2013 South Carolina Code of Laws
Title 12 - Taxation
CHAPTER 6 - SOUTH CAROLINA INCOME TAX ACT

ARTICLE 1. ADOPTION OF INTERNAL REVENUE CODE--DEFINITIONS

• SECTION 12-6-10. Short title.
• SECTION 12-6-20. Administration and enforcement of chapter.
• SECTION 12-6-30. Definitions.
• SECTION 12-6-40. Application of federal Internal Revenue Code to State tax laws.
• SECTION 12-6-50. Internal Revenue Code sections specifically not adopted by State.
• SECTION 12-6-60. Role of distribution facility in determining nexus with state for income tax and corporate license fee purposes.

ARTICLE 5. TAX RATES AND IMPOSITION

• SECTION 12-6-510. Tax rates for individuals, estates, and trusts for taxable years after 1994.
• SECTION 12-6-515. State individual income tax bracket reduction.
• SECTION 12-6-520. Annual adjustments to individual state income tax brackets; inflation adjustments.
• SECTION 12-6-530. Corporate income tax.
• SECTION 12-6-535. Small business trust taxed at highest rate.
• SECTION 12-6-540. Income tax rates for exempt organizations and cooperatives.
• SECTION 12-6-545. Income tax rates for pass-through trade and business income; determination of income related to personal services.
• SECTION 12-6-550. Corporations exempt from taxes imposed by Sections 12-6-530 and 12-6-540.
• SECTION 12-6-555. Persons not having nexus with state other than contract for commercial printing in state not subject to state income or sales and use taxes; conditions.
• SECTION 12-6-560. Computation of resident individual's gross, adjusted gross, and taxable income.
• SECTION 12-6-570. Computation of nonresident individual, trust, estate, and beneficiary's gross, adjusted gross, and taxable income.
• SECTION 12-6-580. Computation of corporation's gross and taxable income.
• SECTION 12-6-590. Treatment of "S" corporations for tax purposes; shareholders.
• SECTION 12-6-600. Taxation of partnerships.
• SECTION 12-6-610. Computation of gross and taxable income of resident estate or trust.
• SECTION 12-6-620. Computation of gross, adjusted gross, and taxable income of nonresident individual, trust, and estate.
• SECTION 12-6-630. Taxation of entities not specified or excluded.
• SECTION 12-6-640. Use of monies appropriated to Commissioners of Pilotage.

ARTICLE 9. TAXABLE INCOME CALCULATION

• SECTION 12-6-1110. Modifications of gross, adjusted gross, and taxable income calculated under Internal Revenue Code; federal Section 1354 elections.
• SECTION 12-6-1120. Gross income; computation; modifications.
• SECTION 12-6-1130. Taxable income; computation; modifications.
• SECTION 12-6-1140. Deductions from individual taxable income.
• SECTION 12-6-1150. Net capital gain; deduction from taxable income for individuals, estates, and trusts.
• SECTION 12-6-1160. Dependent deduction for resident individual.
• SECTION 12-6-1170. Retirement income deduction from taxable income for individual.
• SECTION 12-6-1175. Wages paid to unauthorized alien; business expense deduction disallowed.
• SECTION 12-6-1180. Repealed by 2000 Act No. 399, Section 4(B), eff August 17, 2000.
• SECTION 12-6-1190. Cost recovery of retirement benefits from retirement systems maintained by the State or its political subdivisions.
• SECTION 12-6-1200. Exclusion from taxable income of amounts excluded from federal income tax by United States treaty.
• SECTION 12-6-1210. Deductions for capital expenses, depreciation, gains and losses; change in accounting method; certain elections for special tax treatment; provisions of federal law.
• SECTION 12-6-1220. Individual Development Account.

ARTICLE 11. CATASTROPHE SAVINGS ACCOUNT

• SECTION 12-6-1610. Definitions.
• SECTION 12-6-1620. "Catastrophe Savings Account" defined; exemptions allowed; contributable amount; attachment and garnishment.
• SECTION 12-6-1630. Taxation of distributions or at death of account owner.

