Dear Speaker Smith and Chairman Bannister:
We, the undersigned individuals and organizations across South Carolina, would like to thank you for your sustained support of the Abandoned Building Tax Credit. The Department of Revenue released a new Revenue Ruling (SC Revenue Ruling 26-1) on January 6, 2026 impacting the current interpretation and usage of the state abandoned building tax credit.
SC Revenue Ruling 26-1 is set to take effect on June 1, 2026, and would impact the following:
(a) Require all abandoned buildings to be income producing prior to becoming abandoned
(b) The Department of Revenue will now require all information showing why the taxpayer qualifies for the credit to be included in the Notice of Intent filing
(c) Notices of Intent can no longer be transferred to a new owner if a previous owner got a site certified as abandoned
(d) Eliminate the capability of certain buildings qualifying for the abandoned building tax credit (e.g. state owned, non-profit owned, former schools, former churches, military, federal buildings, etc.)
(e) Allow for the tax credits to be used as a security for debt and to be collateralized
Legislation was introduced in the Senate by Senators Davis & Hutto, S. 853, and a companion bill was introduced in the House, H. 5252 by Representative Smith.
The proposed updates to the Abandoned Building Tax Credits would make the following changes to the legislation:
(a) Eliminate any reference to the need for a property to have been income producing when it went abandoned and thus clarifying the statute further to the original legislative intent that all building structures except single family homes would be able to use the abandoned building tax credit
(b) Eliminate the definition of state-owned abandoned buildings to clarify the language to not limit a state-owned abandoned building size
(c) That the certification from the local municipality or county certifying that a structure is abandoned is the conclusive authority
(d) That the tax credits may not be collateralized in any way as a security for a debt
South Carolinians recognize the economic importance in revitalizing these abandoned and vacant spaces like the Mary Wright School in Spartanburg, the Dewberry Hotel in Charleston, and the McCants School in Columbia. The Abandoned Building Tax Credit is an essential resource for revitalizing main streets and small towns throughout our state. In South Carolina, these tax credits have been paramount in the rehabilitation of over 2,000 properties over the last 13 years. This bill’s passage before the June 1, 2026 effective date for the new Revenue Ruling is paramount or the economic impact to the state will be great. Numerous rural towns and counties will be impacted in a negative way if this legislation is not enacted into law.
As abandoned buildings like the Sumter Opera House, the old Carnegie Library Building in Sumter, the former Blacksburg Grammar School in Blacksburg, the former Thornwell School in Hartsville, the old City Jail in Beaufort, and 211 West Main Street and four other Main Street buildings in Clinton are being planned and attempting to fill financing gaps to proceed, we ask that you please continue to work expeditiously with your colleagues to pass Senate Bill 853. Without this legislative fix, economic redevelopment will be hindered across the state in an area where South Carolina leads the country.
Sincerely,