Federal Employee Retention Credit – Modification for Qualified Wages for Tax Years 2020 and 2021 (Income Tax)

The taxpayer is allowed a modification to its federal taxable income on its South Carolina income tax return. They may deduct qualified wages disallowed for federal tax purposes as a result of claiming the federal employee retention credit. The modification to federal taxable income on the South Carolina income tax return is only applicable to qualified wages paid or accrued after March 12, 2020, and before January 1, 2022