SC SCH TC 52: Fire Sprinkler System Credit (Revision 2009-05)

Who files this form

Use SC SCH. TC-52 to claim a fire sprinkler system credit if your county or other local taxing entity allows the credit for the tax year.

To qualify:

• The system must be installed in a commercial or residential structure. Both new and existing structures and systems may qualify.
• The system must meet the requirements of Code Section 40-10-20.
• Installation must not be required by law, regulation, or code.

For a year when the local taxing entity allows the property tax credit, you may also claim an income tax credit of the same amount.

What you'll need

• Your name as shown on your tax return and your SSN or FEIN. Individuals taking the credit must provide their Social Security number.
• The property address and TMS (Tax Map System) number for the certification form.
• A work order or invoice documenting installation expenses for the local auditor to review.
• The county or local taxing entity's completed credit claim and certification form, SC SCH. TC-52C, on official letterhead.
• If transferring unused credit to a tenant, the tenant's name and tax ID number. Attach a list if there is more than one tenant, and provide written notice of the transfer to the local taxing entity before the tenant claims the credit.

How to file

1. Complete the eligibility questions on SC SCH. TC-52. Enter the name of the county or local taxing entity and the credit amount it allows.
2. Have the county or local taxing entity's auditor complete SC SCH. TC-52C on official letterhead.
3. To claim the real property tax credit, submit SC SCH. TC-52 along with any real property taxes owed to your local taxing entity.
4. To claim the income tax credit, use the same form and enter the credit amount on the appropriate tax credit schedule. Attach SC SCH. TC-52 to your income tax return.

For a paper income tax return, attach a copy of the local taxing entity's certification. If filing electronically, keep the certification with your records.

Common mistakes

• Claiming the credit when the county or local taxing entity does not allow it for the tax year. The form says to stop if the answer is no.
• Claiming the credit for an installation required by law, regulation, or code. These installations do not qualify.
• Claiming the credit for a system that does not meet Code Section 40-10-20. The certification form says to stop if it does not qualify.
• Forgetting the local certification. Attach a copy to a paper income tax return, or keep it with your records when filing electronically.
• Letting a tenant claim transferred credit before the local taxing entity receives written notice of the transfer.

Questions people ask

How much is the credit?

A local taxing entity may allow a real property tax credit equal to 25% of the direct expenses of installing the system. Direct expenses do not include any fee charged by a publicly or privately owned utility.

Can I claim both a property tax credit and an income tax credit?

Yes. For any year when the local taxing entity allows the fire sprinkler system property tax credit, you may also claim an income tax credit of the same amount.

Can an owner transfer unused credit to a tenant?

Yes. The owner may transfer, devise, or distribute unused credit to a tenant of the eligible site. The local taxing entity must receive written notice before the tenant may claim it.

How do S corporations and partnerships handle the credit?

An S corporation owing corporate income tax must first use the income tax credit at the entity level. It must pass any remaining credit to shareholders according to their stock ownership percentages. An entity taxed as a partnership must pass the credit to its partners and may allocate it as agreed by the partners, consistent with Subchapter K of the Internal Revenue Code.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC52.pdf