SC SCH TC 8: Headquarters Credit (Revision 2024-07)

Who files this form

Use SC SCH.TC 8 to claim the Headquarters Credit for establishing a new headquarters facility or expanding or adding to an existing one.

To qualify:

• Qualifying real property costs must be at least $50,000.
• The project must create at least 40 new, permanent, full-time headquarters-related jobs in South Carolina.
• At least 20 of those new jobs must be headquarters staff employees.
• You must have documented plans to meet the staffing requirement when you first claim the credit.

A headquarters is a facility, or part of one, where staff employees physically work and where the majority of the taxpayer's financial, personnel, legal, planning, or other headquarters-related functions are handled on a regional or national basis.

Additional requirements apply to tangible personal property costs, as explained in the FAQs.

What you'll need

Have the following information ready to complete the schedule:

• Your FEIN, name, and address.
• Design, preparation, development, and direct construction costs.
• For leased facilities, direct lease costs incurred during the first five years of operation.
• Qualifying tangible personal property costs.
• Any past due debts you owe South Carolina.
• The credit amounts applied to each eligible tax or fee.
• The number of headquarters staff jobs and other qualifying jobs created to date, and the total number of each planned.

You must also have documented plans to meet the staffing requirement when you first claim the credit.

How to file

• Paper filing: Attach SC SCH.TC 8 to your Income Tax return.
• Electronic filing: Keep a copy of the schedule with your tax records.

The supplied text does not give a mailing address.

Common mistakes

• Claiming the credit with too little qualifying real property cost. The form says to stop if these costs are less than $50,000. You do not qualify.
• Failing to reduce the credit for state debt. Subtract any past due debt you owe South Carolina from the tentative credit.
• Missing the staffing requirements. Have documented staffing plans when you first claim the credit. If the required additional jobs are not in place by the end of the second taxable year following the last taxable year for which you claim the credit, you must increase your tax by the total credits used to reduce tax in earlier years.
• Forgetting the filing reminder. Attach the schedule to a paper Income Tax return, or keep a copy with your tax records if filing electronically.

Questions people ask

How is the credit calculated?

Add qualifying real property costs and qualifying tangible personal property costs for the tax year. Multiply the total by 20% to get the tentative credit. Then subtract any past due debt owed to South Carolina to get the allowable credit.

Which taxes can this credit reduce?

The credit is allowed against Corporate Income Tax, Corporate License Fee, Bank Tax, Individual Income Tax, or Fiduciary Income Tax.

Can I carry forward unused credit?

Yes. Unused credit may be carried forward for 10 years.

When can tangible personal property costs qualify?

The property must meet all of these conditions:

• It is capitalized as personal property for Income Tax purposes under the Internal Revenue Code.
• It is purchased for the headquarters establishment, expansion, or addition as part of the same project.
• It is used for headquarters-related functions and services in South Carolina.
• The project creates at least 40 new full-time jobs performing headquarters-related functions and services.
• Those 40 jobs have average cash compensation of more than twice the state's per capita income, using the per capita income data available at the end of the tax year in which the jobs are filled.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC8.pdf