South Carolina State Tax Rulings

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

South Carolina's new Pregnancy Resource Tax Credit (Code Section 12-6-3383, added by Act 162 of 2026) is a nonrefundable income tax credit for voluntary cash contributions to certified pregnancy resou…

Can I get a South Carolina tax credit for rehabilitating an abandoned building, how big is it, and what buildings and expenses qualify?

Yes — you can claim a credit worth about 25% of your rehab costs. South Carolina's Abandoned Buildings Revitalization Act gives a nonrefundable credit for rehabilitating, renovating, or redeveloping a…

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

An eligible South Carolina employer can earn the New Jobs Credit by operating a qualifying facility and creating and maintaining the required net increase in qualifying full-time jobs. The traditional…

What major South Carolina tax law changes came out of the 2025 legislative session?

This Information Letter is the Department's plain-language summary of the significant tax law changes enacted in South Carolina's 2025 legislative session, organized into income/bank/withholding, prop…

How do South Carolina's credits for rehabilitating certified historic and owner-occupied historic structures work?

South Carolina offers two nonrefundable historic-rehabilitation credits. A project that qualifies for the federal § 47 credit generally receives a 10% state credit, with an election for 25% capped at …

As a military servicemember or military spouse connected to South Carolina, which state taxes my income — and can we choose?

You often get to choose. Under the federal Veterans Auto and Education Improvement Act (VAEIA, effective for 2023 and later), a military servicemember and spouse may ELECT, for state income tax, to us…

What are the major South Carolina tax law changes from the 2024 legislative session?

SC Information Letter 24-16 summarizes the major South Carolina tax changes enacted in the 2024 legislative session. Highlights: South Carolina conformed its income tax to the Internal Revenue Code as…

Are the sales and use tax exemption and $750 income tax credit for energy efficient manufactured homes still available in South Carolina?

No. Both incentives for energy efficient manufactured homes ended. The total sales and use tax exemption under S.C. Code § 12-36-2110(B) and the $750 nonrefundable income tax credit under S.C. Code § …

Is a rollover of unused South Carolina 529 (Future Scholar) funds into a Roth IRA taxable for South Carolina income tax?

A qualifying rollover of unused Future Scholar (SCCIP) 529 funds into the beneficiary's Roth IRA is not taxable for South Carolina income tax beginning in tax year 2024. Because South Carolina conform…

What purchases qualify for South Carolina's Solar Energy Credit, and how much credit can a taxpayer claim?

A taxpayer can claim a nonrefundable South Carolina income tax credit equal to 25% of qualifying purchase and installation costs for an eligible solar energy system, small hydropower system, or geothe…

If a South Carolina resident sells an interest in a partnership that does business in several states, is the whole gain taxed by South Carolina, or only part of it?

Only part of it. When a South Carolina resident sells an interest in a partnership that does business in multiple states, the gain is treated as connected with the taxpayer's business (through the par…

Did South Carolina extend tax filing and payment deadlines because of Hurricane Idalia, and which taxes qualified?

Yes — South Carolina matched the IRS's Hurricane Idalia relief and postponed certain filing and payment deadlines to February 15, 2024. After FEMA designated all of South Carolina a disaster area and …

How did the Washington, D.C. Emancipation Day holiday affect South Carolina's 2022 income tax filing, payment, and refund-claim deadlines?

Because of the Washington, D.C. Emancipation Day holiday, South Carolina's 2022 income tax returns and payments were due April 18, 2023 instead of April 15. Emancipation Day (April 16) fell on a Sunda…

Did South Carolina extend tax deadlines because of Hurricane Ian, and until when?

Yes — South Carolina matched the IRS and postponed affected income tax deadlines to February 15, 2023. SC Information Letter #22-19 explains that after the IRS granted Hurricane Ian relief on October …

What South Carolina tax law changes did the 2022 legislative session make, as summarized in SC Information Letter #22-15?

SC Information Letter #22-15 is the Department's annual round-up of the significant tax and regulatory law changes enacted during South Carolina's 2022 legislative session, organized by subject (incom…

Is federal student loan forgiveness taxable on my South Carolina income tax return?

