What did South Carolina Revenue Ruling 15-9 provide under the now-repealed Retail Facilities Revitalization Tax Credit?

Plain-English summary

South Carolina Revenue Ruling 15-9 explained the former Retail Facilities Revitalization Act, which offered income or property tax relief for redeveloping qualifying abandoned shopping centers, malls, and free-standing retail sites.

The program was repealed on July 1, 2016. RR 15-9 said a credit earned on or after that date did not qualify. A credit earned before repeal could continue through its remaining annual installments and five-year installment carryforwards.

Former income tax credit

The income tax credit equaled 10% of qualifying rehabilitation expenses. It was earned when the entire eligible site was placed in service and was taken in eight equal annual installments beginning that year.

Each unused installment could carry forward for five years. The credit was nonrefundable but could offset the taxpayer's full qualifying state income-tax liability, subject to the ruling's rules.

The taxpayer had to elect the income or property tax track before the site was placed in service. Unlike the abandoned-building and textile programs, the ruling said no separate Notice of Intent to Rehabilitate was required, and eligible expenses incurred before the election letter could count.

Former property tax credit

The property tax credit required county or municipal approval, a public hearing, and opportunity for affected local taxing entities to object.

For each consenting taxing entity, the potential credit was 25% of rehabilitation expenses multiplied by that entity's share of total millage. The approving ordinance could allow the credit to offset up to 75% of real property tax for each year for up to eight years.

Failure to obtain required local approval or submit the property-credit election before the site was placed in service caused the taxpayer to be treated as electing the income tax credit.

Eligible site and expenses

The former program generally covered an abandoned shopping center, mall, or free-standing retail site with at least one tenant or occupant in a building of at least 40,000 square feet. For the property-tax track, local government could lower the threshold, but not below 25,000 square feet.

At least 80% of the site's building or structure had to be continuously closed or nonoperational for at least one year. The taxpayer bore the burden of proving abandonment.

Qualifying rehabilitation expenses included environmental remediation, site improvements, demolition, new construction, and renovations to real property. The acquisition cost and personal property at the site did not qualify.

Transfers and sale of the site

A taxpayer-lessor could transfer remaining income-credit installments attributable to leased space to a tenant after the credit was earned, with advance written notice to the Department. The tenant could claim only the applicable annual installment, and transfer did not extend its carryforward period.

The credit could not simply be bought and sold. The ruling did not allow a seller to transfer the credit to a purchaser of the completed site, although a lease could support the specified tenant transfer.

Common questions

Q: Can a new project earn this credit now?

A: No. The Act was repealed July 1, 2016.

Q: Did repeal eliminate a credit earned earlier?

A: No. RR 15-9 preserved remaining installments and carryforwards of credits earned before repeal.

Q: Could a demolished mall be replaced with a new building and qualify?

A: Yes under the old program if the same taxpayer redeveloped the eligible site and met all requirements.

Q: Could a purchaser receive the seller's credit?

A: No under the ruling's sale example. A qualifying transfer was instead available to a tenant or lessee under the specified rules.

Citations and references

• S.C. Code Ann. Chapter 34 of Title 6 (former Retail Facilities Revitalization Act)
• S.C. Code Sections 6-34-30 and 6-34-40 (definitions, calculations, election, approvals, and transfers)
• Act No. 285, Section 2 (2006) (repeal provision cited in the ruling)

Subject

Retail Facilities Revitalization Tax Credit

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR15-9.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 REVENUE RULING #15-9

SUBJECT:

Retail Facilities Revitalization Tax Credit
(Income and Property Taxes)

EFFECTIVE DATE: Applies to all periods open under statute.
REPEAL DATE:

July 1, 2016

SUPERSEDES:

All previous documents and all oral directives in conflict herewith.

REFERENCES:

Chapter 34, Title 6 (Supp. 2014)
Act. No. 285, Section 2 (2006)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public. It is an advisory opinion issued to apply principles of tax
law to a set of facts or a general category of taxpayers. It is the
Department’s position until superseded or modified by a change in
statute, regulation, court decision, or another Department advisory
opinion.

