What are South Carolina's abandoned building, textile mill, and retail facility rehabilitation tax credits, and where does the Department summarize their requirements (per SC IL #15-9)?

Plain-English summary

This Information Letter is a reference chart, for practitioners, that compares three South Carolina tax credits for rehabilitating older properties. South Carolina offers several credits for the rehabilitation of abandoned buildings, on top of a separate credit for rehabilitating state historic structures. Each credit statute carries its own detailed rules — qualifying the site, qualifying the rehabilitation expenses, and the information that must be filed with the Department — and the Department notes the rules "can be complex."

The three credits summarized are:

• Abandoned Buildings Revitalization Credit — Title 12, Chapter 67 (detailed in SC Revenue Ruling #15-7);
• Textile Mill (Textile Communities) Revitalization Credit — Title 12, Chapter 65 (detailed in SC Revenue Ruling #15-8);
• Retail Facility Revitalization Credit — Title 6, Chapter 34 (detailed in SC Revenue Ruling #15-9).

The attached summary has two parts: Part 1 compares the main requirements of the three income tax credits, and Part 2 compares the main requirements of the three property tax credits. The letter highlights special and transitional rules — including provisions for abandoned-building sites placed in service before June 9, 2015 (the effective date of 2015 Act No. 68), and transitional rules for the textile mill credit.

The Department is explicit that the chart is a general reference tool written in general terms and is not a substitute for reading the underlying statutes.

What this means for you

If you are rehabilitating an abandoned building, former textile mill, or retail facility

Use the chart to see, at a glance, how the income and property tax credits differ across the three programs and which might fit your project — then read the governing statute (Title 12 Chapter 67, Title 12 Chapter 65, or Title 6 Chapter 34) and the detailed companion ruling (SC Revenue Ruling #15-7, #15-8, or #15-9) for the full qualification, expense, and filing requirements before claiming a credit.

If your project's building was placed in service before June 9, 2015

Check the "Special Rules" provisions for the abandoned building credit and the textile mill transitional rules, which the letter flags specifically.

Common questions

Q: Which credits does this chart cover?
A: The Abandoned Buildings Revitalization Credit (Title 12, Chapter 67), the Textile Mill Revitalization Credit (Title 12, Chapter 65), and the Retail Facility Revitalization Credit (Title 6, Chapter 34).

Q: Is this chart the full rules?
A: No. It is a general reference tool; the Department directs you to the statutes and to the detailed rulings SC Revenue Rulings #15-7, #15-8, and #15-9.

Q: Does the chart cover both income and property tax credits?
A: Yes — Part 1 covers the income tax credits and Part 2 covers the property tax credits for all three programs.

Subject

Abandoned Building, Textile Mill, and Retail Facility Tax Credits – Summary Chart

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL15-9.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC INFORMATION LETTER #15-9

SUBJECT:

Abandoned Building, Textile Mill, and Retail Facility Tax Credits –
Summary Chart
(Income and Property Taxes)

DATE:

July 8, 2015

REFERENCE: Title 12, Chapter 67 (Supp. 2014) and 2015 Act No. 68
Title 12, Chapter 65 (2014)
Title 6, Chapter 34 (Supp. 2014)
AUTHORITY: S.C. Code Ann. Section 12-4-320 (2014)
SC Revenue Procedure #09-3
SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

South Carolina has available several tax credits for the rehabilitation of abandoned
buildings, in addition to a credit for the rehabilitation of state historic structures.
Each statute contains a number of requirements including qualification of the site,
qualification of expenses incurred in the rehabilitation, and information required to be
submitted to the Department. The rules and requirements can be complex.
The Department has issued guidance regarding the provisions of the income tax credit
and a general overview of the property tax credit for the following tax credits:
•

Abandoned Buildings Revitalization Credit – SC Revenue Ruling #15-7
(Title 12, Chapter 67)

•

Textile Mill Revitalization Credit – SC Revenue Ruling #15-8
(Title 12, Chapter 65)

•

Retail Facility Revitalization Credit – SC Revenue Ruling #15-9
(Title 6, Chapter 34)

As a reference tool for practitioners, a general summary of the main requirements of the
abandoned building, textile mill, and retail facility credits are attached to this Information
Letter. It is comprised of two parts:
 Part 1 provides a summary of the main requirements for the abandoned building,
textile mill and retail facility income tax credits. Note: See “Special Rules”
section for provisions regarding building sites placed in service before June 9,
2015, for the abandoned building tax credit, as well as the transitional rules for the
textile mill tax credit.
 Part 2 provides a summary of the main requirements for the abandoned building,
textile mill, and retail facility property tax credits.
Again, this credit summary is intended to be a reference tool and is written in general
terms. It is not to be relied on as a substitute for reading the relevant statutes.

