Nonrefundable Tax Credits for Exceptional SC Donations:
Exceptional SC is now accepting tax year 2023 donations. For donation totals and more information, visit Exceptional SC’s
website. The SCDOR approves credits of qualified donations to Exceptional SC on a first come, first served annual statewide cap of $12 million*.
Anyone can donate to the Exceptional SC 501(c)(3) scholarship fund. Individuals and corporations who pay South Carolina taxes can make a donation to Exceptional SC and claim a dollar for dollar tax credit against their overall South Carolina Income Tax liability (personal Corporate Income Tax).
A taxpayer may not claim more than 75% of their total South Carolina tax liability for the year the contribution was made. If a taxpayer deducts the amount of the contribution on their federal return and claims the nonrefundable credit, then they must add back the amount of the deduction for South Carolina Income Tax purposes.
- Eligible to claim a dollar for dollar credit on state income tax liability;
- Not allowed to designate a specific student or school as beneficiary;
- Limited by a first come, first served annual statewide cap of $12 million;*
- Allowed to carry forward credit up to three years beginning with tax year 2021.
for more information and to make a donation. §12-6-3790 provides that South Carolina tax credits for donations to Exceptional SC may not exceed $12 million for each tax year.* However, Exceptional SC may carry forward up to $5 million of donations into the next year to provide credits in the next year. This carryforward amount does not increase the cumulative tax credit amount for any one year.