No — to the extent it is excluded federally, it is also excluded in South Carolina. SC Information Letter #22-14 explains that South Carolina adopts Internal Revenue Code Section 108, and during the 2…

Can a South Carolina employer that claimed the federal Employee Retention Credit deduct the wages that were disallowed on its federal return?

Yes. When an employer claimed the federal Employee Retention Credit (ERC) for 2020 or 2021, federal law reduced (disallowed) its wage deduction by the amount of the credit under 'rules similar to' IRC…

Because of the Emancipation Day holiday, what was South Carolina's 2021 income-tax filing and payment deadline, and by when did a 2018 refund claim have to be filed?

April 18, 2022. Because Emancipation Day (April 16) was observed Friday, April 15, 2022 in Washington, D.C., the federal deadline moved to Monday, April 18, 2022, and South Carolina — whose due date s…

How do South Carolina pass-through entities and owners report the new entity-level active trade or business income election on 2021 tax forms?

SC Information Letter #22-4 gives filing-season guidance for South Carolina's new entity-level active trade or business income (ATBI) election for tax year 2021. Under Code Section 12-6-545(G), certai…

How long did South Carolina extend its COVID-19 remote-work nexus and withholding relief in December 2021?

SC Information Letter #21-31 extended through March 31, 2022 the temporary COVID-19 relief originally stated in SC Information Letter #20-11. Under that relief, a business did not establish South Caro…

How long did South Carolina extend its COVID-19 remote-work nexus and withholding relief in August 2021?

SC Information Letter #21-22 extended through December 31, 2021 the temporary COVID-19 relief originally stated in SC Information Letter #20-11. Under that relief, a business did not establish South C…

When is a military servicemember's spouse exempt from South Carolina income tax on wages earned in South Carolina, and how do they claim it?

A military servicemember's spouse is NOT taxed by South Carolina on the personal-service income (wages, salary, self-employment service income) they earn in South Carolina if three things are true: (1…

Did an employee temporarily working remotely in South Carolina because of COVID-19 create nexus or change withholding for the employer, and how long did the relief last?

South Carolina extended its COVID-19 relief so that a business does not establish South Carolina nexus (for income or sales tax) solely because an employee is temporarily working from a different loca…

For tax year 2020, may South Carolina taxpayers use the higher 2019 earned income amount to compute the South Carolina earned income credit (per SC IL #21-4)?

No. For tax year 2020, the South Carolina earned income credit must be figured using the 2020 earned income amount, even though a federal COVID-19 relief provision let taxpayers elect to use their hig…

If I receive a South Carolina tax credit for donating to a charity, does that reduce the charitable contribution deduction I can claim on my federal and South Carolina income tax returns?

Usually yes. Under a federal Treasury regulation that South Carolina follows (Treas. Reg. 1.170A-1(h)(3), final August 11, 2020), if you donate to a charity and receive a state or local tax CREDIT in …

Which South Carolina COVID-19 tax deadlines were moved to July 15, 2020, and which other state taxes remained due June 1?

South Carolina moved covered income-tax, franchise-tax, and corporate-license-fee filings and payments originally due from April 1 through July 15, 2020 to July 15. The same date applied to estimated …

How did SC IL #20-4 change South Carolina's COVID-19 tax deadlines, and did income tax and other taxes get the same date?

SC Information Letter #20-4 (March 23, 2020) restated and updated the COVID-19 relief in #20-3 by splitting the deadlines. Income tax: conforming to the IRS (Notice 2020-18), South Carolina moved 2019…

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

For qualifying jobs created in tax years beginning on or after January 1, 2019, Act 83 raised the basic per-job credit from $8,000 to $25,000 in Tier IV counties and from $4,250 to $20,250 in Tier III…

Did South Carolina waive the estimated-tax underpayment penalty for farmers and fishermen for tax year 2018 (per SC IL #19-8)?

Yes. Following IRS Notice 2019-17, South Carolina will waive the estimated-tax underpayment penalty for qualifying farmers and fishermen for tax year 2018 if they file their income tax return and pay …

How does South Carolina individual income tax conform to the federal Tax Cuts and Jobs Act and related laws (per SC IL #19-7)?

