Form Sc Sch.tc-14 - Community Development Tax Credit

ADVERTISEMENT

STATE OF SOUTH CAROLINA
1350
1350
SC SCH.TC-14
DEPARTMENT OF REVENUE
COMMUNITY DEVELOPMENT
(Rev. 10/10/07)
3364
TAX CREDIT
20
Attach to your Income Tax Return
Name As Shown On Tax Return
SS No. or Fed. EI No.
Attach to this form a copy of the Certifying Form(s) DC-06075 from the S. C. Dept. of Commerce.
Computation of Tax Credit
1. Amounts invested in year
with a Community Development Corporation or Community
Development Financial Institution.
$
2. Eligible amount invested in year
with a Community Development Corporation or
Community Development Financial Institution (per the Dept. of Commerce).
$
3. Multiply amount on line 2 by .33 (33%)
$
4. Carryover of prior year(s) unused credit (attach schedule)
$
5. Total Credit available (subject to income tax liability limitation) Enter this amount on the
$
appropriate tax credit schedule.
IMPORTANT: Attach copies of all certifying DC-06075 forms from the S.C. Dept. of Commerce.
General Instructions - Community Development Tax Credit
This credit applies against state income tax, bank tax, or an insurance company's premium tax. The credit amount of up to
33% of all amounts invested in a Community Development Corporation or in a Community Development Financial
Institution is subject to the limitations discussed below.
No credit if claiming charitable contribution deduction. A taxpayer who invests in a Community Development
Financial Institution which is a tax-exempt nonprofit corporation, and who claims the investment as a deduction
according to I.R.C. Section 170, does not qualify for the credit.
Certificate required. A taxpayer may not claim the credit unless the entity in which he invests is certified at the time
the investment is made. The taxpayer must obtain a certificate from the South Carolina Department of Commerce
certifying: (1) that the entity into which the funds are invested is a Community Development Corporation or a
Community Development Financial Institution; and (2) that the total of the credit taken by or available to the taxpayer
and Community Development Tax Credits previously taken by or available to other taxpayers will not exceed a total of
$5,000,000.
GOOD-FAITH EXCEPTION: A taxpayer who has invested in good faith in a certified corporation or institution may
claim the credit even if the Department of Commerce later revokes or does not renew the certification.
Disqualification for stock or equity interest redeemed within 5 years. If the taxpayer invests in an entity in
exchange for stock or other equity interest, and the stock or equity interest is redeemed by the entity within five years of
the date it is acquired, the amount of credit attributable to the redeemed stock or equity interest is disallowed for that
year and any previous year as if no credit had been allowed. Payment is due on the same date as the return for the
taxable year in which the redemption took place.
Total credits limit for all years. The total amount of Community Development Tax Credits allowed may not exceed
$5,000,000 for all taxpayers in all taxable years.
Annual total credits limit. The total amount of Community Development Tax Credits allowed may not exceed
$1,000,000 for all taxpayers in a single taxable year.
Single entity limit. A single Community Development Corporation or Community Development Financial Institution
may not receive more than 25% of the total Community Development Tax Credits in any one taxable year.
Pro-rata reduction. If the total amount of Community Development Tax Credits claimed by all taxpayers exceeds the
total amount of credits allowed, the credits will be reduced proportionally.
33641028

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 2