5-year property tax abatement
Redevelopment projects involving abandoned buildings may qualify for a credit against real property taxes. This credit may offset up to 75% of property taxes.
Program overview
South Carolina provides property tax relief for qualifying redevelopment projects involving abandoned buildings that have been closed or nonoperational for at least five years.
While eligibility is tied to a five-year abandonment requirement, the credit itself may offset up to 75% of eligible property taxes for up to eight years.
Eligible taxpayers may receive a credit equal to 25% of rehabilitation expenses for an eligible site, multiplied by the local taxing ratio of each consenting taxing entity.
Eligible properties
To qualify, a building or structure must:
- Be used for income-producing purposes after rehabilitation;
- Be at least 66% closed continuously or otherwise nonoperational for at least five years; and
- Not have been used immediately preceding rehabilitation as a single-family residence.
The five-year nonoperational requirement is measured from the date the taxpayer files a Notice of Intent to Rehabilitate.
Minimum rehabilitation investment
Rehabilitation expenses must exceed:
- $250,000 for buildings located in certain higher-population counties or municipalities;
- $150,000 for buildings located in mid-sized counties or municipalities; or
- $75,000 for buildings located in smaller counties or municipalities.
Approval requirements
To receive the credit:
- The county or municipality must determine site and project eligibility.
- The local governing body must approve the project by majority vote.
- Approval must occur through public hearing and ordinance.
- The taxpayer must file a Notice of Intent to Rehabilitate with the county or municipality before incurring rehabilitation expenses.
Frequently asked questions
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