ARTICLE 13. NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUALS

• SECTION 12-6-1710. Taxation of part-year resident.
• SECTION 12-6-1720. Taxable income of nonresident individual, trust, estate, or beneficiary; modifications, adjustments, and allocations.

ARTICLE 17. ALLOCATION AND APPORTIONMENT

• SECTION 12-6-2210. Taxation of business; determination whether entirely or partly transacted or conducted within State.
• SECTION 12-6-2220. Allocation of interest, dividends, rents and royalties, gains and losses, and income from personal services.
• SECTION 12-6-2230. Allocation of income not allocated under Section 12-6-2220.
• SECTION 12-6-2240. Apportionment of all income remaining after allocation.
• SECTION 12-6-2250. 2007 Act No. 110, Section 55.D and 2007 Act No. 116, Section 60.D, repealed this section eff for tax years after 2010.
• SECTION 12-6-2252. Allocation and apportionment of business income.
• SECTION 12-6-2260, 12-6-2270. 2007 Act No. 110, Section 55.D and 2007 Act No. 116, Section 60.D, repealed this section eff for tax years after 2010.
• SECTION 12-6-2280. Sales factor; definitions.
• SECTION 12-6-2290. Apportionment of remaining net income from principal profits or income derived from sources not otherwise described by this chapter.
• SECTION 12-6-2295. Items included and excluded from terms "sales" and "gross receipts".
• SECTION 12-6-2300. Apportionment of United States source income for business incorporated in foreign country.
• SECTION 12-6-2310. Income remaining after allocation for certain companies; factors to be used for apportionment.
• SECTION 12-6-2320. Allocation and apportionment of taxpayer's income when provisions unfairly represent taxpayer's business activity; agreement with taxpayer; provision for taxpayer constructing or operating qualified recycling facility.

ARTICLE 21. FOREIGN TRADE RECEIPTS

• SECTION 12-6-2810. Deferral of taxes on income attributable to increase in gross income from foreign trading receipts.
• SECTION 12-6-2820. Date deferred payments are due and payable; payment of taxes at accelerated rate; effect of taxpayer's failure to pay interest.
• SECTION 12-6-2830. Inapplicability of time limitation on assessment and collection of taxes to taxes deferred.
• SECTION 12-6-2840. Effective date of article; inapplicability of article to domestic international sales corporations or foreign sales corporations.
• SECTION 12-6-2850. Definitions.

