SC SCH TC 54: Credit for Manufacturing Renewable Energy Systems (Revision 2014-08)

Who files this form

Use SC SCH.TC-54 to claim the Clean Energy Credit on your Income Tax Return. A business or corporation may apply for this nonrefundable credit for qualifying investments in South Carolina clean energy operations for tax years beginning after 2013.

Qualifying investments include land, buildings, machinery, and fixtures for a new facility or an expansion of an existing facility. Department of Revenue certification is required before you claim the credit.

When it's due

For tax years beginning after 2013, including 2024, 2025, and 2026, the form gives this annual certification schedule:

• By January 31: File the TC-54A credit application with the Department of Revenue for qualifying expenses incurred in the previous calendar year.
• By March 1: The Department will notify you of the credit amount allocated to you.

You may claim the credit for your tax year that includes December 31 of the previous calendar year. The form does not give an Income Tax Return filing deadline.

What you'll need

To complete and claim the credit, you need:

• Your name as shown on your tax return and your SSN or FEIN.
• The credit amount certified by the Department of Revenue.
• Any credit carried forward from previous years.
• Your current-year tax liability.
• Your Income Tax Return, to which you must attach this schedule.

A TC-54A credit application is required to obtain certification. For any credit awarded after tax year 2014, you must also notify the Department in writing that you intend to claim it.

How to file

1. File a TC-54A credit application with the South Carolina Department of Revenue and obtain certification before claiming the credit.
2. Enter the certified credit on line 1 and prior-year carryforward on line 2. Add them on line 3.
3. Use the printed $500,000 annual limit on line 4 and enter your current-year tax liability on line 5.
4. On line 6, enter the smallest of lines 3, 4, and 5. This is the credit you may use for the current year.
5. Subtract line 6 from line 3 on line 7 to calculate the unused credit.
6. Attach SC SCH.TC-54 to your Income Tax Return.

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

Common mistakes

• Claiming the credit before certification: Department of Revenue certification is required first.
• Missing the written notice: For credits awarded after tax year 2014, notify the Department in writing that you intend to claim the credit.
• Exceeding the limits: The credit is limited to $500,000 per year and $5 million total for all years. Your current-year claim also cannot exceed your current-year tax liability.
• Claiming overlapping benefits: This credit is in place of other applicable state income tax credits or abatements. If benefits overlap or conflict, you must select which to claim in the manner prescribed by the Department.
• Leaving out an individual taxpayer’s SSN: The form states that providing it is mandatory.

Questions people ask

How much is the credit?

The credit is 10% of qualifying investment in South Carolina clean energy operations. It is nonrefundable and subject to certification, tax liability, and the stated credit limits.

Can I carry unused credit forward?

Yes. Unused credits may be carried forward for 15 years after the tax year in which a qualified expenditure was made.

Can separate facilities qualify?

Yes. A taxpayer may separately qualify for new facilities at separate locations or separate expansions of existing South Carolina facilities.

Does moving an existing facility qualify?

Relocating an existing South Carolina facility to another location in the state does not qualify without additional capital investment.

Does generating electricity for off-site consumption qualify?

No. The form excludes generating electricity for off-site consumption from both manufacturing and clean energy operations.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC54.pdf