Schedule TC-1 must be used in computing your credit against income tax for the purchase and installation of Conservation Tillage Equipment, Drip/Trickle Irrigation Systems and Dual Purpose Combination Truck and Crane Equipment. A taxpayer may claim as a tax credit 25% of all expenditures, which must have been made on or after May 20, 1981, to a maximum of $2,500, made in a tax year for the purchase and installation of:
- Conservation tillage equipment
- Drip/trickle irrigation systems.
- Dual purpose combination truck and crane equipment.
The credit must be claimed in the year the expenditure was made. However, if the amount of such credit exceeds your tax liability for such taxable year, the amount which exceeds such tax liability may be carried over for credit against your income taxes in the next five succeeding taxable years until the total amount of the tax credit has been taken. In no year will you be allowed a credit in excess of $2,500.
The credit may be claimed only one time for each of the three measures.
In the case of pass-through entities, the credit is determined at the entity level and is limited to two thousand five hundred dollars. The maximum amount of credit for all taxpayers, including any credit passed through to the taxpayer from a partnership, "S" Corporation, estate, or trust, is also limited to two thousand five hundred dollars.
- Taxpayer means any individual, fiduciary, or corporation subject to South Carolina income tax.
- Conservation tillage equipment planters and drills. A conservation tillage planter is one which plants directly into an undisturbed seedbed (stubble, previous crop residue, cover crop, etc.) with no land preparation prior to planting.
- A drip/trickle irrigation system is a low-pressure, low-volume irrigation that delivers water to the root zone or base of plants through a system of surface and/or subsurface line, tubing, and emitters.
- Dual purpose combination truck and crane equipment is defined as machinery consisting of a unibodied construction which contains a crane which is mounted to a mobile chassis and is nondetachable to remain operational. The dual purpose truck and crane equipment must be self propelled and possess those characteristics that would allow the equipment to operate legally upon the highways of this state (per regulations and laws set forth by the Department of Transportation).