SC1120TC: Corporate Tax Credits (Revision 2025-06)
South Carolina · South Carolina DOR · Used for tax years 2025
South Carolina Form SC1120-TC summarizes corporate income tax credits and corporate license fee credits. It reports credits previously accrued, earned this year, taken this year, lost due to statute, and carried forward. Credits are calculated on separate schedules, which must be
Who files this form
SC1120-TC reports corporate income tax credits and corporate license fee credits. Attach the appropriate credit schedules to SC1120-TC and your tax return.
- Corporations report income tax credits in Part I and license fee credits in Part II.
- S corporations include credits passed through to shareholders in Column C.
- For a consolidated return, attach a consolidated SC1120-TC.
What you'll need
- Separate tax credit schedules: All credits are calculated on separate schedules. Attach the appropriate schedules showing your credit calculations.
- Previously earned credit schedule: For Column A, attach a schedule showing the years the credits were earned and any amounts used in each tax year.
- Shareholder K-1s, for S corporations: Include each shareholder's passed-through credit amount on the SC1120S K1s.
- Railroad Expenditures Credit certificate, if applicable: Attach a copy of the Tax Credit Certificate issued by the South Carolina Department of Commerce to your tax return.
The form lists the required tax schedule for each credit. Specific credit forms are available at dor.sc.gov/forms.
How to file
Enter your name and FEIN, then list corporate income tax credits in Part I and corporate license fee credits in Part II using the listed credit codes.
Report previously accrued credits in Column A, credits earned this year in Column B, credits taken this year in Column C, credits lost due to statute in Column D, and credits carried forward in Column E.
Add lines 1 through 12 for each column in Part I, line 13. Add lines 1 through 6 for each column in Part II, line 7. Transfer the totals to the tax return lines identified on the form.
Attach SC1120-TC and the appropriate credit schedules to your tax return. The supplied text does not give a mailing address or e-filing instructions 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.
- Using this form for the wrong Infrastructure Credit: Do not use SC1120-TC for the Infrastructure Credit under SC Code Section 12-20-105. Enter that credit in Part II of CL-4 or Schedule I of SC1120U instead.
- Carrying forward credits passed through to shareholders: S corporations must not include those credits in Column E.
- Skipping required pre-approval: The form requires pre-approval before claiming the Biomass Resource, Clean Energy, Angel Investor, and Solar Energy Property credits.
Questions people ask
What does “Previously Accrued” mean?
Column A is for credits earned in earlier years but not yet used that remain available for current or future years. It will usually equal Column E from the prior year's return.
What belongs in “Lost Due to Statute”?
Column D reports previously earned credits lost this year because the allowed time to claim them expired.
How do S corporations report credits passed through to shareholders?
Include them in Column C and report each shareholder's amount on their SC1120S K1. Do not include passed-through credits in Column E.
Where can I find the form for a specific credit?
SC1120-TC lists credit codes, descriptions, and the required schedules. Specific tax credit forms are available at dor.sc.gov/forms.