Since these subtractions apply only to a few people, they are not fully explained here. Attach an explanation of your entry on this line. Some examples of items which may be subtracted:

• A deduction is allowed to an individual for the purchase of economic impact zone stock. The deduction is equal to twenty percent of the total amount paid in cash by the taxpayer during the taxable year for the purchase of economic impact zone stock.
• If you itemized and claimed a federal tax credit for qualified mortgage credit certificates (MCC), you may subtract the amount of the tax credit as interest.
• South Carolina net operating loss. In no event is the same loss to be deducted more than once. No carryback losses are allowed.
• South Carolina and federal depreciation expenses are the same. Any asset with a different basis must be adjusted at the end of the federal depreciation as follows: personal property must be depreciated by the straight line method at the rate of 50 percent per year and real property must be depreciated by the straight line method at the rate of 20 percent per year.
• Capital expenses amortized under federal statutes will be the same for state purposes. At the end of the federal amortization, the balance of capital expense amortized will continue until fully amortized for state purposes. The amortized amount is a subtraction from your income.
• Legislators within a 50-mile radius of the State House are allowed to subtract travel expenses.
• SC deduction due to Federal 30% bonus depreciation in a prior year.
• Depreciable assets with a higher state basis because of:
  1. taxable corporate liquidation prior to January 1, 1985;
  2. exchange of property corporate liquidation prior to January 1, 1985;
  3. exchange of property prior to January 1, 1985, as a result of not having a situs in South Carolina; or
  4. IRC Section 179 expensing prior to January 1, 1985, may continue the state depreciation in the same manner.
  If you elect to continue this option, subtract the excludable portion from your income.
• Job credit wage reductions for federal purposes are subtractions from income for South Carolina purposes.
• Job credit wage reductions for federal purposes are subtractions from income for South Carolina purposes.
• Military Reserve and National Guard pay which is included in retirement income is not taxed for South Carolina purposes.

  Determine the percentage of your military retirement income which is excludable by dividing the length of time you served in the Reserves and/or National Guard (not full time) by the length of time of your total military service.

• If you have adopted a "special needs child", you may subtract $2,000 per year as long as the adopted child qualifies as a dependent on your federal return.

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