Form Sc - Credit For State Contractors Subcontracting With Socially And Economically Disadvantaged Small Business (Formerly The Minority Business Credit) Page 2


A taxpayer having a contract with the State of South Carolina who subcontracts with a socially and economically
disadvantaged small business may claim an income tax credit of 4% of the payments to that subcontractor for work
pursuant to the contract. The subcontractor must be certified as a socially and economically disadvantaged small
business as defined in Section 11-35-5010 and regulations pursuant to it.
The credit used may not exceed $50,000 in a single year. The credit may be claimed for 10 consecutive tax years
beginning with the tax year in which the first payment is made to the subcontractor that qualifies for the credit. After 10
consecutive taxable years, the taxpayer is no longer eligible for the credit.
A taxpayer claiming the credit shall maintain evidence of work performed for the contract by the subcontractor.
NOTE: If filing a paper return, attach to your Income Tax Return. If filing electronically, keep a copy with your tax records.
Social Security Privacy Act Disclosure
It is mandatory that you provide your social security number on this tax form if you are an individual taking this credit. 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.


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