SC SCH TC 65: Veterans Apprenticeship Credit (Revision 2023-09)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-65 calculates the Veterans Apprenticeship Credit based on qualifying veteran employees and their length of employment, or reports a credit received from a pass-through entity. The credit you can claim is limited to your current-year tax liability, and u
Who files this form
Taxpayers who hire a US Armed Forces veteran in a registered apprenticeship validated by the US Department of Labor may qualify for this credit. Eligible employees must have been hired from June 22, 2022 through December 31, 2026.
The credit may be claimed against Corporate or Individual Income Tax, Bank Tax, Savings and Loan Tax, Corporate License Fee, or Insurance Premium Tax. The form also provides for taxpayers receiving the credit from a pass-through entity.
The credit is first earned in the year the veteran completes their 12th consecutive month of employment.
What you'll need
Have these documents and details available:
- Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
- The number of qualifying employees in each employment-duration group: 12 to less than 24 consecutive months, 24 to less than 36 months, and 36 to less than 48 months.
- The acknowledgment letters received after entering qualifying employees in the MyDORWAY application.
- Your tax return showing your current-year tax liability.
- If receiving the credit from a pass-through entity, your SC K-1 and the entity's name and FEIN.
You can use Form I-65, Pre-Screening for Veterans Apprenticeship Credit, to help determine whether an apprentice qualifies.
How to file
Complete the credit application at MyDORWAY.dor.sc.gov. You can enter an apprentice only after they have completed 12 months of employment. You must complete a new application for each tax year in which you claim the credit. After entering a qualifying employee, you will receive an acknowledgment letter showing the tentative credit amount.
Complete SC SCH.TC-65 as follows:
- Lines 1–3: Enter the number of qualifying employees in each employment-duration group. Multiply those counts by $3,000, $2,500, and $1,000, respectively.
- Line 4: Add the credit amounts from lines 1–3. The total should match your acknowledgment letters.
- Line 5: Enter your current-year tax liability from your tax return.
- Line 6: Enter the smaller of line 4 or line 5.
If the credit comes from a pass-through entity, enter the credit shown on your SC K-1 on line 4 and the entity's name and FEIN at the top. You do not need to complete lines 1–3.
The supplied text gives online application instructions, but does not state how or where to submit the completed schedule.
Common mistakes
- Applying too early: You cannot enter an apprentice in the MyDORWAY application until they have completed 12 months of employment.
- Skipping the annual application: A new MyDORWAY application is required for each tax year you claim the credit.
- Claiming someone already claimed by another employer: The credit may be claimed for an eligible individual only once, regardless of employer. Use the tool at MyDORWAY.dor.sc.gov to check prior claims.
- Claiming beyond the third year: Individuals cannot be claimed beyond the third year.
- Using a total that does not match your letters: Line 4 should equal the total credit shown in your acknowledgment letters.
- Claiming more than your tax liability or carrying unused credit forward: The annual credit is limited to your tax liability. Unused credit cannot be carried forward.
Questions people ask
When is the credit first earned?
It is first earned in the year the veteran completes their 12th consecutive month of employment.
How much is the credit per qualifying employee?
The amounts are $3,000 for Year One, $2,500 for Year Two, and $1,000 for Year Three. The line instructions place employees in these groups after at least 12, 24, and 36 consecutive months of employment, respectively, with each group ending before the next 12-month milestone.
Can I carry unused credit into a later year?
No. The credit you can claim is limited to your current-year tax liability, and unused credits cannot be carried forward.
What if I receive the credit from a pass-through entity?
Enter the credit amount from your SC K-1 on line 4. Enter the entity's name and FEIN at the top of the form. You do not need to complete lines 1–3.