ECENC Program Credits

ECENC PROGRAM CREDITS ×

Learn more about education-related tax credits benefitting parents and teachers
So far this year, 18,403 state Individual Income Tax returns claiming Classroom Teacher Expenses Credits have been filed for the 2022 tax year, for a total of $4,760,560. This is just one of several education-related state tax credits the SCDOR wants parents and teachers to consider as another school year draws near.

Due to more winter weather in the forecast that may impact applicants’ ability to submit Parental Refundable Credit applications, the SCDOR is again postponing the application open date to February 1 at 8:30 am.

PLAN AHEAD: Beginning February 1, you can apply online for the tax year 2021 Parental Refundable Credit. We have put together instructions and resources so you can be ready for the new application process.

Educational Credit for Exceptional Needs Children (ECENC)

The ECENC program was reorganized by the SC General Assembly in 2016. The program includes the Parental Refundable Tax Credit, the Educational Credit for Exceptional Needs Children’s Fund, and scholarship grants provided through Exceptional SC.

Cap met for the 2022 Parental Refundable Credit Application

The $5 million cap for the 2022 Parental Refundable Credits was met on February 2, 2023. Applicants should allow up to three weeks to receive a notice if their application was approved.

See what you should know if you receive an approval letter

Don't claim the credit until you've received the Parental Refundable Credit approval letter.
If you received the Parental Refundable Credit Approval Notice and haven’t filed your SC1040, complete and submit the I-361 with your SC1040. Enter the credit amount on line 22d of your SC1040. If your tax software doesn’t support the I-361, send the SCDOR a web message and attach the I-361. To get started, log in to MyDORWAY, select the More tab, then click Send the SCDOR a Message.
If you received the Parental Refundable Credit Approval Notice and have already filed your SC1040, you’ll need to file a new SC1040 and check the Amended Return box on page one of your return. Complete the return as it should have been filed, including all schedules and attachments. Complete the SCH AMD and submit it with your amended SC1040. Be sure to include the I-361 and a detailed explanation of the changes made.

The SCDOR accepts electronically-filed amended returns. Check with your software provider to be sure their products can file amended returns. If you’re filing electronically, the Schedule AMD will be included as part of the electronic return process. If you’re not filing your amended SC1040 electronically, mail your return and all supporting schedules to the address on the SC1040. Individual Income Tax returns cannot be filed through MyDORWAY. The SCDOR cannot accept returns by fax or email.

Questions? We're here to help:
Email TaxTech@dor.sc.gov or check out our MyDORWAY video tutorials

About the ECENC Program

See how the ECENC Program is funded to support parents and guardians of exceptional needs students:

Parental Refundable Tax Credit

Educational Credit for Exceptional Needs Children’s (ECENC) Fund Donor Tax Credit

Exceptional SC

Parental Refundable Tax Credits for Tuition Payments:

The SCDOR will begin accepting the 2023 Application for Parental Refundable Credit, on February 2, 2024, at 8:30 a.m. Approved applicants will receive a letter.

Learn more about preparing for the application process >

Parents or guardians of exceptional needs students can pay the student’s tuition at an eligible school, then apply for a tax credit toward their South Carolina Income Tax bill as outlined below:

Parents or guardians make their payment to an eligible school for their qualifying student's tuition.
Parents complete and submit the Application for Parental Refundable Credit online using MyDORWAY (read about the application process), our free and secure tax processing system. The maximum amount of refundable credit that may be requested for each qualifying student is $11,000 or the amount paid for tuition, whichever is less, minus the amount of scholarship the qualifying student receives from Exceptional SC. Exceptional SC scholarships are not considered an out of pocket payment and cannot be claimed for this credit. Please save documentation and the credit approval letter from the SCDOR with your tax records, including the exceptional needs child's proof of eligibility.
The SCDOR will tentatively approve the Parental Refundable Credit requests on a first come, first-served basis according to the applicants’ representations as long as the $2 million cap* has not been met.
When you file your South Carolina Income Tax return, claim the tentatively approved Parental Refundable Credit on the I-361 form.

§12-6-3790 provides that South Carolina Parental Refundable Tax Credits may not exceed $2 million for each tax year.*

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. Donors are:

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.

Please visit ExceptionalSC.org/donate 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.

*If Exceptional SC receives less than $12 million in donations in a tax year, then the Parental Refundable Tax Credit cap of $2 million may be increased by up to $3 million. The combined credit cap cannot exceed the authorized total of $14 million.

For more information:

For information on applying for an Exceptional SC scholarship and other program specific questions, please visit ExceptionalSC.org or email Exceptional SC directly at Administrator@ExceptionalSC.org.
For questions related specifically to tax credits, please contact TaxTech@dor.sc.gov.
Learn more about MyDORWAY on our MyDORWAY help page.