ARTICLE 25. CREDITS

• SECTION 12-6-3310. Tax credits; timeframe for use; pass through and calculation of shareholder credit; limited liability companies.
• SECTION 12-6-3320. Applicability of federal provisions to all income tax credits available to corporation for state income tax purposes.
• SECTION 12-6-3330. Two wage earner credit for married individuals filing joint return; computation; definitions; when not allowed.
• SECTION 12-6-3340. Investment tax credit for purchase and installation of certain energy conservation and renewable energy production measures.
• SECTION 12-6-3350. Tax credit for State contractors subcontracting with socially and economically disadvantaged small business.
• SECTION 12-6-3360. Job tax credit.
• SECTION 12-6-3362. Small business jobs tax credit; alternate method.
• SECTION 12-6-3365. Repealed by 2000 Act No. 277, Section 3, eff July 1, 2005.
• SECTION 12-6-3367. Moratorium on corporate income and insurance premium taxes for certain companies investing and creating jobs in State.
• SECTION 12-6-3370. Tax credits for construction, installation or restoration of water impoundments and water control structures.
• SECTION 12-6-3375. Tax credit for port cargo volume increase; application to council; definitions; excess credits; taxpayers without distribution centers in the State; failure to meet requirements.
• SECTION 12-6-3376. Income tax credit for plug-in hybrid vehicle.
• SECTION 12-6-3377. Hybrid, fuel cell, alternative fuel or lean burn motor vehicle tax credit.
• SECTION 12-6-3380. Tax credit for child and dependent care expenses.
• SECTION 12-6-3381. Premarital preparation course tax credit; form.
• SECTION 12-6-3385. Income tax credit for tuition; definitions.
• SECTION 12-6-3390. Credit for expenses paid to institution providing nursing facility level, in-home, or community care.
• SECTION 12-6-3400. Credit for income tax paid by South Carolina resident to another state.
• SECTION 12-6-3410. Corporate income tax credit for corporate headquarters.
• SECTION 12-6-3415. Tax credit for research and development expenditures.
• SECTION 12-6-3420. Tax credit for construction or improvement of infrastructure project.
• SECTION 12-6-3430. Tax credit for qualified investments in Palmetto Seed Capital Corporation or Palmetto Seed Capital Fund Limited Partnership.
• SECTION 12-6-3440. Tax credit for employee child care programs.
• SECTION 12-6-3450. Repealed by 2010 Act No. 290, Section 38, eff June 23, 2010.
• SECTION 12-6-3460. Definitions.
• SECTION 12-6-3465. Recycling facility tax credits.
• SECTION 12-6-3470. Employer tax credit.
• SECTION 12-6-3477. Apprentice income tax credit.
• SECTION 12-6-3480. Tax credits.
• SECTION 12-6-3500. Retirement plan credits.
• SECTION 12-6-3510. Repealed by 2004 Act No. 299, Section 6, eff July 1, 2004.
• SECTION 12-6-3515. Credit for conservation or qualified conservation contribution of real property; lands eligible; transfer of credits; definitions.
• SECTION 12-6-3520. Income tax credit for habitat management and construction and maintenance of critical habitat improvements.
• SECTION 12-6-3525. Tax credits for vehicle or scrap recyclers participating in End-of-Life Vehicle Solutions (ELVS) Program.
• SECTION 12-6-3530. Community development tax credits.
• SECTION 12-6-3535. Income tax credit for making qualified rehabilitation expenditures for a certified historic structure.
• SECTION 12-6-3550. Voluntary cleanup activity tax credit; eligibility requirements.
• SECTION 12-6-3560. Credit against state income tax for motion picture and advertisement production companies.
• SECTION 12-6-3570. Motion picture related income tax credit claims.
• SECTION 12-6-3575. Health insurance tax credits.
• SECTION 12-6-3580. South Carolina Quality Forum participants; tax credits for registration fee and participation in organizational performance excellence assessment process; limitation.
• SECTION 12-6-3582. Income tax credits; agricultural use of anhydrous ammonia.
• SECTION 12-6-3585. Industry Partnership Fund tax credit.
• SECTION 12-6-3587. Purchase and installation of solar energy system for heating water, space heating, air cooling, or generating electricity.
• SECTION 12-6-3588. South Carolina Renewable Energy Tax Incentive Program; definitions; requirements to receive tax credit.
• SECTION 12-6-3589. Tax credit for effluent toxicity testing.
• SECTION 12-6-3590. Credit for milk producer; promulgation of regulations.
• SECTION 12-6-3600. Credit for ethanol and biodiesel facilities.
• SECTION 12-6-3610. Credit for property used for distribution or dispensing renewable fuel.
• SECTION 12-6-3620. Purchase and installation of equipment to produce energy from biomass resources.
• SECTION 12-6-3622. Fire sprinkler system tax credits.
• SECTION 12-6-3630. Income tax credits; hydrogen research contributions.
• SECTION 12-6-3631. Biodiesel expenditures tax credit.
• SECTION 12-6-3660. Tax credit for costs of retrofitting to make residence more hurricane resistant.
• SECTION 12-6-3665. Credit for sales tax paid on purchases of tangible personal property to retrofit residence.
• SECTION 12-6-3670. Credit for excess premium paid for property and casualty insurance.
• SECTION 12-6-3750. Nonrefundable tax credit for processing donated deer for charitable distribution.

