Sc Sch Tc-4sa - Accelerated Small Business Jobs Credit (Page 5 of 15) in pdf

GENERAL INSTRUCTIONS

IMPORTANT:

Use 2010 version of this form to claim credit for increases in new full-time jobs where the job tax credit was

first earned before January 1, 2011. Prior year forms are available at

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 new jobs 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

For tax years beginning after December 31, 2005, a qualifying taxpayer with 99 or fewer employees worldwide that increases

employment by two or more full-time jobs is allowed a credit for not more than five consecutive years, beginning with the year the new

full-time jobs are created.

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 are not allowed for a tax year in which the new full-time job increase falls below the minimum level of two (2).

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

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:

175 jobs at a single location; or

150 jobs at a single location comprised of a building or portion of a building that has been vacant for at least 12 consecutive months

prior to the taxpayer's investment; or

100 jobs at a single location and the jobs have an average cash compensation level of more than 1.5 times the state or county per

capita income, whichever is lower; or

50 jobs at a single location and the jobs have an average cash compensation level of more than 2 times the state or county per

capita income, whichever is lower; or

25 jobs at a single location and the jobs have an average cash compensation level of more than 2.5 times the state or county per

capita income, whichever is lower

These special requirements do not apply to:

“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."

County designations

Beginning January 1, 2011, there are four designations for South Carolina counties, from Tier I (least favorable) through Tier IV (most

favorable). County designations are updated each year with equal weight given to the unemployment rate and per capita income.

Designations are usually determined in December and effective as of January 1 of the following year.

Sc Sch Tc-4sa - Accelerated Small Business Jobs Credit Page 5

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