SC SCH TC 34: Corporate Tax Moratorium (Revision 2019-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-34 calculates a corporate tax moratorium reduction based on investment and job creation in a qualifying county. It reports investment amounts, jobs created and maintained, and the reduction to enter on SC1120TC. This moratorium is not a tax credit.
Who files this form
SC SCH TC-34 is for taxpayers claiming a moratorium on South Carolina Corporate Income Tax. It is not a tax credit.
The instructions printed on the form say a taxpayer must:
- Create and maintain at least 100 new full-time jobs at a qualified manufacturing facility.
- Create the jobs within five years after creating the first new full-time job.
- Have created the first new full-time job on or after May 31, 2006.
- Locate the jobs in a county with an average annual unemployment rate at least twice the state average in each of the last two completed calendar years, or in one of the three lowest per capita income counties.
- Locate the investment in a qualifying county where at least 90% of the taxpayer's total South Carolina investment is located.
- File TC-34 to claim the moratorium.
The printed county requirements are inconsistent: the instructions allow either county condition, but the warning beneath lines 7 through 9 says that a “no” on any of those lines means you do not qualify.
What you'll need
Have the following information ready to complete the schedule:
- Taxpayer name and FEIN.
- Qualifying year, years claimed, and qualifying county.
- Previous and new investment amounts in the qualifying county, plus investment in other South Carolina counties.
- Number of new jobs in the qualifying year and number maintained in the current year.
- Information needed to answer the county unemployment and per capita income questions.
- Corporate Income Tax liability before the moratorium.
The form also directs you to enter the calculated moratorium reduction on SC1120TC.
How to file
Complete the investment, job creation, and qualifying county sections. To calculate the moratorium reduction, multiply the tax liability on line 10 by the new investment percentage on line 11. Enter the result on line 12 and on SC1120TC.
- Paper filing: Attach TC-34 to your Corporate Income Tax return.
- Electronic filing: Keep a copy of TC-34 with your tax records.
The supplied text does not give a mailing address.
Common mistakes
- Treating the moratorium as a tax credit. The form expressly says it is not a tax credit.
- Overlooking the 90% investment test. Line 6 says you do not qualify if the percentage on line 3, Column B is below 90%.
- Ignoring the job-count requirement. The moratorium no longer applies when the number of new jobs falls below the qualifying level of 100 or 200.
- Using an ineligible first-job date. The first new full-time job must have been created on or after May 31, 2006.
- Missing the county-condition wording conflict. The warning beneath lines 7 through 9 says a “no” on any of those lines disqualifies you, while the printed instructions connect the two county conditions with “or.”
- Forgetting the filing reminder. Attach the schedule to a paper Corporate Income Tax return, or keep a copy with your records if filing electronically.
Questions people ask
When does the moratorium begin?
It begins in the first full taxable year after the company first qualifies.
How long does the moratorium last?
For the 100-job qualification, it ends 10 years from the first moratorium year or in the year the full-time job count falls below 100, whichever is earlier. Creating and maintaining at least 200 new full-time jobs within five years after creating the first new full-time job extends the period to 15 taxable years. That extended period ends earlier if the new full-time job count falls below 200.
Does the moratorium reduce all of the company's Corporate Income Tax?
It applies to the portion represented by the ratio of the company's new investment in the moratorium county to its total South Carolina investment. Line 12 calculates the reduction by multiplying line 10 by line 11.
Where can I find the legal definitions and full law?
The form points to SC Code Section 12-6-3360(M) for definitions and SC Code Section 12-6-3367 for the moratorium law, available at dor.sc.gov/policy.