SC SCH TC 4: New Jobs Credit (Revision 2024-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-4 calculates the New Jobs Credit for qualifying taxpayers that create new jobs in South Carolina. It reports employment increases, eligible credit, prior-year carryovers, the allowable credit, and credit carried forward.
Who files this form
SC SCH.TC-4 is used by qualifying taxpayers claiming the New Jobs Credit for creating jobs in South Carolina. The credit can reduce South Carolina Individual Income Tax, Corporate Income Tax, Bank Tax, or Insurance Premium Tax.
Qualifying businesses include manufacturing, tourism, processing, agricultural packaging, warehousing, distribution, research and development, corporate office, qualifying service-related, agribusiness, extraordinary retail, and qualifying technology intensive facilities or operations, as well as banks. Retail facilities and service-related industries qualify only if located in a Tier IV county.
Job requirements vary:
- Generally, employment must increase by at least 10 new full-time jobs during a year.
- Hotels and motels must create at least 20 new full-time jobs.
- Certain qualifying service-related facilities must create 25 to 175 new full-time jobs, depending on the applicable requirements.
Partners, shareholders, and LLC members may also claim credits passed through to them.
Taxpayers with 99 or fewer employees who add two or more full-time jobs may qualify for the Small Business Jobs Credit using TC-4SB. Qualifying small businesses electing the accelerated credit use TC-4SA.
What you'll need
Have these details available to complete the schedule:
- Your name and SSN or FEIN.
- The address and county of the facility creating the jobs.
- Monthly counts of full-time employees subject to South Carolina withholding for the base year and applicable later years, plus the number of months in operation.
- The applicable county designation and any SC616 filed to lock in that designation.
- Your tax liability from the applicable South Carolina tax return.
If the credit was passed through to you, use your South Carolina K-1 and provide the entity's name and FEIN. Begin with line 14 and enter the passed-through credit.
If claiming a carryforward, attach a schedule showing when the credits were earned, the amounts earned, and the amounts used in prior tax years.
If more space is needed for future years, attach additional TC-4 forms or a schedule containing all the information required by TC-4.
Common mistakes
- Claiming without the required job increase. The form says to stop if you have fewer than 10 full-time jobs or full-time job equivalents for the year. Most qualifying businesses must have a minimum increase of 10 jobs.
- Claiming too early. New jobs are eligible beginning the year after they are created, not in the year they are created.
- Ignoring a drop in employment. Credits are allowed only for the job level maintained in the claim year. The five-year eligibility period continues even if employment decreases.
- Applying multiple credit limits to the same unreduced tax liability. Calculate limits one credit at a time, using the tax liability remaining after other credits.
- Using carryforwards in the wrong order. Use current-year job credits before carryforwards, then use carryforwards in the order earned. Attach the required carryforward schedule.
Questions people ask
What counts as a full-time job?
A full-time job generally requires at least 35 hours a week for the entire normal operating year or for the year the employee was initially hired for or transferred to the South Carolina facility. Two half-time jobs count as one full-time job. A half-time job requires at least 20 hours a week over the applicable period.
How is the employment increase calculated?
Compare the monthly average of full-time employees subject to South Carolina withholding with the previous tax year's monthly average. Divide the total monthly employee counts by the number of months in operation. Round line 3 down to the nearest whole number.
How long can I claim the credit for a new job?
The credit is available for five years, beginning in the year after the job is created, subject to the employment requirements.
How much of my tax can the credit offset?
The credit is limited to 50% of your tax liability. If you claim other credits, calculate each credit's limit separately using the remaining tax liability.
Can unused credits be carried forward?
Yes. Unused credits can generally be carried forward for 15 years from the year earned. Taxpayers claiming both the New Jobs Credit and the Corporate Tax moratorium may carry unused credits forward until after the moratorium expires.