SC · Tax Credit

South Carolina Workforce Training Tax Credits: What Employers Can Claim

South Carolina has an apprenticeship income tax credit worth the greater of your apprenticeship cost or $1,000 per apprentice, capped at $4,000 ($6,000 for youth apprenticeship), with a $5 million cap for all taxpayers each year. It also has a jobs tax credit for adding 10 or more full-time jobs (2 or more for small employers). The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025.

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HOW IT WORKS

Four steps, in this order.

1
Register your apprenticeship program with the US Department of Labor
2
Employ each apprentice for at least seven full months of the tax year
3
Complete the SC Revenue form TC-45 with your income tax return
4
Carry any unused credit forward up to three years

3 VERIFIED PROGRAMS

Where the South Carolina money comes from.

Run by SC Department of Revenue (credits) with Apprenticeship Carolina and SC Works. Every figure is from an official page, linked on each card.

Apprentice income tax credit (S.C. Code 12-6-3477)

$1,000 to $4,000 per apprentice ($6,000 youth)

ONGOING

WHAT YOU GET

A credit equal to the greater of the apprenticeship cost or $1,000 per apprentice, up to $4,000 ($6,000 for youth apprenticeship). After a completed apprenticeship, $1,000 for up to three more years if the person stays employed.

HOW MUCH

Statute and SC Revenue (2024 law): up to $4,000, or $6,000 youth, per apprentice. Older pages (SC Works, TC-45 dated 7/10/24 for years ending before May 21, 2024) still show a flat $1,000. Use the statute.

WHO RECEIVES THE MONEY

The employer, as a credit against South Carolina income tax. It is not a cash payment.

WHO QUALIFIES

Apprentice employed under an agreement registered with US Department of Labor
Employed at least seven full months of the tax year
Credit for up to four tax years per apprentice
Aggregate cap of $5 million for all taxpayers each year

Before you start: No application to the state in advance. Claim on form TC-45 with your return. The program must already be registered.

Job tax credit (S.C. Code 12-6-3360)

Per new full-time job, by county tier

ONGOING

WHAT YOU GET

A per-job credit for each new full-time job, paid over five years starting in year two, if the job minimum is kept.

HOW MUCH

As printed in the Code page read in September 2026: $25,000 (Tier IV county), $20,250 (Tier III), $2,750 (Tier II), $1,500 (Tier I) per new job. Confirm the current amounts with SC Revenue before relying on them.

WHO RECEIVES THE MONEY

The employer, as a credit against income tax, bank tax or insurance premium tax, limited to 50% of that tax liability.

WHO QUALIFIES

Qualifying business types such as manufacturing, warehousing, distribution, corporate office
Net increase of 10 or more full-time jobs, or 2 or more for taxpayers with 99 or fewer employees
Small employer jobs must pay at least 120% of per capita income or the credit is cut in half

Before you start: Not stated in the statute. Ask SC Revenue about claim steps.

Employer credit for hiring Family Independence recipients (S.C. Code 12-6-3470)

20% of wages in year one

ONGOING

WHAT YOU GET

20% of wages for each full month in the first 12 months, 15% in the second 12 months, and 10% in the third.

HOW MUCH

Percent of wages paid. Combined with the job tax credit, the cap is $5,500 per employee per year outside distressed counties.

WHO RECEIVES THE MONEY

The employer, as an income tax credit.

WHO QUALIFIES

Employee received Family Independence payments in South Carolina for the three months before being hired
Employer makes health insurance available to the employee on the same terms as other employees

Before you start: Not stated. Ask SC Revenue or your local SC Works center.

AVOID THESE

What gets South Carolina Tax Credit claims denied.

Apprentice not employed for seven full months in the tax year.
SOURCE: SCSTATEHOUSE.GOV
Apprenticeship agreement not registered with US Department of Labor.
SOURCE: SCSTATEHOUSE.GOV
Claiming more than four years for one apprentice.
SOURCE: SCSTATEHOUSE.GOV
Statewide $5 million cap reached before your claim.
SOURCE: SCSTATEHOUSE.GOV
Job count dropping under the minimum.
SOURCE: SCSTATEHOUSE.GOV

STRAIGHT ANSWERS

South Carolina Tax Credit questions.

How big is the SC apprenticeship credit now?

The greater of your apprenticeship cost or $1,000 per apprentice, up to $4,000, or $6,000 for youth apprenticeship. The 2024 law raised it. Some older pages still say $1,000.

SOURCE: DOR.SC.GOV

Is the Work Opportunity Tax Credit available for 2026 hires?

No. The IRS says WOTC applies to people who begin work on or before December 31, 2025. State agency pages may still advertise it. Check the IRS page for any later extension.

SOURCE: IRS.GOV

Can I carry the apprenticeship credit forward?

Yes, for three years. Under the old law it could not be carried forward.

SOURCE: SCSTATEHOUSE.GOV

Is there another SC credit for training existing staff?

Yes, retrainSC, called the Job Retraining Tax Credit by SC Works: up to $1,000 per eligible employee per year for qualifying industries. See the state training grant page.

SOURCE: SCWORKS.ORG

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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