There are several nonrefundable tax credits that a business could claim to reduce the balance it owes for Income Tax and license fees. These credits can be taken dollar for dollar against your tax liability. Remember that credits are a matter of legislative grace, and although you may claim the credit, it does not guarantee that you are eligible.
Limitations on the total amount of tax that can be reduced by a credit are calculated one at a time. You can generally choose the order in which to apply credits, but some credits limit the credit to the remaining tax after all other credits have been applied.
Unless the South Carolina Code Section says otherwise, you can use the credits in any order. Some credits specifically limit the credit to the remaining tax after all other credits have been applied.
Refer to the specific credit to see if it has a carryforward period. If the credit does not have a carryforward period, you cannot use it in a future year. If there is a carryforward period, you can carry unused credit amounts to future tax years.
Complete the appropriate schedule for the tax credit to determine the amount of credit for which you are eligible. Schedules for nonrefundable credits begin with "TC-".
Individuals, fiduciaries, and partnerships enter each credit amount on SC1040TC. Corporations enter each credit amount on the SC1120TC. Include the SC1040TC or the SC1120TC with your return.