South Carolina Angel Investor Tax Credit

South Carolina Angel Investor Tax Credit

Provides tax relief support for accredited investors and South Carolina early stage companies through an angel investor programme.

Eligibility · United States · US-SC

The South Carolina Angel Investor Tax Credit (TC-56) was an investor-side nonrefundable income tax credit established under SC Code §11-44-10 et seq. (the High Growth Small Business Job Creation Act) and administered by the South Carolina Department of Revenue. The credit was equal to 35% of a qualified investment made by an accredited individual investor — or a pass-through entity — into a SCDOR-certified 'qualified business,' defined as an early-stage South Carolina company operating in sectors such as manufacturing, information technology, and R&D. The programme covered investments made from 2013 through December 31, 2025, when it expired by statutory sunset.

The credit was capped at $100,000 per individual per tax year, with a statewide aggregate annual cap of $5 million; if total qualifying investments across all claimants exceeded that cap in a given year, credits were allocated on a pro-rata basis. Unused credits could be carried forward for up to ten years and were transferable to other South Carolina taxpayers via a Notice of Transfer filed with SCDOR. Investors applied via the MyDORWAY portal by December 31 of the calendar year of investment; SCDOR notified claimants of approval or denial by January 31 of the following year.

The programme was investor-side: individual investors claimed the credit on their South Carolina income tax returns. Early-stage companies did not receive direct funding but benefited indirectly — being listed on SCDOR's certified qualified-business registry increased their attractiveness to South Carolina-based angel investors. As of the programme's expiration on December 31, 2025, future legislative renewal has not been confirmed. Founders of SC-based early-stage companies who relied on this programme to attract angel capital should monitor the South Carolina General Assembly for any reauthorisation.