I-334: Milk Credit (Revision 2019-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Form I-334 calculates a refundable Milk Credit against Individual or Corporate Income Tax. It reports the pounds of milk produced and sold, the number of quarters to which the credit applies, and the resulting credit amount. The form must be attached to Form SC1040
Who files this form
Use Form I-334 to claim the refundable Milk Credit if you are a South Carolina resident taxpayer engaged in producing milk for sale. Attach it to your SC1040, SC1065, SC1120, or SC1120S.
A producer is an individual, farm, corporation, or other legal entity that produces and sells milk from its own cows. The SC Commissioner of Agriculture must certify your eligibility and credit amount.
The credit applies when the USDA Class I price of fluid milk in South Carolina falls below the production price determined by the SC Department of Agriculture (SCDA). If your certified calendar-year production and sales total less than 500,000 pounds, the form says you do not qualify.
What you'll need
- Form I-334 and the SC1040, SC1065, SC1120, or SC1120S to which it must be attached.
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- The SCDA certification form, completed and signed. It certifies milk produced and sold for the entire taxable year and includes your sworn statement that the information is accurate.
- The Commissioner of Agriculture’s certified information, including calendar-year pounds produced and sold and the number of quarters for which the credit applies.
How to file
Complete Form I-334 using the information certified by the Commissioner of Agriculture:
- Enter the certified calendar-year pounds of milk produced and sold on line 1. Stop if the amount is less than 500,000 pounds.
- Enter $2,500 on line 2 if line 1 is at least 500,000 pounds.
- Subtract 500,000 pounds from line 1. Divide the result by 500,000 and round down to the nearest whole number.
- Multiply that whole number by $1,250, then add $2,500 to get line 6.
- Enter the certified number of qualifying quarters on line 7. Multiply line 6 by line 7 to get your credit on line 8.
Enter the credit on the appropriate line of your tax return. Attach Form I-334 to your SC1040, SC1065, SC1120, or SC1120S.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Claiming the credit with less than 500,000 certified pounds on line 1. The form says to stop because you do not qualify.
- Forgetting to attach Form I-334 to your SC1040, SC1065, SC1120, or SC1120S.
- Failing to prorate the credit quarterly. Use the certified number of qualifying quarters on line 7.
- Omitting your Social Security Number if you are an individual taxpayer. The form states that it is mandatory.
Questions people ask
Is the Milk Credit refundable?
Yes. It is a refundable credit against Individual or Corporate Income Tax.
How much is the credit?
The stated credit is $10,000 for the first 500,000 pounds of milk produced and sold below the production price during a calendar year, plus $5,000 for each additional 500,000 pounds. Credits must be prorated quarterly. The form calculates $2,500 for the first 500,000 pounds and $1,250 for each additional full 500,000 pounds, then multiplies that amount by the certified number of qualifying quarters.
Who certifies my eligibility and credit amount?
The SC Commissioner of Agriculture certifies to the SCDOR which producers are eligible and the amount of their credit.
Where can I find the production price?
Once all information is available, the average production price is posted at agriculture.sc.gov and is available in the SC Commissioner of Agriculture’s Office.
Must I sign a certification?
Yes. All dairy producers filing for the credit must complete and sign the SCDA form certifying milk produced and sold for the entire taxable year. It includes a sworn statement about the accuracy of the information.