTE: A taxpayer may not transfer employees from one county to another county to
create a qualifying job increase.
Question 14 - Computing Monthly Average for Large Investors
Q. How is the monthly average number of jobs computed if a taxpayer invests $50
million at a single site within 3 years?
A. Effective for tax years beginning with 1997, a taxpayer investing at least $50
million at a single site within a 3 year period may elect to determine the number of
new jobs created by using the monthly average number of jobs created at that one site.
The term “single site” is defined as a stand-alone building whether or not several stand
alone buildings are located in one geographical location. Accordingly, a qualifying
taxpayer is not required to net job increases and job decreases occurring in the same
county. Code §§12-6-3360(F)(2)(a), (b), and (c).

17

Question 15 - County Ranking List:
Q. Where are the rankings of each county listed?
A. Each year, the Department issues an Information Letter ranking South Carolina’s
46 counties for purposes of the job tax credit. The rankings published reflect the final
county rankings for the year after making all adjustments to county designations
required by the statute. The rankings are done in December for the next tax year. The
ranking of counties for tax years beginning in 1987 through 1998 are in Exhibits 1 and

2. Code §12-6-3360(B).
   Question 16 - Locking-In County Designation:
   Q. If a taxpayer is planning to locate or expand its labor force in South Carolina in
   future years, what county designation is used to calculate the credit upon creation of
   the new jobs?
   A. In general, the job tax credit amount is based upon the designation of the county
   during the year in which the new jobs are actually created. A taxpayer may, however,
   “lock in” the county designation at the time of its planned expansion or location into
   South Carolina. By filing Form SC616, the taxpayer notifies the Department 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. The
   Department will then “lock in” the county designation for the year or years indicated
   on Form SC616, regardless of whether the county designation changes during the year
   in which the jobs are actually created.
   Form SC616 is valid for all new jobs created during the original 5 year job tax credit
   period. Additionally, any increases in new jobs occurring during this original 5 year
   credit period are automatically included in the “lock in” period. A subsequent Form
   SC616 may be filed to “lock in” the county designation for other planned facilities or
   expansions.
   Form SC616 must be filed before the initial staffing of the new facility or expansion
   begins. Also, a copy of Form SC616 should be included with the taxpayer’s South
   Carolina income tax return each year the job tax credit is claimed. Code §12-63360(J).

18

To notify the Department of the planned expansion, a taxpayer should mail Form
SC616 to the following address:
South Carolina Department of Revenue
Office Services Division/Research and Review
Columbia, SC 29214-0019
EXAMPLE G
Case 1

Case 2

Case 3

Case 4

County designation
at time of planned
expansion

least developed

moderately
developed

moderately
developed

least
developed

Credit per job at this
designation

$4,500

$2,500

$2,500

$4,500

County designation
at time of job creation
(Year 1)

moderately
developed

least
developed

least developed

moderately
developed

Credit per job at this
designation

$2,500

$4,500

$4,500

$2,500

Form SC616 filed

yes

yes

no

no

County designation used to
determine credit

least developed

least
developed

least developed

moderately
developed

$4,500
Credit amount to be
claimed by taxpayer

$4,500
$4,500

$2,500

This example illustrates the beneficial use of Form SC616 to the taxpayer. Case 2
illustrates that the “lock in” of a county designation is not detrimental to a taxpayer
(i.e., the “lock in” period is ignored if the credit amount increases from the time Form
SC616 is filed to the year in which the jobs are actually created.) However, not filing a
Form SC616 to establish a “lock in” period may result in a lower credit amount in
future years when the new jobs are created, as illustrated in Case 4.

19

Question 17 - County Designation Changes in Year 2:
Q. What credit amount is a taxpayer eligible to claim in Year 2 (the first year of
claiming the credit on the tax return) if the county designation changes from Year 1
(the year of new job creation)?
A. The credit is based on the following:

1. If a Form SC616 is filed, then the credit is based on the county designation below
   that results in the highest dollar credit amount:
   (a) the county designation at the time Form SC616 is filed, or
   (b) the county designation at the time the new jobs are created in Year 1. Code
   §12-6-3360(J).
2. If a Form SC616 is not filed, then the credit amount is based on the county
   designation at the time the new jobs are created in Year 1. Code §12-6-3360(C).
   In either instance, the credit created in Year 1 that is claimed in Years 2 through 6 is
   not affected by any future redesignation of the county in which the taxpayer is located
   for the jobs created in Year 1.
   EXAMPLE H
   This example assumes a Form SC616 is not filed and the taxpayer maintains all jobs in future years.
   Case 1 - ABC County

Case 2 - XYZ County

County designation at time of job
creation in Year 1

moderately developed

under developed

Credit per job at this designation

$2,500

$3,500

New jobs created in Year 1

10

25

County designation in Year 2

developed

least developed

Credit per job at this designation

$1,500

$4,500

Credit amount to be claimed in
Years 2 - 6

$2,500

$3,500

20

Case 1 illustrates that the job tax credit of $2,500 for each of the 10 new jobs is
allowed based on the designation of the county at the time the new jobs were created in
Year 1, although the credit amount for the county designation decreased to $1,500 the
following year when the credit is claimed on the income tax return.
Likewise, Case 2 illustrates that the job tax credit of $3,500 for each of the 25 new
jobs is allowed based on the county designation at the time the new jobs were created
in Year 1, even though the credit amount increased to $4,500 the following year when
the credit is claimed on the income tax return.
Question 18 - County Designation Change from Year 1 and Credit Amount for
Additional New Jobs:
Q. What credit amount is a taxpayer eligible to claim for additional new jobs created
in Years 2 - 6 if the county designation changes from Year 1 (the year of the initial job
increase)?
A. The credit amount for any number of additional new jobs created is based on the
following:

1. If Form SC616 is filed, then the credit is based on the county designation below
   that results in the highest dollar credit amount:
   (a) the county designation at the time Form SC616 is filed, or
   (b) the county designation for the year the additional new jobs are created. Code
   §12-6-3360(J); or
2. If Form SC616 is not filed, the county designation for the year the additional new
   jobs are created. Code §12-6-3360(D).
   For administrative ease of computing the credit, it is suggested that a separate Form
   TC4, New Jobs Credit Form, be filed for each county designation when claiming the
   credit for years in which the county designation has changed.

21

EXAMPLE I
Case 1 - ABC County

Case 2 - XYZ County

County designation at time of job
creation (Year 1)

moderately developed

under developed

Credit per job at this designation

$2,500

$3,500

Number of new jobs created in Year 1

10

25

County designation in Years 2 - 6

developed

least developed

Credit per job at this designation

$1,500

$4,500

Number of new jobs created in Year 4

12

7

Credit to be claimed for each new job
created in Year 4 if Form SC616 is not
filed prior to creation of any jobs

$1,500

$4,500

Credit to be claimed for each new job
created in Year 4 if Form SC616 is
filed prior to creation of any jobs

$2,500

$4,500

Case 1 illustrates that the additional 12 new jobs created are eligible for the credit at
$1,500 per job because Form SC616 is not filed, while the initial 10 new jobs are
eligible for the credit at $2,500 per job. Since the credit amount is based on two
different county designations, two Form TC4’s should be filed. NOTE: If Form
SC616 was timely filed, the higher credit amount of $2,500 is claimed and only one
Form TC4 should be filed.
Case 2 illustrates that although less than 10 additional new jobs were created in a
subsequent year after qualifying for the credit and during the existing 5 year credit
period, credit may be claimed for the 7 additional new jobs. A credit for the 7 new
jobs is allowed at $4,500 per job, even though the initial 25 new jobs are allowed a
credit of $3,500. The result is the same if Form SC616 is filed or not.

