Qualifying Developments – In South Carolina, taxpayers who qualify for the 20% federal income tax credit may also qualify for a state income tax credit of 10% or 25% (not to exceed $1 million for each certified historic structure) of their rehabilitation costs.
Credit Stream – Credits are earned in the year placed in service but taken in equal installments over 3 years.
Carryforward – Unused credits may be carried forward for 5 years.
Recapture – Possibility of recapture exists for state and federal credits for a 5 year period.
Transferability – The credit can be transferred to members or partners of a pass-through entity in the year the credit is earned without limitation. Therefore, syndication of these credits requires the issuance of a K-1.
Claiming the Credit – Submit form SC SCH TC-21 with a copy of the federal income tax return showing the credit claimed.
