SC SCH TC 35: Alternative Motor Vehicle Credit (Revision 2019-08)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-35 calculates the Alternative Motor Vehicle Credit against Corporate or Individual Income Tax at 20% of the federal credit amount before phaseout. It reports vehicle details, the current-year credit, and unused credits that may be carried forward for fi
Who files this form
Use SC SCH.TC-35 to claim the Alternative Motor Vehicle Credit. A South Carolina resident who meets the federal credit requirements under Internal Revenue Code section 30B is eligible for a credit against South Carolina Corporate or Individual Income Tax.
The listed vehicle categories are:
- Qualified fuel cell vehicles
- Advanced lean burn technology vehicles
- Qualified hybrid vehicles
- Qualified alternative fuel vehicles
The credit does not apply to plug-in hybrid vehicles or all-electric vehicles.
What you'll need
Have the manufacturer's or domestic distributor's certification that the specific vehicle, including its make, model, and year, meets IRC section 30B requirements. The certification must include the federal credit amount before phaseout.
You will also need the information requested on the form:
- Tax year, name, and SSN or FEIN
- Vehicle make and model
- Date the vehicle was placed in service
- Unused credit carried forward from previous tax years
- Current tax year liability
How to file
- Enter your identifying information, vehicle make and model, and the date the vehicle was placed in service. Use MM-DD-YYYY for the date.
- Enter the federal credit before phaseout on line 2 and multiply it by 20% on line 3.
- Enter unused credit from previous tax years on line 4. Add lines 3 and 4 on line 5.
- Enter your current tax year liability on line 6. On line 7, enter the smaller of line 5 or line 6. Transfer that amount to the appropriate tax credit schedule.
- Subtract line 7 from line 5 to calculate the unused credit on line 8.
If you file on paper, attach this form to your Income Tax return. If you file electronically, keep a copy with your tax records. The form does not provide a mailing address.
Common mistakes
- Claiming this credit for a plug-in hybrid or all-electric vehicle. The form specifically excludes these vehicles.
- Using the federal credit amount after phaseout. South Carolina calculates this credit using the federal amount before phaseout.
- Forgetting to attach the form to a paper Income Tax return or to keep a copy when filing electronically.
- Leaving out your Social Security Number if you are an individual taxpayer. The form says providing it is mandatory.
Questions people ask
How much is the South Carolina credit?
The credit is 20% of the federal credit amount before phaseout. The amount you can use in the current year, including available carryforwards, is limited to your current tax year liability.
Can I carry forward unused credit?
Yes. Any unused portion may be carried forward for the next five tax years.
Where can I get the federal credit amount before phaseout?
Your vehicle manufacturer or domestic distributor can provide that amount.
Does this credit cover plug-in hybrids or all-electric vehicles?
No. The form states that neither qualifies for this credit.