22

Question 19 - Relocation During Credit Period:
Q. If a taxpayer relocates its permanent location from one county to another county
with a different county ranking for purposes of the job tax credit, what dollar amount
per new job may be claimed?
A. A taxpayer relocating it’s permanent location must claim the job tax credit for
existing jobs created at the former location based upon the designation of the county at
the new location. For the year of the relocation, the credit is based upon the county
designation for that year and not the previous year the jobs were created. Any number
of additional new jobs created at the new county location are allowed the credit based
on the county designation for the new county for the year the additional new jobs are
created. A Form SC616 previously filed for the former county is disregarded upon
permanent relocation of the taxpayer. Code §12-6-3360(C).
EXAMPLE J
This example assumes the taxpayer relocates to another county in Year 4 of the credit and maintains all jobs.
Case 1 - ABC County

Case 2 - XYZ County

County designation at time of job creation
at former location (Years 1-3)

moderately developed

under developed

Credit per job at this designation

$2,500

$3,500

Number of new jobs created in Year 1

10

25

County designation at new location in
Years 4 - 5

developed

least developed

Credit per job at this designation

$1,500

$4,500

Number of new jobs created in Year 4

12

7

Credit to be claimed in Years 2 and 3 for
each of the 10 new jobs created in Year 1

$2,500

$3,500

Credit to be claimed in Years 4, 5, and 6
for each of the 10 new jobs created in
Year 1

$1,500

$4,500

Credit to be claimed in Years 5 - 9 for
each of the 12 new jobs created in
Year 4

$1,500

$4,500

23

Case 1 illustrates that a taxpayer choosing to relocate must claim a lower credit amount
for the year of the relocation and the remaining years of the original job tax credit for
jobs created in the former county.
Case 2 illustrates that a taxpayer choosing to relocate may claim a higher credit amount
for the year of the relocation and the remaining years of the original job tax credit for
jobs created in the former county.

ÜDETERMINING AND CLAIMING THE CREDIT
Question 20 - Credit Form to File:
Q. What form is used to compute and claim the job tax credit?
A. South Carolina Form TC4 is used to compute and claim the job tax credit.
Computer designed forms or spreadsheets are acceptable in lieu of Form TC4,
providing all information on Form TC4 is reflected on the substitute form. Several
versions of Form TC4 exist in order to reflect changes in the job tax credit statute over
the years. Each version of the form shows the date revised. Use caution to ensure the
appropriate form is being used.
Question 21 - Year Credit is Claimed:
Q. When is the credit claimed?
A. The credit is claimed on the taxpayer’s tax return for 5 years (Years 2 - 6)
beginning in the year following the creation of the new jobs (Year 1), provided the
jobs are maintained. The credit is not claimed in the year the new jobs are created.
For example, qualifying new jobs created in the 1998 tax year generate a credit
available for first use on the 1999 tax return. (See Question 27 for determining when
the credit is claimed for additional new jobs created.)

24

Question 22 - Multi-County Industrial Park:
Q. How does the location of a taxpayer in a multi-county industrial park affect the job
tax credit?
A. A taxpayer located in a multi-county industrial park is allowed an additional
$1,000 credit for each new full time job created for 5 years beginning in the year
following the creation of the new job, provided the new jobs are maintained.
To calculate the total credit, first determine the amount of credit a taxpayer is entitled
based on the actual county of location. Then, increase this amount by $1,000 for each
new job created. The rankings of other counties in the multi-county industrial park do
not affect the amount of the credit. Code §12-6-3360(E).
NOTE: If a multi-county industrial park is designated as such during the taxpayer’s tax
year, then all qualifying new jobs created during that year are allowed the additional
$1,000 credit. Jobs created in tax years prior to the multi-county park designation do
not qualify for the additional $1,000 credit. Code §12-6-3360(M)(3).
EXAMPLE K
Counties in Park

County Ranking

Credit per County

A

Least Developed

$4,500

B

Under Developed

$3,500

C

Moderately Developed

$2,500

County of taxpayer location - C
Credit - Regular credit based on taxpayer county location $2,500
Additional credit for locating in a park
TOTAL CREDIT per new job created in Year 1

$1,000
$3,500

25

Question 23 - Income Tax Limitations of Credit:
Q. Does the credit have any income tax limitations based upon the taxpayer’s taxable
income?
A. Yes. The job tax credit may not exceed 50% of the taxpayer’s income tax liability
each year. Code §12-6-3360(A). See Questions 33 and 34 for income tax limitations
of the credit earned by pass through entities.
Question 24 - Claiming Credit When $0 Tax Liability:
Q. If a taxpayer has a loss or no South Carolina taxable income for the year, should
the credit be computed and Form TC4 be filed with the tax return?
A. Yes. The taxpayer is required to file an income tax return even if there is no South
Carolina tax liability. Form TC4 should be completed and attached to each year’s tax
return, even if there is no South Carolina taxable income. This allows the taxpayer to
claim the credit and establish a credit carryforward. Code §12-6-3360(H).

ÝCHANGE IN BUSINESS OPERATIONS
Question 25 - Short Tax Year:
Q. How does a short tax year affect the computation of the credit?
A. A short tax year counts as one of the 5 credit years for purposes of claiming the job
tax credit. In determining the monthly average for a short tax year, the taxpayer should
divide by the number of months in the short tax year. Code §12-6-3360(F)(1).

26

EXAMPLE L
This example is based on the following facts.
TThe taxpayer is a manufacturer beginning operation on February 1, 1996
TThe taxpayer is a South Carolina subsidiary of a group of corporations filing a combined return with a year end of 1/30
TThe subsidiary leaves the group on June 30, 1998 creating a short tax year and maintains all jobs
Year End 1/31/97

Year End 1/31/98

Short Year End 6/30/98

MONTH

Number of full time
employees

Number of full time
employees

Number of full time
employees

February

50

50

55

March

50

50

55

April

50

50

55

May

50

50

55

June

50

50

55 Return filed

July

50

50

August

50

50

September

50

50

October

50

50

November

50

50

December

50

50

January

50

50

TOTAL EMPLOYEES

600

600

275

Divided by months in operation

12

12

5

Monthly average of full time
employees

50

50

55

AVERAGE INCREASE IN FULL
TIME EMPLOYEES

50

0

5

This example illustrates that the taxpayer may claim credit for the 50 new jobs created
in the fiscal year ending January 31, 1997 (Year 1) the following year on its tax return
filed for the year ended January 31, 1998 (Year 2). The next year of the 5 year credit
period for the 50 jobs maintained is claimed on its tax return for the short period ended
June 30, 1998 (Year 3). The taxpayer claims the entire credit amount, not a prorated
amount, during the short period. NOTE: The short period constitutes a “year” of the 5
year credit period. The additional new jobs created in the short period ended June 30,
1998 and maintained are claimed on the tax return for the following year.

27

Question 26 - Business Reorganization or Sale of Assets:
Q. If a taxpayer buys the assets of an existing business, how is the credit of the
existing taxpayer affected?
A. The merger, consolidation, or reorganization of a taxpayer where tax attributes
survive does not create new eligibility in a succeeding taxpayer, but unused credits
may be transferred to and continued by the succeeding taxpayer. In addition, a
taxpayer may assign its rights to the job tax credit to another taxpayer if it transfers all,
or substantially all, of the assets of a business or operating division related to the
generation of the credit to another taxpayer and the required number of new jobs is
maintained. Code §12-6-3360(I).

