South Carolina Historic Property Tax Credits
Yes, South Carolina offers two notable tax credit programs for rehabilitating historic properties:
1. State Historic Rehabilitation Tax Credit (Income Producing)
- 10% state income tax credit for qualified rehabilitation expenses
- Property must be listed in the National Register of Historic Places
- Must be income-producing property (commercial, rental, etc.)
- Work must meet Secretary of Interior’s Standards
- Can be combined with 20% federal historic tax credit
2. State Historic Residential Tax Credit
- 25% state income tax credit for qualified rehabilitation expenses
- Available for owner-occupied residential properties
- Minimum expenditure must be $15,000 within 36 months
- Property must be listed in National Register or contribute to historic district
- Work must be reviewed and approved by State Historic Preservation Office
Frequently Asked Questions
Q: What’s the minimum investment required?
A: For residential credits, minimum $15,000 in qualified rehabilitation expenses within 36 months. For income-producing properties, expenses must exceed the adjusted basis of the building.
Q: Can I combine state and federal credits?
A: Yes, for income-producing properties, the 10% state credit can be combined with the 20% federal credit.
Q: How long do I have to complete the rehabilitation?
A: Work must be completed within 36 months of starting the project.
Q: What types of work qualify?
A: Structural repairs, roof work, window restoration, mechanical systems, and other rehabilitation work that meets preservation standards.
Q: Do I need pre-approval?
A: Yes, applications must be submitted and approved by the State Historic Preservation Office before work begins.
Q: Can I sell or transfer the credits?
A: No, South Carolina historic tax credits are not transferable but can be carried forward for up to 5 years.
Q: What happens if I sell the property?
A: For residential credits, you must maintain ownership and occupancy for 3 years after claiming the credit.
The Bottom Line
South Carolina’s historic tax credit programs offer significant financial incentives for rehabilitating historic properties. The 25% residential credit and 10% income-producing credit can help offset substantial renovation costs, making historic preservation more financially feasible. However, careful planning and compliance with preservation standards are essential for successful utilization of these credits.