2

GENERAL SUMMARY OF ABANDONED BUILDING, TEXTILE, AND RETAIL TAX CREDITS
(CAUTION: This summary is written in general terms. It may not be relied on as a substitute
for researching original sources of authority.)

Part 1 – Income Tax Credits
Abandoned Building
Income Tax Credit

Code Section
Form
Repeal Date

Taxpayer (TP)
Qualifying for
Credit

Taxes Credit
Available
Against

Title 12, Chapter 67
TC-55
December 31, 2019
Does not affect remaining credit
installments or carryforward period
of any credit earned
TP who rehabilitates an abandoned
building, incurs minimum
rehabilitation expenses, and places
building site in service for income
producing purposes
Income taxes - Ch. 6, Title 12
Bank franchise tax - Ch.11, Title 12
Savings & Loan - Ch. 13, Title 12
Corp. license fee - Ch. 20, Title 12
Insurance premium tax – Title 38,
Ch.7

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)
Title 12, Chapter 65
TC-23
none

TP who rehabilitates a textile mill site
and places site in service for its intended
use

Income taxes - Ch. 6, Title 12
Bank franchise tax - Ch. 11, Title 12
Corp. license fee - Ch. 20, Title 12
Insurance premium tax - Title 38, Ch. 7

For building sites placed in service
before June 9, 2015, see “Special
Rules” below

3

Retail Facility
Income Tax Credit

Title 6, Chapter 34
TC-31
July 1, 2016
Does not affect remaining credit
installments or carryforward period
of any credit earned
TP who improves, renovates, or
redevelops an eligible site and places
it in service

Income taxes - Ch. 6, Title 12
Bank franchise tax - Ch. 11, Title 12
Savings & Loan - Ch. 13, Title 12

Abandoned Building
Income Tax Credit

Notice of Intent
or Notice of
Election to
Inform DOR of
Credit Selection
(Notice)

Address to Mail
Notice to DOR

Credit Amount
Earned by TP

TP files Notice of Intent with DOR
before incurring first rehabilitation
expenses
Failure to timely file results in
qualification only of rehabilitation
expenses incurred after Notice is
provided
See RR #15-7 for guidance in
completing Notice letter
SCDOR
Abandoned Buildings Credit Notice
Research & Forms Development
Columbia, SC 29214-0019
25% of actual rehabilitation
expenses – if actual rehabilitation
expenses are 80% - 125% of
estimated expense amount reported
in Notice
25% of 125% of estimated expense
reported in Notice - if actual
rehabilitation expenses exceed
125% of estimated expense amount
reported in Notice
No credit – if actual rehabilitation
expenses are below 80% of
estimated expense amount reported
in Notice

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)
TP files Notice of Intent with DOR prior
to receiving building permits for site
Failure to timely file results in
qualification only of rehabilitation
expenses incurred after Notice is
provided
See RR #15-8 for guidance in
completing Notice letter
SCDOR
Textile Mill Credit Notice
Research & Forms Development
Columbia, SC 29214-0019
25% of actual rehabilitation expenses –
if actual rehabilitation expenses are
125% or less than the estimated expense
amount reported in Notice
25% of 125% of estimated expense
amount reported in Notice - if actual
rehabilitation expenses exceed 125% of
estimated expense amount reported in
Notice
For textile mill sites acquired before
January 1, 2008, see “Special Rules”
below

4

Retail Facility
Income Tax Credit

TP files Notice of Election letter
with DOR before site is placed in
service to inform of selection of
either the income tax credit or the
property tax credit
If failure to affirmatively elect either
credit with DOR or TP is unable to
obtain county approval, TP is
deemed to have elected income tax
credit
SCDOR
Retail Facility Credit Notice
Research & Forms Development
Columbia, SC 29214-0019
10% of rehabilitation expenses

Abandoned Building
Income Tax Credit

Maximum
Credit Earned
by TP
Abandonment
Period and
Space Closed to
Business

Subdivision of
Site into Units
or Parcels

$500,000 for each site, each unit, or
each parcel
“Abandoned building” – a building
or structure (clearly delineated from
other buildings or structures) with
66% or more of the space
continuously closed to business or
nonoperational for income
producing purposes for at least 5
years immediately preceding the
date the TP files a Notice
Yes, building may be subdivided
into separate parcels or separate
units which may be owned by same
or different TPs
Each unit or parcel is deemed to be
an abandoned building site for
purposes of determining whether
each unit or parcel is abandoned
Each unit or parcel must: (a) meet
the minimum investment
requirement, (b) file a separate
Notice and report estimated
expense; and (c) meet the Act’s
purpose and requirements