GENERAL OVERVIEW OF THE ACT
The “South Carolina Retail Facilities Revitalization Act” (“Act”) was enacted in Title 6,
Chapter 34 to create an incentive for the improvement, renovation, and redevelopment of
abandoned retail facilities located in South Carolina.
The Act provides that the restoration of abandoned retail facilities into productive assets
for the communities in which they are located serves a public and corporate purpose and
results in job opportunities within the community. To remove and alleviate adverse
conditions, including disproportionate expenditures of public funds, unmarketability of
property, area crime, and abnormal exodus of families and businesses, it is necessary to
encourage private investment and restore the tax base of the taxing districts in which
these retail facilities are located by the redevelopment of these abandoned retail facilities.
1

The Act provides that a taxpayer who improves, renovates, or redevelops a qualifying
abandoned retail facility site in South Carolina (“eligible site”) and meets the
requirements of the Act is eligible for a credit against income taxes or real property taxes.

The income tax credit is allowed against income taxes imposed under Chapter 6,
bank taxes under Chapter 11, or savings and loan income taxes under Chapter 13. 1
The amount of the income tax credit is equal to 10% of the rehabilitation expenses
incurred in rehabilitating the eligible site.
The entire income tax credit may not be taken for the taxable year in which the eligible
site is placed in service, but must be taken in equal installments over 8 years beginning
with the year the eligible site is placed in service. Any unused credit installment can be
carried forward for 5 years.
For the property tax credit, the process and credit provisions differ. The property tax
credit requires local government approvals and a public hearing. If allowed, the property
tax credit is equal to 25% of the rehabilitation expenses multiplied by the local taxing
entity ratio for each local taxing entity that has consented to the property tax credit. The
property tax credit can be taken against up to 75% of the real property taxes due on the
eligible site each year for up to 8 years, however, the entire property tax credit vests in
the year that the property is placed in service.
The Act contains a number of requirements including qualification of the eligible site,
qualification of the rehabilitation expenses incurred in the redevelopment of the eligible
site and procedures for providing notice to the Department relating to the credit. This
advisory opinion is limited to basic principles. It provides guidance regarding the income
tax credit under the Act and only a general overview of the property tax credit.
NOTE: The Act is repealed on July 1, 2016.
This question and answer document is divided into the following categories:
1.
2.
3.
4.
5.
6.

Definitions and Qualifications
Notice of Election of the Income Tax Credit or Property Tax Credit
Income Tax Credit
Transfer of Income Tax Credit and Notification to the Department
Property Tax Credit Overview
Examples

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Although the bank tax is a franchise tax and not an income tax, because the bank tax chapter is titled
“Income Tax on Banks,” the Department believes that the legislative intent was to allow income tax credits
against the bank tax if the language of the credit does not limit the credit to income taxes in Chapter 6.
However, a taxpayer may not claim the income tax credit against license fees under Chapter 20.

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PART 1 – DEFINITIONS AND QUALIFICATIONS

1. Q. What is an “eligible site”?
   A. An “eligible site” is either:
   a. a shopping center whose primary use was as a retail sales facility with at least
   one tenant or occupant located in a 40,000 square foot or larger building or
   structure;
   b. a mall whose primary use was as a retail sales facility with at least one tenant
   or occupant located in a 40,000 square foot or larger building or structure; or,
   c. a free standing site whose primary use was as a retail sales facility with at
   least one tenant or occupant located in a 40,000 square foot or larger building
   or structure.
   Note: If a taxpayer chooses the property tax credit, the governing body of the
   county or municipality in which the eligible site is located may reduce the
   40,000 square foot requirement; however, the requirement may not be reduced to
   less than 25,000 square feet. Code Section 6-34-40(F).
   To qualify as an eligible site, the shopping center, mall or free standing site must
   be abandoned. Code Section 6-34-30(2). Further, the eligible site must be
   rehabilitated to qualify for the credit.
2. Q. What is an “abandoned” shopping center, mall or free standing site?
   A. To be abandoned, at least 80% of the eligible site’s facilities must have been
   continuously closed to business or otherwise nonoperational for a period of at
   least one year immediately preceding the time the determination is made. The
   eligible site’s facilities only include the site’s building or structure. Section 6-3430(1). During the abandonment, the eligible site may serve as a wholesale
   facility, provided the eligible site serves as a wholesale facility for no more than
   one year. Code Section 6-34-30(2). The burden of proof of the abandonment
   time period is on the taxpayer. For property tax eligibility, see Q. 29.
3. Q. Can an eligible site be divided into multiple units or parcels for purposes of the
   credit?
   A. No. The statute does not provide that an eligible site may be divided into units or
   parcels.

