SC SCH TC 14: Community Development Tax Credit (2019 and after) (Revision 2021-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-14 calculates the Community Development Tax Credit for eligible investments in community development corporations or community development financial institutions. It reports eligible investment amounts, prior-year unused credits, the credit allowed agai
Who files this form
This schedule is for taxpayers claiming a credit for an eligible investment in a certified community development corporation or community development financial institution. The credit can be applied against South Carolina Income Tax, Bank Tax, or Insurance Premium Tax.
You cannot claim the credit without certification from SC Commerce confirming the qualifying investment and that your available credit will not exceed the annual limit.
What you'll need
- All certifying DC-06075 forms from SC Commerce. Attach them to support the eligible investment amount on line 1.
- A schedule of prior years’ unused credit, if you claim a carryover on line 3.
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- Your eligible investment amount and tax liability to complete the calculation.
Common mistakes
- Claiming the credit without SC Commerce certification. Certification is required before you can claim it.
- Claiming both a deduction and the credit for a disqualified investment. If the community development financial institution is a tax-exempt nonprofit corporation and you deduct the investment under Internal Revenue Code Section 170, you do not qualify for the credit.
- Overlooking an equity redemption. If the entity redeems stock or another equity interest within five years, the related portion of the credit is disallowed. Repay any disallowed credit claimed in a previous year on your return for the year of redemption.
- Failing to adjust a carry-forward. Reduce the carry-forward amount if you use it to obtain a new credit in a later tax year.
Questions people ask
How much is the credit?
Multiply the eligible amount on line 1 by 33% for equity investments or 50% for cash donations. Add any prior years’ unused credit on line 3. The amount you claim on line 6 is the lesser of your total available credit or your tax liability. Enter that amount on SC1040TC or SC1120TC.
Can I carry unused credit forward?
Yes. The form says unused credits can be carried forward for up to three years. Its carry-forward instructions specify tax years beginning less than three years from the date you acquired the stock or other equity interest that is the basis for the credit.
What if SC Commerce later revokes the entity’s certification?
If you invested in a certified corporation or institution in good faith, you may claim the credit even if SC Commerce later revokes or does not renew the certification.
Are credits available on a first-come, first-served basis?
Yes. SC Commerce authorizes credits on a first-come, first-served basis. Once the annual credit limit is reached, it will not authorize additional credits.