South Carolina Law Allows State Tax Credits to be Passed Through to Partnership Members

Wednesday, May 19, 2021 - 8:45AM

Legislation in South Carolina that became effective this week allows a state historic tax credit (HTC) or state low-income housing tax credit (LIHTC) to be passed through to members or partners of a partnership or limited liability partnership that is taxed as a partnership and allocated among any of its partners or members on an annual basis, including the allocation of the entire credit to any partner or member who held that position at any time during the year. S. 677 permits the allocation regardless of any provision of the Internal Revenue Code (IRC) or regulation based on the IRC. The amendment to South Carolina law applies to a qualified project placed in service after Jan. 1, 2020, and before Dec. 31, 2030, providing that the project is issued an eligibility statement after May 14, 2020.

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