SC SCH TC 9: Credit for Child Care Program (Revision 2019-09)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC 9 calculates the tax credit for establishing or operating a child care program for employees, including direct payments to independent child care facilities. It reports program expenses, credits carried forward from prior years, and the allowable credit
Who files this form
Use this form to claim the child care program credit if you employ South Carolina residents and:
- Establish a child care program for your employees.
- Operate a child care facility for your employees.
- Make direct payments to independent child care facilities for your employees' benefit.
Allowable startup expenses also include donations to a South Carolina 501(c)(3) nonprofit corporation that provides child care services to your employees.
The child care program must meet the licensing, registration, and certification standards required by law.
What you'll need
Have the following information ready to complete the form:
- Your name and SSN or FEIN. Individual taxpayers must provide their SSN.
- Startup and operating expense amounts, as applicable.
- The number of employees benefiting from the program.
- Credit claimed in prior years for startup expenses, any credit carried forward, and your current-year tax liability.
- The nonprofit's name and FEIN if you claim qualifying donations.
For direct payments to an independent child care facility, keep records of its FEIN, license and registration numbers, amounts paid, and in whose name and for whose benefit the payments were made.
Attach a description for amounts entered as other startup expenses or other operating expenses.
How to file
- Complete Part I for expenses to establish a program and Part II for expenses to operate a program. In each part, use Part A if you operate the program or Part B if you make direct payments to a licensed facility you do not operate.
- Complete Part III to calculate the total credit. Enter the allowable credit on the appropriate tax credit schedules.
- If you file a paper return, attach this form to your return.
- If you file electronically, keep a copy with your tax records.
Common mistakes
- Including expenses in Part I that are not allowable costs of establishing a child care program.
- Failing to specify that a nonprofit donation is for the child care program.
- Deducting a nonprofit donation when calculating South Carolina net income after claiming the tax credit for that donation. You cannot do both.
- Including administrative costs for a direct-payment program above 2% of the total paid to the independent facility.
- Claiming a total credit greater than 50% of your tax liability.
- Leaving out your SSN if you are an individual taxpayer.
Questions people ask
How much is the credit for establishing a program?
The credit is 50% of allowable startup expenses, limited to $100,000. The form accounts for startup credits claimed in prior years when calculating the remaining limit.
How much is the credit for operating a program?
The credit is 50% of qualifying payments, up to $3,000 per employee benefiting from the program.
Can donations to a nonprofit qualify?
Yes. Allowable startup expenses include donations to a South Carolina 501(c)(3) nonprofit corporation that provides child care services to your employees. You must specify that the donation is for the child care program. If you claim the credit, you cannot also deduct the donation when calculating South Carolina net income.
Which taxes can the credit offset?
The credit can be taken against Income Tax, Bank Tax, or Insurance Premium Tax. It cannot exceed 50% of your tax liability.
What happens if I cannot use all the credit?
Unused credit can be carried forward for 10 years.