SC SCH TC 50: Biomass Resource Credit (Revision 2014-08)

Who files this form

Use SC SCH.TC-50 to claim the Biomass Resource Credit, including unused credit carried forward from previous years. Attach it to your Income Tax Return.

The form describes certification for tax years ending before 2020. That credit is a nonrefundable credit against corporate income tax and license fees for 25% of qualifying equipment purchase and installation costs. The equipment must produce energy for commercial use from fuel consisting of at least 90% biomass resource.

Unused credits may be carried forward for 15 years. The text does not describe new credit certification for tax years 2024, 2025 or 2026.

When it's due

The form gives the following certification timeline in its discussion of credits for tax years ending before 2020:

• January 31: File the TC-50A credit application for qualifying equipment placed in service in the previous calendar year.
• March 1: The Department of Revenue will notify the taxpayer of the credit allocated.
• The credit may be claimed for the taxpayer's tax year that includes December 31 of the previous calendar year.

The text does not give a filing deadline for SC SCH.TC-50 for tax years 2024, 2025 or 2026.

What you'll need

To complete the schedule, have:

• Your name as shown on the tax return and your FEIN.
• The amount of credit certified by the Department of Revenue for the current year.
• The amount of unused credit carried forward from previous years.
• Your current-year tax liability.

Certification by the Department of Revenue is required before claiming the credit. The completed schedule must be attached to your Income Tax Return.

How to file

Attach SC SCH.TC-50 to your Income Tax Return.

1. Enter the current-year certified credit on line 1 and credit carried forward on line 2.
2. Add those amounts on line 3.
3. Use the printed annual credit limit of $650,000 on line 4.
4. Enter your current-year tax liability on line 5.
5. Enter the smallest of lines 3, 4 and 5 on line 6. This is the credit you may use for the current year.
6. Subtract line 6 from line 3 on line 7 to calculate the unused credit.

The text does not provide a mailing address or e-filing instructions.

Common mistakes

• Claiming credit without certification: Department of Revenue certification is required first.
• Exceeding the annual limit: A taxpayer may use up to $650,000 of credit for a single tax year. Line 6 also limits the credit to the smallest of available credit, the annual limit and current-year tax liability.
• Using remaining credit while the equipment no longer meets the fuel requirement: Remaining credit cannot be used until the equipment resumes using biomass resources as its primary fuel source, at least 90%.
• Extending the carryforward period for noncompliance: Unused credits may be carried forward for 15 years. Periods of noncompliance do not extend that period.

Questions people ask

Is this credit refundable?

No. The form describes it as a nonrefundable credit against corporate income tax and license fees.

How much credit can I use in one tax year?

Line 6 allows the smallest of your total available credit, the $650,000 annual limit and your current-year tax liability.

How long can I carry unused credit forward?

Unused credit may be carried forward for 15 years.

What happens if the equipment stops using biomass as its primary fuel source?

You cannot use any remaining credit until the equipment resumes using biomass resources as its primary fuel source, at least 90%. The 15-year carryforward period is not extended during noncompliance.

Is SC SCH.TC-50 the application for certification?

No. The form identifies TC-50A as the credit application filed with the Department of Revenue to obtain certification. SC SCH.TC-50 is attached to your Income Tax Return.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC50.pdf