Contributor: Nicholas Cousino, Senior Manager
The South Carolina General Assembly recently extended the sunset date of the South Carolina Abandoned Buildings Revitalization (ABR) credit to December 31, 2035 (Act No. 169, effective May 20, 2024). It was previously set to expire at the end of 2025. Additionally, it increased the maximum credit per qualified site from $500,000 to $700,000.
Take Action Now
Qualified projects currently under construction may take advantage of the new maximum ABR credit of $700,000 if special action is taken by October 15, 2024. The South Carolina Department of Revenue (SCDOR) issued further guidance on June 10 that allows current projects to amend their Notice of Intent to Rehabilitate (Notice) to increase their estimated rehabilitation expenses.
The ABR Credit is equal to 25% of actual rehabilitation costs, so long as actual rehabilitation costs are between 80% to 125% of the estimated expenses as filed on the Notice. Many taxpayers file a Notice with rehabilitation expenses estimated at $1.6 million to maximize the old ABR maximum credit of $500,000. Per the guidance found in SC Information Letter #24-6, the SCDOR will allow taxpayers to amend their Notice by October 15, 2024, and increase their estimated expenses. Current projects that have estimated rehabilitation costs between or above $1.6 to $2.24 million should amend their Notice accordingly.
Your Guide Forward
If you have any questions regarding this change to the South Carolina Abandoned Buildings Revitalization credit, or South Carolina tax credits generally, reach out to your Cherry Bekaert advisor today so we can help you take advantage of this opportunity and more.