ÞCOMPUTING THE CREDIT AND CARRYOVERS
Question 27 - Credit for Additional New Jobs:
Q. If a taxpayer currently qualifies for the credit and creates additional new jobs
during the 5 year credit period, is a credit allowed for these additional new jobs?
A. Yes. Once a taxpayer is eligible to claim the job tax credit, there is no requirement
to increase the number of jobs during the existing 5 year credit period beyond the
initial average increase of 10. During the 5 year credit period, a credit is also allowed
for additional new jobs created for 5 years beginning in the year following the year in
which the qualifying additional new jobs were created. Code §12-6-3360(D).
EXAMPLE M
Year 1

Year 2

Year 3

Year 4

Line 1: Average increase in employees

12

2

1

11 *

Line 2: Jobs qualify for credit

yes

yes

yes

yes

Line 3: Total number of new jobs

12

14

15

26

Line 4: Years to claim credit for the new
jobs created in Line 1 for the stated year

2-6

3-7

4-8

5-9

28

This example illustrates that when a taxpayer qualifies for the credit by creating 10 or
more new jobs in Year 1 and maintaining these new jobs in future years, and then
creates additional new jobs in future years in the credit period, the taxpayer is allowed
a credit for increases in new jobs created during the initial 5 year credit period, even
for increases less than 10.

• In Year 4 of this example, if the taxpayer adds a second facility in the county that
  results in the creation of 11 new jobs during the initial 5 year credit period, the
  taxpayer may choose to treat these new jobs at the second new facility as additional
  increases of the existing credit or choose to start a new 5 year credit period.
  The following illustrates the proper computation of the number of new jobs on SC
  Form TC4 assuming all jobs are part of the original credit.
  Year 1 Increase
  Year 2 Increase
  Year 3 Increase
  Year 4 Increase
  Year 5 Increase
  Number of New
  Jobs Credit

Year 2
12

12

Year 3
12
2

14

Year 4
12
2
1

15

Year 5
12
2
1
11

Year 6
12
2
1
11
0

Year 7

Year 8

Year 9

2
1
11
0

1
11
0

11
0

26

26

14

12

11

Question 28 - Credit Not Allowed if Employment Falls Below Minimum:
Q. Is a credit allowed in the current year or any subsequent year that the average job
increase falls below the minimum monthly average of 10?
A. No. The initial minimum monthly average job increase of 10 new jobs must be
maintained to claim the credit. For example, if a monthly average of 10 jobs are
created in the current year (1998) and only a monthly average of 8 jobs are maintained
in 1999 (Year 2), no job tax credit is allowed for the 1999 tax year. Code §12-63360(G).
Question 29 - Carryforward Period:
Q. Does the credit have a carryforward period?
A. Yes. Any unused credit may be carried forward for 15 years from the taxable year
in which the credit is earned. Code §12-6-3360(H).

29

Question 30 - Failure to Claim Credit:
Q. If a taxpayer failed to claim the job tax credit in a year now closed under the statute
of limitations, can any of the credit be carried forward from the closed year to an open
year?
A. Yes. A taxpayer may file an amended return and claim the “unused credit” for the
periods that are open under the statute of limitations as set forth below.
In determining the available carryforward from a closed year, the taxpayer is treated as
if the credit had been properly claimed in the closed year. Only the amount of credit
which would have been a carryforward if the credit had been properly claimed in that
closed year is eligible for carryforward. Code §§12-6-3360(C) and (H). See also
Revenue Ruling 82-49, 1982-1 C.B. 5.
EXAMPLE N
This example is based on the following facts. The taxpayer:
Tis a calendar year corporate taxpayer
Tfiled all tax returns timely on the due date
Tamended the 1994, 1995, and 1996 South Carolina tax returns on March 15, 1998 to claim the $4,000,
$2,000, and $2,000 unused job tax credit, respectively
Tcreated the required number of new jobs in 1992 and maintains the jobs in all years
Tax Year

Original Credit
Earned

Tax Liability

Credit Limited
to 50% of Tax

Credit Available to
Carryforward on
Amended Return

1993

$15,000

$10,000

$5,000

$10,000*

1994

$0

$ 8,000

$4,000

$ 6,000

1995

$0

$ 4,000

$2,000

$ 4,000

1996

$0

$ 4,000

$2,000

$ 2,000

1997

$0

$ 4,000

$2,000

$0

This example illustrates that although a $15,000 credit was originally earned in 1993,
only $10,000* is available to carryforward since the 1993 period is now closed under
the statute of limitations; the $5,000 credit that should have been claimed on the 1993
tax return is lost and not available for carryforward. On the amended returns, the
taxpayer is able to claim a $4,000 credit in 1994, a $2,000 credit in 1995, and a $2,000
credit in 1996. NOTE: This example illustrates the use of the carryforward of the
original credit earned in 1993 and does not include any additional credits earned
during 1994 through 1997.
30

Question 31 - Carryforward of Credit When Maintaining Less Than 10 New Jobs:
Q. If the minimum level falls below 10 jobs, can a credit earned in a prior year be
carried forward?
A. Yes. Once the credit is earned it may be carried forward. For example, in Year 1 a
taxpayer in a least developed county creates 10 new jobs and qualifies for a $4,500 per
new job credit. During Year 2, the 10 new jobs are maintained and a $45,000 credit is
generated. In Year 3, the taxpayer falls below the minimum number of 10. The
taxpayer has no tax liability in Years 2 or 3. The taxpayer has a credit carryforward
from Year 2 of $45,000 even though the jobs are not maintained in Years 3 through 6.
NOTE: (1) The jobs must be maintained in Year 2 to qualify for the credit and (2) no
credit is earned in Years 3, 4, and 5 (see Question 28.) Code §§12-6-3360(G) and (H).

ßEXAMPLES OF CREDIT COMPUTATION - CURRENT LAW
The following 2 examples show the proper completion of SC Form TC4.

31

EXAMPLE 0
SC NEW JOB TAX CREDIT

LINE 1: TOTAL EMPLOYEES3

Prior
Year

Year
1

Year
2

Year
3

Year
4

Year
5

0

144

168

180

156

270

288

300

324

348

12

12

12

12

12

12

12

12

12

12

12

12

14

15

13

22

24

25

27

29

26

28

0

12

14

15

13

22

24

25

27

29

26

12

2

1

(2) a

9

2

1b

2

2

(3)

2

Year
11

Year

LINE 2: DIVIDED BY: NUMBER
OF MONTHS IN
OPERATION
12
LINE 3: MONTHLY AVERAGE
OF FULL TIME
EMPLOYEES
0
LINE 4: LESS: PREVIOUS YEAR
AVERAGE
LINE 5: AVERAGE INCREASE IN
FULL TIME EMPLOYEES

Year
6

Year
7

Year
8

Year
9

Year
10
312

Year
11
336

COMPUTATION OF EMPLOYEES ELIGIBLE FOR CREDIT

2
LINE 6: YEAR 1 INCREASE

Year
3

Year
4

Year
5

Year
6

Year
7

12

12

12

12

12

2

2

2

2

2

(1) a

(1)

(1)

(1)

(1)

0a

0

0

0

0

9

9

9

9

9

2

2

2

2

2

0

0

0

0

0

0

0

0

0

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

Year
8

YEAR 7 INCREASE

Year
9

YEAR 8 INCREASE

Year
10

YEAR 9 INCREASE
YEAR 10 INCREASE
LINE 12: NUMBER OF
NEW JOBS CREDIT
(Add Lines 6 through 11)

0

12

14

13

13

22

12

10

11

11

2

NOTE a: The average decrease of 2 jobs in Year 4 (Line 5) must be considered in determining the Line 8 Year 3
amount, i.e., the taxpayer does not get credit for the 1 job created in Year 3. The Line 9 Year 4 amount is zero since
Year 4 (Line 5) has a job decrease.
NOTE b: The new jobs created in Years 7 through 11 (Line 5) do not qualify for the credit since the 5 year credit for
the initial 12 job increase in Year 1 (claimed in Years 2 through 6) has expired.

