CREDIT FOR STATE CONTRACTORS SUBCONTRACTING WITH SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS (Formerly the Minority Business Credit)
A taxpayer having a contract with the State of South Carolina who subcontracts with a socially and economically
disadvantaged small business may claim an income tax credit of 4% of the payments to that subcontractor for work
pursuant to the contract. The subcontractor must be certified as a socially and economically disadvantaged small
business as defined in Section 11-35-5010 and regulations pursuant to it.
The credit used may not exceed $50,000 in a single year. The credit may be claimed for 10 consecutive tax years
beginning with the tax year in which the first payment is made to the subcontractor that qualifies for the credit. After 10
consecutive taxable years, the taxpayer is no longer eligible for the credit.
A taxpayer claiming the credit shall maintain evidence of work performed for the contract by the subcontractor.
SC SCH. TC-2 INSTRUCTIONS