Sign Up For Novogradac Industry Alert Emails

South Carolina Enacts $20 Million State LIHTC Annual Cap

Wednesday, May 18, 2022 - 11:30AM

South Carolina Gov. Henry McMaster signed into law H. 5075 on May 16, restricting the allocation of the state low-income housing tax credit (LIHTC) to $20 million annually and defining specific areas and types of housing that must receive at least a minimum amount of credits. The total amount of state LIHTCs allocated to qualified developments using the federal 9% LIHTC cannot exceed 40% of the $20 million limit. Of those, not less than 50% of the state LIHTCs must be allocated to qualified developments in eligible rural areas, with the remainder allocated to developments serving older persons or persons with special needs, workforce development and other qualified developments. State LIHTCs allocated to developments using the federal 4% LIHTC are subject to the availability and allocation of the state ceiling. Provisions of the legislation are effective beginning Jan. 1, 2022. For the first year of implementation, the state allocating agency may adopt special procedures to effect requirements of the legislation.

Get monthly news on state tax incentives with a subscription to the Novogradac Journal of Tax Credits.

Learn more about Novogradac's expertise and many services