ARTICLE 29. ESTIMATED TAX PAYMENTS

• SECTION 12-6-3910. Estimated tax payments form; due dates; treatment of excess where estimated payments or withholdings more than tax liability; waiver of penalties.
• SECTION 12-6-3920. Extension for filing and paying estimated taxes.
• SECTION 12-6-3930. Imposition of interest and penalties on National Guard and Reserve members activated as a result of Iraq conflict or war on terrorism.

ARTICLE 33. TAX YEARS, ACCOUNTING METHODS, AND "S" CORPORATION ELECTIONS

• SECTION 12-6-4410. Taxable years.
• SECTION 12-6-4420. Method of accounting.
• SECTION 12-6-4430. "S" corporation elections.

ARTICLE 37. TAX RETURNS

• SECTION 12-6-4910. Persons, corporations, and other entities required to make tax returns.
• SECTION 12-6-4920. Interstate motor carrier required to file return.
• SECTION 12-6-4930. Tax return of estate or trust; by whom to be made.
• SECTION 12-6-4940. Trust institutions maintaining common trust fund must make tax return; contents.
• SECTION 12-6-4950. Information returns.
• SECTION 12-6-4960. Form of tax return; department to furnish blank forms; effect on taxpayer of failure to receive form.
• SECTION 12-6-4970. Time to file returns.
• SECTION 12-6-4980. Extension of time for filing return.
• SECTION 12-6-4990. Payment of tax due upon filing return; effect of extension; requirement of making estimated tax payment.
• SECTION 12-6-5000. Filing of separate or joint federal returns by husband and wife; same status required on state return; nonresidents; where no federal return filed.
• SECTION 12-6-5010. Release of claim to personal exemption by custodial parent.
• SECTION 12-6-5020. Authorized filing of consolidated corporate income tax return; terms and conditions.
• SECTION 12-6-5030. Composite returns for partnership or "S" corporation.
• SECTION 12-6-5050. Tax preparer's taxpayer identification number.
• SECTION 12-6-5060. Voluntary contribution to certain funds may be designated on return; reporting of contributions annually by department.
• SECTION 12-6-5065. Repealed by 2005 Act No. 161, Section 21.B, eff June 9, 2005.
• SECTION 12-6-5070. Repealed by 2005 Act No. 161, Section 21.B, eff June 9, 2005.
• SECTION 12-6-5080. Repealed by 2005 Act No. 161, Section 21.B, eff June 9, 2005.
• SECTION 12-6-5085. Repealed by 2005 Act No. 161, Section 21.B, eff June 9, 2005.
• SECTION 12-6-5090. Repealed by 2005 Act No. 161, Section 21.B, eff June 9, 2005.
• SECTION 12-6-5095. Rounding to nearest whole dollar on tax returns.

ARTICLE 41. MISCELLANEOUS PROVISIONS

• SECTION 12-6-5510. Certificate of compliance as prima facie evidence.
• SECTION 12-6-5520. Notification to domestic or foreign corporation of failure to file return; penalty upon continued failure to comply.
• SECTION 12-6-5530. Income taxes payable by check; taxpayer liable for tax and penalties when check dishonored by bank.
• SECTION 12-6-5540. Copies of returns; verification of information on returns.
• SECTION 12-6-5550. State income tax refund as belonging to surviving spouse.
• SECTION 12-6-5560. Repealed by 2005 Act No. 161, Section 26.E, eff June 9, 2005.
• SECTION 12-6-5570. Authority to make expenditures.
• SECTION 12-6-5580. Failure to do an act deemed committed in person's county of residence.
• SECTION 12-6-5590. Donative intent; requirements; determining factors.
• SECTION 12-6-5595. Timber deeds as real property conveyances.