Exceptional SC

EXCEPTIONAL SC ×

What is Exceptional SC?

Exceptional SC (a 501(c)(3)), also known as the Educational Credit for Exceptional Needs Children fund or ECENC, was created by the South Carolina Legislature in 2016. The fund is made of tax-deductible donations that serve as scholarships for exceptional needs students in South Carolina to attend an approved independent school that best serves their needs. Applications and eligibility information are available at ExceptionalSC.org. The Exceptional SC board reviews applications and awards scholarships based on a number of criteria. Students who are awarded the scholarship must attend a school that the Education Oversight Committee has approved for program participation.

2019-2020 parental refundable credit application information

Applications will be accepted beginning at noon on October 1, 2019 for 2019 tuition payments made to qualifying schools for the 2019-2020 school year.

Applications submitted prior to noon on October 1, 2019 will not be accepted and must be resubmitted.
Applications submitted on prior year forms will not be accepted.
The 2019 TC-57A will be available here (dor.sc.gov/forms) at noon on October 1, 2019.

You may submit the TC-57A by email, fax, or mail. Only submit ONE application at a time.

Email: taxtech@dor.sc.gov
Fax: 803-737-5980
Mail: SCDOR, PO Box 125, Columbia, SC 29214-0225

Only one application per submission will be accepted. If a submission contains multiple applications (example: two applications attached to one email), then only the first application will be accepted. You must submit one application at a time (example: one attachment per email).
Only completed forms will be accepted. Steps 1 through 3 and the signature must be completed in their entirety to be accepted.
Do not submit TADS applications or eligibility or medical documents with your TC-57A. All information should be entered on the form itself.
You will need the following information to complete your application:

Parent information (name, Social Security number, spouse's name, spouse's Social Security number, address, phone number, email address)
Household information (2018 household income range, estimated annual cost for additional expenses from caring for your exceptional needs child, number of children living in the household, number of children with exceptional needs living in the household)
Student information (full legal name, age, sex, grade level)
Tuition payment information (name of eligible school; list all applicable payments with payment date, check number or payment ID, payment description, payable to information, and payment amount)
Applying taxpayer's signature

The information below is for the 2019-2020 school year.

Parental Refundable Tax Credits for Tuition Payments:

The SCDOR will begin accepting parental tax credit applications at noon on Tuesday, October 1 for 2019 tuition payments made to qualifying schools for the 2019-2020 school year.

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 Form TC-57A to request the parental refundable credit. The tax credit application cannot exceed the amount paid out of pocket for the student's tuition. The maximum amount of refundable credit that may be requested for each qualifying student is $11,000 or the cost of 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 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 taxes, the tentatively approved parental refundable credit is claimed by completing the I-361 form.

§12-6-3790 provides that South Carolina parental refundable tax credits may not exceed $2 million for 2019.

Nonrefundable Tax Credits for Exceptional SC Donations:

Exceptional SC began accepting tax year 2019 donations on March 1, 2019. For donation information, please contact Exceptional SC.

Anyone can donate to the Exceptional SC 501(c)(3) scholarship fund, which provides scholarships to exceptional needs students. 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 sixty percent of his total South Carolina tax liability for the year the contribution was made. If a taxpayer deducts the amount of the contribution on his federal return and claims the nonrefundable credit, then he 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.

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 2019.

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 ExceptionalSC@dor.sc.gov.

2016-2017 School 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 School 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.

2018-2019 School 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.