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)
No maximum

Retail Facility
Income Tax Credit

“Abandoned” - at least 80% of textile
mill has been closed continuously to
business or otherwise nonoperational as
a textile mill for at least 1 year
immediately preceding filing of Notice

“Abandoned” - at least 80% of site’s
facilities* have been continuously
closed to business or nonoperational
for at least 1 year preceding time
determination is made (can serve as
wholesale facility for up to one year
during abandonment)

No maximum

*Site’s facilities only include the
site’s building or structure
Yes, site may be subdivided into separate No, dividing site into separate units
parcels which may be owned by same or or separate parcels is not permitted
different TPs. A site, however, cannot
be divided into separate units.
Each parcel is deemed to be a textile mill
site for purposes of determining whether
each parcel is abandoned
For any parcel on which there is a
building, the building must be renovated
or demolished

5

Abandoned Building
Income Tax Credit

Eligible Site

“Building site” - the abandoned
building and the parcel of land it is
located on and other improvements
on the parcel
The area of the building site is
limited to the land the abandoned
building is located upon and the
land immediately surrounding the
building used for parking and other
similar purposes directly related to
the building’s income producing
use

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)
“Textile mill” - facility or facilities that
were initially used for textile
manufacturing, dyeing, or finishing
operations and for ancillary uses to those
operations
“Textile mill site” - the textile mill
together with land and other
improvements on it which were used
directly for textile manufacturing,
operations or ancillary uses
The area of the site is limited to the land
located within the boundaries where the
textile manufacturing, dyeing, or
finishing facility structure is located and
does not include land located outside the
boundaries of the structure or devoted to
ancillary uses
“Ancillary uses” - uses related to the
textile manufacturing, dyeing, or
finishing operations on a textile mill site
consisting of sales, distribution, storage,
water runoff, wastewater treatment and
detention, pollution control, landfill,
personnel offices, security offices,
employee parking, dining and recreation
areas, and internal roadways or
driveways directly associated with such
uses
6

Retail Facility
Income Tax Credit
“Eligible site” – an abandoned
shopping center, a mall, or
freestanding site whose primary use
was as a retail sales facility with at
least one tenant occupying a 40,000
square foot or larger building

Certification of
Site by County as
Abandoned

TP or Site
Ineligible for
Credit

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

Yes, if TP applies to county or
municipality to make determination.
TP may rely upon determination.
Attach to first tax return for which
credit is claimed.

Yes, if TP applies to county or municipality
to make determination. TP may rely upon
determination. Attach to first tax return for
which credit is claimed.

No, burden of proof is on TP

For building sites placed in service
before June 9, 2015, see “Special
Rules” below
TP who owned building when it was
operational and immediately prior to
abandonment
Site with preceding use as a single
family residence or the construction of
single family residence

TP owned textile mill site when site was
operational and immediately prior to
abandonment
TP claiming abandoned building credit for
site
If facility previously received textile credit

TP claiming textile or retail credit
for site
TP who does not put site into operation
for income producing purposes
TP who does not meet purpose of Act
TP who incurs below the minimum
required rehabilitation expense
for the site
TP whose actual expenses are under
80% of estimated rehabilitation
expense amount reported in Notice

7

Abandoned Building
Income Tax Credit

Rehabilitation
Expenses

Expenses or capital expenditures
incurred in rehabilitation,
demolition, renovation, or
redevelopment of building site
Includes renovation or
redevelopment of existing
buildings, demolition expenses
(complete destruction),
environmental remediation, site
improvements and construction of
new buildings and other
improvements
Excludes (a) cost of acquiring
building site, (b) expenses
associated with increase in square
footage of building site more than
double the size of the existing
buildings, (c) demolition expenses
for historic building, and (d) cost of
personal property at building site

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)
Expenses or capital expenditures
incurred in rehabilitation, renovation, or
redevelopment of textile mill site
Includes demolition (complete
destruction) of existing buildings,
environmental remediation, site
improvements and construction of new
buildings and other improvements
Excludes cost of acquiring textile mill
site or cost of personal property located
at textile mill site
Excludes expenses incurred prior to
filing Notice if Notice is filed after
receiving building permit for the textile
mill site
Note: For expenses to qualify, textile
mill and buildings on site must be
renovated or demolished

