SC SCH TC 31: Retail Facilities Revitalization Credit (Revision 2013-07)

Who files this form

Use SC SCH.TC-31 to calculate the retail facilities revitalization income tax credit and attach it to your income tax return.

The form describes the credit for taxpayers who improve, renovate, or redevelop an eligible abandoned retail site. An eligible site must have been primarily a retail sales facility, with at least one tenant or occupant in a building or structure of 40,000 square feet or more.

Important: The supplied form states that this credit was scheduled to expire on July 1, 2016. It does not establish eligibility for a new credit in later tax years.

When it's due

• 2016: The form states that the credit was scheduled to expire on July 1, 2016.

The supplied form does not print an income tax return filing deadline.

What you'll need

Have the following information available to complete the schedule:

• Your name as shown on your tax return and your SSN or FEIN. Individual taxpayers must provide their SSN.
• Rehabilitation expenses for an eligible site placed in service during the tax year.
• The annual installment amount from line 3 of a previous year's TC-31, if the property was placed in service before the current year.
• Any credit carried forward from previous tax years.
• Your current-year income tax liability.

Attach the completed schedule to your income tax return.

How to file

1. Enter qualifying rehabilitation expenses on line 1 and calculate 10% of that amount on line 2.
2. On line 3, enter 12.5% of line 2 for property placed in service during the current tax year. For property placed in service earlier, use the installment amount from line 3 of a previous year's TC-31.
3. Enter prior-year carryforwards on line 4 and add lines 3 and 4 on line 5.
4. Enter current-year income tax liability on line 6. On line 7, enter the smaller of lines 5 and 6 and transfer that amount to the appropriate tax credit schedule.
5. Subtract line 7 from line 5 to find the unused credit on line 8.

Attach SC SCH.TC-31 to your income tax return. The supplied text does not give a mailing address or e-filing instructions.

Common mistakes

• Missing the property tax credit election requirements. Written notice must go to the South Carolina Department of Revenue before the site is placed in service. For a property tax credit, you must also notify the municipality, or the county for an unincorporated site, and obtain local approval before that date. Failure to make an election or obtain approval before the site is placed in service results in only the income tax credit.
• Claiming the entire income tax credit at once. The credit must be taken in equal installments over eight years, beginning with the year the property is placed in service.
• Claiming more than the current year's income tax liability. The allowable credit cannot exceed that liability.
• Omitting an individual's SSN. The form states that providing it is mandatory.

Questions people ask

What counts as an abandoned site?

At least 80% of the site's facilities must have been continuously closed to business or otherwise non-operational for at least one year immediately before the determination. For this definition, facilities include only the site's building or structure.

Which costs are excluded from rehabilitation expenses?

The cost of acquiring the site and the cost of personal property maintained at the site are excluded.

What does “placed in service” mean?

It means the date the eligible site is suitable for occupancy for its intended purposes.

Can I carry unused credit forward?

Yes. An unused portion of a credit installment may be carried forward for five years.

Can this credit be combined with the certified historic structure credit?

Yes. If the site qualifies for both, the retail facilities revitalization income tax credit is in addition to, and does not offset, the certified historic structure credit, TC-21.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC31.pdf