South Carolina extends, raises tax credit in hopes of revitalizing abandoned buildings

COLUMBIA, S.C. (WCBD) – South Carolina leaders are hoping to further incentivize the redevelopment of abandoned buildings across the state with the expansion of a decade-old program.

Gov. Henry McMaster held a ceremonial signing for S.1021 on Wednesday, a bill that extends the state’s tax credit for abandoned buildings through 2035. It also raises the maximum tax credit that developers and business owners can earn in a year to $700,000.

The bill, which received broad support in the state legislature, also added an income tax credit for corporations that maintain, reconstruct, or replace railroad infrastructure, such as track and bridges. The credit is worth up to $5,000 per mile of replaced or repaired track.

McMaster, who was joined by state legislators at Savage Craft Ale Works in West Columbia, lauded tax credits as one of the state’s “most effective economic development tools.”

“By providing this tax credit, we encourage developers, business owners, and entrepreneurs to breathe new life into once-neglected properties,” McMaster said. “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 new law expands a 2013 program that was created to promote the rehabilitation of empty or underutilized properties. South Carolina is the only state with this kind of program, according to Sen. Tom Davis (R-Beaufort).

“We care about our history,” Davis said. “It may be cheaper to bulldoze an old building and ruin its character, but there is a value to rehabilitating and revitalizing.”

Officials said at least two-thirds of a building must be vacant for at least five years to qualify as abandoned.

“Every restored building is a step toward a more vibrant, prosperous South Carolina,” Rep. Micah Caskey (R-Lexington). “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.”

The law has been effect since late May.

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