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4. Q. When is the eligible site “placed in service”?
A. The eligible site is placed in service on the date that the eligible site is suitable
for occupancy for the purposes intended. Code Section 6-34-30(5). Note, any
new facility does not have to conduct retail sales and does not have to be a retail
sales facility. Note: The site may be placed in service in phases, but the credit is
not earned until the entire site is placed in service. See, Q.10. below.

5. Q. Can an abandoned shopping center, mall or free standing site be demolished
   (i.e., the complete destruction or removal of the facility) and a new facility built
   in its place and still qualify for the credit?
   A. Yes. The existing facility may be demolished and a new facility built at the
   eligible site. (See, Part 7, Examples A, B, and C).
6. Q. What are “rehabilitation expenses”?

A. Rehabilitation expenses are the expenses incurred in the rehabilitation of
the eligible site. Among the items that may be included in rehabilitation
expenses are expenses for environmental remediation (e.g., abatement of
lead paint, removal of asbestos or mold); site improvements (e.g.,
sidewalks and parking); demolition expenses and, new building
construction or renovations to an existing building (e.g., walls, floors,
ceilings, HVAC systems, wall to wall carpeting, plumbing, electrical
wiring, fixtures, sprinkler systems and elevators).
Rehabilitation expenses do not include the cost of acquiring the eligible site or
the cost of personal property located at the eligible site. Code Section 6-3430(6). (See Q.8. below for expenses incurred prior to the notice of election.)

7. Q. How are real property costs and personal property costs distinguished?
   A. Whether an expense is for personal property or real property depends on the
   facts and circumstances. Generally, personal property is a movable item of
   property that is not permanently affixed to, or part of, real estate. In making this
   determination, the Department will consider (1) the mode of attachment; (2) the
   character of the structure or article; (3) the intent of the parties making the
   annexation; and, (4) the relationship of the parties. City of North Charleston v.
   Claxton, 431 S.E. 2d 610 (S.C. 1993). In addition, the Department may consider
   whether the removal of the property in question would be costly, time
   consuming, and/or destructive to the building. Note: This determination may be
   different for other income tax purposes, such as Internal Code Section 1245
   property.
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PART 2 –NOTICE OF ELECTION OF INCOME TAX CREDIT OR PROPERTY
TAX CREDIT

8. Q. Are there any notification requirements for claiming the income tax credit or
   property tax credit?
   A. Yes. Prior to the eligible site being placed in service, the taxpayer shall elect the
   mode of credit (either the income tax credit or the property tax credit) by
   providing written notification of its intent to the Department. This can be done
   by sending a letter to the Department indicating whether the taxpayer plans to
   claim the property tax credit or the income tax credit. Code Section 6-34-40(D).
   The letter should be mailed to:
   Retail Facilities Credit
   SC Department of Revenue
   Attn: Research and Forms Development
   Columbia, SC 29214-0019
   If the taxpayer fails to make the election by failing to receive the approvals
   necessary to claim the property tax credit, or by failing to send the letter to the
   Department, the taxpayer will be deemed to have made an election to claim the
   income tax credit. Code Section 6-34-40(D).
   Unlike the abandoned buildings tax credit (Chapter 67, Title 12) or the textile
   revitalization tax credit (Chapter 65, Title 12), the retail facilities revitalization
   tax credit does not require a “Notice of Intent to Rehabilitate”. Additionally,
   expenses incurred prior to the filing of the election letter with the Department are
   eligible to be included as “rehabilitation expenses” for purposes of the retail
   facilities revitalization tax credit.
9. Q. Who must file the credit election letter?
   A. The credit election letter must be filed by the taxpayer who actually improves,
   renovates or redevelops the eligible site. This may be the developer, the owner of
   the eligible site, or a pass through entity owning the building (not the individual
   partners, shareholders, or members of the pass through entity).

