SC SCH TC 22: Certified Historic Residential Structure Credit (Revision 2020-12)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-22 calculates the Certified Historic Residential Structure Credit for qualifying rehabilitation expenses. It reports the credit earned, annual installment, prior-year carryforwards, current-year allowable credit, and unused credit.
Who files this form
Use SC SCH TC-22 to claim the credit for qualifying rehabilitation expenses for a certified historic residential structure in South Carolina. Complete a separate TC-22 for each rehabilitated property.
The credit is 25% of qualifying rehabilitation expenses. Expenses must exceed $15,000 within a 36-month period, must have been incurred after tax year 2002, and must be paid before you claim the credit. The property must have been placed in service after June 30, 2002.
A qualifying structure is an owner-occupied residence that is individually listed in the National Register of Historic Places, meets certain historic criteria determined by the State Historic Preservation Officer (SHPO), or is an outbuilding that the SHPO considers to contribute to an otherwise eligible property's historic significance.
Use this version for property placed in service after June 9, 2015. The form directs you to use the previous version for property placed in service before that date.
What you'll need
- Your name and Social Security Number. Individual taxpayers must provide their Social Security Number.
- Certification from the SHPO verifying that the completed project meets the Secretary of the Interior's Standards for Rehabilitation.
- Your qualifying rehabilitation expense amounts, current-year tax liability, and any credit carried forward from prior years.
- Last year's TC-22 if you need to enter the previous year's annual installment amount.
- For rehabilitation expenses of $500,000 or more, a copy of documentation from the South Carolina Department of Archives and History (SCDAH) confirming payment of the preliminary and final fees.
How to file
Complete a separate TC-22 for each rehabilitated property.
- Enter qualifying expenses on line 1 for property placed in service during the tax year. Multiply by 25% for line 2.
- For the year the property is placed in service, divide line 2 by 3 to calculate the annual installment on line 3. For property placed in service in a prior year, enter line 3 from last year's TC-22.
- Enter prior-year carryforwards on line 4, then add lines 3 and 4 on line 5.
- Enter current-year tax liability on line 6. On line 7, enter the smaller of lines 5 and 6. Also enter that credit on SC1040TC.
- Subtract line 7 from line 5 to calculate unused credit on line 8.
Paper filing: Attach TC-22 to your Income Tax return. If applicable, include the SCDAH documentation confirming payment of the fees.
Electronic filing: Keep a copy of TC-22 with your tax records.
Common mistakes
- Starting work without contacting the SHPO. Before any work begins, contact the SHPO to review all repairs, alterations, rehabilitation, and new construction on the structure and its property. Obtain SHPO certification when the project is complete.
- Claiming unpaid or excluded expenses. Expenses must be paid before claiming the credit. Excluded costs include acquisition or marketing costs, new construction beyond the existing structure's volume, your own labor, and personal property.
- Taking the entire credit at once or exceeding your tax liability. The credit must be taken in equal installments over three years, and the amount claimed for a year cannot exceed that year's tax liability.
- Claiming another credit on the same structure too soon. You may not claim more than one credit on the same certified historic residential structure within 10 years.
- Overlooking later work requirements. Additional work completed in the five years after the credit was taken must meet the rehabilitation standards. If the SHPO finds that it does not, you must forfeit unused credit, including carryforwards.
- Leaving out required fee documentation. For projects with rehabilitation expenses of $500,000 or more, include documentation confirming payment of the preliminary and final SCDAH fees when filing TC-22.
Questions people ask
How much is the credit?
The credit is 25% of qualifying rehabilitation expenses, which must exceed $15,000 within a 36-month period. Claim it in equal installments over three years, beginning with the tax year the property is placed in service.
What if my annual installment is more than my tax liability?
You can carry the unused portion forward for up to five consecutive years.
When is a property considered placed in service?
A property is placed in service when rehabilitation is complete and allows for the intended use.
What does owner-occupied mean for this credit?
You must have an ownership interest in the building or portion of the building. After it is placed in service, it must be your residence and must not be actively used in a trade or business, held to produce income, or held for sale or disposition in the ordinary course of your trade or business.
What if the historic structure also qualifies for the federal rehabilitation credit?
Complete TC-21 if you are claiming a credit for qualified rehabilitation expenditures for a certified historic structure that also qualifies for a federal credit under IRC Section 47.