Abandoned buildings revitalization credit

South Carolina offers the Abandoned buildings revitalization credit to encourage the rehabilitation, renovation and redevelopment of long-vacant buildings for income producing purposes.

Taxpayers who invest in qualifying properties and meet statutory requirements may be eligible for a tax credit equal to 25% of rehabilitation expenses.

Connect with an incentives expert
Eligibility

Eligible buildings

To qualify, a building or structure must meet the statutory definition of an abandoned building.

An eligible building is one:

  • In which at least 66% of the space has been unoccupied continuously or otherwise non-operational for at least five years
  • That was not used as a single-family residence immediately before rehabilitation

The five-year period is measured from the date the taxpayer files a Notice of Intent to Rehabilitate.

Minimum rehabilitation expenses

To qualify for the credit, the taxpayer must improve, renovate or redevelop the eligible building for income-producing purposes and incur rehabilitation expenses that exceed the applicable threshold based on location.

Minimum investment requirements are:

  • Greater than $250,000 for a building located in the unincorporated area of a county or in a municipality within a county with a population of more than 25,000 people.
  • Greater than $150,000 for a building located in the unincorporated area of a county or in a municipality within a county with a population of at least 1,000 but less than 25,000 people.
  • Greater than $75,000 for a building located in the unincorporated area of a county or in a municipality within a county with a population of less than 1,000 people.
Credit options

Credit options

A qualifying taxpayer may choose between two credit structures.

Income or license tax credit

A taxpayer may claim a credit against income or license taxes equal to 25% of eligible rehabilitation expenses.

Key features include:

  • The credit must be taken in equal installments over three years
  • Installments begin in the tax year in which the site is placed in service
  • The credit may offset up to 100% of income or license tax liability
  • The credit may not exceed $700,000 per tax year for each abandoned building site
  • Unused credits may be carried forward for up to five years

Real property tax credit

Alternatively, a taxpayer may claim a credit against real property taxes equal to 25% of rehabilitation expenses multiplied by the local taxing ratio of each local taxing entity that has consented to the credit.

Key features include:

  • The credit may offset up to 75% of property taxes
  • The credit may be claimed for up to eight years

The county or municipality where the building is located must determine that the site and proposed project are eligible. The local governing body must approve the project by majority vote through a public hearing and ordinance.

Application process

The application process depends on the type of credit being claimed.

For the income or license tax credit, taxpayers must file a Notice of Intent to Rehabilitate with the South Carolina Department of Revenue (SCDOR) within the timeframe required by state law.

For the real property tax credit, taxpayers must file a Notice of Intent to Rehabilitate with the county or municipality where the building is located before incurring rehabilitation expenses.

SCDOR resources

Abandoned buildings revitalization credit guidance TC-55 credit form and instructions
FAQs

Frequently asked questions