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PART 3 - INCOME TAX CREDIT

10. Q. When is the income tax credit earned?
    A. The income tax credit is earned in the tax year in which the eligible site is placed
    in service. The income tax credit, however, is taken in equal installments over an
    8 year period beginning with the tax year in which the property is placed in
    service. Code Section 6-34-40(C)(1).
11. Q. What form is used to compute and claim the income tax credit?
    A. Form SC SCH. TC-31, “Retail Facilities Revitalization Credit”, is used to
    compute and claim the income tax credit.
12. Q. What is the amount of the income tax credit?
    A. The amount of the income tax credit is 10% of the rehabilitation expenses. Code
    Section 6-34-40(A)(2). (See Q.6. above for an explanation of “rehabilitation
    expenses”.)
13. Q. Is the annual income tax credit installment limited to a percentage of the
    taxpayer’s tax liability?
    A. No. The income tax credit may offset a taxpayer’s entire state income tax
    liability; it is not limited to 50% of the taxpayer’s income tax liability. This
    differs from the textile rehabilitation tax credit. The credit is not refundable. (See
    General Overview of the Act, footnote #1 for taxes qualifying as income taxes
    for purposes of the income tax credit.)
14. Q. How is the income tax credit allocated if the credit is earned by an S corporation,
    partnership or limited liability company taxed as a partnership?
    A. An income tax credit earned by an “S” corporation owing corporate level tax is
    used first at the entity level. Any remaining income tax credit is then passed
    through to its shareholder based on their percentage of stock ownership. Code
    Section 6-34-40(C)(2).
    If the income tax credit is earned by a general partnership, limited partnership,
    limited liability company taxed as a partnership, or any other entity taxed as a
    partnership, the income tax credit must be passed through to the partners or
    members and may be allocated among any of its partners or members, including,
    without limitation, an allocation of the entire credit to one partner or member, in
    a manner agreed to by the partners or members that is consistent with Subchapter
    K of the Internal Revenue Code. Code Section 6-34-40(C)(3).
    6

15. Q. What is the carry forward period?
A. Unused portions of an income tax credit installment may be carried forward for 5
years. Code Section 6-34-40(C)(1).
The income tax credit installment and the carry forward are illustrated below.
Credit
Installment
Amount
Carryforward
of
Installment

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

12.5%
Years
2-6

12.5%
Years
3-7

12.5%
Years
4-8

12.5%
Years
5-9

12.5%
Years
6-10

12.5%
Years
7-11

12.5%
Years
8-12

12.5%
Years
9-13

16. Q. Can the retail facilities revitalization income tax credit and the state historic tax
    credit in Code Section 12-6-3535, both be claimed if the eligible site otherwise
    qualifies for both credits?
    A. Yes. The retail facilities revitalization income tax credit may be claimed in
    addition to, and does not offset, the state historic credit contained in Code
    Section 12-6-3535. Code Section 6-34-40(C)(4).
    Note: The specific provisions of any other income tax credit should be reviewed
    to determine if that credit can be claimed in addition to the retail facilities
    revitalization income tax credit. (For example, see Code Section 12-67140(A)(4), the abandoned building tax credit, which cannot be claimed with the
    retail facilities tax credit.)
17. Q. What is the practical effect of the repeal of the retail facilities revitalization
    income tax credit?
    A. The Act is repealed on July 1, 2016. Accordingly, an income tax credit earned on
    July 1, 2016 or thereafter does not qualify for the credit. The repeal does not
    affect remaining installments for an income tax credit earned before July 1,
18. Further, it does not affect the 5 year carry forward period of any credit
    installment earned but unused. Act No. 285, 2006 S.C. Acts, Section 2.
19. Q. Is the income tax basis in the eligible site reduced by the amount of the income
    tax credit claimed?
    A. No.

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PART 4—TRANSFER OF INCOME TAX CREDIT AND NOTIFICATION TO
THE DEPARTMENT