Note: For expenses to qualify, the
abandoned buildings on the
building site must be renovated or
redeveloped

8

Retail Facility
Income Tax Credit

Expenses incurred in the
rehabilitation of eligible site
Include demolition costs, (complete
destruction), environmental
remediation, site improvements, new
construction, and renovation to
existing buildings
Excludes cost of acquiring eligible
site or cost of personal property
maintained at eligible site

Real Property or
Personal
Property Costs

Date Expense
Incurred
Minimum
Investment
Requirement

Date Credit
Earned

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

Depends on facts and circumstances.
Personal property is generally not
permanent. DOR considers: (a) mode
of attachment, (b) character of item, (c)
intent of parties, (d) relationship of
parties, and (e) if removal would be
costly, time consuming, and
destructive to building
On date expense would be considered
incurred under accrual method of
accounting
TP must incur the following
rehabilitation expenses based on
location:
 Over $250,000 if building is in
area with more than 25,000
people;
 Over $150,000 if building is in
area with 1,000 – 25,000 people;
 Over $75,000 if building is in area
with under 1,000 people
Entire credit is earned in tax year when
building site (or phase) is placed in
service

Depends on facts and circumstances.
Personal property is generally not
permanent. DOR considers: (a) mode of
attachment, (b) character of item,
(c) intent of parties, (d) relationship of
parties, and (e) if removal would be costly,
time consuming, and destructive to building

None

Depends on facts and circumstances.
Personal property is generally not
permanent. DOR considers: (a) mode of
attachment, (b) character of item, (c)
intent of parties, (d) relationship of
parties, and (e) if removal would be
costly, time consuming, and destructive
to building
On date expense would be considered
incurred under accrual method of
accounting
None

Entire credit is earned in tax year textile mill
site (or phase or portion) is placed in service

Entire credit is earned in tax year
eligible site is placed in service

On date expense would be considered
incurred under accrual method of accounting

If placing phases in service, credit is
not earned until costs incurred to date
are 80% or more of the estimated
expense amount reported in the Notice
for the entire site

9

Placed in Service
Definition
Annual Credit
Installment

Installment
Amount
Available to
Offset Tax

Carryforward of
Each Installment

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

The date the building site (or phase or
portion) is completed and ready for its
intended use
Credit taken in equal installments over
3 years beginning with tax year that
site (or phase or portion) is placed in
service

The date the textile mill site (or phase or
portion) is completed and ready for its
intended use
Credit taken in equal installments over 5
years beginning with tax year that site (or
phase or portion) is placed in service

The date the site is suitable for
occupancy for the purposes intended
(may be other than retail use)
Credit taken in equal installments over 8
years beginning with tax year that site is
placed in service

Credit is limited to 50% of income tax, bank
tax, corporate license fee, and/or insurance
premium tax liability for the tax year

Credit can offset 100% of income tax,
bank tax, or savings and loan tax
liability

5 years

5 years

For building sites placed in service
before June 9, 2015, see “Special
Rules” below
Credit can offset 100% of income tax,
bank tax, savings and loan tax,
corporate license fee and/or insurance
premium tax liability for the tax year
For building sites placed in service
before June 9, 2015, see “Special
Rules” below
5 years

10

Pass Through
and Allocation of
Credit

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

If TP earning credit is a partnership or
LLC taxed as partnership, the credit
may be passed through to the current
partners or members and may be
allocated among any of its current
partners or members, including an
allocation of the entire credit to one
partner or member, without regard to
any IRC provision that may be
contrary to the allocation, including
treatment as a disguised sale

If TP earning the credit is a partnership or
LLC taxed as a partnership, the credit may
be passed through to the partners or
members and may be allocated among any
of its partners or members on an annual
basis, including allocation of entire credit to
any partner or member who was a partner or
member at any time during the year the
credit is allocated

If credit is earned by a partnership, LLC,
or other entity taxed as a partnership, the
credit must be passed through to its
partners, and may be allocated among any
of its partners in a manner agreed to by
partners that is consistent with IRC
Subchapter K, including allocation of the
entire credit to one partner

A partnership or LLC cannot allocate
more than its current year credit
installment amount to any partner or
member in a tax year

Transfer of
Earned Credit by
TP to Lessee

If TP leases building site (or part of
site), then TP may transfer any
remaining credit associated with the
rehabilitation expenses incurred with
respect to that part of the site to the
lessee of the site
Unused credit carryforwards may not
be transferred

