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South Carolina R&D Tax Credits

South Carolina R&D Tax Credits

 

Find out if you qualify for R&D tax credits in South Carolina and recharge your business.

 

The state of South Carolina offers a Research Expenses Credit calculated under similar requirements as IRC § 41. The credit equals 5% of the qualified expenditures attributed to South Carolina. A taxpayer may claim a credit against Individual, Corporate Income Tax, and Corporate License Fees. The South Carolina R&D credit is claimed using SC Schedule TC-18.

The credit claimed in a tax year cannot exceed 50% of the company’s tax liability for the year after all other credits have been applied.

There is a 10-year carryforward for any unused credit.

 

Learn more about South Carolina R&D Tax Credit law from the South Carolina Department of Revenue.

 

R&D Tax Credit Available:

Yes

 

Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

 

Deadline for Tax Filing:

Due with the South Carolina Tax Return

 

Data Required to Compute Credit:

Claim Period South Carolina Qualified R&D Expenses (QREs)

 

What Information is needed?

Current year South Carolina QREs

Federal Form 6765

 

Credit Carryforward?

 

10 Years (No carry-back)

 

The R&D tax credit equals:

  • 5% of qualified South Carolina research expenditures.

 

Specific Items to Note:

  • To qualify for the credit, the taxpayer must claim a federal income tax credit according to Internal Revenue Code §41 for increasing research activities for the taxable year.
  • In general, South Carolina credits must be used as much as possible in the year they are earned, based on your tax liability. The Research Expenses Credit is limited to any remaining tax liability after all other credits have been applied (last in the ordering rules).
  • A taxpayer may file an amended tax return for a year out of statute to claim a credit that can be carried forward one or more open years. The credits carried forward must be reduced by the amount that could have been used in the years out of the statute.

 

Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

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