19. Q. Can a taxpayer/lessor transfer the income tax credit earned to a tenant/lessee of the
    eligible site after it has been placed in service?
    A. Yes. If the taxpayer/lessor rehabilitates the eligible site and then leases all or part
    of the eligible site, the taxpayer/lessor may transfer any remaining income tax
    credit earned with respect to that leased portion of the eligible site to the
    tenant/lessee. Code Section 6-34-40(E).
    Note: There are no other transfer provisions specified in the Act, therefore, a
    taxpayer who subsequently sells the eligible site or part of the eligible site to a
    new buyer cannot transfer all or part of the income tax credit to the new buyer.
20. Q. When can a credit be transferred?
    A. A credit can be transferred to a tenant/lessee once the taxpayer rehabilitating the
    site has earned the credit (i.e., after placing the site in service.) A transfer may take
    place prior to the time the South Carolina income tax return is filed for the year in
    which the credit is earned.
21. Q. Can an earned income tax credit be transferred more than one time?
    A. Yes, provided the transfer of the earned credit is to a new tenant/lessee of the
    eligible site. The Act does not contain any other transfer provisions.
    The credit by itself cannot be bought and sold. Unused credits carryforwards may
    not be transferred.
    Note: If the site has not been placed in service, a credit has not been earned.
22. Q. When and how does a taxpayer/lessor notify the Department of an income tax
    credit transfer?
    A. The taxpayer/lessor must notify the Department in writing at least 30 days before
    the transfer. The request will be deemed approved two weeks after the
    taxpayer/lessor has submitted all information requested below in complete form
    and the transfer is carried out consistent with the information submitted in the
    request. Failure of the taxpayer/lessor to notify the Department of the transfer
    results in disallowance of the transferred income tax credit until the
    taxpayer/lessor complies. (See Question 27 below for the information that must be
    provided in the notification.)
    Certain events do not constitute a credit transfer, such as the allocation of the
    credit through a partnership.
    8

23. Q. What form is used to claim a transferred income tax credit?
A. The tenant/lessee claims a transferred income tax credit on Form SC SCH. TC31, “Retail Facilities Revitalization Credit,” by completing the applicable
portions of the form.

24. Q. What income tax credit amount may the tenant/lessee claim?
    A. The original income tax credit is earned in the year the eligible site is placed in
    service, but is claimed over an 8 year period in equal installments. As such, the
    transfer to a tenant/lessee may be for any applicable remaining income tax credit
    that the taxpayer/lessor has that is associated with the applicable rehabilitation
    expenses.
    For example, if the original taxpayer/lessor leases the eligible site in Year 3, the
    taxpayer/lessor may transfer the income tax credit installments for Years 3 - 8.
    Any credit carry forward resulting from the installments for Years 1 and 2
    remains with the original taxpayer/lessor and may not be transferred. Code
    Section 6-34-40(C)(1).
25. Q. Can a tenant/lessee claim the entire income tax credit in the year of transfer?
    A. A tenant/lessee to whom an income tax credit has been transferred may only
    claim that year’s credit installment. Code Section 6-34-40(C)(1). (See Q.13
    above for limitations on use of the income tax credit).
26. Q. What is the income tax credit carry forward period for a transferred income tax
    credit?
    A. Each annual installment of the income tax credit may be carried forward for 5
    years. A transfer does not extend the time period an income tax credit can be
    used. Code Section 6-34-40(C)(1).
27. Q. How does a taxpayer/lessor notify the Department of a transfer of the income tax
    credit?
    A. The taxpayer/lessor must send a written “Notice of Transfer” to the Department
    containing the following information:
    a. The complete name, address, telephone number, and last 5 digits of the
    tax identification number of the taxpayer/lessor transferring the income
    tax credit.
    9

b. The complete name, address, telephone number, and last 5 digits of the
tax identification number of the tenant/lessee transferred an income tax
credit.
c.

The complete address and tax map number of the eligible site.

d. The total available credit for the eligible site and any credit used by the
taxpayer/lessor.
e.

The date the original income tax credit was earned (the date the eligible
site was placed in service) and the amount of each income tax credit
installment;

f.

The date the transfer of the income tax credit will be made;

g. The amount of the income tax credit to be transferred;
h. The taxpayer/lessor must provide a waiver of the right to claim that
portion of the income tax credit being transferred;
i.

The taxpayer/lessor’s remaining income tax credit balance after the
transfer;

j.

The consideration paid by the tenant/lessee for the income tax credit, if
any; and

k. Any other information requested by the Department.
The written notice should be mailed to:
Notice of Transfer for Retail Facilities
Revitalization Income Tax Credit
Research and Forms Development
South Carolina Department of Revenue
Columbia, SC 29214-0019

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PART 5 – PROPERTY TAX CREDIT OVERVIEW

