(The Center Square) — South Carolina Gov. Henry McMaster has signed a measure to extend tax credits for revitalizing abandoned buildings and South Carolina short-line railroads.
S. 1021, which the Republican governor “ceremonially” signed on Wednesday, extends the provisions of the South Carolina Abandoned Buildings Revitalization Act that were set to expire on Dec. 31, 2025. The credits now run through 2035 and increase the maximum credit a taxpayer may earn in a year from $500,000 to $700,000.
“South Carolina is the only state in the nation with an Abandoned Buildings Tax Credit. We care about our history,” state Sen. Tom Davis, R-Beaufort, said in a statement. “It may be cheaper to bulldoze an old building and ruin its character, but there is a value to rehabilitating and revitalizing.”
The measure also creates a new income tax credit for Class II and Class III railroads for the companies’ qualified railroad reconstruction and replacement expenses. The credit is worth 50% of the qualified expenses, up to $5,000 per track mile repaired or replaced and cannot exceed $1.5 million in a tax year.
“Tax credits and tax cuts are among the most effective economic development tools we have as a state,” McMaster said in a statement.
Portions of the tax credit not used for one year may be carried forward for the five following years. The tax credit is effective for tax years 2024 through 2028.
According to an estimate from the South Carolina Revenue and Fiscal Affairs Office, the measure will decrease General Fund revenue by more than $1.5 million in fiscal 2024-25 and the same amount in fiscal 2025-26. The cost will increase to more than $9.1 million in fiscal 2026-27.
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