3

Total employees is the cumulative total of full time employees in each county for each month (number of employees in January plus
number in February, etc.). It is not the number of new jobs created each month.

32

EXAMPLE P
SC NEW JOB TAX CREDIT

1996

1997

1998
Prior
Year

1999
Year
1

2000
Year
2

36

144

252

396

420

432

432

456

LINE 2: DIVIDED BY: NUMBER
OF MONTHS IN
OPERATION
12

12

12

12

12

12

12

LINE 3: MONTHLY AVERAGE
OF FULL TIME
EMPLOYEES

12

21

33

35

36

LESS: PREVIOUS YEAR
AVERAGE

3

12

21

33

LINE 5: AVERAGE INCREASE IN
FULL TIME EMPLOYEES

9

9a

12

2

LINE 1: TOTAL EMPLOYEES4

LINE 4:

3

2001
Year
3

2002
Year
4

2003
Year
5

2004
Year
6

2005
Year
7

468

600

12

12

12

36

38

39

50

35

36

36

38

39

1

0

2

1

11 b

COMPUTATION OF EMPLOYEES ELIGIBLE FOR CREDIT

LINE 6: YEAR 1 INCREASE

Year
2

Year
3

Year
4

Year
5

Year
6

12

12

12

12

12

2

2

2

2

2

1

1

1

1

1

0

0

0

0

0

2

2

2

2

2

1

1

1

1

1

6

4

3

3

1

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 CREDIT
(Add Lines 6 through 11)

12

14

15

15

17

Year
7

Year
8

Year
9

Year
10

Year
11

NOTE a: The taxpayer begins operation in South Carolina in 1996. There is no qualifying job increase in 1996 or 1997 since the
minimum average job increase of 10 is not met. The base or prior year is 1998 since it is the year preceding the year in which the
taxpayer qualifies for the credit. See Question 2 for an explanation of the base or prior year.
NOTE b: The new jobs created in Year 7 do not qualify for the credit since the 5 year credit period for the initial 12 job increase in
Year 1 has expired. However, since the Year 7 (Line 5) increase of 11 new jobs is the result of a new expansion, it will create a
new credit period. In that case, the taxpayer will treat the additional new jobs as a new credit with a new 5 year period (new Year 2
through 6) and will compute it on a second Form TC4, not illustrated in this example. See Question 27.

4

Total employees is the cumulative total of full time employees in each county for each month (number of employees in January plus
number in February, etc.). It is not the number of new jobs created each month.

33

àPASS THROUGH ENTITY RULES
Question 32 - Pass Through of Credit & Effective Date:
Q. Does the job tax credit pass from an S-corporation, partnership, or limited liability
company (LLC) taxed as a partnership or S-corporation to its shareholders, partners, or
members?
A. Yes. Effective July 1, 1995, the job tax credit statute was amended to allow the
pass through of the credit by a qualifying S-corporation, partnership, or LLC taxed as a
partnership or S-corporation to a shareholder, partner, or member, respectively. The
credit passes through as a nonrefundable credit against taxes imposed under Code §126-510 (income of individuals, estates, and trusts). The pass through of the job tax
credit is allowed for all new jobs created during the 1995 taxable year (i.e., credits
claimed in 1996) and thereafter. Code §12-6-3360(K)(1). NOTE: Since the statute
allows a credit against taxes imposed under Code §12-6-510 and corporations are
taxed under Code §12-6-530, the credit does not pass through to partners or members
subject to corporate tax. See Question 38 for a discussion of the transitional rules
pertaining to the pass through of the job tax credit.
Question 33 - Computing Credit to Pass Through:
Q. How is the amount of the pass through credit by the S-corporation, partnership, or
LLC taxed as a partnership or S-corporation determined?
A. The credit is determined and computed in the same manner as a qualifying Ccorporation, except the credit computation is not affected by the entity’s income or
loss. In order to qualify for the credit, the entity (1) must be a qualifying taxpayer,
e.g., it must operate a manufacturing, tourism, processing, warehousing, distribution,
research and development, qualifying service related facility, or a corporate office
facility, or a qualified service related industry or retail facility in a least developed
county, and (2) must create and maintain the required minimum number of new jobs.
Code §12-6-3360(K)(2).

34

EXAMPLE Q
This example is based on the following facts. The taxpayer creating the new jobs:
Tis a partnership engaged in manufacturing in a developed county
Thas three, equal, individual partners
Tcreates and maintains 10 jobs in the 1996 tax year
Partnership income
Partnership deductions
South Carolina tax liability

$500,000
$150,000
$0

Job tax credit earned

$15,000 ($1,500 x 10 new jobs)

Job tax credit passed through

$5,000 per equal partner

This example illustrates that the credit is computed in the same manner as a Ccorporation. NOTE: The credit computation is not affected by the partnership’s
income and is not limited to 50% of the partnership’s income tax. The answer would
be the same if the partnership had a $500,000 South Carolina loss.
Question 34 - Use of Credit by Partner, Shareholder, or Member:
Q. What income of the partner, shareholder or member does the credit offset?
A. The credit may be used against all South Carolina income tax reported by the
partner, shareholder, or member that is subject to tax imposed by Code §12-6-510. It
is not limited to use only against the partnership, S-corporation, or limited liability
company income that passed through the credit. Further, if the partner, shareholder, or
member files a joint income tax return, the credit may be used to offset the income of
both spouses, even if only one spouse is the partner, shareholder, or member. The
credit is limited to 50% of the partner’s, shareholder’s, or member’s income tax
liability or married couple’s income tax liability. Code §12-6-3360(K)(3).
NOTE: South Carolina has adopted the provisions of Internal Revenue Code §465
(deductions limited to amount at risk), however, Internal Revenue Code §465 does not
apply in this instance to limit the South Carolina job tax credit to an individual in a
passive activity.

35

EXAMPLE R
This example is based on the following facts. The taxpayer creating the new jobs:
Tis an S-corporation engaged in manufacturing in a developed county
Thas one individual shareholder
Tcreated 10 new jobs in the 1996 tax year, maintains all jobs, and earned a $15,000 job tax credit
Thas a South Carolina corporate tax liability due to the built in gains tax (IRC §1374 and Code §12-6590) and is subject to tax under Code §12-6-530
South Carolina income tax liability on SC Form 1120S
Job tax credit earned by S-corporation

$10,000
$15,000

Job tax credit used by S-corporation (50% tax liability)
Job tax credit balance passed through to shareholder

$5,000
$10,000

South Carolina individual tax liability on SC Form 1040

$6,000

Credit limited to use by shareholder (50% tax liability)

$3,000

Credit carryforward by shareholder

$7,000

This example illustrates that an S-corporation must first use the job tax credit against
the entity income tax after computing the entity’s 50% income tax limitation and then
must pass through the remaining credit to the shareholder who will also apply his 50%
income tax limitation at the shareholder level. Once the credit is passed through to the
shareholder, it may not be later used by the S-corporation.
If the S-corporation had a $10,000 loss and no South Carolina income tax liability, the
answer would change. The loss would pass through to the shareholder and the entire
$15,000 job tax credit would pass through to the shareholder and be limited to 50% of
the shareholder’s income tax liability or joint income tax liability.

36

EXAMPLE S
This example is based on the following facts. The taxpayer:
Tis an individual shareholder in an S-corporation that passed through a job tax credit
Tfiles a joint South Carolina tax return for 1998
Shareholder’s joint South Carolina tax liability on SC Form 1040
Job tax credit passed through from S-corporation

$6,000
$5,000

Credit limited to use by shareholder (50% tax liability)

$3,000

Shareholder’s tax liability after credits

$3,000

Credit carryforward by shareholder

$2,000

This example also illustrates that once a job tax credit has been passed through to the
shareholder, it may not be later used by the S-corporation.

