Small business jobs tax credit

South Carolina’s Small Business Jobs Tax Credit provides a statutory tax credit for qualifying small businesses that create and maintain new full-time jobs in the state. 

The credit is part of the broader Job Tax Credit program but generally allows qualifying small businesses to meet a lower job-creation threshold. Eligible companies may choose between a standard credit and an accelerated option that begins in the year qualifying jobs are created. 

Eligibility

Eligibility 

Qualifying small businesses generally must have 99 or fewer full-time employees worldwide and operate an eligible business or facility. 

Qualifying businesses may include:

  • Manufacturing and processing 
  • Warehousing and distribution 
  • Research and development 
  • Agribusiness and agricultural packaging 
  • Corporate offices 
  • Tourism 
  • Qualifying technology-intensive facilities 
  • Certain service-related businesses 
  • Other qualifying business types established under state law 

Job creation requirement 

Most qualifying small businesses must create and maintain a monthly average of at least two new full-time jobs in South Carolina. 

New jobs are generally calculated by comparing average monthly full-time employment with the prior taxable year. 

Certain business types may be subject to different job-creation requirements. 

Credit details

Credit details 

The value of the Small Business Jobs Tax Credit depends on the county where qualifying jobs are created and the wages paid for those jobs. 

Jobs with annualized gross wages equal to at least 120% of the lower of the county or state per capita income may qualify for 100% of the applicable Job Tax Credit amount. 

Jobs below that wage threshold may qualify for 50% of the applicable credit amount. 

Multi-county industrial parks 

Qualifying jobs located in a multi-county industrial park may receive an additional $1,000 per job. 

Standard and accelerated credit options 

Qualifying small businesses may choose between a standard credit and an accelerated credit.  

Standard small business jobs credit 

Under the standard option, qualifying businesses may claim the credit for five years beginning in the year after qualifying jobs are created. 

Year one establishes the qualifying employment level, with the credit generally available during years two through six as qualifying jobs are maintained. 

Accelerated small business jobs credit 

Under the accelerated option, qualifying businesses may begin claiming the credit in the year the qualifying jobs are created. 

The accelerated credit may be claimed for up to five consecutive years. 

A company may not claim both the standard and accelerated Small Business Jobs Credit for the same jobs.  

Credit limitations 

For either option: 

  • The credit may be claimed against applicable South Carolina individual income tax, corporate income tax, bank tax or insurance premium tax 
  • The credit may not exceed 50% of the applicable tax liability for the year 
  • Unused credits may generally be carried forward for up to 15 years 

Continued eligibility depends on maintaining the required number of qualifying jobs. 

Claiming the credit

Claiming the credit 

The South Carolina Department of Revenue (SCDOR) administers the Small Business Jobs Tax Credit. 

Companies electing the standard credit use Form TC-4SB, Small Business Jobs Credit. 

Companies electing the accelerated option use Form TC-4SA, Accelerated Small Business Jobs Credit. 

SCDOR resources 

Small Business Jobs Credit requirements and guidance 

SCDOR Tax Credits & Forms TC-4SB Small Business Jobs Credit form and instructions TC-4SA Accelerated Small Business Jobs Credit form and instructions Current Job Tax Credit county rankings
FAQs

Frequently asked questions