SC SCH TC 23: Textiles Rehabilitation Credit (Revision 2019-10)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-23 calculates the Credit for Textiles Rehabilitation for eligible abandoned textile mill sites in South Carolina. It reports rehabilitation expenses, the annual credit installment, the allowable credit against tax liability, and any credit carryforward.
Who files this form
Use SC SCH TC-23 to claim the textiles rehabilitation credit against Corporate or Individual Income Tax, Bank Tax, Corporate License Fees, or Insurance Premium Tax. This form is not for the alternative credit against local real property taxes.
The credit is available to taxpayers who rehabilitate, renovate, and redevelop an abandoned textile mill site in South Carolina. The form also provides for credits received from a pass-through entity.
You are not eligible if:
- The facility has previously received textile mill credits.
- You owned the otherwise eligible site when it was operational and immediately before its abandonment.
What you'll need
Have the following information and documents available:
- Your name and SSN or FEIN, plus the textile mill site's address.
- The name shown on the Notice of Intent to Rehabilitate, if different from the name on your tax return, and the estimated expenses reported in that notice.
- The eligible rehabilitation expense amount and your current-year tax liability.
- The pass-through entity's name and FEIN, if you received the credit from an entity.
- The prior year's TC-23 installment amount, if you are claiming a later installment.
Attach the textile mill site certification, if any, to the first return claiming the credit. If claiming a carryforward, attach a schedule showing when the credit was earned and the amounts used in previous years.
How to file
- Enter which year of the five-year installment period you are claiming. For an installment after the year the credit was first earned, begin with line 6.
- For a new credit, enter actual rehabilitation expenses on line 1 and estimated expenses from the Notice of Intent to Rehabilitate on line 2. Multiply line 2 by 125%, then use the smaller of that result or line 1 as eligible expenses. Multiply eligible expenses by 25% to calculate the credit earned.
- Calculate the annual installment as 20% of the new credit, or enter the installment amount from the prior year's TC-23. Add any unused credit carried forward.
- Limit the allowable credit to your current-year tax liability. Enter the allowable amount on line 10 and on SC1040TC or SC1120TC. Enter the unused balance on line 11.
Paper filing: Attach a copy of TC-23 to your tax return.
Electronic filing: Keep a copy with your records.
Common mistakes
- Counting expenses incurred before the notice was provided. The line instructions say only expenses after the Notice of Intent to Rehabilitate was provided qualify. For sites acquired after December 31, 2007, the notice must be filed with SCDOR before receiving rehabilitation building permits.
- Including excluded costs. Site acquisition costs and personal property costs do not qualify. The textile mill and buildings on the site must be renovated or demolished for expenses to qualify.
- Ignoring the expense cap. Eligible expenses cannot exceed 125% of the estimate in the notice.
- Taking the entire credit at once. Claim it in equal installments over five years, beginning with the year the property is placed in service. The allowable credit is limited to current-year tax liability.
- Missing required attachments. Include the certification, if any, with the first return claiming the credit and a supporting schedule for carryforwards.
- Failing to report a transfer. A credit transfer to a purchaser or lessee is effective only if the taxpayer notifies SCDOR.
Questions people ask
What counts as an abandoned textile mill?
At least 80% of the mill must have been continuously closed to business or otherwise nonoperational as a textile mill for at least one year immediately before the Notice of Intent to Rehabilitate is filed.
When is a site placed in service?
A site is placed in service when it is completed and ready for its intended use. If work is completed in phases or portions, each is placed in service when it is completed and ready for its intended use.
Can I carry forward unused credit?
Yes. Unused credit may be carried forward for up to five years. Attach a schedule showing when the credit was earned and how much was used in previous years.
Can I also claim the Certified Historic Structure Credit?
Yes, if the site qualifies for both credits. The form identifies the Certified Historic Structure Credit as TC-21.