SC SCH TC 21: Certified Historic Structure Credit (Revision 2024-04)
South Carolina · South Carolina DOR · Used for tax years 2024
South Carolina Schedule TC-21 calculates the Certified Historic Structure Credit against Income Tax or Corporate License Fee for qualified rehabilitation expenses. It reports rehabilitation expenses, the credit earned, the annual installment, the current-year credit, and any cred
Who files this form
Taxpayers claiming the Certified Historic Structure Credit use TC-21 for qualified rehabilitation expenses for a certified historic structure in South Carolina. The credit can be applied against Income Tax or Corporate License Fee.
The rehabilitation project must meet all requirements for the federal 20% Income Tax credit under IRC Section 47. Complete a separate TC-21 for each rehabilitated property.
To claim a credit for rehabilitation expenses for a certified historic residential structure, use TC-22 instead.
What you'll need
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- If you received the credit from a pass-through entity, the entity's name and FEIN.
- Federal forms showing the amount of federal rehabilitation expenditures claimed.
- For rehabilitation expenses of $500,000 or more, documentation from the South Carolina Department of Archives and History (SCDAH) confirming payment of the preliminary and final fees.
- Last year's TC-21 if the property was placed in service in a prior year, to obtain the annual installment amount.
- The amount of any credit carried forward from prior years and your current-year tax liability.
How to file
Complete a separate TC-21 for each property. Enter qualifying rehabilitation expenses on line 1 and calculate the credit on line 2. For property placed in service this year, divide line 2 by three to calculate the annual installment. For property placed in service in a prior year, use line 3 from last year's TC-21.
Add any prior-year carryforward. The credit claimed cannot exceed your current-year tax liability.
- Individuals: Enter the credit on SC1040TC.
- Corporations: Enter the credit on SC1120TC.
- Paper filing: Attach TC-21 and copies of the federal forms showing federal rehabilitation expenditures claimed. Include SCDAH fee-payment documentation if applicable.
- Electronic filing: Keep copies of the documents with your tax records.
Common mistakes
- Do not combine multiple properties on one TC-21. Complete a separate form for each rehabilitated property.
- Use TC-22, rather than TC-21, for a credit for rehabilitation expenses for a certified historic residential structure.
- Do not claim more credit than your tax liability for the year.
- For projects with rehabilitation expenses of $500,000 or more, remember the required SCDAH fees and fee-payment documentation. Attach the documentation when filing by paper; keep it with your records when filing electronically.
- Additional work done within five years must follow the Secretary of the Interior's Standards for Rehabilitation. If the State Historic Preservation Officer determines that the work is inconsistent with those standards, you will forfeit any unused credit.
Questions people ask
How much is the credit?
The credit is 10% of the amount qualifying under IRC Section 47. You may elect a 25% credit instead, capped at $1 million for each certified historic structure.
Can I claim the entire credit in the first year?
The credit is claimed in equal installments over three years, beginning with the tax year the property is placed in service. The amount claimed each year cannot exceed that year's tax liability.
What happens to unused credit?
Annual installments that exceed your tax liability can be carried forward for up to five consecutive years.
How is the credit handled by pass-through entities?
An S Corporation owing Income Tax at the corporate level must use the credit first at the entity level. Any remaining credit passes to shareholders according to their stock ownership percentages. A general partnership, limited partnership, limited liability company, or other pass-through entity covered by SC Code Section 12-6-545 must pass the credit to its partners. Partners may agree on any allocation method, including allocating the entire credit to one partner.
Can I appeal a determination about additional rehabilitation work?
Yes. If you disagree with the State Historic Preservation Officer's determination that additional work is inconsistent with the Standards for Rehabilitation, you can request a review by filing an appeal with the State Review Board.