COLUMBIA, S.C. – Governor Henry McMaster on Aug 21st, was joined by members of the General Assembly and local business leaders for a ceremonial bill signing of S. 1021, which extends the Abandoned Buildings Tax Credit through 2035 and increases the maximum tax credit that can be earned in a year from $500,000 to $700,000, further incentivizing investment in vacant buildings across South Carolina.
"Tax credits and tax cuts are among the most effective economic development tools we have as a state," said Governor McMaster. "By providing this tax credit, we encourage developers, business owners, and entrepreneurs to breathe new life into once-neglected properties. This will have a ripple effect in the areas around them, preserving our history, creating new jobs, and helping to bring even more pride to our communities."
The S.C. Abandoned Building Revitalization Act, first enacted in 2013, offers income or property tax credits as an incentive to promote the rehabilitation of empty or underutilized buildings. An abandoned building means that at least 66% of the building has been vacant for at least five years. To qualify, a taxpayer must file a Notice of Intent to rehabilitate with the South Carolina Department of Revenue and incur rehabilitation expenses exceeding either $75,000, $150,000, or $250,000 based on the population of the municipality where the building is located.
“South Carolina is the only state in the nation with an Abandoned Buildings Tax Credit. We care about our history,” said Senator Tom Davis. “It may be cheaper to bulldoze an old building and ruin its character, but there is a value to rehabilitating and revitalizing.”
Additionally, it creates a new corporate income tax credit for railroads based on qualified railroad reconstruction or replacement expenditures. The credit is worth 50% of the qualified railroad construction or replacement, up to $5,000 per mile of track replaced or repaired.
“Every restored building is a step toward a more vibrant, prosperous South Carolina,” said Representative Micah Caskey. “We are taking a proactive stance on safety, ensuring our towns and cities are not just beautiful, but also secure places for our families and businesses.”