South Carolina Jobs Tax Credit
South Carolina Department of Revenue / SC Department of Commerce
$1,500–$25,000 per new full-time job
Up to $25,000 per new SC job in distressed counties
South Carolina's Jobs Tax Credit is the state's primary and most impactful SMB tax incentive — providing $1,500–$25,000 per net new full-time job created and maintained for 5 years, depending on the county's economic development tier. Credits are non-refundable but carry forward up to 15 years and can reduce South Carolina income tax to zero. Businesses in Tier IV (most distressed) counties earn $25,000 per job — one of the highest per-job credit rates in the US. SC does not have a standalone R&D tax credit; the Jobs Tax Credit is the flagship state incentive.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $1,500 – $25,000
- Realistic amount
- A Tier II county manufacturer hiring 20 net new employees earns $55,000 (20 × $2,750) in South Carolina income tax credi…
- Deadline
- Rolling — claimed annually on South Carolina income tax return for years in which net new jobs are maintained
- Status
- active
- States
- SC
- Payment model
- tax offset
Who qualifies
- Must create and maintain a minimum of 2 net new full-time jobs in South Carolina for the credit year (some targeted industry thresholds may vary)
- Full-time positions defined as jobs providing at least 35 hours per week with SC-compliant wages and benefits
- Eligible business types: manufacturing, processing, warehousing, distribution, tourism, qualified technology-intensive facilities, corporate and regional headquarters, research and development operations, and certain service operations
- Credit rate depends on the county tier (Tier I–IV) where the jobs are created: Tier I = $1,500/job, Tier II = $2,750/job, Tier III = $4,500/job, Tier IV = $25,000/job
- County tier is designated annually by SC Department of Commerce — the tier at the time jobs are created determines the credit rate for that cohort
- Jobs must be maintained continuously for 5 years — the credit is earned for each year of the 5-year maintenance period
- Credit is non-refundable; unused credits carry forward up to 15 years and can reduce SC income tax to zero
- Must file a South Carolina income tax return (applicable to corporations, S-corps, LLCs, partnerships, and individuals with SC income)
Hard requirements
- Minimum 2 employees
What it covers
Eligible expenses
- Net new full-time W-2 positions (35+ hours/week, qualifying wages and benefits) created in South Carolina
- Jobs in qualifying industries: manufacturing, processing, warehousing/distribution, tourism, technology-intensive facilities, corporate/regional headquarters, R&D operations, and certain qualified services
- Jobs located in any of SC's 46 counties (rate varies by county tier)
Ineligible expenses
- Retained existing jobs — only net new positions above baseline qualify
- Part-time positions (fewer than 35 hours/week)
- Independent contractors and 1099 workers
- Jobs in excluded industries (retail, restaurants, personal services, professional services in some cases)
- Jobs relocated from one SC location to another (relocation does not create net new jobs unless total headcount increases)
- Jobs eliminated after the 5-year maintenance period begins — credit recapture may apply
How to apply
-
1
Determine your county tier and credit rate
Look up the current-year county tier for your South Carolina business location on the SC Department of Commerce website. Tiers are refreshed annually — confirm the tier for each year jobs are created, as the tier can shift and affects the credit rate for that cohort. The highest credits ($25,000/job) are in Tier IV counties, which include the most economically distressed areas.
~1 hrs
-
2
Document net new full-time jobs
Establish a baseline employee count at the start of the credit year. Track all new full-time hires (35+ hours/week, qualified wages and benefits) that represent net additions above the baseline. Maintain payroll records and offer letters documenting start date, hours, compensation, and benefits for each new hire.
~3 hrs
-
3
Confirm eligibility and obtain pre-approval if required
Some SC incentive programs require pre-approval from SC Department of Commerce before jobs are created. For the standard Jobs Tax Credit, no pre-approval is typically required, but contact the SCDOR or SCDOC if your business type is in a borderline eligible category. Larger projects (manufacturing, tech facilities, headquarters) should engage SC Department of Commerce for confirmation.
~2 hrs
-
4
Complete SC Form TC-4 (Jobs Tax Credit)
File Form TC-4 with your South Carolina income tax return each year jobs are maintained. The form documents the number of net new jobs, the applicable county tier rate, the total credit earned, and any carryforward amounts from prior years. Attach to Form SC1120 (C-corps), SC1120S (S-corps), SC1041 (partnerships/trusts), or SC1040 (individuals).
~3 hrs
-
5
Maintain job records for 5-year maintenance period
The credit is renewable each year that net new jobs created in that cohort are maintained. Keep payroll records, termination records, and replacement hire documentation for 5 years for each cohort. If net new jobs fall below the original count, the credit for that cohort is reduced proportionally.
~3 hrs
-
6
Track carryforward credits by vintage
Maintain a vintage-year carryforward schedule — unused credits from each year carry forward up to 15 years. Apply the oldest-vintage credits first each year to avoid expiration. The 15-year window gives significant flexibility even for startups with minimal current SC income tax.
~2 hrs
South Carolina does not have an R&D credit, but the Jobs Tax Credit in Tier IV counties ($25,000/job) is extraordinary. A small manufacturer or tech company hiring 5-10 people in a distressed county earns $125,000–$250,000 in SC income tax credits. The 15-year carryforward means even pre-profit companies accumulate valuable credit balances.
Deadline & timing
Claimed on SC Form TC-4 (Jobs Tax Credit) filed with the South Carolina income tax return. SC corporate income tax returns due 2.5 months after fiscal year end (March 15 for calendar-year C-corps). Annual certification of continued job maintenance required for 5 years to retain each year's credit. County tier designation is refreshed annually by SC Department of Commerce — tier can change year to year.
Programs that stack well
- Federal Work Opportunity Tax Credit
- Research & Development Tax Credit (Section 41)
- SBA 7(a) Loan Program
- USDA Rural Business Development Grant (RBDG)
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.