South Carolina Enacts Changes to State HTC

Thursday, October 1, 2020 - 9:30am

South Carolina Gov. Henry McMaster signed H. 3485 into law Sept. 29 to make changes to the state historic tax credit (HTC). The legislation removes a provision allowing the Department of Archives and History to establish fees, provides that a taxpayer claiming the HTC must pay a fee to the Department of Archives and History for the state historic preservation grant fund and provides that the department shall develop an application process for distributing funds from the state historic preservation grant fund. The new fee is a percentage of the qualified rehabilitation expenditures (QREs), with developments of less than $500,000 QREs having no fees and the percentage increasing as properties have more QREs. The bill also allows individuals to make a voluntary contribution to the Department of Archives and History by an income tax return check-off. The changes are applicable to income tax years beginning after 2019.