Gov. Nikki Haley recently signed into law amendments that will assist economic developers looking to refurbish South Carolina's abandoned or historic buildings.
The amendments provide tax credits for such buildings, which Haley hopes will encourage rehabilitation of the structures. The major points in the amendments include:
- Taxpayers can take a 25 percent tax credit in lieu of the previous 10 percent tax credit, not to exceed $1 million dollars per building, on historic buildings.
- Credit for historic structures must be taken in equal installments over a three-year period, starting in the year in which the property is placed in service.
- The abandoned building rehabilitation tax credit can now be applied to insurance premium taxes.
- Abandoned building credits must be taken in equal installments over a three-year period beginning with the tax year in which the applicable phase or portion of the building site is placed in service; additionally, any unused credit may be carried forward for the succeeding five years.
- Abandoned building credits may not exceed $500,000 for any taxpayer in a tax year for each abandoned building site.
Initially passed in 2013, South Carolina's Abandoned Buildings Revitalization Act was designed to offer tax credits to the developers of buildings that had been dormant for five years or longer. Eligible buildings can be state- or privately owned.
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