SC SCH TC 41: Renewable Fuel Facility Credit (Revision 2012-06)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-41 calculates income tax credits for renewable fuel production facilities and distribution or dispensing property. It reports credits allocated by the State Energy Office, annual installments, prior-year carryforwards, and the credit allowed against cur
Who files this form
SC SCH.TC-41 is for corporate or individual income taxpayers claiming the Renewable Fuel Facility Credits for qualifying South Carolina property or facilities placed in service after 2006 and before 2020.
The credits cover taxpayers who:
- Purchase or construct, install, and place in service property used to distribute or dispense renewable fuel at a new or existing commercial fuel facility.
- Construct and place in service a commercial renewable fuel production facility.
The State Energy Office must determine that the taxpayer qualifies and allocate the credit. The schedule includes annual credit installments and amounts carried forward from prior years.
When it's due
- January 31: Submit a credit request to the State Energy Office for qualifying property or a qualifying facility placed in service during the previous calendar year.
- March 1: The State Energy Office will notify the taxpayer of qualification and the allocated credit amount by this date in the request year.
- Tax year covered: The allocated credit may be claimed for the taxpayer's tax year that includes December 31 of the previous calendar year.
These are the form's recurring certification dates. It does not print an Income Tax Return filing deadline.
What you'll need
Have the following information and documents available:
- Your name as shown on your tax return and your SSN or FEIN. Individual taxpayers must provide their SSN.
- The State Energy Office credit allocation form and letter of certification.
- Any credit amounts carried forward from prior years.
- Your current-year tax liability.
Attach the certification letter and completed SC SCH.TC-41 to your Income Tax Return, or keep them with your tax records if filing electronically. The Department of Revenue may require additional documentation to administer the credit.
How to file
- Request certification from the State Energy Office. Its credit request form is available at www.energy.sc.gov or by calling (803) 737-8030.
- Calculate the production facility credit. Enter the allocated amount on line 1 and divide it by 7 on line 2. Add prior-year carryforwards on line 3 to get line 4.
- Calculate the distribution or dispensing property credit. Enter the allocated amount on line 5 and divide it by 3 on line 6. Add prior-year carryforwards on line 7 to get line 8.
- Apply the tax liability limit. Add lines 4 and 8 on line 9. Enter current-year tax liability on line 10. Line 11 is the smaller of lines 9 and 10. Enter that amount on the appropriate tax credit schedule.
- Include the required attachments. Attach SC SCH.TC-41 and the State Energy Office certification letter to your Income Tax Return. If filing electronically, keep them with your tax records instead.
The form does not provide a mailing address or further electronic filing directions.
Common mistakes
- Claiming overlapping credits for the same facility costs. You may not claim the production facility credit and either the TC-8 Corporate Headquarters Credit or the TC-22 Certified Historic Structure Credit for the same construction and installation costs.
- Missing the required attachments or records. Attach the State Energy Office certification letter and this schedule to your Income Tax Return, or keep them with your tax records if filing electronically.
- Using remaining installments after the credit expires. The production credit expires if the facility is disposed of or taken out of service during the seven-year installment period. The distribution or dispensing credit expires if qualifying property is disposed of or taken out of service during the three-year installment period and is not replaced.
- Leaving off an individual's SSN. The form states that individual taxpayers must provide it.
Questions people ask
How much is the credit?
The production facility credit is 25% of the taxpayer's cost of constructing or renovating a building and equipping it to produce renewable fuel. The distribution or dispensing property credit is 25% of the taxpayer's cost of purchasing, constructing, and installing qualifying property. The schedule uses the amount allocated by the State Energy Office.
Can I take the entire credit in one year?
The production facility credit must be taken in seven equal annual installments. The distribution or dispensing property credit must be taken in three equal annual installments. Both begin with the tax year the facility or property is placed in service.
Can unused credit be carried forward?
An installment of either credit may be carried forward for 10 years. The current-year credit on line 11 cannot exceed the current-year tax liability entered on line 10.
What distribution or dispensing equipment qualifies?
Eligible property includes pumps, storage tanks, and related equipment directly and exclusively used to distribute, dispense, or store renewable fuel. The equipment must be labeled for that purpose and clearly identified as associated with renewable fuel.