SC SCH TC 63R: Recapture of South Carolina Housing Tax Credit (Revision 2021-04)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC 63-R calculates and reports the recapture of a previously claimed South Carolina Housing Tax Credit. It uses the federal credit recapture percentage to determine the state credit recapture amount, which is included as tax on your income tax return.
Who files this form
Use SC SCH.TC 63-R to report recapture of the South Carolina Housing Tax Credit when housing does not comply with federal requirements and recapture of the federal credit is required.
Taxpayers who must recapture part of their federal housing credit must also recapture part of their state credit. This can happen when housing is not maintained in compliance with IRC Section 42 for the entire compliance period.
What you'll need
Have the following information available to complete the form:
- Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
- The federal Housing Credit recapture amount.
- The original federal credit amount subject to recapture.
- The original South Carolina Housing Tax Credit subject to recapture.
If you received credit recapture information from a pass-through entity, you will need the entity's name and FEIN, along with your share of the credit recapture.
How to file
Complete the recapture calculation:
- Enter the federal Housing Credit recapture amount on line 1.
- Enter the original federal credit amount subject to recapture on line 2.
- Divide line 1 by line 2 to find the recapture percentage on line 3.
- Enter the original South Carolina Housing Tax Credit subject to recapture on line 4.
- Multiply line 4 by line 3 and enter the state recapture amount on line 5.
If you received credit recapture information from a pass-through entity, enter its name and FEIN, then enter your share of the recapture on line 5.
Include the South Carolina recapture amount as tax on your income tax return:
- Individuals: SC1040, line 7.
- Corporations: SC1120, line 12.
- Fiduciaries: SC1041, line 9.
On the tax line, write “Recapture Tax - SCH TC-63R”.
If you file a paper return, include this form with your return. If you file electronically, keep a copy with your tax records.
Common mistakes
- Do not use TC 63-R to claim the credit. Use TC-63 to claim the South Carolina Housing Tax Credit; TC 63-R is only for reporting recapture.
- Remember to include the state recapture amount as tax on your income tax return and label the tax line “Recapture Tax - SCH TC-63R”.
- Include this form with a paper return. For an electronic return, keep a copy with your tax records.
- If you receive recapture information from a pass-through entity, enter its name and FEIN and your share of recapture on line 5.
Questions people ask
How is the state recapture amount calculated?
The state recapture amount is the portion of the state credit claimed that matches the proportion of the federal recapture amount to the original federal credit amount. The form calculates this by dividing line 1 by line 2, then multiplying that percentage by line 4.
How is recapture allocated for a pass-through entity?
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 are allocated or allowed any portion of the federal housing credit.
Can I use this form to claim the South Carolina Housing Tax Credit?
No. Use TC-63 to claim the credit. TC 63-R is only for reporting recapture.
Where can I find more information about the credit?
The form refers taxpayers to SC Revenue Ruling #21-5, available at dor.sc.gov/policy.