State program
South Carolina Research Expenses Credit
A simple, broadly available credit with a long carryforward, frequently used by the state's manufacturing base.
Program Overview
South Carolina grants a credit equal to a percentage of qualified research expenses incurred in the state, using the federal Section 41 definition of qualified research. Unlike many states, the calculation is applied to total in-state qualified research expenses rather than to an increase over a base amount, which simplifies the analysis considerably. The annual credit is capped at a share of liability, but the ten-year carryforward preserves value for growing companies.
Eligibility
Taxpayers with qualified research expenses, as defined under IRC Section 41, for research conducted in South Carolina.
Benefits
Non-refundable credit limited to 50% of South Carolina tax liability after all other credits.
Schedule a Teleconference
A scoping conversation clarifies exposure, open IDRs, and whether readiness or active defense is the priority.