37

õTRANSITIONAL RULES
Question 35 - Credit Requirements Before 1996:
Q. What is the amount of credit for new jobs created in tax years beginning prior to
1996?
A. The credit available to a qualifying taxpayer for new jobs created in tax years
beginning prior to January 1, 1996, and increases not resulting in eligibility for a new
5 year credit prior to January 1, 1996, is:
County Designation
(Location of Taxpayer)

Minimum New Jobs to Create

Credit Per New Job

Less Developed

10

$1,000

Moderately Developed

18

$ 600

Developed

50

$ 300

In comparison, jobs created under the current law qualify for the credit for each new
job as listed below. Code §12-6-3360(B).
County Designation
(Location of Taxpayer)

Minimum New Jobs to Create

Credit Per New Job

Least Developed

10 *

$4,500 *

Under Developed

10 *

$3,500 *

Moderately Developed

10 *

$2,500 *

Developed

10 *

$1,500 *

• NOTE: See exceptions to the minimum new jobs to create and increased credit
  amounts in the introduction of this document.

38

Question 36 - Credit for New Jobs Created Before 1996 and Credit for New Jobs
Created in 1996 and Thereafter:
Q. Do the $300 to $1,000 credit amounts (i.e. old law) apply to all new jobs created
prior to 1996 and all new job increases after 1995 that occur during a 5 year credit
period beginning before 1996?
A. The old law (i.e. three county designations and $300 to $1,000 credit amounts)
applies to all new jobs created prior to January 1, 1996 and all increases, thereafter,
that do not result in eligibility for a new 5 year credit period. However, increases in an
existing 5 year credit period that began before 1996 that result in an increase of 10 new
jobs or more for tax years beginning after December 31, 1995 as a result of another
expansion of the facility or a second new facility can result in a new credit with a new
5 year period, if the taxpayer chooses, and can qualify for the $1,500 to $4,500 credit
amounts under the current law. See Question 27.

39

EXAMPLE T
This example is based on the following facts. The taxpayer
Tbegan operations in 1994 with 0 employees
Tis a calendar year taxpayer
Tmaintains all jobs created, unless otherwise noted
Case 1

Case 2

Case 3

County designation at time of creating
new jobs in 1994 (Year 1)

Developed

Moderately
developed

Moderately developed

Credit per job at this designation

$300

$600

$600

Jobs created in 1994

50

18

18

Job increase (decrease) in 1995
(Year 2)

1

(8)

7

Job increase in 1996 (Year 3)

2

1

10 *

Job increase in 1997 (Year 4)

5

3

0

Credit amount to be claimed in Year 2
(1995)

$15,000
50 jobs x $300

$0

$10,800
18 jobs x $600

Credit amount to be claimed in Year 3
(1996)

$15,300
51 jobs x $300

$0

$15,000
25 jobs x $600

Credit amount to be claimed in Year 4
(1997)

$15,900
53 jobs x $300

$0

$50,000
25 jobs x $600
10 jobs x $3,500 **

Credit amount to be claimed in Year 5
(1998)

$17,400
58 jobs x $300

$0

$50,000
25 jobs x $600
10 jobs x $3,500 **

Case 1 illustrates that new job increases during a credit period beginning under the old
law are allowed a credit based on the old law county designation at the time the new
jobs are created, even if the new jobs are created in 1996 or thereafter.
Case 2 illustrates that a taxpayer that falls below the minimum number of new jobs
required to be created (18 new jobs in this example under the old law) and maintains
10 jobs (as required under the current law) does not qualify for the credit. The credit is
not allowed since the job level of 18 required under the old law is not maintained.

40

* Case 3, based on the additional fact that the taxpayer has another expansion in 1996
resulting in a new job increase of 10, illustrates that 10 or more new jobs created in tax
years beginning after 1995 create a new 5 year credit period based on the current law
county designation at the time the new jobs are created.
**NOTE: For purposes of Case 3, the county designation at the time of creating the
new jobs in 1996 under the current law is under developed. An under developed
county is allowed a $3,500 credit per new job.
Question 37 - Part Time Jobs Created Before 1996:
Q. Do part time jobs created prior to April 6, 1995 qualify for the job tax credit?
A. Part time jobs created prior to tax years beginning before 1995 do not qualify for
the credit. Effective April 6, 1995, the definition of “full time” job was amended to
provide that two half time jobs are considered one full time job. Code §12-63360(M)(3).
EXAMPLE U
This example is based on the following facts. The taxpayer:
Tis a manufacturer beginning operation in South Carolina in January 1993
Tinitially staffs the facility in 1993, 1994, and 1995 and the employment figures remain level in 1996 and
subsequent years
Tis located in a county designated as less developed under old law ($1,000 per new job credit) and least
developed under current law ($4,500 per new job credit).
Reminder: Effective April 6, 1995, the job tax credit statute was expanded to provide that two half time
jobs are considered one full time job.

41

The average increase in full time employees is calculated below for 1993 and 1994.
1993

1994

Month

Full Time

Half Time

Full
Time

Half Time

January
February
March
April
May
June
July
August
September
October
November
December

10
10
20
20
20
20
20
20
20
20
20
20

0
0
10
10
10
10
10
10
10
10
10
10

20
20
20
20
20
20
20
20
20
20
20
20

16
16
16
16
16
16
16
16
16
16
16
16

Total employees

220

100

240

192

Divide by months in operation

12

12

12

12

Monthly average of full time
employees

18

0 - N/A

20

0 - N/A

Previous year average

0

0 - N/A

18

0 - N/A

Average increase in full time
employees

18

0 - N/A

2

0 - N/A

Prior to 1995, the taxpayer must compute the number of new jobs by using only full
time employees since no credit is allowed for half time employees. Beginning in 1994
(Year 2), the taxpayer may claim a credit for 5 years (1994 through 1998) for the 18
new jobs created in 1993 and maintained in subsequent years. Beginning in 1995
(Year 3), the taxpayer may claim a credit for 5 years (1995 through 1999) for the
additional 2 new jobs created in 1994 and maintained.
The following illustrates the proper computation of the number of new full time jobs
on the first SC Form TC4 under old law.

Year 1 (1993) Increase
Year 2 (1994) Increase
Number of New
Jobs Credit
Credit per job (old law)
Eligible Credit

1994
Year 2
18

18
$1,000
$18,000

1995
Year 3
18
2

1996
Year 4
18
2

1997
Year 5
18
2

1998
Year 6
18
2

1999
Year 7

20
$1,000
$20,000

20
20
$1,000 $1,000
$20,000 $20,000

20
$1,000
$20,000

2
$1,000
$2,000

42

2

Effective April 6, 1995, two new half time jobs also qualify as one new full time job.
In 1995, the taxpayer maintains the 20 full time employees and in July 1995, hires 34
half time employees and maintains the 16 half time employees (for a total of 50 half
time employees).
The average increase in full time employees is calculated below for 1995 and
illustrates the restatement of 1994 to determine the 1995 qualifying job increase.

