SC SCH TC 61: Agribusiness Income Tax Credit (Revision 2019-08)

Who files this form

Use SC SCH.TC-61 to claim an agribusiness credit against South Carolina Income Tax.

An agribusiness operation or agricultural packaging operation, as defined in Section 12-6-3360, may qualify if it:

• Increases purchases of eligible agricultural products by at least 15% in a single calendar year over its base year.
• Purchases products certified as South Carolina grown by the South Carolina Department of Agriculture (SCDA).
• Has base-year purchases of certified products exceeding $100,000.

The Coordinating Council for Economic Development determines the amount and type of credit. Use WH1671 instead if claiming the credit against Withholding Tax.

What you'll need

To complete the credit form, have:

• Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
• The Council's letter certifying your credit.
• The amount of unused Income Tax credit carried forward from prior years.
• Your current-year tax liability.

Your application to the Council must include a schedule showing:

• How you determined base-year purchases and the increase in purchases of certified products.
• The amount of base-year purchases.
• The increase in purchases for the taxable year, as both a percentage and a total amount, with information showing the increase exceeds the minimum required for the credit.
• Credits used in prior years and credits carried over.

Also include any information requested by the Council or SCDA.

How to file

Submit an application to the Council after each calendar year in which the increase in purchases of certified products occurs.

Complete SC SCH.TC-61 as follows:

1. Enter the Income Tax credit certified by the Council this year on line 1.
2. Enter credits carried forward from previous years on line 2.
3. Add lines 1 and 2 to find the total credit available on line 3.
4. Enter your current-year tax liability on line 4.
5. Enter the smaller of lines 3 and 4 on line 5. This is the credit you can use this year.
6. Subtract line 5 from line 3 to find the unused credit on line 6.

Paper filing: Attach the form to your Income Tax return and include a copy of the Council's certification letter.

Electronic filing: Keep a copy with your tax records.

Common mistakes

• Using SC SCH.TC-61 for a Withholding Tax credit. The form directs you to use WH1671 instead.
• Leaving out the form or Council certification letter when filing on paper. Attach the form to your Income Tax return and include a copy of the letter.
• Failing to keep a copy with your tax records when filing electronically.
• Not recalculating the base year each calendar year after the initial base year.
• Omitting your Social Security Number if you are an individual taxpayer. Providing it is mandatory.

Questions people ask

Is this credit refundable?

No. The credit is nonrefundable. The amount you can use against Income Tax this year is the smaller of your total available credit and your current-year tax liability.

Can I carry forward unused Income Tax credit?

Yes. Unused Income Tax credit may be carried forward for five years and used against Income Tax.

What is the maximum credit one taxpayer can receive?

A taxpayer may not be awarded more than $100,000 in any tax year. The Council determines the amount and type of credit and has sole discretion in allocating credits.

How is the base year determined for a newly established agribusiness?

The initial base year measures purchases of certified South Carolina-grown agricultural products over a full calendar year. Base-year purchases must exceed $100,000. If you establish your agribusiness in South Carolina during the year and do not have the required purchases in the prior calendar year, use the first full calendar year in which you meet the purchasing requirement. Recalculate the base year each calendar year after the initial base year.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC61.pdf