Is South Carolina's abandoned building revitalization credit still available, and where is the guidance on how it works?

Plain-English summary

South Carolina's abandoned building revitalization credit is still on the books — its repeal date has been pushed back to December 31, 2025. SC Information Letter #21-13 announces that Act No. 21 of 2021 (enacted April 26, 2021) postponed the sunset of the credit created by the South Carolina Abandoned Buildings Revitalization Act (Title 12, Chapter 67). (The original repeal date of December 31, 2019 in Act No. 57 of 2013 had already been extended to December 31, 2021 by Act No. 265 of 2018; this letter reports the further extension to December 31, 2025.)

What the credit does: it rewards a qualifying taxpayer for rehabilitating an abandoned building in South Carolina. The taxpayer may take the credit against income taxes (and the related bank franchise tax, savings-and-loan income tax, and corporate license fee) or against property taxes.

Where to find the detailed rules. The letter's second purpose is to point taxpayers to the Department's existing guidance, because the credit statute has detailed requirements (qualifying the building, qualifying the rehabilitation expenses, and the Notice of Intent to Rehabilitate):

• SC Revenue Ruling #15-7 — the comprehensive opinion on the credit's principles, rules, and requirements, with examples (including demolition/new-construction scenarios).
• SC Revenue Ruling #15-12 — additional rules for state-owned abandoned buildings.
• SC Information Letter #15-9 — a summary chart of the abandoned building, textile mill, and retail facility credits.

A caution on amendments: those three opinions reflect the 2015 amendments to the Act. For the amendments made in 2018 and 2019, the letter directs readers to SC Information Letters #18-15 and #19-23. This letter modifies the three 2015-era opinions to reflect the extended repeal date.

What this means for you

If you are rehabilitating (or planning to rehabilitate) an abandoned building in South Carolina, the credit remained available for the extended window through December 31, 2025 — so timing matters, and you should confirm the current statute and any post-2019 amendments before relying on it. Decide early whether to claim the credit against income taxes or property taxes, and work through the technical requirements (building qualification, qualifying expenses, and the Notice of Intent to Rehabilitate) using the Department's detailed rulings, especially SC Revenue Ruling #15-7.

Common questions

Q: Is the abandoned building revitalization credit still available?
A: Yes. Act No. 21 of 2021 postponed the credit's repeal to December 31, 2025.

Q: Can I take the credit against property taxes instead of income taxes?
A: Yes. The credit may be claimed against income taxes (and related bank/savings-and-loan/corporate license taxes) or against property taxes.

Q: Where are the detailed rules for qualifying?
A: In the Department's advisory opinions — SC Revenue Ruling #15-7 (main guidance and examples), SC Revenue Ruling #15-12 (state-owned buildings), and SC Information Letter #15-9 (summary chart); see also SC Information Letters #18-15 and #19-23 for the 2018 and 2019 amendments.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL21-13.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #21-13
SUBJECT:

Abandoned Building Revitalization Credit – Repeal of Act Postponed and
General Guidance Published Addressing Common Credit Questions

DATE:

May 19, 2021

MODIFIES:

SC Revenue Ruling #15-7
SC Revenue Ruling #15-12
SC Information Letter #15-9

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
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.

The purpose of this Information Letter is to inform taxpayers that the abandoned building
revitalization credit has been extended and to remind taxpayers and tax professionals of the
Department’s published advisory opinions that provide guidance and examples of the credit
requirements. The full text of these abandoned building credit advisory opinions listed below can
be found on the Department’s Law and Policy page at dor.sc.gov/policy.
EXTENSION OF CREDIT REPEAL DATE TO DECEMBER 31, 2025
The “South Carolina Abandoned Buildings Revitalization Act” (Title 12, Chapter 67), enacted in
2013, provides qualifying taxpayers a credit against income taxes 1 or property taxes for
rehabilitating an abandoned building in South Carolina. On April 26, 2021, Act No. 21 of 2021
postponed the repeal of the abandoned building credit to December 31, 2025. The credit repeal
date of December 31, 2019 in Act No. 57 of 2013 was extended to December 31, 2021 in Act
No. 265 of 2018.
A credit is allowed against the income tax imposed under Chapter 6, bank franchise tax under Chapter 11, savings
and loan income tax under Chapter 13, corporate license fee under Chapter 20, or any combination of these taxes.
While all of these taxes are not income taxes, for simplicity in this Information Letter, they are referred to as income
taxes.

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CREDIT GUIDANCE AND DEPARTMENT RESOURCES FOR CREDIT QUESTIONS
The credit statute contains a number of requirements including qualification of the abandoned
building, qualification of the expenses incurred in the rehabilitation, and information required in
the Notice of Intent to Rehabilitate.
To assist taxpayers and tax professionals in understanding the complex credit rules and
requirements, the Department has published the following guidance:
• SC Revenue Ruling #15-7, “Abandoned Building Revitalization Credit.”
This comprehensive advisory opinion provides guidance and examples regarding the basic
credit principles, rules, and requirements. See Part 7 - Examples and Additional Guidance,
that provide helpful scenarios and additional guidance on the general rules discussed in the
advisory opinion regarding credit requirements and Notice of Intent to Rehabilitate
considerations, including whether the demolition of a building and new construction by the
same taxpayer or by different owners meets the credit eligibility requirements.
• SC Revenue Ruling #15-12, “Abandoned Building Revitalization Credit – Additional Rules for
State-Owned Abandoned Buildings.”
This advisory opinion provides guidance on the rules applicable to state-owned abandoned
buildings and discusses how the basic credit principles in SC Revenue Ruling #15-7
continue to apply to state-owned abandoned buildings.
• SC Information Letter #15-9, “Abandoned Building, Textile Mill, and Retail Facility
Tax Credits – Summary Chart.”
This Information Letter is designed as a reference tool written in general terms and
provides a general summary of the main requirements of the abandoned building income
tax credit and property tax credit.
Note: Act No. 57 of 2013 was amended in 2015, 2018, and 2019. The above listed advisory
opinions reflect the 2015 legislative amendments. For a summary of amendments made in 2018
and 2019 to the abandoned building credit, see SC Information Letters #18-15 and #19-23,
respectively.

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