Tax credits available for S.C. agribusiness operators

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S.C. agribusiness operators may qualify for tax credits that can help them save money.

Some agribusiness tax credits are nonrefundable, meaning they cannot reduce tax liability below zero, while others are refundable, according to a news release from the S.C. Department of Revenue. Each credit applies to specific circumstances.

Nonrefundable credits include:  

• Drip/trickle irrigation systems credit: Taxpayers who buy and install conservation tillage equipment, a drip/trickle irrigation system, or dual-purpose combination truck and crane equipment are eligible. Credits are limited to 25% of expenses and cannot exceed $2,500 in each of the three categories. Credits can carry forward for five years. Use form TC-1 to claim the credit.
• Agribusiness income tax credit: Agribusiness operations that increase purchases of S.C.-grown farm products by 15% or more in a calendar year qualify for this credit, which cannot exceed $100,000. The credits must be certified by the Coordinating Council for Economic Development and may apply to income tax or withholding tax. The credit can carry forward five years for income tax and 20 quarters for withholding tax. To claim this credit, use form TC-61 for income tax or WH-1671 for withholding tax.
• Water resources credit: Taxpayers who build water storage and control structures are eligible for this credit, which equals 25% of expenses and cannot exceed $2,500. It can be carried forward five years. Use form TC-3 to claim the credit.

Refundable credits include:

• Anhydrous ammonia credit: Business operators who use anhydrous ammonia for agricultural purposes qualify. The credit equals the amount paid to buy the ammonia additive. Use form I-333 to claim the credit.
• Milk credit: Taxpayers who produce milk for sale qualify. The credit is equal to $10,000 for the first 500,000 pounds of milk produced and sold below the production price and $5,000 for each additional 500,000 pounds. The credit amount must be certified by the S.C. Commissioner of Agriculture. Use form I-334 to claim the credit.

More information is available online at dor.sc.gov.