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“Textile mill” means a facility or facilities that were initially used for textile manufacturing, dying, or finishing

operations and for ancillary uses to those operations.

“Textile mill site” means the textile mill together with the land and other improvements on it which were used

directly for textile manufacturing operations or ancillary uses. However, the area of the site is limited to the land

located within the boundaries where the textile manufacturing, dying, or finishing facility structure is located and does

not include land located outside the boundaries of the structure or devoted to ancillary uses. Notwithstanding the

provisions of this item, with respect to any site acquired by a taxpayer before January 1, 2008, or a site located on

the Catawba River near Interstate 77, the textile mill site includes the textile mill structure, together with all land and

improvements which were used directly for textile manufacturing operations or ancillary uses, or were located on the

same parcel within one thousand feet of any textile mill structure or ancillary uses.

FOR SITES PLACED IN SERVICE ON OR AFTER JULY 1, 2004, AND ON OR BEFORE DECEMBER 31, 2007:

A taxpayer who qualifies for the credit revitalizing an abandoned textile facility placed in service on or after July 1,

2004, and on or before December 31, 2007 may claim either:

a credit against real property taxes levied by local taxing entities equal to 25% of the rehabilitation expenses made to

the eligible site times the local taxing entity ratio of each local taxing entity that has consented to the tax credit; or

a credit against income taxes and license fees imposed under Title 12 of the South Carolina Code equal to 25% of

the rehabilitation expenses.

If the taxpayer chooses Option B:

The entire credit may not be taken for the taxable year in which the eligible site is placed in service but must be

taken in equal installments over a 5 year period beginning with the year in which the property is placed in service.

Any unused portion of a credit installment may be carried forward for the succeeding five years.

The credit earned by an S corporation owing corporate level income tax must be used first at the entity level, and any

remaining credit passes through to each shareholder in a percentage equal to each shareholder’s percentage of

stock ownership.

The credit earned pursuant to this subsection by a general partnership, limited partnership, limited liability company,

or any other entity taxed as a partnership must be passed through to its partners and may be allocated among any of

its partners, including an unlimited allocation of the entire credit to one partner, in any manner agreed by the partners

that is consistent with Subchapter K of the Internal Revenue Code. Here, the term “partner” means a partner,

member, or owner of an interest in the pass through entity.

This credit is in addition to and does not offset the state historic credit in the event the eligible site also is eligible for

the TC-21 Certified Historic Structure Credit.

The taxpayer must choose Option A or B above by providing written notification of its intent to the South Carolina

Department of Commerce prior to the date the eligible site is placed in service. A taxpayer that does not obtain the

necessary approvals or fails to affirmatively make the election between Option A and B is considered to have elected

Option B.

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

Definitions applicable to the income tax credit (Option B) for sites placed in service on or after July 1, 2004, and on or

before December 31, 2007:

"Abandoned” means that at least eighty percent of the facilities of the eligible site has been continuously closed to

business or otherwise nonoperational for a period of at least one year immediately preceding the time at which the

determination is to be made.

“Eligible site” means a site that is designed for use or has in fact been used as a textile manufacturing facility or

uses ancillary to it and is located in South Carolina.

“Placed in service” means the date upon which the eligible site is suitable for occupancy for the purposes intended.

“Rehabilitation expenses” means the expenses incurred in the rehabilitation of the eligible site, excluding the cost

of acquiring the eligible site or the cost of personal property maintained at the eligible site.

33863028

Sc Schedule Tc-23 - Credit For Textiles Rehabilitation - South Carolina Department Of Revenue Page 3

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