Who Must Complete the Form

Entities making a direct investment (generally the company producing the project) and having a direct ownership in a motion picture project and/or a motion picture production facility must complete the form. This would include a "C" Corporation that is claiming the credit on its own behalf. If a pass-through entity such as a partnership, "S" corporation, Limited Liability Company ("LLC") taxed as a partnership, or an equity fund makes a direct investment in such a motion picture project and/or production facility, they must provide (generally by means of a Schedule K-1) to each respective partner, "S" corporation shareholder, member of the pass through entity, or investor in the equity fund their share of the credit. In a tiered pass-through arrangement, the ultimate taxpayers (i.e. those who can use the credit such as an individual taxpayer) will eventually receive the information as the K-1s are passed down through the various tiers.

SC SCH. TC-13 is made up of three parts.

• Part I is for computing the credit(s) related to investment in a Qualified South Carolina Motion Picture Project (QSMPP). There are two types of QSMPP, (A) one for investors investing in a project by means other than an equity fund and (B) one for investors investing in a project by means of an equity fund.

  The maximum credit per motion picture project is $15,000. For pass through entities the $15,000 maximum credit is allocated to the partners, "S" corporation shareholders, or LLC members based on their ownership percentage.

• Part II is for computing the credit for Investment in a South Carolina Motion Picture Production Facility or Post Production Facility.

  Part III is for aggregating the credits in Parts I and II and applying applicable limitations. Complete each part if applicable. If the direct investor is taking a credit on this schedule, then Part III must be completed.

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