1994 (RESTATED)

1995

Month

Full
Time

Half Time

Full
Time

Half Time

January
February
March
April
May
June
July
August
September
October
November
December

20
20
20
20
20
20
20
20
20
20
20
20

16
16
16
16
16
16
16
16
16
16
16
16

20
20
20
20
20
20
20
20
20
20
20
20

16
16
16
16
16
16
50
50
50
50
50
50

Total employees

240

192

240

396

Divide by months in operation

12

12

12

12

Monthly average of full time
employees

20

16 half time
= 8 full time
equivalents

20

33 half time =
16 full time
equivalents

Monthly average of full time
employees and full time
equivalents

28
(20 + 8 from line above)

36
(20 + 16 from line above)

Previous year average
(restated)

28

Average increase in full time
employees

8

43

Since the taxpayer is currently claiming the job tax credit in 1996 for new jobs created
in 1993 and 1994 under the old law, the taxpayer must determine the qualifying 1995
job increase by restating the 1994 average increase of employees using the current law.
The taxpayer should file two SC Form TC4’s - one for the credits claimed for new job
increases under the old law as illustrated above and one for the credits claimed for new
job increases under the current law as illustrated below.
The following illustrates the proper computation of the number of new full time jobs
and equivalents on the second SC Form TC4 under new law.

Year 3 (1995) Increase
Number of New
Jobs Credit
Credit per job (old law*)
Eligible Credit

1996
Year 4
8

1997
Year 5
8

1998
Year 6
8

1999
Year 7
8

2000
Year 8
8

8
$1,000
$8,000

8
$1,000
$8,000

8
$1,000
$8,000

8
$1,000
$8,000

8
$1,000
$8,000

*NOTE: The credit amount remains at $1,000 under the old law.

The eligible credit amounts from the two SC Form TC4’s are combined for the
applicable year and the 50% income tax liability limitation (see Question 23) is applied
to the combined job tax credit.
Question 38 - Pass Through of Credit for New Jobs Created Before 1996 and
Credit for New Jobs Created in 1996 and Thereafter:
Q. How is the amount of the pass through credit at the S-corporation, partnership, or
LLC (taxed as a partnership or S-corporation) level determined for new jobs created
before 1995 which generate a 5 year credit?
A. Effective July 1, 1995, the statute was amended to allow a corporation, partnership,
or LLC that qualifies for the job tax credit as an S-corporation, partnership, or LLC
taxed as a partnership or S-corporation to pass through the credit to each shareholder,
partner, or member subject to taxes imposed under Code §12-6-510 . The pass through
of the credit does not apply to jobs created prior to the 1995 taxable year. Code §12-63360(K)(1).

44

EXAMPLE V
This example is based on the following facts. The taxpayer:
Tis a partnership engaged in manufacturing
Thas one location in a less developed county under the old law
Tmaintains the jobs in future years

The following illustrates the increase in employees in the year of new job creation:
1993

1994

1995

1996

Total employees

144

168

216

240

Divided by months in operation

12

12

12

12

Monthly average of full time
employees

12

14

18

20

Less: Previous year average

0

12

14

18

Average increase in full time
employees

12

2

4

2

The following illustrates the credit amount the partnership may pass through in the
stated tax years:
1994 and 1995

1996

1997

Number of new jobs eligible to
pass through

0

4

6
(4+2)

Amount of credit per employee

$300

$300

$300

Eligible credit to pass through

$0

$1,200

$1,800

This example illustrates that none of the jobs created in 1993 or 1994 that generate a
credit may be passed through to the partners since the jobs were created prior to the
amendment of the statute. The credit resulting from the job increases in 1995 and
1996 may be first passed through to the partners in 1996 and 1997, respectively, since
the creation of a new job in one year results in a taxpayer first being eligible to claim
the credit in the following year.

45

Question 39 - Carryforward Period:
Q. How does the carryforward increase from 10 to 15 years affect the credit?
A. The 10 year carryforward allowed under the old law was amended to a 15 year
carryforward effective for tax years beginning after 1995. Any credit that has not been
used and has not expired by the tax year beginning after 1995 is entitled to a 15 year
carryforward from the date it was earned. Code §§12-7-1220(G) and 12-6-3360(H).
Question 40 - Multi-County Industrial Park:
Q. How does the taxpayer’s location in a multi-county industrial park affect the credit
computation under old law?
A. Under the old law in Code §12-7-1220(I), a taxpayer located in a multi-county
industrial park is allowed an additional $500 credit for each new full time job created
for 5 years beginning in the year following the creation of the new jobs, provided the
new jobs are maintained. Further, the rankings of other counties in the multi-county
industrial park do affect the computation of the credit (i.e., the taxpayer is deemed to
be located in the participating county which would qualify for the greatest dollar
amount whether or not it is actually located in another participating county.)
Under the current law, however, the rankings of other counties in the multi-county
industrial park do not affect the computation of the credit. Further, a taxpayer is
allowed the job tax credit amount based on the county where the facility is actually
located and an additional $1,000 credit per year for 5 years for being located in a
multi-county industrial park. Code §12-6-3360(E).
Accordingly, a taxpayer claiming a job tax credit under the old law will receive an
additional $500 credit per new job and a taxpayer claiming a job tax credit under the
new law will receive an additional $1,000 credit per new job.

46

Question 41 -Maintaining 10 or Less Jobs in Certain Counties:
Q. May a taxpayer claim a credit for 10 or fewer jobs maintained based on the current
law if the jobs were created during 1994 or 1995 in a county ranked moderately
developed or developed under the old law?
A. No. The 10 new job requirement pertains only to new jobs created in tax years
beginning after December 31, 1995, except for the old “less developed” county
designation. If a taxpayer in a moderately developed or developed county did not
maintain a monthly average of 18 or 50 jobs, respectively (as required under the old
law at that time), it does not qualify for the credit based on the current law 10 new job
minimum requirement in 1996 and thereafter.
Question 42 - Change in County Designation from Year 1 - Additional New Jobs:
Q. In 1994, a taxpayer creates 50 new jobs in a moderately developed county which
generates a $30,000 job tax credit (50 jobs x $600) under the old law. In 1997, 8 new
jobs are added in the same county which is a developed county under the old law (i.e.,
the three county ranking system) at the time the jobs are created. In 1997, the county
is an under developed county under the current law. How much is the credit?
A. The credit amount for additional new jobs created during a 5 year credit period that
arose under the old law is based on the following:

1. If a Form SC616 is filed, then the credit is based on the county designation below
   that results in the highest dollar credit amount:
   (a) the county designation under the old law at the time Form SC616 is filed, or
   (b) the county designation under the old law for the year the additional new jobs
   are created; or,
2. If Form SC616 is not filed, then the credit is based on the county designation under
   the old law for the year the new jobs are created.
   The Department will continue to rank counties under the old law for the next several
   years. See Exhibit 2 for the 3 county rankings for 1987 through 1998. Future years
   will be published annually in a South Carolina Information Letter.

47

EXAMPLE W
Case 1

Case 2

County designation at time of creating new jobs in
Year 1 (1994)

moderately
developed

developed

Credit per job at this designation

$600

$300

Number of new jobs created in Year 1

18

50

County designation in Years 2 - 6 (1995 - 1999)

developed

moderately
developed

Credit per job at this designation

$300

$600

Number of new jobs created in Year 3

8

7

Credit to be claimed for jobs created in Year 3 if a
Form SC616 is not filed prior to creation of any
jobs

$300

$600

Credit to be claimed for jobs created in Year 3 if a
Form SC616 is filed

$600

$600

Case 1 illustrates that the additional 8 jobs created are eligible for the credit at $300
per job because a Form SC616 is not filed, while the initial 18 jobs are eligible for the
credit at $600 per job. Since the credit amount is based on different county
designations, two Form TC4’s should be filed. NOTE: If a Form SC616 was timely
filed, the higher credit amount of $600 is claimed for all 26 new jobs.
Case 2 illustrates that a credit for the 7 additional new jobs created is allowed at $600
per job, even though the initial 50 jobs are allowed a credit of $300 per job. The result
is the same if a Form SC616 is filed or not.