A partnership or LLC cannot allocate more
than its current year credit installment
amount to any partner or member in a tax
year

If TP leases textile mill site (or part of site),
then TP may transfer any applicable
remaining credit associated with the
rehabilitation expenses incurred with respect
to that part of the site to the lessee of the site
Unused credit carryforwards may not be
transferred

11

If credit is earned by S corporation owing
corporate level income taxes, then credit
must be used first at entity level. Any
remaining credit passes through to each
shareholder in percentage equal to
percentage of ownership
A pass through entity cannot allocate more
than its current year credit installment
amount to any partner, shareholder, or
member in a tax year
The owner of the eligible site may transfer
all or part of unused credit to the tenant of
the eligible site
Unused credit carryforwards may not be
transferred

Transfer of
Earned Credit by
TP to Purchaser

Notice of
Transfer to DOR

Address to Mail
Notice of
Transfer to DOR
Use of
Transferred
Credit

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

If TP sells building site (or any phase
or portion of site), then TP may
transfer all or part of remaining credit
associated with rehabilitation expenses
incurred with respect to that portion to
the purchaser of the applicable portion
of the building site

If TP sells textile mill site, (or any phase or
portion of site), then TP may transfer all or
part of remaining credit associated with
rehabilitation expenses incurred with respect
to that phase or portion to the purchaser of
the applicable portion of the textile mill site

No transfer to new owner

Unused credit carryforwards may not
be transferred
Transferor must notify DOR of
transfer within 30 days after transfer

Unused credit carryforwards may not be
transferred
Transferor must notify DOR of transfer of
credit within 30 days after transfer

Must notify DOR 30 days before the
transfer

See RR #15-7 for information required
in the Notice
SCDOR
Abandoned Buildings Credit Transfer
Research & Forms Development
Columbia, SC 29214-0019
Transferee may only claim that year’s
credit installment

See RR #15-8 for information required in the
Notice
SCDOR
Textiles Credit Transfer Notice
Research & Forms Development
Columbia, SC 29214-0019
Transferee may only claim that year’s credit
installment

See RR #15-9 for information required in
the Notice
SCDOR
Retail Facility Credit Transfer
Research & Forms Development
Columbia, SC 29214-0019
Transferee may only claim that year’s
credit installment

Each installment can offset 100% of
the transferee’s income tax, bank tax,
savings and loan tax, corporate license
fee, and/or insurance premium tax
liability

Each installment is limited to 50% of the
transferee’s income tax, bank tax, corporate
license fee, and/or insurance premium tax
liability

Each installment has a 5 year carryforward

Each installment has a 5 year carryforward
Each installment has a 5 year
carryforward
For building sites placed in service
before June 9, 2015, see “Special
Rules” below
12

Use with Other
Credits

Special Rules

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Income Tax Credit

May also claim state historic credit (in
Code Section 12-6-3535) if eligible

May also claim state historic credit (in Code
Section 12-6-3535) if eligible

May also claim state historic credit (in
Code Section 12-6-3535) if eligible

If TP claims abandoned buildings
credit, TP cannot claim textile or retail
credit for same site

If TP claims textile credit, TP cannot claim
abandoned building credit

If TP claims retail credit, then TP
cannot claim abandoned buildings
credit

Building listed on National Historic
Register for Historic Places,
see RR #15-7, Question 25 and Code
Section 12-67-120(1) and (6)

Sites placed in service on or before
December 31, 2007 must use provisions in
Title 6, Chapter 32.

Definition of “state-owned abandoned
building” added. See Code Section 1267-120(8)
For sites placed in service before June
9, 2015:


Credit installment period is 5
years



Each credit installment is
limited to 50% of TP’s income
tax, bank tax, and/or corporate
license fee liability



No credit against insurance
premium taxes



No certification of building site
by county or municipality as
abandoned; TP has burden of
proof.

