SC SCH TC 45-A: Apprenticeship Credit (for tax years ending May 21, 2024 and after) (Revision 2024-08)

Who files this form

Use SC SCH.TC-45 to claim the Apprenticeship Credit against South Carolina Corporate or Individual Income Tax. A taxpayer employing an apprentice under an agreement registered with the U.S. Department of Labor’s Office of Apprenticeship may qualify.

The form covers:

• Apprentices: Employees under registered apprentice agreements who worked for the taxpayer for at least seven months of the tax year.
• Youth apprentices: Employees in registered youth apprenticeship programs who worked for the taxpayer for at least seven months of the tax year.
• Retained apprentices: Qualifying apprentices who remain employed after completing their apprenticeship.

This version is for tax years ending May 21, 2024 and after.

What you'll need

Have the following information ready:

• Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
• Each qualifying apprentice’s name and last four digits of their SSN or ITIN.
• Apprenticeship costs for Worksheet A or B.
• Years employed after completing the apprenticeship for Worksheet C.
• The number of qualifying apprentices in each category.
• Any credit carried forward from prior years and your current-year tax liability from your tax return.

Complete the appropriate worksheet for each qualifying apprentice. Keep copies of the form and all worksheets with your tax records. SCDOR may request additional documentation when reviewing the credit.

How to file

1. Check the boxes for the types of apprentices you employed.
2. Complete Worksheet A for qualifying apprentices, Worksheet B for qualifying youth apprentices, and Worksheet C for retained apprentices.
3. Enter the apprentice counts on lines 1 through 4. Transfer the worksheet totals to lines 5 through 7.
4. Follow lines 8 through 13 to calculate your total credit, available credit, and carryforward. The available credit on line 12 is the lesser of your total credit or current-year tax liability.
5. Individuals enter the available credit on SC1040TC. Corporations enter it on SC1120TC.

Paper return: Attach TC-45 and all worksheets to your Income Tax return.

Electronic return: Include the information from this form when filing your return.

Keep a copy of the form and all worksheets with your tax records.

Common mistakes

• Using the wrong version: The form reminds taxpayers to choose the version based on the tax year being claimed. Forms are available at dor.sc.gov/forms.
• Claiming an ineligible retained employee: Worksheet C says to stop if the number of years employed after program completion is greater than three. That employee does not qualify.
• Leaving out paper-return attachments: Attach TC-45 and all worksheets to a paper Income Tax return.
• Not keeping copies: Keep the form and all worksheets with your tax records.
• Omitting an individual taxpayer’s SSN: The form states that providing it is mandatory.

Questions people ask

How much is the credit for an apprentice or youth apprentice?

The credit is the greater of the apprenticeship cost or $1,000, subject to a yearly maximum of $4,000 per apprentice or $6,000 per youth apprentice.

Can I claim a credit after an apprentice completes the program?

To claim the credit for more than four years, the apprentice must complete the apprenticeship and remain your employee. If those conditions are met, the credit is $1,000 for up to three additional tax years.

Is the credit refundable?

No. The credit is nonrefundable, and the amount you can claim for a year is limited to your tax liability.

Can I carry unused credit forward?

Yes. Unused credit can be carried forward for up to three years. Calculate the carryforward on line 13 by subtracting line 12 from line 10.

Is there a total limit for all taxpayers?

Yes. The maximum aggregate credit for all taxpayers may not exceed $5 million in a tax year.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC45_A5-2024.pdf