28. Q. What is the amount of the property tax credit?
    A. The property tax credit is equal to 25% of the rehabilitation expenses made at the
    eligible site multiplied by the local taxing entity ratio of each local taxing entity
    that has consented to the property tax credit. A local taxing entity is “a county,
    municipality, school district, special purpose district, and any other entity or
    district with the power to levy ad valorem property tax against the eligible site”.
    The “local taxing entity ratio” is the percentage computed by dividing the
    millage rate of each local taxing entity for the eligible site by the total millage
    rate for the eligible site. Code Sections 6-34-40(A)(1) and 6-34-30(3) and (4).
29. Q. How is the property tax credit approved by the local taxing entities?
    A. The taxpayer must ask the municipality or, if the eligible site is located in an
    unincorporated area, the county to determine the eligibility of the eligible site
    and the eligibility of the proposed project seeking the property tax credit. The
    municipality or the county will determine if the eligible site and the proposed
    project are eligible by passing a resolution by a positive majority vote of the
    county or city council. If the eligible site is found to be eligible by resolution, a
    public hearing must be held and the county or municipality must approve the
    eligible site for the property tax credit by ordinance. The ordinance may allow an
    approved eligible site a property tax credit which can offset up to 75% of the real
    property taxes due on the property for the eligible site for each year for up to 8
    years. The municipality or county must also make a finding that the property tax
    credit does not violate a covenant, representation, or warranty in any of its tax
    increment financing transactions or an outstanding general obligation bond
    issued by the county or municipality. Code Section 6-34-40(B)(1).
    NOTE: Prior to the date the eligible site is placed in service, the taxpayer must
    send a Notice of Credit Election to the Department indicating that it will be
    claiming the property tax credit in order to claim the credit. If the taxpayer fails
    to get the proper county or municipal approvals or if it fails to send the Notice of
    Election to the Department, it will be deemed to have elected the income tax
    credit. Code Section 6-34-40(D).
30. Q. May a local taxing entity, such as a school district or municipality, object to the
    allowance of the property tax credit?
    A. Yes. At least 45 days before the public hearing is held, any affected local taxing
    entities must be notified of the county’s or municipality’s intention to grant a
    credit for an eligible site and the amount of the credit to provide them with an
    11

opportunity to object to the allowance of the credit. If the local taxing entity does
not file an objection to the property tax credit with the applicable municipality or
county on or before the date of the public hearing, the local taxing entity is
considered to have consented to the property tax credit provided that the actual
property tax credit granted is equal to or less than the property tax credit stated in
the notice of public hearing. Code Section 6-34-40(B)(2). If it does file an
objection, that local taxing entity’s property taxes will not be offset by the credit.
PART 6 – EXAMPLES
The following scenarios provide additional guidance on the general rules discussed in this
advisory opinion regarding requirements of the credit.
A. Demolish Building and New Construction by Same Taxpayer. A taxpayer
demolishes (completely destroys) an eligible site and constructs a new building
meeting all the Act requirements. The taxpayer is eligible for the credit.
B. Demolish Building and New Construction by Different Owners. A developer
purchases an eligible site and demolishes the mall located on the site. The
developer sells the land to a business owner that will construct an office building
on the land. Since the developer did not redevelop the eligible site with a new
building and the business owner purchased vacant land and not an abandoned
shopping center, mall, or free standing retail sales facility, neither meets the Act
requirements. Accordingly, neither the developer nor the business owner is
eligible for the credit.
C. Abandoned Building Site – Condition of Site. A shopping center, mall, or free
standing retail sales facility whose ceiling has fallen in and whose walls are
collapsing meets the definition of an eligible site. In contrast, if the facility has
been cleared except for the concrete foundation, the facility will not meet the
definition of an eligible site.
D. Abandoned Building – 80% Abandonment Requirement. A shopping center
consisting of 400,000 square feet of space, had 4 stores each occupying 25% of the
square footage of the shopping center. The shopping center has been closed from
making retail sales of over a year. However, one of the stores has been renting out
its space to allow a third party retailer to store excess inventory in the store. The
shopping center does not meet the requirement that at least 80% of the eligible
site’s facilities be continuously closed for business or otherwise nonoperational for
at least one year immediately preceding the time at which the determination is to
be made.

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E. Property Sold After Being Completed. Taxpayer renovates and rehabilitates an
eligible site and meets all the Act requirements. The Taxpayer then sells the site to
Purchaser Pursuant to Code Section 6-34-30(5), Taxpayer is deemed to have
“placed in service” the eligible site and is eligible for the credit. Taxpayer may not
transfer the credit to Purchaser; however, if instead of purchasing the site,
Purchaser leases the site, Taxpayer may transfer the credit associated with the site
to Purchaser as a lessee.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Rick Reames III
Rick Reames III, Director
July 8
, 2015
Columbia, South Carolina

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