South Carolina Job Tax Credit

SC Job Tax Credit (New Jobs)

Supports South Carolina employers by reducing cost pressure for each new full-time role they create.

Eligibility · United States · US-SC

South Carolina's Job Tax Credit (TC-4), authorized under SC Code §12-6-3360, is a per-job nonrefundable income tax credit available to eligible businesses that create and maintain net new full-time positions in the state. For tax year 2026, the credit ranges from $1,500 per job per year in Tier I counties (the most economically developed) to $25,000 per job per year in Tier IV counties (the least developed, with the highest unemployment and lowest per-capita income), with Tier II at $2,750 and Tier III at $20,250. The Tier III and IV amounts reflect a temporary elevated rate. County tier assignments are published annually by SC DOR each December for the following calendar year, based on Bureau of Labor Statistics unemployment data and per-capita personal income across all 46 South Carolina counties.

The standard TC-4 requires a business to create at least 10 net new full-time jobs; the TC-4SB (Small Business Job Tax Credit) variant reduces the threshold to 2 net new full-time jobs for companies with 99 or fewer employees. Eligible industries include manufacturing, processing, warehousing, distribution, research and development, corporate office functions, qualifying technology-intensive businesses, agribusiness operations, and qualified service-related sectors including legal, banking, and financial services. Retail businesses are explicitly excluded from eligibility. Credits are claimed for up to five consecutive years beginning in the tax year after the jobs are created, provided those positions are maintained; if headcount falls below the threshold in any year, the credit for that year is proportionally reduced. The credit is capped at 50 percent of SC income tax liability per year, with a 15-year carryforward for unused amounts.

There is no competitive application process — businesses self-certify via Form TC-4, TC-4SB, or TC-4SA filed with their South Carolina income tax return through MyDORWAY. Multi-county business or industrial park locations may qualify for a one-tier upgrade or a $1,000 per-job enhancement. Companies creating very large job volumes in distressed counties can also qualify for a separate Corporate Tax Moratorium (TC-34) providing a 10-to-15-year income tax moratorium, though that programme has a minimum threshold of 100 full-time jobs at a qualifying manufacturing facility.