SC SCH TC 4SA: Accelerated Small Business Jobs Credit (Revision 2024-07)

Who files this form

Use SC SCH.TC-4SA to claim the Accelerated Small Business Jobs Credit. Qualifying taxpayers may claim it against South Carolina Individual Income Tax, Corporate Income Tax, Bank Tax, or Insurance Premium Tax.

To qualify, you must:

• Have 99 or fewer total employees worldwide at either the beginning or end of the tax year when the new full-time jobs are created. This test is made once per credit period.
• Generally increase South Carolina employment by at least two new full-time jobs. Hotels and motels must create at least 20. Certain qualifying service-related facilities must create 25 to 175, depending on average cash compensation.
• Operate an eligible business or facility.

Eligible operations include manufacturing, tourism, processing, agricultural packaging, warehousing, distribution, research and development, corporate offices, qualifying service-related facilities, agribusiness, extraordinary retail establishments, qualifying technology-intensive facilities, and banks. Retail facilities and service-related industries qualify only in Tier IV counties.

Partners, shareholders, or LLC members receiving this credit through a pass-through entity begin at Part III, line 12, using the credit amount on their South Carolina K-1.

What you'll need

Have the following information ready to complete the form:

• Your name and SSN or FEIN, plus the address and county of the facility creating the jobs.
• Monthly full-time employee counts subject to South Carolina withholding, months in operation, and prior-year employee averages.
• Gross wages and months worked for the jobs being evaluated against the wage threshold.
• State and county per capita income amounts for the base year and tax year, and the applicable county designation. Information Letters are available at dor.sc.gov/policy.
• Your tax liability and any credit carried over from prior years.

If the credit comes from a pass-through entity, have its name, FEIN, and your South Carolina K-1.

If claiming a credit carryforward, attach a schedule showing when the credit was earned, the amount earned, and the amounts used in prior tax years.

How to file

• Paper filing: Attach a copy of SC SCH.TC-4SA to your tax return.
• Electronic filing: Include the information from this form when you file your return.
• For your records: Keep a copy of the form.

The supplied text does not give a mailing address.

Common mistakes

• Claiming both small business jobs credits for the same jobs. You cannot use both TC-4SA and TC-4SB for the same new jobs.
• Ignoring the minimum job requirement. If Part I, line 12 is less than two, you do not qualify for the current-year credit. Some businesses have higher minimum requirements.
• Claiming the 100% credit with too few qualifying jobs. If Part II, line 22 is less than two, enter zero on Part III, line 4.
• Exceeding the tax-liability limit. The credit is limited to 50% of tax liability. If taking multiple credits, calculate each limitation separately using the remaining tax liability 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.
• Forgetting the filing and recordkeeping steps. Attach the form to a paper return or include its information with an electronic return, and keep a copy.

Questions people ask

When does the accelerated credit begin, and how long does it last?

The credit begins in the year the new jobs are created and is available for five years, as long as the required job level is maintained. If the job level decreases, the five-year eligibility period continues to run.

What counts as a full-time job?

A full-time job requires at least 35 hours a week for the entire normal year of company operations, 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.

How do wages affect the credit amount?

Jobs with annualized gross wages at or above 120% of the lesser of county or state per capita income are eligible for 100% of the traditional credit amount for each qualifying month. Jobs below 120% of both amounts are eligible for 50%. To annualize gross wages for a full-time job, multiply wages by 12, then divide by the number of months worked in the tax year.

Can unused credit be carried forward?

Yes. Unused credit can generally be carried forward for 15 years from the year it was earned. Use current-year job credits first, then carryforwards in the order earned.

Does the credit amount change if the county's designation changes?

The credit amount for existing qualifying jobs does not change when the county designation changes in a later year. Additional new jobs generally use the designation in effect when those jobs are created. A taxpayer planning a significant expansion may file SC616 before creating the jobs to lock in a current Tier II, III, or IV designation.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC4SA.pdf