Form Sc Sch.tc 4 - South Carolina New Jobs Credit (Page 3 of 9) in pdf

An employer may qualify for an additional $1,000 credit for each new full time job created in a business or industrial

park jointly established and developed by a group of counties.

For tax years beginning after May 28, 2002, an employer may qualify for an additional $1,000 credit for each new full time

job created on property where a response action has been completed pursuant to a nonresponsible party voluntary

cleanup contract pursuant to the Brownfields Voluntary Cleanup Program. Responsible parties may not claim this

additional $1,000 credit.

The maximum aggregate credit of job tax credits (TC-4, TC-4SA, and TC-4SB) and employer tax credits (TC-12 and

TC-12A) that may be claimed in any tax year for a single employee is $5,500, but this limit does not apply to Tier IV

counties.

Number of qualifying jobs

The number of new and additional new full-time jobs is determined by comparing the monthly average number of full-time

employees subject to South Carolina income tax withholding in the applicable county for the tax year with the monthly

average in the prior tax year. To calculate the monthly average number of full-time employees in the first year of operation

in this State, a taxpayer may use the actual months in operation or a full 12-month period. If a taxpayer's business is in

operation for less than 12 months in a year, the number of new and additional new full-time jobs is determined using the

monthly average for the months the business is in operation.

After qualifying for this credit, the taxpayer may obtain credit for additional new full-time jobs created in Years 2 through 6

for up to five years each, beginning with the tax year after the job is created. A taxpayer may claim credit only for job

levels maintained in the tax year that the credit is claimed. 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.

Credit transfer

A taxpayer merger, consolidation or reorganization, where tax attributes survive, does not create new eligibility in the

succeeding taxpayer. Unused job tax credits may be transferred and continued by the succeeding taxpayer subject to the

limitations of Section 126- 3320. When one taxpayer transfers all or substantially all of the assets of its trade or business

or operating division to a second taxpayer, the first taxpayer may assign its related right to credit to the second taxpayer,

as long as the required number of new jobs for that amount of credit is maintained.

Flow-through

A partnership, S corporation or limited liability company (LLC) taxed as a partnership or S corporation may pass through

the credit earned to each shareholder, partner or member. The credit earned by an S corporation owing corporate level

income tax must be used first at the entity level. Only the remaining credit passes through to each shareholder.

The allocation of credit to a shareholder, partner or member must equal the percentage of shareholder's stock or partner's

or member's interest for the tax year multiplied by the amount of the credit earned by the entity. The entity earning the

credit may not carry over credit that passes through to its shareholders, partners, or members.

Amount used

The amount of credit used in a year may not exceed 50% of the taxpayer's South Carolina income tax, bank tax, or

insurance premium tax liability. For credit earned by and flowing through a partnership, S corporation or LLC taxed as a

partnership or S corporation, the credit may not exceed 50% of the shareholder's, partner's, or member's corporate or

individual income tax or bank tax liability.

Carryforward

Unused credits may be carried forward for 15 years. Credits carried forward must be used in the order claimed. Credits

earned by and flowing through a partnership, S corporation or LLC taxed as a partnership or S corporation may be carried

forward by partner, shareholder or member for 15 years from the close of the tax year in which the credit is earned by the

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Form Sc Sch.tc 4 - South Carolina New Jobs Credit Page 3