ECENC Program Credits | South Carolina Department of Revenue

The credit cap for the Parental Refundable Credit for tax year 2024 was raised to $5 million.

If you applied for the tax credit, read the FAQs below to see what you will need to do if you receive an approval letter.

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.

The Parental Refundable Credit cap was met for tax year 2024.

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

If you applied for the tax credit and have received an approval letter, please read the following instructions carefully.

If you received the Parental Refundable Credit Approval Notice and have NOT filed your SC1040:

Complete and submit the I-361 with your SC1040*.
Enter the credit amount on line 22d of your SC1040.

If you filed electronically with tax software and the software doesn'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.

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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 provider 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.
Individual Income Tax returns cannot be filed through MyDORWAY, by fax, or via email.

Frequently asked questions

Applications 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.

What is the Parental Refundable Credit cap amount?: If Exceptional SC receives less than $12 million in donations, then the Parental Refundable 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.
What is the calendar year?: The calendar year for this tax credit is from January 1 through December 31.
How can I find out how many applications were received by the SCDOR before the cap was met?: The SCDOR does not provide information related to submissions by other applicants. Information in summary format will be provided to the General Assembly at a later date for the current year applications. The annual credit cap is then recorded and posted at the bottom of this page.
What is the maximum amount of Parental Refundable Credit that may be requested for each qualifying student?: The maximum amount of Parental Refundable Credit that can 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 received from Exceptional SC (if applicable).

Am I required to provide the SCDOR with the exceptional needs child’s proof of eligibility?: No. Keep proof of eligibility with your important tax documents.
How do I know if my exceptional needs child's school is eligible?: A list of eligible schools is periodically updated by the Education Oversight Committee (EOC).
Can I apply for the Parental Refundable Credit if my child only attended a qualified school for one semester?: Yes. Add the total cost of tuition that is charged by the eligible school for the semester attended from January 1, 2025 – June 30, 2025 or July 1, 2025 – December 31, 2025.

Do I need to submit a separate application for each qualifying student?: Yes. A separate Parental Refundable Credit Application is required for each qualifying student.
How do I calculate the total amount paid for tuition to a qualified school?: Enter the qualifying student's total cost of tuition that is charged by the eligible school for the 2025 Spring, Summer, and Fall semesters. If the eligible school provides only the full school year's tuition, then enter only the tuition amount for the semesters attended.
Can I complete and submit the application on a smart device? Does my device require special settings?: In keeping with the security objectives of the SCDOR, MyDORWAY supports browsers with built-in malware protection capabilities, including up-to-date versions of:

How will I know if my Parental Refundable Credit Application was approved?

If you are tentatively approved for the Parental Refundable Credit, the SCDOR will issue a Parental Refundable Credit Approval Notice showing the tentatively approved credit amount.

The SCDOR tentatively approves the credit based solely upon the information reported on the Application for Parental Refundable Credit. After you have claimed the tax credit, the tax credit is subject to review and audit regardless of the tentatively approved credit reported on the notice.

When can I expect to receive my Parental Refundable Credit Approval Notice?

The SCDOR will issue all Parental Refundable Credit Approval Notices through MyDORWAY, within 30 business days of the filing of the Parental Refundable Credit Application.

Can I make changes to my Parental Refundable Credit Application?

No. You cannot make changes to increase your credit.

If incorrect information was reported on your application and the corrections result in a lower credit, send the SCDOR a web message explaining the changes. To get started, log in to MyDORWAY, select the More tab, then click Send the SCDOR a Message.

Will I receive a separate refund for the Parental Refundable Credit?

No. The Parental Refundable Credit will be included in your Individual Income Tax refund.

Parental Refundable Tax Credits for Tuition Payments:

The SCDOR began 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 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 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.
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.

SC Code 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 2025 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. SC Code Section 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, visit ExceptionalSC.org or email Exceptional SC at Administrator@ExceptionalSC.org.
For questions related specifically to tax credits, contact TaxCredits@dor.sc.gov.
Learn more about our free online tax portal, MyDORWAY on our MyDORWAY help page.

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.

2023 Tax Year Recap:

As of December 31, 2023, $6,202,243.07 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, 2024.

2024 Tax Year Recap:

As of December 31, 2024, $3,306,087.96 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 3, 2025.

The credit cap for the Parental Refundable Credit for tax year 2024 was raised to $5 million.

Educational Credit for Exceptional Needs Children (ECENC)​

​​​​The Parental Refundable Credit cap was met for tax year 2024.

Need help?

​Frequently asked questions

General ​information about the tax credit​

Determining eligibility​

Applying​ on MyDORWAY​

Receiving ​an approval notice and claiming ​the refund​​

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