SC1120TC: Corporate Tax Credits (Revision 2024-07)
South Carolina · South Carolina DOR · Used for tax years 2024
South Carolina Form SC1120-TC summarizes corporate income tax credits and corporate license fee credits. It reports credits previously accrued, earned or taken this year, lost due to statute, and carried forward. Credits are calculated on separate tax credit schedules, which must
Who files this form
Use SC1120-TC to report Corporate Income Tax credits in Part I and Corporate License Fee credits in Part II.
The form includes instructions for S corporations reporting credits used by the corporation or passed through to shareholders. For a consolidated return, attach a consolidated SC1120-TC.
What you'll need
- Separate tax credit schedules: Calculate each credit on its required schedule and attach the appropriate schedules to SC1120-TC and your tax return. The form lists credit codes and required schedules.
- Previously accrued credit details: For Column A, attach a schedule showing the years the credits were earned and the amounts used in each tax year, if any.
- Current-year credit calculations: For Column B, attach the appropriate tax credit schedule showing the calculation.
- Shareholder credit information: S corporations must include each shareholder's passed-through credit amount on the SC1120S K1s.
- Railroad Expenditures Credit certificate: To claim this credit, attach a copy of the Tax Credit Certificate issued by the South Carolina Department of Commerce to your tax return.
How to file
- Enter your name and FEIN.
- Calculate your credits on the separate tax credit schedules.
- Enter Corporate Income Tax credits in Part I and Corporate License Fee credits in Part II, using the listed credit codes.
- Complete the columns for previously accrued credits, credits earned this year, credits taken this year, credits lost due to statute, and credits carried forward.
- Total each column on Part I, line 13, and Part II, line 7. Transfer or match the totals to the tax return lines identified in the form's instructions. For Part II, enter the Column C total on SC1120, line 22, or SC1120S, line 21.
- Attach the appropriate credit schedules to SC1120-TC and your tax return. For consolidated returns, attach a consolidated SC1120-TC.
The supplied text does not give a mailing address or an e-file method for SC1120-TC.
Common mistakes
- Mixing credit types: Enter only Corporate Income Tax credits in Part I and only Corporate License Fee credits in Part II.
- Leaving out supporting schedules: All credits are calculated on separate schedules, which must be attached.
- Carrying forward credits already passed through: S corporations must not include credits passed through to shareholders in Column E.
- Using this form for the wrong Infrastructure Credit: Do not use SC1120-TC for the Infrastructure Credit under SC Code Section 12-20-105. Report that credit in Part II of CL-4 or Schedule I of SC1120U instead.
- Skipping required pre-approval: The Biomass Resource Credit and Clean Energy Credit require filing TC-50A or TC-54A, respectively, and receiving pre-approval before claiming the credit.
Questions people ask
What does “Previously Accrued” mean?
Column A reports credits earned in earlier years but not yet used that remain available for current or future years. This usually equals Column E from the prior year's return.
What does “Lost Due to Statute” mean?
Column D reports previously earned credits lost this tax year because the time allowed to claim them expired.
How do S corporations report credits passed through to shareholders?
Include passed-through credits in Column C and report each shareholder's amount on the SC1120S K1s. Shareholders report those amounts on their Individual Income Tax returns. Do not include passed-through credits in Column E.
Where can I find more information about a particular credit?
See the specific tax credit form at dor.sc.gov/forms. SC1120-TC lists credit codes, descriptions, and the required schedule for each credit.