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The state of South Carolina offers a Research Expenses Credit that is calculated under similar requirements as IRC § 41. The credit is equal to 5% of the qualified expenditures attributed to South Carolina. A taxpayer may claim a credit against Individual, Corporate Income Tax, and Corporate License Fees. The South Carolina R&D credit is claimed using SC Schedule TC-18.
The credit claimed in a tax year cannot exceed 50% of the company’s tax liability for the year after all other credits have been applied.
There is a 10-year carryforward for any unused credit.
Learn more about South Carolina R&D Tax Credit law from the South Carolina Department of Revenue.
R&D Tax Credit Available:
Yes
Eligible Entities:
C-Corporation, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Due with South Carolina Tax Return
Data Required to Compute Credit:
Claim Period South Carolina Qualified R&D Expenses (QREs)
What Information is needed?
Current year South Carolina QREs
Federal Form 6765
Credit Carryforward?
10 Years (No carry-back)
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
The South Carolina R&D tax credit is 5% of qualified research expenditures attributed to South Carolina. Contact Strike Tax to maximize your savings.
Activities must meet federal IRC § 41 criteria and be conducted in South Carolina, including research to develop or improve products or processes. Strike Tax can identify qualifying projects.
Yes, startups can claim the credit, and the federal R&D credit with payroll tax offsets up to $500,000 per year for up to five years if gross receipts are under $5 million. Strike Tax can guide eligibility.
Maintain contemporaneous records like project notes, time logs, expense receipts for wages, supplies, and contracts. For 2025, Form 6765 requires Section G for business component details on claims over $10,000. Strike Tax ensures audit-ready documentation.
Claim on your state tax return, limited to 50% of liability. For federal, file Form 6765. Strike Tax streamlines the process.
No major state changes, but new headquarters credit under recent legislation; federally, Form 6765 adds Section G, and Section 174 restores full expensing. Strike Tax can help navigate these updates.