Program Overview

The South Carolina Historic Rehabilitation Tax Credit (“SCHTC”) is available for income-producing buildings which are determined a “qualified historic structure” by the SHPO and which are substantially rehabilitated and determined a certified historic rehabilitation under the same guidelines as the federal credit. Under the SCHTC program, 10% of the total qualified rehabilitation expenditures are returned to the owner in the form of a dollar-per-dollar credit on state income taxes. The 10% SCHTC does not require additional forms outside of the Federal HPCA. Part 3 Certification for completed rehabilitations and securing the subsequent SCHTC tax benefits is dependent upon approval of the Federal Certification of Completed Work.

In June 2015, legislation was passed allowing applicants to elect to take a 25% tax credit not to exceed $1,000,000 in credit for each project. At this time, the application consists of additional signature sheets that are submitted simultaneously with the three parts of the Federal HPCA.


Who can use the credit?

The SCHTC is not freely transferable, but it can be dispportionatley allocated to the partners. For example, one partner can receive an allocation of all the credit or it can be allocated pro rata and follow the partnership agreement. It cannot be sold, but it can be allocated to a new equity partner through an equity investment structure.


Other programs

South Carolina Abandoned Building Tax Credit

South Carolina tax credits are available for the rehabilitation, renovation, and redevelopment of buildings that have been abandoned for at least five years. This tax credit measure provides a 25% state tax credit up to $500,000 that may be used against state income tax, corporate license fees, tax of insurance premiums or real property taxes. Applicants are required to file a Notice of Intent to Rehabilitate with the appropriate authority and declare whether they will apply the credit to real property tax prior to the start of the project. These incentives can be taken in addition to the state historic tax credit.

South Carolina Textile Communities Revitalization Tax Credit

South Carolina tax credits are available for the rehabilitation, renovation, and redevelopment of textile properties that have been abandoned for at least one year. This tax credit measure provides a 25% state tax credit that may be used against state income tax, corporate license fees, tax of insurance premiums or real property taxes. Applicants are required to file a Notice of Intent to Rehabilitate with the appropriate authority and declare whether they will apply the credit to real property tax prior to the start of the project.


Featured projects

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Cigar Factory

Charleston, SC
Mixed Use

Client: Roi-Tan Investments LLC
Built: 1882
Project Costs: $32 million
HTC equity: Over $17 million

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Rainwater Building

Florence, SC
Office

Client: BCN Holdings Inc.
Built: 1921
Project Costs: $2.4 million
HTC equity: Over $1.08 million


Important Links

South Carolina SHPO


Downloads

Crafting the Historic Tax Credit Deal
April 21, 2017 ULI SC

 

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