SC SCH TC 66: Railroad Expenditures Credit (2025)
South Carolina · South Carolina DOR · Used for tax years 2025
South Carolina Schedule TC-66 calculates the nonrefundable Railroad Expenditures Credit for qualified railroad reconstruction or replacement expenditures. It reports the approved credit, prior-year carryforwards, the credit available against current-year tax liability, and any un
Who files this form
Use TC-66 to claim the Railroad Expenditures Credit for qualified railroad reconstruction or replacement expenditures. You must first receive a Tax Credit Certificate from the South Carolina Department of Commerce (SC Commerce) approving the credit.
The nonrefundable credit may be allowed against South Carolina Individual Income Tax, Corporate Income Tax, Bank Tax, Savings and Loan Tax, or Insurance Premium Tax.
What you'll need
- A Tax Credit Certificate issued by SC Commerce showing your approved credit for the tax year.
- A completed TC-66.
- Your tax return showing your current-year tax liability.
- Information about unused credits carried forward from prior years.
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
To obtain the certificate, submit verification of qualified expenditures to SC Commerce after completing the qualified work. SC Commerce provides the form for reporting those expenditures.
How to file
- Confirm on line 1 that you received a Tax Credit Certificate from SC Commerce. If not, stop. You do not qualify for the credit.
- Enter the approved credit from your certificate on line 2 and any credit carried forward from prior years on line 3.
- Add lines 2 and 3 on line 4. Enter your current-year tax liability on line 5.
- On line 6, enter the smaller of lines 4 and 5. Subtract line 6 from line 4 to find the carryforward on line 7.
- Individuals and fiduciaries enter the credit on SC1040TC. Corporations enter it on SC1120TC.
To claim the credit, attach a copy of the Tax Credit Certificate and a completed TC-66 to your tax return. For a paper return, attach TC-66 to your Income Tax return. For electronic filing, include the information from TC-66 when you file your return.
Keep a copy of TC-66 for your tax records.
Common mistakes
- Claiming the credit without a Tax Credit Certificate from SC Commerce. The form says to stop if you have not received one.
- Claiming more than your current-year tax liability. Line 6 must be the smaller of your total credit and your tax liability.
- Forgetting to attach the Tax Credit Certificate and completed TC-66 when claiming the credit, or omitting TC-66 information when filing electronically.
- Carrying unused credits forward for more than five years.
- Failing to keep a copy of the form for your tax records.
Questions people ask
Can I claim the credit without approval from SC Commerce?
No. You must receive a Tax Credit Certificate from SC Commerce to qualify.
How do I get a Tax Credit Certificate?
After completing the qualified railroad construction or replacement expenditures, submit verification to SC Commerce using the reporting form it provides. SC Commerce will issue a certificate within 30 days of receiving the information.
Is the credit refundable?
No. The credit is nonrefundable, and the amount you can claim for a year is limited to your tax liability.
What happens if I cannot use all of the credit?
Unused credits may be carried forward for up to five years. Line 7 calculates the unused amount by subtracting line 6 from line 4.