SC SCH TC 6: Infrastructure Credit (Revision 2019-09)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-6 calculates the Infrastructure Credit against Corporate Income Tax or Bank Tax for qualifying water line, sewer line, and road projects. It reports project expenses, contributions, expenses allocated to the taxpayer's benefit, and the resulting credit.
Who files this form
Use SC SCH TC 6 to claim the Infrastructure Credit against Corporate Income Tax or Bank Tax. The credit cannot be used against the corporate License Fee.
Qualifying projects include water lines, sewer lines, related facilities, and roads that:
- Do not exclusively benefit the taxpayer.
- Meet applicable construction standards.
- Are dedicated to public use. Water and sewer lines and related facilities in areas served by a private water and sewer company may instead be deeded to a qualified private entity.
Only expenses not allocated to the taxpayer's benefit qualify. A qualified private entity cannot claim the credit for expenses of building or improving facilities it owns, manages, or operates.
What you'll need
Have the information requested on the schedule ready:
- Your name and FEIN.
- The project's street address, city, state, and ZIP code.
- Project expenses, expenses allocated to your benefit, and contributions.
- Credit amounts from other qualifying infrastructure projects for the total entered on SC1120TC.
If you claim the credit before the project is complete, submit a letter of intent with your tax return. It must be signed by the chief operating officer of the appropriate government entity or qualified private entity and state that the entity will accept the completed project for the appropriate use.
How to file
- Prepare a separate SC SCH TC 6 for each water line project, sewer line, or road project. Use Part I for water lines, Part II for sewer lines, and Part III for roads.
- Subtract expenses allocated to your benefit from project expenses, then add contributions. Multiply the result by 50% and enter the lesser of that amount or the $10,000 project limit.
- Add the credit on line 8 to credits from other qualifying infrastructure projects and enter the total on SC1120TC.
- If filing on paper, attach the schedule to your Income Tax return.
- If filing electronically, keep a copy with your tax records.
Common mistakes
- Do not combine multiple projects on one schedule. The form calls for a separate schedule for each water line project, sewer line, or road project.
- Do not include expenses allocated to your own benefit in qualifying expenses.
- Do not apply the credit against the corporate License Fee.
- Do not claim the credit before project completion without submitting the required signed letter of intent with your tax return.
- Do not overlook the repayment rule if a credited road is removed from the state highway or public road system. Complete the road-removal section and add the required amount to Corporate Income Tax due for the first taxable year following removal.
Questions people ask
How much is the credit?
The credit is 50% of qualifying expenses paid or accrued in building or improving an infrastructure project, limited to $10,000 per project annually.
Can unused credit be carried forward?
Yes. Unused credit up to a total of $30,000 may be carried forward three years.
Can contributions qualify?
Yes. Qualifying contributions to a government entity may qualify. For a water or sewer line project in an area served by a private water and sewer company, contributions to a qualified private entity may also qualify.
How does the credit work for a consolidated corporate return?
Determine the credit on a consolidated basis. It reduces the group's total Income Tax liability, even if the corporation that earned it does not contribute to that liability.