SC SCH TC 67: Recreational Trail Easement Credit (2024)
South Carolina · South Carolina DOR · Used for tax years 2024
South Carolina SC SCH. TC-67 calculates the nonrefundable Recreational Trail Easement Income Tax credit. It reports the square footage of property encumbered by the easement, the credit earned, prior-year carryforwards, and the credit available to claim or carry forward.
Who files this form
Use SC SCH. TC-67 to calculate the Income Tax credit for property encumbered by a perpetual recreational trail easement and right of way. File a separate form for each easement.
To qualify:
- The easement and right of way must be recorded with the appropriate Register of Deeds.
- They must be held by a South Carolina municipality, county, or special purpose district, or a Land Trust Alliance accredited land trust.
- The easement must include an agreement granting public access and allowing trail improvements and maintenance.
- The trail must connect a trail within a South Carolina municipality, county, or special purpose district's regional trail system plan to a local or regional attraction or point of interest.
The credit is a one-time, nonrefundable credit per easement.
What you'll need
Have the following information ready:
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- The property's street address, city, state, ZIP code, and county.
- The name of the municipality, county, or land trust holding the easement.
- The total square feet of property encumbered by the easement.
- Any credit carried forward from prior tax years.
- Your current-year tax liability from your tax return.
- The name and FEIN of the pass-through entity, if you received the credit from one.
SCDOR may request additional information to determine eligibility and calculate the credit.
How to file
Complete the credit calculation:
- Enter the encumbered property's total square feet on line 1.
- Multiply line 1 by .10 for line 2.
- Enter prior-year credit carryforwards on line 3.
- Add lines 2 and 3 for line 4.
- Enter your current-year tax liability on line 5.
- Enter the smaller of lines 4 and 5 on line 6. This is your current-year credit.
- Subtract line 6 from line 4 for line 7. This is your credit carryforward.
Individuals and fiduciaries enter the credit on SC1040TC. Corporations enter it on SC1120TC.
For a paper return, the form instructs you to attach your Income Tax return. If filing electronically, include the information from this form when you file your return. Keep a copy of this form with your tax records.
Common mistakes
- Using one form for multiple easements. File a separate SC SCH. TC-67 for each easement.
- Leaving out the property's location. The instructions require it.
- Omitting your Social Security Number if you are an individual taxpayer. Providing it is mandatory.
- Forgetting to keep a copy of the form with your tax records.
Questions people ask
How much is the credit?
The credit is ten cents (.10) for each square foot of property encumbered by the recreational trail easement.
Can the credit exceed my tax liability?
No. The credit is nonrefundable, and the amount you can claim in a year is limited to your tax liability.
Can I carry forward unused credit?
Yes. Unused credit can be carried forward for up to five years.
Is there a limit for all taxpayers combined?
Yes. The total Recreational Trail Easement tax credits allowed for all qualifying taxpayers may not exceed $1 million for a calendar year.
What kinds of destinations can the trail connect to?
Local points of interest include other trails, parks, waterways, other recreational and open space attractions, retail centers, arts and cultural facilities, transportation facilities, and similar destinations.