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INSTRUCTIONS
This is not a tax credit.
SC Code Section 12-6-3367 is effective May 31, 2006. If you did not create your first job on or after May 31, 2006, you do
not qualify for the Corporate Tax moratorium. Read the full code section at dor.sc.gov/policy.
A moratorium reduction may be claimedby a taxpayer who:
1. creates and maintains at least 100 new full-time jobs at a qualified facility (see SC Code Section 12-6-3360(M) at
dor.sc.gov/policy for definitions);
2. files TC-34 for a moratorium on state Corporate Income Tax;
3. creates the new jobs at a manufacturing facility in a county that has an average annual unemployment rate of at
least twice the state average during each of the last two completed calendar years, or is one of the three lowest
per capita income counties;
4. creates the new jobs within 5 years from the date the first new full time job is created; and
5. places the investment in the county in which at least 90% of the taxpayer's total investment in South Carolina is
located.
Average unemployment rate is based on the most recent unemployment rates available. The per capita income is based
on the average of the three most recent years of available average per capita income data.
The moratorium begins the first full taxable year after the company first qualifies. It ends either 10 years from that year or
in the year the taxpayer's number of full-time jobs falls below 100, whichever is earlier. The moratorium applies to the
portion of the company's Corporate Income Tax that represents the ratio that the company's new investment in that
moratorium county is of its total investments in this state.
If a taxpayer creates and maintains at least 200 new full-time jobs within five years from the creation of the first new full-
time job, then the moratorium period is extended to 15 taxable years. The extended moratorium period lasts 15 years or
until the year when the taxpayer's number of full-time new jobs falls below 200, whichever is earlier.
The moratorium counties are designated by December 31 each year using data from the South Carolina Department of
Employment and Workforce and the United States Department of Commerce. The designations are effective for taxable
years that begin in the following calendar year.
If you file by paper, attach to your Corporate Income Tax return. If you file electronically, keep a copy with your tax
records.
Social Security Privacy Act Disclosure
It is mandatory that you provide your Social Security Number on this tax form if you are an individual taxpayer. 42 U.S.C. 405(c)(2)(C)(i)
permits a state to use an individual's Social Security Number as means of identification in administration of any tax. SC Regulation
117-201 mandates that any person required to make a return to the SCDOR must provide identifying numbers, as prescribed, for
securing proper identification. Your Social Security Number is used for identification purposes.
The Family Privacy Protection Act
Under the Family Privacy Protection Act, the collection of personal information from citizens by the SCDOR is limited to the information
necessary for the SCDOR to fulfill its statutory duties. In most instances, once this information is collected by the SCDOR, it is protected
by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act prevents
such information from being used by third parties for commercial solicitation purposes.
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