SC SCH TC 55: Abandoned Building Revitalization Credit (Revision 2024-08)

Who files this form

Use SC SCH. TC-55 to calculate the Income Tax credit for rehabilitating an eligible abandoned building site in South Carolina. File a separate form for each site.

To qualify:

• The revitalized site, phase, or portion must be put into operation for income-producing purposes and meet the purpose of the Abandoned Buildings Revitalization Act.
• Rehabilitation expenses must be more than $250,000 where the county or municipality population exceeds 25,000; more than $150,000 where the population is between 1,000 and 25,000; or more than $75,000 where the population is below 1,000. Population is based on the most recent US Census.
• Actual rehabilitation expenses must be at least 80% of the estimate in the Notice of Intent to Rehabilitate.

Generally, an abandoned building must have at least 60% of its space closed to business or nonoperational for income-producing purposes for at least five years immediately before the Notice of Intent is filed. A building previously used as a single-family residence does not qualify.

You are not eligible if you owned the otherwise eligible site while it was operational and immediately before its abandonment. Construction of a single-family residence does not qualify. Construction or operation of a charter, private, parochial, or similar school does qualify.

When it's due

2035: The credit is repealed December 31, 2035. The repeal does not affect carryforwards of unused credits earned before that date.

The text does not give an annual tax-return filing deadline.

What you'll need

Have these records and details available:

• Your name and SSN or FEIN, plus the building site's street address, county, city, state, and ZIP code. Individual taxpayers must provide their SSN.
• Your Notice of Intent to Rehabilitate and its estimated rehabilitation expenses. The notice must state your intent to rehabilitate, the site's location and acreage, existing building square footage, estimated expenses, which buildings will be renovated, and whether there will be new construction.
• Records of qualifying rehabilitation expenses and when the site was placed in service.
• Your current-year tax liability, any unused credit carried forward, and the previous year's TC-55 if you are continuing an installment.
• Your SC K-1 and the entity's name and FEIN if you received the credit from a pass-through entity.

If you obtained abandoned-building certification from the municipality or county, include a copy with the first tax return claiming the credit.

How to file

1. File the Notice of Intent first. For the Income Tax credit, file it with the SCDOR before beginning rehabilitation. Expenses incurred before the SCDOR receives the notice do not qualify.
2. Send the notice by mail or email:

• Mail: SCDOR, PO Box 125, Columbia, SC 29214-0825
• Email: TaxCredits@dor.sc.gov

1. Complete a separate SC SCH. TC-55 for each abandoned building site. Enter the qualifying expenses, notice estimate, credit installment, carryforward, and current-year tax liability. The credit claimed cannot exceed that year's tax liability.
2. Follow the filing method for your return: If filing on paper, attach TC-55 to your return. If filing electronically, keep a copy with your tax records.

The mailing address and email above are for the Notice of Intent. The text does not provide a mailing address for the tax return.

Common mistakes

• Counting expenses incurred too early. Amounts spent before the SCDOR receives the Notice of Intent do not qualify.
• Claiming the credit when actual expenses are below 80% of the estimate. The form says to stop because you do not qualify.
• Claiming multiple credits for the same expenses. You may not claim TC-23, Credit for Textiles Rehabilitation, or TC-31, Retail Facilities Credit, for the same expenses used for this credit.
• Taking the entire credit in one year. It must be taken in equal installments over three years, beginning with the year the site is placed in service.
• Exceeding the limits. The entire credit earned is limited to $700,000 per site in a tax year, and the credit claimed for a year cannot exceed your tax liability.
• Including excluded costs. Purchasing the site and personal property at the site are not rehabilitation expenses. Demolition expenses for a building on the National Register for Historic Places also do not qualify.

Questions people ask

How is the credit calculated?

If actual qualifying expenses are between 80% and 125% of the notice estimate, the credit is 25% of actual expenses. If actual expenses exceed 125% of the estimate, the credit is based on 125% of the estimate instead. The entire credit is capped at $700,000 per site in a tax year.

What does “placed in service” mean?

It means the site is completed and ready for its intended use. If completed in phases or portions, each phase or portion is treated as placed in service separately.

Can I carry forward unused credit?

Yes. Unused credit may be carried forward for up to five years.

What if I receive the credit from a pass-through entity?

Enter the entity's name and FEIN. Enter the credit amount shown on your SC K-1 on line 9 of TC-55.

Can remaining credit transfer when I sell or lease the site?

Yes. If you sell or lease all or part of the site, you may transfer the remaining credit for that part to the purchaser or lessee. You must notify the SCDOR in writing for the transfer to be effective.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC55.pdf