SC SCH TC 36: Industry Partnership Fund Credit (Revision 2024-08)

Who files this form

SC SCH TC-36 is used to claim the Industry Partnership Fund Credit for qualified contributions to the South Carolina Research Authority (SCRA) or an SCRA-designated affiliate.

Individuals, corporations, partnerships, trusts, banks, insurance companies, and other entities may qualify. The credit may be applied against state Income Taxes, License Fees, Insurance Premium Taxes, or a combination of these.

Members of the SCRA board of trustees or the SC Launch!, Inc. board of directors do not qualify. Contributions whose use is subject to conditions or limitations also do not qualify.

When it's due

For tax years 2024, 2025, and 2026, a taxpayer certified by SCRA for priority entitlement to the credit must make a commitment satisfactory to SCRA no later than April 1 of the contribution year. The commitment must be to make the contribution during that year.

The text does not state a tax return filing deadline.

What you'll need

• SCRA credit form: Attach a copy identifying your qualified contributions. SCRA provides this form showing the year and amount of available credit, and it must be included with the tax return claiming the credit.
• Information for the schedule: Have your qualified contribution amount, any credit carried forward from previous years, and current-year tax liability after all other tax credits are applied.
• Identifying information: Enter your name and SSN or FEIN. Individual taxpayers must provide their Social Security number.

How to file

Complete the schedule as follows:

1. Enter qualified contributions on line 1 and attach the SCRA form.
2. Enter credit carried forward from previous tax years on line 2.
3. Add lines 1 and 2 on line 3.
4. Enter current-year tax liability on line 4, taking into account the instruction that the credit is limited to liability after all other tax credits.
5. Enter the smaller of lines 3 and 4 on line 5. Transfer this current-year credit to the appropriate tax credit schedule.
6. Subtract line 5 from line 3 on line 6 to calculate the unused credit.

Include the SCRA form with your tax return claiming the credit. The text does not provide a mailing address or e-filing directions.

Common mistakes

• Do not take both a deduction and a credit for the same qualified contribution amount.
• Do not claim the credit for contributions whose use is subject to conditions or limitations.
• Do not claim more than the remaining Income Tax, License Fee, or Insurance Premium Tax liability after all other tax credits are applied. This credit is not refundable.
• Do not omit the SCRA form from the tax return claiming the credit.
• Do not carry unused credit forward beyond 10 years from the end of the contribution year.

Questions people ask

How much is the credit?

The credit is 100% of qualified contributions, subject to the taxpayer limit, the total limit for all taxpayers, and your remaining tax liability.

What limits apply for tax years 2024, 2025, and 2026?

The maximum is $500,000 for a single taxpayer, with a $12 million total limit for all taxpayers. If the total limit is not met within 60 days of the annual opening date for credit applications, the single-taxpayer maximum increases to $1 million until the total limit is met.

What happens if contributions exceed the total credit limit?

Taxpayers receive priority entitlement based on when their contributions are made. SCRA certifies whether a taxpayer expressing an intention to make qualified contributions is entitled to priority.

Can I receive a refund or save unused credit?

The credit is not refundable. Unused credit may be carried forward for up to 10 years from the end of the year in which the contribution was made.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC36.pdf