Credit Worthy News

From the Road: Greenville, SC

Posted by Katherine Ferguson on Thursday, April 28, 2016

Earlier this month, we teamed up with ULI South Carolina in Greenville to talk historic tax credit deals with some of the area's best real estate minds. Our own Bill MacRostie and Richard Sidebottom (Director of MHA Southeast) were joined by Marshall Phillips of CohnReznick, Mac McLean of Haynsworth Sinkler Boyd, P.A., and developer Ken Reiter of Belmont Sayre to cover the basics of real estate transactions where historic tax credits are used. In these transactions, if not for the historic tax credit, the deals would not progress as the credits are an essential part of the capital stack. 

In Greenville, historic tax credit deals are one of the primary ways many of the old mills along the city’s textile crescent are being rehabilitated. And in communities like the Village of West Greenville along Pendleton Street, the commercial district that grew up to serve workers of Brandon Mill, there is a renewed interest in the architecture that was influenced by the presence of these industries. 

Village of West Greenville | Facebook

Whereas Greenville’s award-winning and stunningly beautiful Main Street, Falls River Park, and West End Historic District were spurred by long-term investment by the city, the emergence of private sector rehabilitations is creating new opportunities for historic tax credits to play a big role in financing the renaissance of arts and culture in Upstate South Carolina’s largest city.

Greenville also benefits from its central location between Atlanta and Charlotte along Interstate 85. What makes rehabilitation in Greenville even more appealing is the competitive historic tax credit program offered by the state as well as two additional and robust programs, the South Carolina Textiles Communities Revitalization Act and the Abandoned Buildings Revitalization Act, that can help developers and investors to claim up to 65% of qualified rehabilitation expenses in tax credits. Compared with the programs in Georgia and North Carolina, that is pretty generous.

Download Crafting the Historic Tax Credit Deal Presentation

Be sure to check our UPCOMING EVENTS page regularly to see if we are coming to a city near you and read more about South Carolina historic tax credits on our South Carolina state page.

Topics: historic tax credit, South Carolina, Events

South Carolina Improves Historic Rehabilitation Tax Credit

Posted by MacRostie Historic Advisors on Wednesday, July 1, 2015
The Westendorff | Charleston, SC
The Westendorff | Charleston, SC

On June 9, South Carolina Governor Nikki Haley signed legislation that improves the state historic tax credit for rehabilitated income-producing properties and abandoned buildings. The most notable change is the new election for a 25 percent tax credit on rehabilitation costs for income-producing preservation projects.

Benefits of Historic Rehabilitation Tax Credit Increase

The 25 percent tax credit is an improvement for those projects that have rehabilitation costs up to $10 million. With a project cap of $1 million, rehabilitations over $10 million should seek the uncapped 10 percent tax credit.

One provision of the legislation that remains the same is that the credit must be taken in installments starting in the year in which the property is placed in service. However, the term for those installments has been reduced from five years to three years, which is good news for investors.

The final adjustment made to this tax credit legislation enables an ownership group to assign the tax credit to another entity through a pass-through tenant structure.

Changes to Abandoned Building Rehabilitation Tax Credit

South Carolina’s Abandoned Building Tax Credit also received changes in the 2015 round of amendments that includes a new definition for a ‘state-owned abandoned building’, the inclusion of insurance premium taxes as one of the taxes against which a credit can be claimed, the reduction of the credit term from five to three years, and the removal of a limitation related to the amount a taxpayer’s tax liability may be reduced.  An additional section was added to outline the manner in which a taxpayer can receive certification of an abandoned building site.

These revisions, that were effective immediately on the governor’s signing, signify an acknowledgement by state lawmakers that the rehabilitation of historic buildings is a powerful economic development tool in historic communities across the Palmetto state.

Written by Richard Sidebottom, Senior Associate

MHA associates are well versed in state programs across the country. Contact us if you have questions about these South Carolina programs or other historic rehabilitation tax credits.

Topics: historic tax credit, South Carolina, MHA Southeast, state policy