Form Sc Sch.tc 11-R - South Carolina Recapture Of Capital Investment Credit (Page 2 of 2) in pdf

GENERAL INFORMATION

Purpose

This form is for recapture of credit for qualifying investments placed in service on or after January 1, 2011. If

during any tax year and before the end of applicable recovery period for such property as determined under IRC Section

168(e), the taxpayer disposes of or removes from this State qualified manufacturing and productive equipment property,

then the income tax due by the taxpayer for the current tax year must be increased by an amount of any credit claimed in

prior years with respect to such property determined by assuming the credit is earned ratably over the useful life of the

property and recapturing pro rata the unearned portion of the credit.

Use the 2010 version of this form for recapture of credit for qualifying investments made in an Economic Impact

Zone before January 1, 2011. Prior year forms available are at For recapture of credit for qualifying

investments made both before and after January 1, 2011, use both versions of this form, as necessary.

Any basis reduction as a result of claiming the credit is restored upon recapture of the credit. A taxpayer, when claiming

the credit, must reduce the basis of qualified manufacturing and productive equipment property by the amount of credit

claimed with respect to the property. A taxpayer required to recapture the credit may increase the basis of the property by

the amount of the basis reduction attributable to claiming the credit in prior years. The basis increase occurs in the year of

recapture.

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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Form Sc Sch.tc 11-R - South Carolina Recapture Of Capital Investment Credit Page 2