South Carolina Apprenticeship Tax Credit
South Carolina Department of Commerce / SC Technical College System
Up to $4,000 per apprentice/year
$4,000/year per SC apprentice for 4 years
South Carolina businesses that sponsor a U.S. Department of Labor Registered Apprenticeship program receive a $4,000 income tax credit per apprentice per year for up to 4 years of apprenticeship — as long as the apprentice has been employed for at least 7 months during that year. An additional Apprenticeship Expansion Credit of up to $4,000 per student is also available. The program is part of SC's broader Apprenticeship Carolina initiative, the largest pre-apprenticeship and apprenticeship network in the United States, and is designed to encourage small and mid-size manufacturers and service firms to build their own pipeline of skilled workers.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $4,000 – $8,000
- Realistic amount
- A manufacturer with 3 registered apprentices earns $12,000/year for up to 4 years ($48,000 total). A company running a s…
- Deadline
- Rolling — register with Apprenticeship Carolina at any time. Credit claimed annually on SC income tax return for each year an apprentice completes the 7-month minimum.
- Status
- active
- States
- SC
- Payment model
- tax offset
Who qualifies
- Business must sponsor a U.S. Department of Labor Registered Apprenticeship program in South Carolina
- Apprenticeship program must be registered through Apprenticeship Carolina (SC Technical College System) or directly with DOL
- Registered apprentices must be employed by the sponsoring business for at least 7 months during the tax year to earn the credit for that year
- Business must be subject to South Carolina income tax or franchise tax
- Any business in any industry can apply — the program is not sector-restricted
- Apprentice must be a bona fide DOL-registered apprentice, not merely a trainee or intern
Hard requirements
- Location restriction: South Carolina — apprentices must be employed at SC locations
What it covers
Eligible expenses
- Not expense-based — credit is $4,000 per registered apprentice employed 7+ months in the tax year
- Apprenticeship Carolina provides free program design, registration, and support — no employer fee
Ineligible expenses
- Apprentices employed fewer than 7 months during the tax year
- Trainees or interns not formally enrolled in a DOL Registered Apprenticeship program
- Programs not registered with U.S. DOL
How to apply
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1
Register with Apprenticeship Carolina
Contact Apprenticeship Carolina (apprenticeshipcarolina.com) at no cost. They help SC businesses design, register, and launch a DOL-approved Registered Apprenticeship program — providing curriculum guidance, paperwork, and ongoing support.
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2
Register apprenticeship program with U.S. DOL
Apprenticeship Carolina facilitates formal DOL registration of your program. This step is required to qualify for the tax credit — apprentices must be formally registered under a DOL-recognized program.
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3
Hire and enroll registered apprentices
Recruit and hire apprentices into your registered program. Apprentices receive on-the-job training (OJT) and related technical instruction. Track employment duration — apprentices need 7+ months of employment in the tax year to trigger the credit.
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4
Claim credit on SC income tax return
File the apprenticeship tax credit on your South Carolina income tax or franchise tax return. Multiply qualifying apprentices (employed 7+ months) by $4,000 to calculate the annual credit. Credit is available for up to 4 years per cohort.
Apprenticeship Carolina does the heavy lifting for free — they design the curriculum, file DOL paperwork, and help with technical instruction sourcing. Most SC employers pay nothing to set up a program beyond the apprentice's wages. The credit pays back $16,000–$20,000+ per apprentice over a 4-year term.
Deadline & timing
No annual intake deadline for Apprenticeship Carolina registration. Once a Registered Apprenticeship program is in place (DOL registration required), the credit is self-certified on the SC income or franchise tax return each year. Credits are available for up to 4 years per apprentice cohort.
Programs that stack well
- Sc Job Tax Credit Small Business
- Federal Work Opportunity Tax Credit
- DOL State Apprenticeship Expansion, Equity, and Innovation (SAEEI) Grants
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.