SC SCH TC 4SB: Small Business Jobs Credit (Revision 2024-07)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-4SB is used to calculate qualifying jobs for the Small Business Jobs Credit. It records monthly full-time employee counts, increases in employment, and wage information used to determine which jobs qualify for 100% of the credit amount.
Who files this form
Qualifying small businesses use SC SCH.TC-4SB to claim the Small Business Jobs Credit 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 at all locations 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 jobs. Certain qualifying service-related facilities must create 25 to 175 jobs, depending on average cash compensation.
- Operate a qualifying business or facility.
Eligible categories 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 if located in a Tier IV county.
Partners, shareholders, and members may also claim credit passed through from a partnership, S Corporation, or LLC taxed as a partnership or S Corporation.
What you'll need
Have these records and details ready:
- Your name and SSN or FEIN, plus the facility address and county.
- Monthly counts of full-time employees subject to South Carolina withholding for the base year and applicable later years, and the number of months in operation.
- Gross wages and months worked for each new job, plus hours worked per week when annualizing part-time wages.
- State and county per capita income figures and the applicable county designation. Information Letters are available at dor.sc.gov/policy.
- Your tax liability and any prior-year credit carryover.
If the credit was passed through to you, have your South Carolina K-1 and the entity's name and FEIN.
If claiming a carryforward, attach a schedule showing when the credit was earned, the amount earned, and amounts used in prior years.
How to file
- Paper filing: Attach a copy of SC SCH.TC-4SB to your tax return.
- Electronic filing: Include the information from this form when filing your return.
- Your records: Keep a copy of the form.
Complete Part I to calculate qualifying jobs, Part II to determine jobs eligible for the 100% credit, and Part III to calculate the allowable credit and carryforward.
If you receive the credit from a pass-through entity, enter the entity's name and FEIN. Begin with Part III, line 12, using the credit amount shown on your South Carolina K-1.
Common mistakes
- Claiming both small business credits for the same jobs: You cannot use both TC-4SA and TC-4SB for the same new jobs.
- Ignoring minimum job requirements: Part I warns you to stop if line 12 is fewer than two. Some business types have higher minimum requirements.
- Claiming the 100% credit with too few qualifying jobs: If Part II, line 22, is fewer 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 limitations one credit at a time using the remaining tax liability after other credits.
- Using carryforwards out of 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 company's 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.
When can I start taking the credit?
New jobs qualify for five years beginning with the year after they are created, as long as they are maintained. The credit is allowed only for the job level maintained in the year claimed. A decrease in jobs does not pause the five-year eligibility period.
What determines whether a job receives the 100% or 50% credit amount?
Jobs with annualized gross wages of at least 120% of the lesser of county or state per capita income are eligible for the 100% traditional credit amount. Jobs with wages below 120% of both amounts are eligible for the 50% amount. The form also requires at least two qualifying jobs on Part II, line 22, for the 100% credit.
Can unused credit be carried forward?
Yes. Unused credits can be carried forward for up to 15 years from the year earned. You must attach a schedule detailing the credit earned and amounts used.
Does a later change in the county's designation change my credit amount?
No. The credit amount is based on the county designation when the jobs are created. Additional jobs created in later years use the designation in effect when those jobs are created. A taxpayer planning a significant expansion may file SC616 before creating jobs to lock in a current Tier II, III, or IV designation.