ØØEXAMPLES OF CREDIT COMPUTATION FOR
TRANSITIONAL RULES
The following 2 examples show the proper completion of Form TC4 for the years
indicated. The examples are intended to show the effect of the transitional rules and
do not show the entire 5 year credit period.

48

EXAMPLE X
This example is based on the following facts. The taxpayer:
Tis engaged in manufacturing in X County
Thas only one location in South Carolina
Tbegins 1994 with 0 employees and hires all employees during the initial staffing of the new facility
Tmaintains the jobs created in all subsequent years
TX County is ranked a developed county in 1994 and thereafter under the old law
TX County is ranked an under developed county under the current law
SC NEW JOB TAX CREDIT
Prior
Year

Year 1
1994

Year 2
1995

Year 3
1996

Year 4
1997

0

600

720

804

912

LINE 2: DIVIDED BY: NUMBER
OF MONTHS IN
OPERATION

12

12

12

12

LINE 3: MONTHLY AVERAGE
OF FULL TIME
EMPLOYEES

50

60

67

76

LINE 4: LESS: PREVIOUS
YEAR AVERAGE

0

50

60

67

LINE 5: AVERAGE INCREASE IN
FULL TIME EMPLOYEES

50

10

7

9

LINE 1: TOTAL EMPLOYEES5

Year 5
1998

COMPUTATION OF EMPLOYEES ELIGIBLE FOR CREDIT

LINE 6: YEAR 1 INCREASE

Year 2
1995

Year 3
1996

Year 4
1997

Year 5
1998

50

50

50

50

10

10

10

7

7

LINE 7: YEAR 2 INCREASE
LINE 8: YEAR 3 INCREASE
LINE 9: YEAR 4 INCREASE

Year 6
1999

9

LINE 10: YEAR 5 INCREASE
LINE 11: YEAR 6 INCREASE
LINE 12: NUMBER OF NEW JOBS CREDIT
(Add Lines 6 through 11)

50

60

67

76

COMPUTATION OF ELIGIBLE CREDIT AMOUNT

LINE 14: ELIGIBLE CREDIT

Year 2 (1995)

Year 3 (1996)

Year 4 (1997)

Year 5 (1998)

$15,000

$18,000

$20,100

$22,800

50 jobs x $300

60 jobs x $300

67 jobs x $300

76 jobs x $300

5

Total employees is the cumulative total of full time employees for each month (number of employees in January plus number in
February, etc.). It is not the number of new jobs created each month.

49

EXAMPLE Y
This example is based on the following facts. The taxpayer:
Tis engaged in manufacturing in X County
Thas only one location in South Carolina
Tbegins 1994 with 0 employees and initial staffing of the new facility is in 1994 and 1995
Tcreates additional new jobs in 1996 as a result of another expansion
Tmaintains the jobs created in all subsequent years
TX County is ranked a developed county in 1994 and thereafter under the old law
TX County is ranked an under developed county under the current law
SC NEW JOB TAX CREDIT
Prior
Year

Year 1
1994

Year 2
1995

Year 3
1996

Year 4
1997

0

600

720

840

852

LINE 2: DIVIDED BY: NUMBER
O F MONTHS IN
OPERATION

12

12

12

12

LINE 3: MONTHLY AVERAGE
OF FULL TIME
EMPLOYEES

50

60

70

71

LINE 4: LESS: PREVIOUS
YEAR AVERAGE

0

50

60

70

LINE 5: AVERAGE INCREASE IN
FULL TIME EMPLOYEES

50

10

10 *

1

LINE 1: TOTAL EMPLOYEES6

Year 5
1998

COMPUTATION OF EMPLOYEES ELIGIBLE FOR CREDIT

LINE 6: YEAR 1 INCREASE

Year 2

Year 3

Year 4

Year 5

Year 6

1995

1996

1997

1998

1999

50

50

50

50

10

10

10

10

10

LINE 7: YEAR 2 INCREASE
LINE 8: YEAR 3 INCREASE
LINE 9: YEAR 4 INCREASE

1

LINE 10: YEAR 5 INCREASE
LINE 11: YEAR 6 INCREASE
LINE 12: NUMBER OF NEW JOBS CREDIT
(Add Lines 6 through 11)

50

60

70

71

COMPUTATION OF ELIGIBLE CREDIT AMOUNT

LINE 14: ELIGIBLE CREDIT

Year 2 (1995)

Year 3 (1996)

Year 4 (1997)

Year 5 (1998)

$15,000
50 jobs x $300

$18,000
60 jobs x $300

$53,000
60 jobs x $300
*10 jobs x $3,500

$56,500
60 jobs x $300
11 jobs x $3,500

*The additional new jobs created in 1996 are the result of another expansion. Since the credit amount is based on different county designations,
two Form TC4’s should be filed. For illustrative purposes, however, only one Form TC4 has been completed in order to show the total eligible
credit.

6

Total employees is the cumulative total of full time employees in each county for each month (number of employees in January plus the
number in February, etc.). It is not the number of new jobs created each month.

50

QUESTIONS
For questions concerning the computation of the job tax credit, call CC Burgess at 803898-5856 or John Swearingen at 803-898-5617.
See the Department’s home page for more information or to download tax forms. Our
Internet address is: http://www.dor.state.sc.us

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/
Burnet R. Maybank, III, Director

Columbia, South Carolina
January 11

, 19 99

51

ØÙ EXHIBIT 1 - COUNTY RANKINGS FROM 1996 TO 1999
CURRENT LAW
CAUTION : See Introduction for new job requirements and exceptions.

1998
LEAST
DEVELOPED

UNDER
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$4500/new job

$3500/new job

$2500/new job

$1500/new job

Abbeville

Charleston

Beaufort

Anderson

Aiken

Cherokee

Florence

Greenville

Allendale

Chesterfield

Greenwood

Horry

Bamberg

Darlington

Kershaw

Pickens

Barnwell

Dorchester

Lancaster

Richland

Berkeley

Georgetown

Laurens

Spartanburg

Calhoun

Saluda

Lexington

York

Chester

Sumter

Newberry

Clarendon

Oconee

Colleton
Dillon
Edgefield
Fairfield
Hampton
Jasper
Lee
Marion
Marlboro
McCormick
Orangeburg
Union
Williamsburg

52

1997
LEAST
DEVELOPED

UNDER
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$4500/new job

$3500/new job

$2500/new job

$1500/new job

Abbeville

Charleston

Beaufort

Anderson

Aiken

Cherokee

Florence

Greenville

Allendale

Chesterfield

Greenwood

Oconee

Bamberg

Darlington

Horry

Richland

Barnwell

Dorchester

Kershaw

Spartanburg

Berkeley

Georgetown

Lancaster

York

Calhoun

Saluda

Laurens

Chester

Sumter

Lexington

Clarendon

Newberry

Colleton

Pickens

Dillon
Edgefield
Fairfield
Hampton
Jasper
Lee
Marion
Marlboro
McCormick
Orangeburg
Union
Williamsburg

53

1996
LEAST
DEVELOPED

UNDER
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$4500/new job

$3500/new job

$2500/new job

$1500/new job

Allendale

Abbeville

Beaufort

Anderson

Bamberg

Aiken

Florence

Greenville

Barnwell

Berkeley

Greenwood

Pickens

Chester

Calhoun

Horry

Richland

Clarendon

Charleston

Laurens

Spartanburg

Colleton

Cherokee

Lexington

York

Dillon

Chesterfield

Newberry

Edgefield

Darlington

Oconee

Hampton

Dorchester

Jasper

Fairfield

Lee

Georgetown

Marion

Kershaw

Marlboro

Lancaster

McCormick

Saluda

Orangeburg

Sumter

Union
Williamsburg

54

EXHIBIT 2 - COUNTY RANKINGS FROM 1987 TO 1998 OLD LAW
CAUTION: See Question 35 for full time new job requirements.

