Form Sc Sch.tc-31 - South Carolina Retail Facilities Revitalization Credit
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2STATE OF SOUTH CAROLINA
1350
1350
SC SCH.TC-31
DEPARTMENT OF REVENUE
RETAIL FACILITIES
(Rev. 10/12/07)
REVITALIZATION CREDIT
3423
Effective for property placed in service on or after July 1, 2006
20
Attach to your Income Tax Return
Names As Shown On Tax Return
SS No. or Fed. EI No.
Use this form to calculate your income tax credit.
1. Enter the amount of the rehabilitation expenses made to an eligible site placed in service
1.
during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
2. Enter 10% of the amount on line 1. This is the credit amount earned in the current year . . .
3. Enter 12.5% of line 2 if the property was placed in service during this tax year; or enter
the installment amount from line 3 of a previous year's TC-31, if the property was placed in
3.
service before this year. This is your annual installment amount . . . . . . . . . . . . . . . . . . . . .
4. Enter the amount carried forward from previous tax years . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Enter your current year tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Enter the lesser of lines 5 and 6. This is your current year credit. Enter this amount on the
appropriate tax credit schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Subtract line 7 from line 5. This is your credit carryover to future years . . . . . . . . . . . . . . . .
8.
Instructions
ELECTION OF CREDIT
Effective July 1, 2006, a taxpayer who improves, renovates, or redevelops an eligible site is eligible for a tax credit
against either: (1) property tax; or (2) individual or corporate income tax.
The taxpayer may elect to take either credit by providing written notification to the South Carolina Department of Revenue
prior to the date the eligible site is placed in service. A taxpayer who fails to make an election or obtain approval before
the date the eligible site is placed in service will receive only the credit against individual or corporate income tax.
When electing to take the property tax credit, the taxpayer must also notify the governing body of the municipality where
the eligible site is located. If the eligible site is located in an unincorporated area, the taxpayer must notify the local
governing body of the county where the eligible site is located. The local governing body must approve the property tax
credit before the eligible site is placed in service.
INCOME TAX CREDIT
The credit amount is 10% of the taxpayer's rehabilitation expenses. The retail facilities revitalization income tax credit is in
addition to and does not offset the certified historic structure credit (TC-21) in the event the eligible site is eligible for both
credits.
The credit must be taken in equal installments over a 8-year period beginning with the year in which the property is
placed in service. The tax credit shall vest in the taxpayer in the tax year when the eligible site is placed in service and
may be carried forward, in whole or in part, for up to 8 years following that date.
When earned by an 'S' corporation owing corporate level income tax, the credit must be used first at the entity level. Any
remaining credit passes through to each shareholder in a percentage equal to each shareholder's percentage of stock
ownership.
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