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ECENC PROGRAM CREDITS ×
 
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​​​​ The Parental Refundable credit cap was met for tax year 2023.
If you applied for the tax credit, and you have received an approval letter, please read the following instructions carefully:

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Do not claim the credit until you have received the Parental Refundable Credit Approval Notice​.​​

If you​ received the Parental Refundable Credit Approval Notice and have NOT filed your SC​1040:
  • Complete and submit the I-361 with your SC1040*
  • Enter the credit amount on line 22d of your SC1040.
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    *​If you filed electronically with tax software and the software do​​esn’t support the I-361, send the SCDOR the I-361 by logging in to MyDORWAY, select the More tab, then click Send the SCDOR a Message.
If you filed your SC1040 before receiving the Parental Refundable Credit Approval Notice:
  • File a new SC1040 and check the Amended Return* box on page one of your return. Complete the SC1040 return as it should have been filed, including all schedules and attachments.
  • Complete the Schedule 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 provide​r to be sure their products can file amended returns:
    • ​​If you’re filing electronically with tax software, the Schedule AMD will be included as part of the electronic return process.
    • If you’re not filing your amended SC1040 with tax software, mail your return and all supporting schedules to the address on the SC1040.
    • Individ​ual Income Tax returns cannot be filed through MyDORWAY, by fax, or via email.​​​

Questions? We’re here to help! Log in to MyDORWAY​, select the More tab, then click Send the SCDOR a Message.

Educational Credit for Exceptional Needs Children (ECENC)​

The ECENC pro​gram was ​reorganized by the SC General Assembly in 2016. The progra​m​ includes t​he Parent​al​​ R​efundable Tax Credit, the Educational Credit for Exceptional Needs Children’s Fund, and scholarship grants provided through Exceptional SC.​​

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Frequently asked questions about applying for the Parental Refundable Credit

The Applications for Parental Refundable Credit are reviewed on a first come, first served basis according to the applicants’ representations as long as the $2 million cap has not been met. ​​See answers to frequently asked questions about the Parental Refundable Tax Credit application and refund process.

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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​​​​

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

The SCDOR will begin accepting the 2024 Application for Parental ​Refundable Credit, on February 3, 2025, at 8:30 a.m. Once approved, ​applicants who receive an approval notice can review the instructions above for claiming the refund.

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

  1. Parents or guardians make their payment to an eligible school for their qualifying student's tuition.​​
  2. Parents complete and submit the Application for Parental ​Refundable Credit ​on MyDORWAY, our free and secure tax portal. 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. Save documentation and the credit approval notice from the SCDOR with your tax records, including the exceptional needs child's proof of eligibility.
  3. 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.
  4. When you file your South Carolina Income Tax return, claim the tentatively approved Parental Refundable Credit on the I-3​61.

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

Exceptional SC is now accepting tax year 2024 donations. For more information, visit exceptionalsc.org/donors/scholarship-fund.​​

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 South Carolina Individual Income Tax or Corporate Income Tax liability.

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, 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;*
  • For tax year 2021 and forward, unused credits can be carried forward for up to three years​.
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.​
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​*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.​​
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For more information:

View the cap results for previous years​​​

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