SC SCH TC 18: Research Expenses Credit (Revision 2019-08)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-18 calculates the research expenses credit against Individual or Corporate Income Tax and Corporate License Fees. It reports qualified research expenses made in South Carolina, credits carried forward, the credit allowed this year, and unused credit ava
Who files this form
SC SCH.TC-18 is used to claim South Carolina's research expenses credit. A taxpayer claiming a federal research expenses credit under Internal Revenue Code Section 41 may claim this credit for qualified research expenses made in South Carolina during the tax year.
The credit may be applied against Individual or Corporate Income Tax and Corporate License Fees. The form also provides instructions for taxpayers receiving the credit from a Partnership, S Corporation, or LLC.
What you'll need
To complete the form, have:
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- The amount of qualified research expenses made in South Carolina during the tax year.
- Your tax liability before credits and the total of all other credits.
- A schedule of research expenses credits carried forward from previous years, if any. Attach this schedule for line 3.
- Your SC K-1 if you received the credit from a Partnership, S Corporation, or LLC, plus the name and FEIN of the entity that made the qualifying expenses.
How to file
- Paper filing: Attach SC SCH.TC-18 to your Income Tax return.
- Electronic filing: Keep a copy with your tax records.
If you received the credit from a Partnership, S Corporation, or LLC, enter the entity's name and FEIN. On line 2, enter the research expenses credit amount shown on your SC K-1.
Common mistakes
- Leaving out the carryforward schedule: Attach a schedule when reporting credit carried forward from previous years on line 3.
- Entering a negative amount on line 7: If line 5 minus line 6 is less than zero, enter zero.
- Claiming more than the limit: The credit used for the year cannot exceed 50% of tax liability remaining after all other credits. Enter the lesser of line 4 or line 8 on line 9.
- Overlooking the carryforward limit: Unused credit may be carried forward for up to 10 years.
- Missing the filing reminder: Attach the form to a paper Income Tax return, or keep a copy with your tax records if filing electronically.
Questions people ask
How much is the research expenses credit?
The credit earned for the year is 5% of qualified research expenses, as defined by IRC Section 41(b), made by the taxpayer in South Carolina during the tax year.
Can I use the full credit this year?
The credit used in a tax year cannot exceed 50% of your tax liability remaining after all other credits are applied. Line 9 is the lesser of your total available research expenses credit on line 4 or the limit on line 8.
What happens to unused credit?
Unused research expenses credit may be carried forward for up to 10 years. Line 10 shows the unused amount after subtracting line 9 from line 4.
What if I received the credit from a pass-through entity?
If you received it from a Partnership, S Corporation, or LLC, enter the name and FEIN of the entity that made the qualifying research expenses. Enter the credit amount included on your SC K-1 on line 2.