Form Sc Sch.tc 4 - South Carolina New Jobs Credit (Page 2 of 9) in pdf

GENERAL INSTRUCTIONS

Resources available on our website

Advisory Opinions at "Law and Policy: Dept. Advisory Opinions> Index> INCOME". Scroll down to the heading "Jobs

Tax Credit" including:

SC Revenue Ruling #99-5, a comprehensive question and answer advisory opinion about the 1996 version of the

credit

SC Revenue Ruling #05-5 defining "expansion"

SC Revenue Ruling #87-5 defining "full time employee" and "service related industry"

Information Letters containing county designations for each year

South Carolina Tax Incentives for Economic Development, which is updated annually, at "DOR Services:

Publications> Information for Tax Professionals".

Who may claim

Qualifying taxpayers include those that operate:

manufacturing, tourism, processing, warehousing, distribution, research and development facilities; corporate offices,

qualifying service-related facilities, agribusiness operations, extraordinary retail establishments, qualifying technology

intensive facilities, and banks; and

retail facilities and service-related industries located in counties designated as Tier IV.

Credits can be claimed for five (5) years beginning in Year 2 after the creation of each new full-time job. Credits are not

allowed for a tax year in which the new full-time job increase falls below the minimum level of required new full-time jobs.

In most cases the reqUired number of new full-time jobs is 10.

Special requirements for hotels, motels, and certain "qualifying service-related facilities"

The number of jobs that must be created at a hotel or motel is 20 or more.

Certain "qualifying service-related facilities" must create at least:

250 jobs at a single location; or

125 jobs at a single location where the average cash compensation for those jobs is 1.5 times the county or state

average, whichever is lower; or

75 jobs at a single location where the average cash compensation for those jobs is 2 times the county or state average,

whichever is lower; or

30 jobs at a single location where the average cash compensation for those jobs is 2.5 times the county or state

average, whichever is lower.

These special requirements do not apply to:

"qualifying service-related industries" located in Tier IV counties; or

healthcare-related facilities in NAICS Manual Section 62: subsectors 621 (ambulatory health care), 622 (hospitals), and

623 (residential care facilities).

NOTE: Businesses engaged in legal, accounting, banking, or investment services or retail sales are not "qualifying

service-related facilities."

Credits may be claimed against corporate or individual income tax, bank tax, or insurance premium tax.

Amount of credit

NOTE: For new, full time jobs created in tax years that begin in 2011 or later, where the job tax credit was first earned on

or after January 1, 2011, the amount of the credit is $8,000 in Tier IV counties, $4,250 in Tier III counties, $2,750 in

Tier II counties, and $1,500 in Tier I. The Department of Revenue issues annual designations of counties in the form of

Information Letters.

NOTE: For increases in new, full time jobs where the job tax credit was first earned before January 1, 2011, the amount

of the credit is $8,000 in distressed counties, $4,500 in least developed counties, $3,500 in underdeveloped counties,

$2,500 in moderately developed counties, and $1,500 in developed counties.

35571017

TC-4 I

(Rev. 8/19/11) 4557

Form Sc Sch.tc 4 - South Carolina New Jobs Credit Page 2

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