SC Information Letter #19-7 summarizes how South Carolina's individual income tax conforms to the Internal Revenue Code through February 9, 2018. Under the 2018 SC Taxpayer Protection and Relief Act (…

Does South Carolina follow the federal final 'tangible property' regulations on capitalizing or deducting property costs (per SC IL #14-11)?

Yes. SC Information Letter #14-11 confirms that for income tax purposes South Carolina will follow the IRS's final 'tangible property' regulations under I.R.C. §§ 162(a) and 263(a) — the rules on when…

How are South Carolina counties ranked for the job tax credit for 2014, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #13-19)?

SC Information Letter #13-19 publishes South Carolina's county rankings for the job tax credit for 2014, together with the counties that qualify for a reduced minimum investment under the fee in lieu …

How are South Carolina counties ranked for the job tax credit for 2013, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #13-6)?

SC Information Letter #13-6 publishes South Carolina's county rankings for the job tax credit for 2013, together with the counties that qualify for a reduced minimum investment under the fee in lieu o…

How are South Carolina counties ranked for the job tax credit for 2012, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #12-19)?

SC Information Letter #12-19 publishes South Carolina's county rankings for the job tax credit for 2012, together with the counties that qualify for a reduced minimum investment under the fee in lieu …

Could a South Carolina LLC pass the former biomass energy credit through an S corporation to individual shareholders, and where did the annual cap apply?

Yes. The former biomass credit could pass from the LLC to its S-corporation member and then to individual shareholders. The $650,000 annual cap applied at the LLC level, and allocations had to follow …

How are South Carolina counties ranked for the job tax credit for 2011, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #11-4)?

SC Information Letter #11-4 publishes South Carolina's county rankings for the job tax credit for 2011, together with the counties that qualify for a reduced minimum investment under the fee in lieu o…

Under South Carolina's original 2010 guidance, when was a nonresident military spouse's South Carolina service income protected from state income tax?

Under the 2010 ruling, a spouse's South Carolina service income was protected when both spouses shared an out-of-state domicile, the servicemember was present under orders, and the spouse was there so…

How are South Carolina counties ranked for the job tax credit for 2010, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #10-1)?

SC Information Letter #10-1 publishes South Carolina's county rankings for the job tax credit for 2010, together with the counties that qualify for a reduced minimum investment under the fee in lieu o…

How does the federal Military Spouses Residency Relief Act affect South Carolina income, withholding, and personal property tax for a servicemember's spouse (per SC IL #09-21)?

SC Information Letter #09-21 explains how the federal Military Spouses Residency Relief Act (Pub. L. 111-97, signed November 11, 2009) applies in South Carolina. The Act lets a servicemember's spouse …

What is South Carolina's income tax credit for solar energy and small hydropower systems (per SC IL #09-16)?

South Carolina allows an income tax credit equal to 25% of the cost of a solar energy system or a small hydropower system that a taxpayer purchases and installs in or on a South Carolina facility the …

Which federally deducted taxes had to be added back when computing South Carolina taxable income under the 2009 guidance?

State and local income taxes, income-based franchise taxes, and other taxes measured by or with respect to net income were not deductible for South Carolina purposes and had to be added back.

How are South Carolina counties ranked for the job tax credit for 2009, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #09-1)?

What were the significant South Carolina tax law changes enacted in the 2008 legislative session (per SC IL #08-17)?

SC Information Letter #08-17 is the Department's summary of the significant tax and regulatory law changes enacted in South Carolina's 2008 legislative session, organized into four parts: (1) income t…

How are South Carolina counties ranked for the job tax credit for 2008, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #08-1)?

SC Information Letter #08-1 publishes South Carolina's 2008 county rankings for the job tax credit, plus the counties that qualify for a reduced fee-in-lieu investment threshold and for the tax morato…

What were the significant South Carolina tax law changes enacted in the 2007 legislative session (per SC IL #07-16)?