View the cap results for previous years

2016-2017 Fiscal Year Recap:

The $10 million cap for nonrefundable tax credits for donations to Exceptional SC in Fiscal Year 2017, provided in Proviso 109.15, was met in April 2017.
The $2 million cap for parental refundable tax credits in Fiscal Year 2017, provided in Proviso 109.15, was met in September 2016.

2017-2018 Fiscal Year Recap:

The $11 million cap for nonrefundable tax credits for donations to Exceptional SC in Fiscal Year 2018, provided in Proviso 109.11, was met on December 29, 2017.
The $2 million cap for parental refundable tax credits in Fiscal Year 2018, provided in Proviso 109.11, was met on July 5, 2017.

2018 Tax Year Recap:

The $12 million cap for nonrefundable tax credits for donations to Exceptional SC in Fiscal Year 2019, provided in §12-6-3790, was met on July 6, 2018.
The $2 million cap for parental refundable tax credits in Fiscal Year 2019, provided in §12-6-3790, was met on October 1, 2018.

2019 Tax Year Recap:

As of December 31, 2019, $4,547,101.10 in nonrefundable tax credits were approved for donations to Exceptional SC, provided in §12-6-3790.
The $2 million cap for parental refundable credits, provided in §12-6-3790, was met on October 1, 2019.

2020 Tax Year Recap:

As of December 31, 2020, $4,095,107.80 in nonrefundable tax credits were approved for donations to Exceptional SC, provided in §12-6-3790.
The $2 million cap for parental refundable credits, provided in §12-6-3790, was met on January 15, 2021.

2021 Tax Year Recap:

As of December 31, 2021, $5,476,184.67 in nonrefundable tax credits were approved for donations to Exceptional SC, provided in §12-6-3790.
The $5 million cap for parental refundable credits, provided in §12-6-3790, was met on February 1, 2022.

2022 Tax Year Recap:

As of December 31, 2022, $3,076,903.43 in nonrefundable tax credits were approved for donations to Exceptional SC, provided in §12-6-3790.
The $5 million cap for parental refundable credits, provided in §12-6-3790, was met on February 2, 2023.

PLAN AHEAD: Beginning February 1, you can apply online for the tax year 2021 Parental Refundable Credit. We have put together instructions and resources so you can be ready for the new application process.

Educational Credit for Exceptional Needs Children (ECENC)

Cap met for the 2022 Parental Refundable Credit Application

Create a MyDORWAY account if you do not have one

List of information you will need to apply

Where you will locate the application on MyDORWAY on February 2, 2023

What you should know once you have received an approval letter

About the ECENC Program

Parental Refundable Tax Credit

Educational Credit for Exceptional Needs Children’s (ECENC) Fund Donor Tax Credit

Exceptional SC

Parental Refundable Tax Credits for Tuition Payments:

Nonrefundable Tax Credits for Exceptional SC Donations:

For more information:

View the cap results for previous years

2016-2017 Fiscal Year Recap:

2017-2018 Fiscal Year Recap:

2018 Tax Year Recap:

2019 Tax Year Recap:

2020 Tax Year Recap:

2021 Tax Year Recap:

2022 Tax Year Recap:

PLAN AHEAD: Beginning February 1, you can apply online for the tax year 2021 Parental Refundable Credit. We have put together instructions and resources so you can be ready for the new application process.

Educational Credit for Exceptional Needs Children (ECENC)

​​​Cap met for the 2022 Parental Refundable Credit Application​​​​

Create a MyDORWAY account if you do not have one

​ List of information you will need to apply​

Where you will locate the application on MyDORWAY on February 2, 2023

What you should know once you have received an approval lette​r

About the ECENC Program

Parental Refundable Tax Credit

Educational Credit for Exceptional Needs Children’s (ECENC) Fund Donor Tax Credit

Exceptional SC​​​​

Parental Refundable​ Tax Credits f​​or Tuition Payments:

Nonrefundable Tax Credits for Exceptional SC Donations:

For more information:

View the cap results for previous years​​

2016-2017 Fiscal Year Recap:

2017-2018 Fiscal Year Recap:

2018 Tax Year Recap:

2019 Tax Year Recap:

2020 Tax Year Recap:

2021 Tax Year Recap:

2022 Tax Year Recap:

Cap met for the 2022 Parental Refundable Credit Application

List of information you will need to apply

What you should know once you have received an approval letter

Exceptional SC

Parental Refundable Tax Credits for Tuition Payments:

View the cap results for previous years