SC SCH TC 26: Venture Capital Investment Credit (Revision 2019-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-26 reports the Venture Capital Investment Credit shown on a South Carolina Venture Capital Authority (SCVCA) certificate. It tracks the credit used to reduce Income Tax, amounts transferred to another taxpayer, and unused credits that can be carried for
Who files this form
SC SCH.TC-26 is used to report the Venture Capital Investment Credit. A taxpayer who lends money to the South Carolina Venture Capital Authority (SCVCA) receives a certificate for nonrefundable credits covering the loan principal and required interest. Credits may also be transferred to another person able to use them, subject to SCVCA verification.
Credits can be used against Income Tax for individuals, corporations, banks, and building and loan associations. They can also be used against Corporate License Fees, License Taxes on other businesses, Insurance Premium Tax, or other taxes provided in Title 38.
An individual may claim a pro rata share of credits from a Partnership, LLC, S Corporation, Estate, or Trust that elects to have its income taxed directly to the individual. The share is based on the individual's earnings from that entity.
What you'll need
Have these items ready to complete the schedule:
- Your name and Social Security Number (SSN) or Federal Employer Identification Number (FEIN). Individual taxpayers must provide an SSN.
- The SCVCA certificate showing the credit amount. The certificate also lists the loan amount, year, and conditions for redeeming credits.
- The amount of credit used to reduce tax liability on your Income Tax return.
- The amount of credit transferred to another taxpayer during the year.
How to file
Enter the credit shown on your SCVCA certificate on line 1. On line 2, enter the amount used to reduce tax liability on your Income Tax return. On line 3, enter the amount transferred to another taxpayer this year.
For line 4, subtract lines 2 and 3 from line 1 to calculate the unused credit.
- Paper filing: Attach the schedule to your Income Tax return.
- Electronic filing: Keep a copy of the schedule with your tax records.
Common mistakes
- Leaving out your SSN if you are an individual taxpayer. The form states that providing it is mandatory.
- Not attaching the schedule when filing on paper. Attach it to your Income Tax return.
- Not keeping a copy when filing electronically. Keep one with your tax records.
- Overlooking transfer requirements. Transfers of credits are subject to SCVCA verification. Only the SCVCA can permit a transfer of assets, liabilities, or credits to another designated investor group.
Questions people ask
Is this credit refundable?
No. The SCVCA certificate provides nonrefundable credits for the loan principal and required interest.
What happens to unused credits?
Unused credits can be carried forward indefinitely. Line 4 shows the amount remaining after subtracting credits used and credits transferred from the certificate amount.
Can I transfer credits to someone else?
Yes. Subject to SCVCA verification, a lender or transferee may transfer credits to another person able to use them. Only the SCVCA can permit transfers to another designated investor group.
Can an individual claim credits from a business or trust?
Yes. An individual may claim credits from a Partnership, LLC, S Corporation, Estate, or Trust that elects to have its income taxed directly to the individual. The credit is based on the individual's pro rata share of earnings from that entity.
Do designated investor groups have a reporting requirement?
Yes. Each designated investor group must provide an annual report to the SCVCA listing any use, redemption, or transfer of credits.