SC SCH TC 25: Motion Picture Credit (Revision 2019-08)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-25 calculates Income Tax credits for investments in qualified motion picture projects and production or post-production facilities. It reports investment credits and determines the amount available after applying the tax liability limit and other allowa
Who files this form
Use SC SCH.TC-25 to claim an Income Tax credit for an investment in a qualified South Carolina motion picture project, production facility, or post-production facility. You may also receive these credits through a pass-through entity.
- Motion picture project: The credit is for a cash investment in a company that develops or produces a qualified project. The project must incur at least $250,000 in South Carolina costs. At least 20% of principal photography filming days, and no fewer than 10 filming days, must take place in the state. The project must be certified by the South Carolina Department of Parks, Recreation, and Tourism (SCDPRT) and registered with the South Carolina Department of Revenue (SCDOR).
- Production facility: The South Carolina investment must be at least $2 million, excluding land costs. The facility must have soundstages and the required supporting spaces. Television stations, recording studios, and facilities mainly used for videos, commercials, training films, or advertising films do not qualify.
- Post-production facility: The South Carolina investment must be at least $1 million, excluding land costs. Qualifying work includes visual effects, editing, and sound mixing. A soundstage is not required.
For facility credits, apply to SCDPRT with documentation showing that the investment requirements have been met.
What you'll need
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- Your credit approval from SCDPRT.
- Investment records needed to calculate the credit. Qualifying cash must have been spent on services performed in South Carolina, tangible personal property first used in the state, and/or real property located in the state.
- For a qualified project, documentation of the credit requirements for SCDPRT, plus the credit documentation and a record of credit allocations for registration with SCDOR.
- For a facility application, documentation showing that the appropriate investment threshold has been met.
- Your SC K-1 if you received credits from a pass-through entity.
- This year's Income Tax before credits and all other allowable credits for the tax year, to complete Part III.
How to file
- Complete Part I for a qualified project. Multiply the qualifying investment by 20%, then apply the $100,000 total credit limit for the project.
- Complete Part II for a qualified facility. Check whether the investment is in a production or post-production facility and calculate 20% of the qualifying investment.
- Complete Part III. Add the project and facility credits. If you received credits from a pass-through entity, begin with Part III and enter the total credits shown on your SC K-1. Apply the limit based on 50% of this year's Income Tax before credits, reduced by all other allowable credits.
- Enter the available credit on the appropriate tax credit schedule.
Paper filing: Attach SC SCH.TC-25 and the SCDPRT credit approval to your Income Tax return.
Electronic filing: Keep copies of the form and approval with your tax records.
The text does not provide a mailing address.
Common mistakes
- Claiming the same credit more than once: You cannot claim more than one credit for production of the same project. A facility credit can be claimed only once for a single production facility and once for a single post-production facility.
- Counting land toward a facility's minimum investment: Land costs do not count toward the $2 million production-facility threshold or the $1 million post-production-facility threshold.
- Exceeding the tax limit: This credit, combined with other state Income Tax credits, cannot reduce your Income Tax liability by more than 50%.
- Missing paper-return attachments: Attach both this form and the SCDPRT credit approval. Electronic filers must keep copies with their tax records.
- Overlooking the investment requirement after claiming a credit: If the project or facility does not meet the minimum investment requirements within three years from the end of the tax year when you first claimed the credit, you must increase your Income Tax liability in the fourth year by the credits claimed.
Questions people ask
How much is the credit?
The credit is 20% of a qualifying investment. Project credits are limited to $100,000 total per project. For facility credits, the total amount claimed by all taxpayers cannot exceed $5 million. The annual Income Tax limitation also applies.
Can I carry forward unused credits?
Yes. Unused credits may be carried forward for 15 years.
What if my credit comes from a pass-through entity?
Begin with Part III and enter the total credits shown on your SC K-1.
Can a facility investment include real property rather than just cash?
Yes. The investment amount includes cash and the fair market value of real property with improvements. The property must be in South Carolina and include the production or post-production facility. A lease with a term greater than 36 months can also count, using its fair market value minus the fair market value of any consideration paid for the lease.