1998
LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Bamberg

Berkeley

Anderson

Barnwell

Cherokee

Beaufort

Calhoun

Chesterfield

Charleston

Chester

Darlington

Dorchester

Clarendon

Florence

Greenville

Colleton

Georgetown

Greenwood

Dillon

Kershaw

Horry

Edgefield

Lancaster

Laurens

Fairfield

Newberry

Lexington

Hampton

Sumter

Oconee

Jasper

Pickens

Lee

Richland

Marion

Spartanburg

Marlboro

York

McCormick
Orangeburg
Saluda
Union
Williamsburg

55

1997
LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Bamberg

Berkeley

Anderson

Barnwell

Cherokee

Beaufort

Calhoun

Chesterfield

Charleston

Chester

Darlington

Dorchester

Clarendon

Florence

Greenville

Colleton

Georgetown

Greenwood

Dillon

Kershaw

Horry

Edgefield

Lancaster

Laurens

Fairfield

Newberry

Lexington

Hampton

Sumter

Oconee

Jasper

Pickens

Lee

Richland

Marion

Spartanburg

Marlboro

York

McCormick
Orangeburg
Saluda
Union
Williamsburg

56

1996
LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Bamberg

Berkeley

Anderson

Barnwell

Cherokee

Beaufort

Calhoun

Chesterfield

Charleston

Chester

Darlington

Dorchester

Clarendon

Florence

Greenville

Colleton

Georgetown

Greenwood

Dillon

Kershaw

Horry

Edgefield

Lancaster

Laurens

Fairfield

Newberry

Lexington

Hampton

Sumter

Oconee

Jasper

Pickens

Lee

Richland

Marion

Spartanburg

Marlboro

York

McCormick
Orangeburg
Saluda
Union
Williamsburg

57

1995
LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Bamberg

Berkeley

Anderson

Barnwell

Cherokee

Beaufort

Calhoun

Chesterfield

Charleston

Chester

Darlington

Dorchester

Clarendon

Georgetown

Florence

Colleton

Horry

Greenville

Dillon

Kershaw

Greenwood

Edgefield

Lancaster

Laurens

Fairfield

Newberry

Lexington

Hampton

Sumter

Oconee

Jasper

Pickens

Lee

Richland

Marion

Spartanburg

Marlboro

York

McCormick
Orangeburg
Saluda
Union
Williamsburg

58

1994

1993

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

1000/new job

$600/new job

$300/new job

Abbeville

Berkeley

Aiken

Allendale

Abbeville

Aiken

Allendale

Chesterfield

Anderson

Bamberg

Berkeley

Anderson

Bamberg

Colleton

Beaufort

Barnwell

Chesterfield

Beaufort

Barnwell

Darlington

Charleston

Calhoun

Darlington

Charleston

Calhoun

Georgetown

Cherokee

Chester

Edgefield

Cherokee

Chester

Horry

Dorchester

Clarendon

Georgetown

Dorchester

Clarendon

Kershaw

Florence

Colleton

Hampton

Florence

Dillon

Lancaster

Greenville

Dillon

Horry

Greenville

Edgefield

Laurens

Greenwood

Fairfield

Jasper

Greenwood

Fairfield

Newberry

Lexington

Lee

Kershaw

Lexington

Hampton

Orangeburg

Oconee

Marion

Lancaster

Oconee

Jasper

Pickens

Marlboro

Laurens

Pickens

Lee

Richland

McCormick

Newberry

Richland

Marion

Spartanburg

Sumter

Orangeburg

Spartanburg

Marlboro

York

Union

Saluda

York

McCormick

Williamsburg

Saluda
Sumter
Union
Williamsburg

59

1992

1991

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Allendale

Abbeville

Aiken

Bamberg

Berkeley

Anderson

Bamberg

Berkeley

Anderson

Barnwell

Calhoun

Beaufort

Barnwell

Calhoun

Beaufort

Chester

Chesterfield

Charleston

Chester

Chesterfield

Charleston

Clarendon

Colleton

Cherokee

Clarendon

Colleton

Cherokee

Dillon

Darlington

Dorchester

Darlington

Edgefield

Dorchester

Fairfield

Edgefield

Florence

Dillon

Florence

Greenville

Georgetown

Greenwood

Greenville

Fairfield

Greenwood

Lexington

Lee

Hampton

Laurens

Georgetown

Horry

Oconee

Marion

Horry

Lexington

Hampton

Jasper

Pickens

Marlboro

Jasper

Oconee

Lee

Kershaw

Richland

McCormick

Kershaw

Pickens

Marion

Lancaster

Spartanburg

Orangeburg

Lancaster

Richland

Marlboro

Laurens

York

Sumter

Newberry

Spartanburg

McCormick

Newberry

Union

Saluda

York

Orangeburg

Saluda

Williamsburg

Sumter
Union
Williamsburg

60

1990

1989

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

$1000/new job

$600/new job

$300/new job

Allendale

Abbeville

Aiken

Abbeville

Anderson

Aiken

Bamberg

Calhoun

Anderson

Allendale

Barnwell

Beaufort

Barnwell

Chesterfield

Beaufort

Bamberg

Calhoun

Berkeley

Chester

Edgefield

Berkeley

Chester

Chesterfield

Charleston

Clarendon

Fairfield

Charleston

Clarendon

Colleton

Cherokee

Colleton

Florence

Cherokee

Darlington

Edgefield

Dorchester

Darlington

Greenwood

Dorchester

Dillon

Fairfield

Greenville

Georgetown

Florence

Kershaw

Dillon

Horry

Greenville
Hampton

Greenwood

Lexington

Georgetown

Jasper

Lexington

Lee

Horry

Newberry

Hampton

Kershaw

Oconee

Marion

Jasper

Oconee

Lee

Lancaster

Pickens

Marlboro

Lancaster

Pickens

Marion

Laurens

Richland

McCormick

Laurens

Richland

Marlboro

Newberry

Spartanburg

Orangeburg

Saluda

Spartanburg

McCormick

Saluda

York

Union

Sumter

York

Orangeburg

Union

Williamsburg

Sumter
Williamsburg

61

1988

1987

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

LESS
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

$1000/new job

$600/new job

$300/new job

$1000/new job

$600/new job

$300/new job

Abbeville

Anderson

Aiken

Abbeville

Anderson

Aiken

Allendale

Barnwell

Beaufort

Allendale

Barnwell

Beaufort

Bamberg

Calhoun

Berkeley

Bamberg

Calhoun

Berkeley

Clarendon

Chester

Charleston

Chester

Chesterfield

Charleston

Darlington

Chesterfield

Cherokee

Clarendon

Colleton

Cherokee

Dillon

Colleton

Dorchester

Darlington

Edgefield

Dorchester

Fairfield

Edgefield

Greenville

Dillon

Fairfield

Greenville

Georgetown

Florence

Kershaw

Georgetown

Florence

Horry

Hampton

Greenwood

Lexington

Hampton

Greenwood

Kershaw

Lee

Horry

Newberry

Lee

Jasper

Lexington

Marion

Jasper

Oconee

Marion

Lancaster

Newberry

Marlboro

Lancaster

Pickens

Marlboro

Laurens

Pickens

McCormick

Laurens

Richland

McCormick

Oconee

Richland

Orangeburg

Saluda

Spartanburg

Orangeburg

Saluda

Spartanburg

Union

Sumter

York

Union

Sumter

York

Williamsburg

Williamsburg

62