South Carolina Tax Credits
Are you a South Carolina taxpayer who would
like to reduce your state income tax?
If so, you may want to consider purchasing South Carolina Tax Credits.
The Two Most Common Credits Available in South Carolina
South Carolina Conservation Credit
This credit is awarded to landowners that donate land to the state to be used and conserved for recreational purposes.
South Carolina Angel Credit
This credit is awarded to entrepreneurs that invest in new start-up companies in South Carolina.
HOW IT WORKS
Sometimes the state awards tax credits that cannot be used either because the entity is a Foundation that does not pay South Carolina tax, or the taxpayer is an individual or a business that has enough deductions to offset their South Carolina taxable income without having to use any credits.
Because these taxpayers cannot take advantage of owning the credits, there is incentive for them to “sell” the credits to someone who can use them. Luckily, South Carolina is one of a handful of states that allow tax credits to be exchanged (or bought and sold) between taxpayers.
R.P. Boggs & Co. has established a relationship with a market that finds qualified sellers and buyers of tax credits.
In recent years, we have been able to purchase credits for 85% on the dollar.
Example: If your South Carolina tax liability is projected to be $10,000.00, you can potentially purchase South Carolina tax credits for $8,500.00 saving you $1,500.00 in South Carolina tax.
Tax Credit vs. Tax Deduction
Keep in mind a “tax credit” is not a “tax deduction”. A tax credit is much better because it reduces you tax liability dollar for dollar. This is different than a tax deduction, which only reduces your taxable income.
The purchased credits can be used in place of making estimated tax payments. Also, if any credits are unused after filing your tax return, the remaining credits can be carried forward to be used to offset tax in the future.