SC SCH TC 63: South Carolina Housing Tax Credit (Revision 2022-06)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-63 calculates the South Carolina Housing Tax Credit for eligible owners of residential low-income rental buildings. It reports certified building projects, the total credit allowed, current-year tax liability, the allowable credit, and any unused credit
Who files this form
SC SCH.TC-63 is used to claim the South Carolina Housing Tax Credit. The credit is available to eligible owners of residential low-income rental buildings in South Carolina.
The project must:
- Be placed in service after January 1, 2020 and before December 31, 2030.
- Receive an eligibility statement from the South Carolina Housing and Finance Development Authority (SC Housing) certifying that it qualifies for the credit.
Taxpayers receiving the credit from a pass-through entity must enter the name and FEIN of the entity earning the credit and report the credit received on line 2.
What you'll need
Have these records and details available:
- Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
- The number of building projects certified by SC Housing.
- SC Housing eligibility statements showing that each project qualifies, the credit allowed, the annual credit allocation, and the total allocation for the entire credit period.
- Your current-year tax liability.
- If you received the credit from a pass-through entity, its name, FEIN, and the amount of credit received.
To receive an eligibility statement, you must submit a report to SC Housing explaining how the credit will benefit tenants, such as through reduced rent, or why the credit is necessary to undertake the project.
How to file
Complete the form as follows:
- Enter the number of certified building projects on line 1.
- Add the credit amounts on the eligibility statements and enter the total on line 2. If you received the credit from a pass-through entity, enter that credit amount on line 2 and provide the entity's name and FEIN.
- Enter your current-year tax liability on line 3.
- Enter the smaller of line 2 or line 3 on line 4. Individuals and fiduciaries report this credit on SC1040TC. Corporations report it on SC1120TC.
- Subtract line 4 from line 2 to calculate the credit carryforward on line 5.
Paper filing: Attach SC SCH.TC-63 and the eligibility statements issued by SC Housing to your Income Tax return.
Electronic filing: Keep a copy of the form and eligibility statements with your tax records.
Common mistakes
- Claiming more than the federal credit: Your South Carolina credit cannot exceed the federal housing credit allowed for the project.
- Missing paper-return attachments: Attach this form and SC Housing eligibility statements to your Income Tax return if you file on paper.
- Not retaining records when filing electronically: Keep a copy with your tax records.
- Carrying unused credits forward too long: Unused credits can be carried forward for up to five years.
- Overlooking recapture: If part of the federal housing tax credit for a project must be recaptured, part of the South Carolina credit must also be recaptured. Use TC-63R to calculate the amount.
- Leaving out an individual's SSN: Providing an SSN is mandatory for individual taxpayers.
Questions people ask
Which taxes can this credit offset?
You may claim it against Income Taxes, License Fees, Bank Taxes, or Insurance Premium Taxes.
Can I carry forward unused credit?
Yes. Unused credits can be carried forward for up to five years.
How can an entity allocate the credit to its owners?
The credit, and any recaptured credit, must be allocated among some or all partners, members, or shareholders of the entity owning the project. They may agree to any allocation, regardless of whether they receive or are allowed any portion of the federal housing credit.
What happens if the federal housing credit is recaptured?
If a portion of the federal housing tax credit taken on a project must be recaptured, the taxpayer claiming the South Carolina credit must also recapture a portion of that credit. Calculate the amount using TC-63R, available at dor.sc.gov/forms.
Where can I learn about getting SC Housing approval?
Information about the credit application and approval process is available at schousing.com. For more information about the credit, the form also refers to SC Revenue Ruling #21-5 at dor.sc.gov/policy.