Form Sc Sch.tc-18 - Research Expenses Credit

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STATE OF SOUTH CAROLINA
1350
1350
SC SCH.TC-18
DEPARTMENT OF REVENUE
(Rev. 5/2/13)
RESEARCH EXPENSES CREDIT
3368
Attach to your Income Tax or Corporate License Fee Return
20
Name As Shown On Tax Return
SSN or FEIN
1. Qualified research expenses made in South Carolina. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1. $
2. Enter 5% of line 1. This is your current year credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. $
3. Research Expenses Credit carried forward from previous years (attach schedule). . . . . . . . . .
3. $
(Unused Research Expenses Credit can be carried forward for up to 10 years.)
4. Line 2 plus line 3 (Total Research Expenses Credit before limitations) . . . . . . . . . . . . . . . . . .
4. $
5. Tax Liability (income tax and license fees) before claiming credits . . . . . . . . . . . . . . . . . . . . . .
5. $
6. Total of all credits other than the Research Expenses Credit . . . . . . . . . . . . . . . . . . . . . . . . . .
6. $
7. Line 5 minus line 6 (If less than zero, enter zero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. $
8. Multiply line 7 by 50% (0.5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. $
9. Enter the lesser of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. $
(This is the amount of Research Expenses Credit you may use this year.)
10. Line 4 minus line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. $
(Unused Research Expenses Credit may be carried forward for up to 10 years.)
GENERAL INSTRUCTIONS
Effective for tax years beginning after June 30, 2001, a taxpayer claiming a federal income tax credit for research
expenses (under Internal Revenue Code Section 41) may claim a credit against individual or corporate income tax and
corporate license fees. The credit is 5% of the qualified research expenses, as defined by Internal Revenue Code Section
41(b), made by the taxpayer in South Carolina during the tax year.
The credit taken in any tax year may not exceed 50% of the taxpayer's tax liability remaining after all other credits are
applied. Any unused credit can be carried forward but must be used before a tax year beginning 10 years or after from the
date of the qualified research expenses. Credit earned in tax years beginning in 2006 or before cannot be used against
individual income tax. The credit is allowed under S.C. Code Section 12-6-3415.
Caution: In order to claim this credit, a taxpayer must claim the federal credit provided in Internal Revenue Code Section
41. As of this time, Section 41 does not allow the federal credit for amounts paid or incurred after December 31, 2013. As
a result, unless the time for claiming the federal credit is extended, no state credit will be allowed for amounts paid or
incurred after December 31, 2013.
Social Security Privacy Act Disclosure
It is mandatory that you provide your social security number on this tax form if you are an individual taxpayer. 42 U.S.C 405(c)(2)(C)(i)
permits a state to use an individual's social security number as means of identification in administration of any tax. SC Regulation
117-201 mandates that any person required to make a return to the SC Department of Revenue shall provide identifying numbers, as
prescribed, for securing proper identification. Your social security number is used for identification purposes.
The Family Privacy Protection Act
Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of Revenue is limited to
the information necessary for the Department to fulfill its statutory duties. In most instances, once this information is collected by the
Department, it is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family
Privacy Protection Act prevents such information from being used by third parties for commercial solicitation purposes.
33681024

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