SC Historic Credits – Income Producing

Cabretta Capital Opportunity Zone Fund Investments

Taxpayers who rehabilitate their income-producing historic buildings may be eligible for a number of Federal and State historic rehabilitation tax credits up to 25% of costs.

The federal process and forms are used for the state process for obtaining the credits. There is not a separate process for SC state historic credits.
Qualifying Projects – 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.
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Claiming the Credit – Submit form SC SCH TC-21 with a copy of the federal income tax return showing the credit claimed
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