South Carolina has modified the apprentice credit provisions, which previously allowed a credit amount of $1,000 for each apprentice employed. Under the amended provisions, the credit equals the greater of the cost of the apprenticeship or $1,000 for each apprentice employed, but not to exceed $4,000 for an apprentice, or $6,000 for the youth apprenticeship program.
Although a credit is not allowed for an individual apprentice for more than 4 taxable years, the law now provides that if the apprentice completes the apprenticeship and remains an employee, the taxpayer can claim the $1,000 credit for up to 3 additional taxable years.
The maximum aggregate credit for all taxpayers generally cannot exceed $5 million in any tax year. Also, another new provision specifies that any unused credit can be carried forward for 3 years.
Act 188 (S.B. 557), Laws 2024, effective May 21, 2024
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