For sites in which a portion but not all of the
site was placed in service on or before
December 31, 2007, see transitional rules in
Code Section 12-65-50(C)
Definition of textile mill site expanded
for textile mill site located on the Catawba
River near Interstate 77. Code Section 1265-40(4).
For textile mill sites acquired by a TP before
January 1, 2008, the following apply (see
RR #15-8, Question 26):


Definition of textile mill site includes
textile mill structure, together with all
land and improvements which were
used directly for textile manufacturing
operations or ancillary uses, or were
located on the same parcel within 1,000
feet of any textile mill structure or
ancillary uses
13

Abandoned Building
Income Tax Credit

Textile Mill
Income Tax Credit
(For sites placed in service Jan. 1,
2008, and after)


A Notice of Intent is not required to be
sent to DOR for the income tax credit



Income tax credit is 25% of actual
rehabilitation expenses (25% x 125%
estimated expense limitation is not
applicable)

14

Retail Facility
Income Tax Credit

Part 2 – Brief Overview of Property Tax Credits

Code Section
Taxes Credit
Available Against
Credit Amount

Abandoned Building
Property Tax Credit

Textile Mill Property Tax Credit
(For sites placed in service Jan. 1,
2008, and after)

Retail Facility
Property Tax Credit

Title 12, Chapter 67
Real property taxes

Title 12, Chapter 65
Real property taxes

Title 6, Chapter 34
Real property taxes

If actual rehabilitation expenses are
between 80% - 125% of estimated
expenses, then credit amount equals
25% of actual rehabilitation expenses x
local taxing entity ratio of each
consenting entity

If actual rehabilitation expenses are
between 80% - 125% of estimated
expenses, then credit amount equals 25%
of actual rehabilitation expenses x local
taxing entity ratio of each consenting
entity

25% of rehabilitation expenses x
local taxing entity ratio of each
consenting entity

If actual rehabilitation expenses exceed
125% of estimated expenses then
credit amount is based on 125% of
estimated expenses

If actual rehabilitation expenses exceed
125% of estimated expenses then credit
amount is based on 125% of estimated
expenses

If actual rehabilitation expenses are
If actual rehabilitation expenses are below
below 80% of estimated expenses, then 80% of estimated expenses, then credit is
credit is not allowed
not allowed
Municipality or
County Actions

Municipality or county must approve
site and proposed expenses by
resolution, ordinance and public
hearing
At least 45 days before public hearing,
municipality or county must give
notice to all affected local taxing
entities

Municipality or county must approve site
and proposed expenses by resolution,
ordinance and public hearing

Municipality or county must approve
site and project by resolution,
ordinance and public hearing

At least 45 days before public hearing,
municipality or county must give notice to
all affected local taxing entities

At least 45 days before public
hearing, municipality or county must
give notice to all affected local
taxing entities

15

Abandoned Building
Property Tax Credit

Textile Mill Property Tax Credit
(For sites placed in service Jan. 1,
2008, or after)

Retail Facility
Property Tax Credit

“Notice” of Intent
or Notice of
Election to
Inform Selection
of Property Tax
Credit
(Notice)

TP files Notice with municipality or
county (if in unincorporated area)
where site is located before incurring
first rehabilitation expenses

TP files Notice with municipality or
county (if in unincorporated area) where
site is located before incurring any
rehabilitation expenses

TP files Notice of Election letter
(selection of income or property
credit) with DOR before site is
placed in service.

Failure to timely file results in
qualification only of rehabilitation
expenses incurred after Notice is filed

Failure to timely file results in
qualification only of expenses incurred
after Notice is filed

Address to Mail
Notice

Municipality or county where site is
located

Municipality or county where site is
located

Eligible Site Size
Reduction by
Governing Body

No

No

Certification of
Site as
Abandoned

Yes, if TP applies to county or
municipality to make determination.
TP may rely upon determination.

Yes, if TP applies to county or
municipality to make determination. TP
may rely upon determination.

Failure to affirmatively elect or
inability to obtain county approval,
TP deemed to have elected income
tax credit
SCDOR
Retail Credit Notice of Election
Research & Forms Development
Columbia, SC 29214-0019
Yes, the governing body of a county
or municipality where site is located,
by resolution, may reduce the 40,000
square foot “eligible site” tenant
occupancy requirement to not lower
than 25,000 square feet
No, burden of proof is on TP

For building sites placed in service
before June 9, 2015, no certification of
building site by county or municipality
as abandoned; TP has burden of proof.
Credit may be claimed beginning with
the property tax year the phase or site
is placed in service

Credit may be claimed beginning with the
property tax year the phase or site is
placed in service

The entire credit vests in the TP in
the tax year the site is placed in
service

Credit can be taken against up to 75%
of real property taxes due on building
site each year for up to 8 years

Credit can be taken against up to 75% of
real property taxes due on textile mill site
each year for up to 8 years

Credit can be taken against up to
75% of real property taxes due on
the site each year for up to 8 years

Credit Amount
and Duration

16