State Program
South Carolina Research Expenses Credit
A state research credit based on qualifying research expenses incurred in South Carolina, with a ten-year carryforward.
Program Overview
South Carolina provides a credit based on a percentage of qualified research expenses incurred in the state. The credit uses the federal Section 41 definition of qualified research. Unlike credits that are calculated based on an increase in research expenses over a base amount, the South Carolina credit is based on total qualifying in-state research expenses. The credit is subject to an annual limitation based on South Carolina tax liability, and unused credits may be carried forward for up to ten years.
Eligibility
- Taxpayers with qualified research expenses associated with research conducted in South Carolina may qualify.
- Qualifying research activities and expenses must meet the applicable requirements, including the relevant IRC Section 41 definitions.
- Research expenses must be incurred in South Carolina to qualify for the state credit.
Benefits
- Non-refundable credit based on qualifying research expenses incurred in South Carolina.
- Credit is limited to 50% of South Carolina tax liability after application of other applicable credits, subject to current statutory requirements.
- Unused credits may be carried forward for up to ten years.
Schedule a Teleconference
A scoping conversation clarifies exposure, open IDRs, and whether readiness or active defense is the priority.