SC Information Letter #07-16 is the Department's summary of the significant tax and regulatory changes enacted in South Carolina's 2007 legislative session, organized into four parts: (1) income taxes…

How are South Carolina counties ranked for the job tax credit for 2007, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #07-3)?

SC Information Letter #07-3 publishes South Carolina's 2007 county rankings for the job tax credit, plus the counties that qualify for a reduced fee-in-lieu investment threshold and for the tax morato…

How is South Carolina treating Economic Impact Zone credit carryforwards and effective dates after the SCANA litigation (per SC IL #07-2)?

SC Information Letter #07-2 explains the Department's position after a November 14, 2006 Circuit Court order in SCANA Corporation and Subsidiaries v. South Carolina Department of Revenue (Case No. 200…

How did South Carolina rank counties for the 2006 job tax credit, and did any county qualify for the reduced fee-in-lieu investment threshold?

SC Information Letter #06-1 publishes two county-ranking lists for new full-time jobs created in tax years beginning in 2006: one for credits first earned after June 18, 2002, and one for credits firs…

Which state, local, and foreign tax deductions had to be added back when computing South Carolina taxable income under RR 03-6?

South Carolina denied deductions for state and local income taxes, franchise taxes measured by net income, and other taxes measured by or with respect to net income. The ruling classified selected tax…

How did South Carolina apportion a corporation's royalty income from licensing FCC intangibles?

The corporation used South Carolina's single-factor gross-receipts method. On the stated facts, royalties from FCC licenses used to serve markets outside South Carolina were sourced outside the state,…

Which per-capita income figures applied to South Carolina job and headquarters credit compensation tests under RR 99-11?

Taxpayers had to use the most recent state or county per-capita income data available on the last day of the tax year in which the qualifying jobs were filled. RR 99-11 supplied the figures available …

How did South Carolina's repealed motion-picture project and production-facility credits work under RR 99-10?

The repealed statute allowed a 33% credit for qualifying cash investment in a South Carolina film project, capped at $15,000 per project, and a separate 33% facility-investment credit capped at $5 mil…

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

The ruling compared the taxpayer's monthly average full-time employment with the prior year, rounded the increase down to whole jobs, applied the county's historical per-job amount, and allowed qualif…

Under RR 98-14, could a South Carolina taxpayer deduct commissions paid to a foreign sales corporation instead of treating them as dividend-related expenses?

Yes, if the foreign sales corporation had economic substance and was properly formed and operated under IRC Sections 921-927. RR 98-14 treated the commissions as deductible business expenses, not expe…

How did South Carolina treat a single-member LLC for income tax, corporate license fees, and deed recording fees under RR 98-11?

South Carolina followed the LLC's federal classification. A disregarded LLC was treated as its individual owner's sole proprietorship or its corporate owner's division; an LLC electing corporate treat…

Which telephone-company assets qualified for South Carolina's economic-impact-zone investment credit under PLR 98-2?

Qualifying communications assets included switching and terminal equipment, satellite towers, cable, and repair trucks and tools when they met the federal property, depreciation, original-use, and zon…

Did RR 97-7 require a South Carolina resident partner to report personal-service income earned by the partnership in other states?

Yes. A South Carolina resident partner had to report the full distributive share of personal-service income from all states, not only the South Carolina-apportioned amount, with a credit for qualifyin…

Was interest from qualifying loans to a South Carolina business development corporation exempt from state income tax under RR 96-10?

Yes. Interest on loans made to a South Carolina business development corporation in accordance with Sections 33-37-250 and 33-37-460 was exempt from South Carolina income tax because Section 33-37-70 …

Did RR 97-8 require a taxpayer to qualify as an 'economic impact zone business' before claiming the zone investment tax credit?

No. RR 97-8 said the separate 'economic impact zone business' definition did not limit the investment credit. Eligibility turned on qualifying property being placed in service in an economic impact zo…

Who qualified for the historical $5-per-work-day firefighter and EMS subsistence deduction under RR 96-5, and which days counted?

Paid, certified full-time firefighters and EMTs, EMT-intermediates, or paramedics providing ambulance-type emergency service could deduct $5 for each regular work shift longer than six hours. On-duty …