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A taxpayer that is a partnership or a limited liability company taxed as a partnership may pass through the credit to

its partners or members and may allocate the credit among any of its partners or members on an annual basis,

including an unlimited allocation of the entire credit to any partner or member who was a partner or member at any

time during the year in which the credit is allocated. This provision also applies when the partner or member is a

lessee.

A taxpayer is not eligible for the credit if the facility has previously received textile mill credits, or if the taxpayer

owned the otherwise eligible textile mill site when the site was operational and immediately prior to its abandonment.

The area of the site is limited to the land located within the boundaries where the textile manufacturing facility structure is

located and does not include land located outside the boundaries of the structure.

The provisions of Chapter 31, Title 6 apply to this credit, except for the requirements of Section 6-31-40.

If a portion but not all of the textile mill site was placed in service on or before December 31, 2007, the taxpayer

may elect to either:

have the portion placed in service on or before December 31, 2007 be governed by the old provisions (below) in

effect as of December 31, 2007, as if the portion were an entire textile mill site; or

have the portion be governed under the new law provisions (above) so that the portion is deemed to be a phase

of the site placed in service after December 31, 2007.

The taxpayer may apply to the municipality or county in which the textile mill site is located for a certification of the textile

mill site made by ordinance or binding resolution of the governing body of the municipality or county. The certification

must include:

whether the textile mill site was a textile mill as defined below;

whether the textile mill site has been abandoned as defined below; and

the geographic area of the textile mill site consistent with Section 12-65-20(4).

The taxpayer may conclusively rely upon the certification in determining the credit as long as the taxpayer includes a

copy of the certification on the first return for which the credit is claimed.

Definitions applicable to use of the credit against corporate or individual income tax, bank tax, corporate license fees,

and/or insurance premium tax for sites placed in service after December 31, 2007:

“Abandoned” means that at least 80% of the textile mill has been closed continuously to business or otherwise

nonoperational as a textile mill for a period of at least one year immediately preceding the date on which the

taxpayer files a “Notice of Intent to Rehabilitate”. For purposes of this item, a textile mill site that otherwise qualifies

as abandoned may be subdivided into separate parcels, which parcels may be owned by the same taxpayer or

different taxpayers, and each parcel is deemed to be a textile mill site for purposes of determining whether each

subdivided parcel is considered to be abandoned.

“Ancillary uses” means uses related to the textile manufacturing, dying, or finishing operations on a textile mill site

consisting of sales, distribution, storage, water runoff, wastewater treatment and detention, pollution control, landfill,

personnel offices, security offices, employee parking, dining and recreation areas, and internal roadways or

driveways directly associated with such uses.

“Notice of Intent to Rehabilitate” means, with respect to a textile mill site acquired by a taxpayer after December

31, 2007, a letter submitted by the taxpayer to the department or the municipality or county as specified in this

chapter, indicating the taxpayer's intent to rehabilitate the textile mill site, the location of the textile mill site, the

amount of acreage involved in the textile mill site, and the estimated expenses to be incurred in connection with

rehabilitation of the textile mill site. The notice also must set forth information as to which buildings the taxpayer

intends to renovate, which buildings the taxpayer intends to demolish, and whether new construction is to be

involved.

“Placed in service” means the date upon which the textile mill site is completed and ready for its intended use. If

the textile mill site is completed and ready for use in phases or portions, each phase or portion is considered to be

placed in service when it is completed and ready for its intended use.

“Rehabilitation expenses” means the expenses or capital expenditures incurred in the rehabilitation, renovation, or

redevelopment of the textile mill site, including without limitations, the demolition of existing buildings, environmental

remediation, site improvements and the construction of new buildings and other improvements on the textile mill site,

but excluding the cost of acquiring the textile mill site or the cost of personal property located at the textile mill site.

For expenses associated with a textile mill site to qualify for the credit, the textile mill and buildings on the textile mill

site must be either renovated or demolished.

33862020

Sc Schedule Tc-23 - Credit For Textiles Rehabilitation - South Carolina Department Of Revenue Page 2

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