Form Sc Sch.tc 6 - Infrastructure Credit (Page 3 of 3) in pdf

GENERAL INSTRUCTIONS FOR SC SCH. TC 6 (cont.)

If an infrastructure project benefits more than the taxpayer, the expenses of the taxpayer must be allocated to the various

beneficiaries and only those expenses not allocated to the taxpayer's benefit qualify for the credit.

The credit may be claimed for contributions to a governmental entity and in the case of water or sewer lines and their related

facilities, (in area served by a private water and sewer company) to a qualified private entity, for the construction or

improvements of qualifying infrastructure projects, or for expenses incurred by the taxpayer in building or improving qualifying

infrastructure projects for dedication to public use.

The credit may be claimed before dedication or conveyance if the taxpayer submits with its tax return a letter of intent signed by

the chief operating officer of the appropriate governmental entity or qualified private entity stating that upon completion it will

accept the infrastructure project for the appropriate use.

For purpose of this credit, a qualified private entity is any entity holding the required permits, certifications, and licenses from the

South Carolina Department of Health and Environmental Control, the South Carolina Public Service Commission, and any other

state agencies, departments, or commissions, from which approvals must be obtained in order to operate as a utility furnishing

water supply services or sewage collection or treatment services, or both, to the public.

A qualifying private entity is not allowed an infrastructure credit for expenses it incurs in building or improving facilities it owns,

manages, or operates.

If a road qualifying for the infrastructure credit is subsequently removed from the state highway or public road system the amount

of the credit allowed for the construction of the road must be added to any corporate income tax due from the taxpayer for the

first taxable year following the removal of the road from public use.

A corporation that files on a consolidated basis and is entitled to this credit must determine the credit on a consolidated basis.

The credit reduces the consolidated group's tax liability regardless of whether or not the corporation contributes to the tax

liability.

The merger, consolidation, or reorganization of a corporation where tax attributes survive does not create new eligibility in a

succeeding corporation but unused credits may be transferred and continued by the succeeding corporation. In addition, a

corporation may assign it rights to its unused credit to another corporation if it transfers all, or substantially all, of the assets of

the corporation or all, or substantially all, of the assets of a trade or business or operating division of a corporation to another

corporation.

32403024

Form Sc Sch.tc 6 - Infrastructure Credit Page 3