South Carolina legislature recently passed both an expansion and extension of the Abandoned Buildings Revitalization Act, which has been instrumental in the revitalization of abandoned and neglected properties across the state.
In recognition of the act’s success, the recent expansion increases the maximum credit limit to $700,000, and the extension ensures the credit provisions remain in effect until 2035. The new law applies to income tax years beginning after December 31, 2023.
The act provides tax incentives for developers who take on the challenge of restoring and repurposing these buildings, breathing new life into communities and stimulating economic growth.
This tax credit should continue to encourage development and investment in communities across the state.
The Abandoned Buildings Revitalization Act provides a tax incentive for developers who renovate and repurpose abandoned or neglected properties. Specifically, it allows developers to claim a tax credit equal to 25% of eligible rehabilitation expenses. The tax credit can be applied against various state tax liabilities or real property taxes.
This tax credit has been a powerful tool in attracting investment to areas that have been neglected or underserved. By incentivizing developers to take on the challenge of restoring these properties, the act has helped to revitalize neighborhoods, create jobs and stimulate economic growth.
Your Guide Forward
With the ever-changing credit and incentive landscape, Cherry Bekaert’s Real Estate & Construction group stands ready to customize a strategic plan tailored to meet your real estate goals and objectives. By combining deep industry experience and technical knowledge of key tax, accounting, transaction structuring, and compliance issues, we are uniquely positioned to provide the practical guidance and tools you need to make the right investment decision for your business.
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