SC SCH TC 17: Recycling Property Tax Credit (Revision 2024-08)

Who files this form

This form is for taxpayers claiming the recycling property tax credit for constructing or operating a qualified recycling facility.

To qualify, the facility must:

• Be certified by an authorized South Carolina Department of Revenue (SCDOR) representative.
• Be located, or planned to be located, in South Carolina.
• Manufacture products for sale composed of at least 50% postconsumer waste material.
• Have at least $150 million in investment by the end of the fifth calendar year after the year construction or operation begins.

What you'll need

Have the following information ready:

• Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
• The current-year investment in recycling property, including acquisition, construction, erection, and installation costs.
• Any recycling property credit carried forward from prior tax years. Attach a schedule for this amount.
• The amount of credit used in the current year, which you also enter on the appropriate tax credit schedule.

Common mistakes

• Do not omit the schedule supporting prior-year credit carryforwards reported on line 3.
• Remember to enter the credit used on line 5 on the appropriate tax credit schedule.
• Individual taxpayers must provide their Social Security Number.
• If the facility does not meet the minimum investment within the required time, you must increase your current-year tax liability by the amount of credit used to reduce tax liability in earlier years.

Questions people ask

How much is the credit?

The credit is 30% of your investment in recycling property during the tax year. Multiply line 1 by 30% to calculate line 2.

Does leased property count?

Yes. Recycling property includes owned or leased real and personal property incorporated into or associated with a qualified recycling facility. Examples include buildings, improvements, machinery, and office equipment.

Which taxes can the credit reduce?

The credit may reduce Corporate Income Tax imposed under SC Code Section 12-6-530, Sales or Use Tax imposed by South Carolina or its political subdivisions, Corporate License Fees imposed under SC Code Section 12-20-50, or taxes similar to these.

Can unused credit be carried forward?

Yes. Unused credit may be carried forward to later tax years until it is fully used. Subtract line 5 from line 4 to calculate the carryforward on line 6.

What is postconsumer waste material?

It is a product generated by a business or consumer that has served its intended end use and has been separated from the solid waste stream for recycling. Examples include scrap metal and iron, used plastics, paper, glass, batteries, solar panels, turbines and related structures, and rubber.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC17.pdf