Employers who hire TANF participants may qualify for state and federal tax credits.
South Carolina Tax Credit for Employers
Qualifying employers may receive basic credit amount equal to:
- 20% of wages paid to such employee for each full month of employment during the first 12 months of employment;
- 15% of wages paid to such employee for each full month of employment during the second 12 months of employment; and
- 10% of wages paid to such employee for each full month of employment during the third 12 months of employment.
The client must have received a TANF stipend for three months before the hire date. The DSS office will authenticate this eligibility using the DSS Form 12108. To verify receipt of TANF benefits, the DSS authorizes the following as acceptable forms of beneficiary consent on the DSS Form 12108:
- Original signature (also commonly referred to as a “wet” signature), or
- A portable document format (.pdf) with a digital signature
After obtaining the TANF beneficiary’s consent using one of the acceptable signatures above, the DSS Form 12108 may be electronically submitted to CERCU@dss.sc.gov for the fastest turnaround. The forms can also be mailed to:
South Carolina Department of Social Services
Attn: Division of Employment Services
P.O. Box 1520
Columbia, SC 29202-1520
If you would like more information about tax credits, please complete this form.
Federal Tax Credit for Employers
In addition to the SC state tax credit available for hiring a TANF participant, employers may also be eligible to receive a federal tax credit known as the Work Opportunity Tax Credit (WOTC). WOTC is a federally-funded tax credit program designed to provide incentive for employers to hire individuals with barriers to employment. Learn more here.