Sc Sch.tc-55 - Abandoned Buildings Revitalization Credit (Page 4 of 5) in pdf

income producing purposes; provided, however, that the credit provided under Section 12-67-140(B) is further limited

by disqualifying for credit purposes the portion of the building or structure that was operational and used as a storage

or warehouse for income producing purposes. This limitation is calculated based on the actual percentage of the

space which has been closed continuously to business or otherwise nonoperational for income producing purposes for

a period of at least five years immediately preceding the date on which the taxpayer files a “Notice of Intent to

Rehabilitate” divided by one hundred percent.

(2)

“Building site” means the abandoned building together with the parcel of land upon which it is located and other

improvements located on the parcel. However, the area of the building site is limited to the land upon which the

abandoned building is located and the land immediately surrounding such building used for parking and other similar

purposes directly related to the building’s income producing use.

“Local taxing entities” means a county, municipality, school district, special purpose district, and other entity or

(3)

district with the power to levy ad valorem property taxes against the building site.

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

(4)

building 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.

(5)

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

renovation, or redevelopment of the building site, including without limitations, the renovation or redevelopment of

existing buildings, environmental remediation, site improvements, and the construction of new buildings and other

improvements on the building site, but excluding the cost of acquiring the building site or the cost of personal property

located at the building site. For expenses associated with a building site to qualify for the tax credit, the abandoned

buildings on the building site must be either renovated or redeveloped. Rehabilitation expenses associated with a

building site that increases the amount of square footage on the building site in excess of two hundred percent of the

amount of square footage of the buildings that existed on the building site as of the filing of the Notice of Intent to

Rehabilitate shall not be considered a rehabilitation expense for purposes of calculating the amount of the credit.

Notwithstanding any other provision of this section, demolition expenses shall not be considered a rehabilitation

expense for purposes of calculating the amount of the credit if the building being demolished is on the National

(6)

“Notice of Intent to Rehabilitate” means 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 building site, the location of the

building site, the amount of acreage involved in the building site, the amount of square footage of existing buildings

involved in the building site, and the estimated expenses to be incurred in connection with rehabilitation of the building

site. The notice also must set forth information as to which buildings the taxpayer intends to renovate and whether

new construction is to be involved.

LINE INSTRUCTIONS

Line 1:

Enter the amount of rehabilitation expenses made to an eligible site placed in service during the tax year. Do not

include expenses incurred before you provided the Notice of Intent to Rehabilitate to the Department of

Revenue. Those expenses do not qualify.

No credit is allowed unless the taxpayer incurs rehabilitation expenses of: (1) more than $250,000 for buildings

located in the unincorporated areas of a county, or in a municipality in a county with a population of more than

25,000 persons based on the most recent U.S. census; (2) more than $150,000 if the population is between

1,000 and 25,000; and (3) more than $75,000 if the population is less than 1,000.

Line 2:

Each Notice of Intent to Rehabilitate filed with the Department of Revenue must include an estimate of expenses

to be incurred in redeveloping the abandoned building site. Enter on line 2 the estimated expenses as reported in

the Notice.

Line 3:

Divide line 1 actual expenses by line 2 estimated expenses. If the result is less than 0.80 (80%), no credit is

allowed.

Line 4:

Multiply line 2 estimated expenses by 1.25 (125%) to arrive at the maximum amount of expenses eligible for this

credit.

Line 5:

Enter the lesser of line 1 actual expenses or line 4 maximum expenses.

Line 6:

The credit amount is 0.25 (25%) of rehabilitation expenses.

Line 7:

The entire credit earned may not exceed $500,000 for any taxpayer in a tax year for each abandoned building

site. The limitation applies to each unit or parcel deemed to be an abandoned building site. The entire credit is

earned in the tax year in which the phase or portion of the building site is placed in service.

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Sc Sch.tc-55 - Abandoned Buildings Revitalization Credit Page 4

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