S 853

South Carolina General Assembly
126th Session, 2025-2026
Bill 853
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Indicates Matter
Stricken
Indicates New Matter
Amended
May 13, 2026
S. 853
Introduced by Senators Davis, Hutto, Sutton,
Graham, Turner, Stubbs, Matthews, Zell, Campsen, Kimbrell and Walker
S. Printed 5/13/26--H.
Read the first time February 26, 2026
________
A bill
TO AMEND THE SOUTH
CAROLINA CODE OF LAWS BY AMENDING SECTION 12-67-120, RELATING TO THE ABANDONED
BUILDINGS REVITALIZATION ACT DEFINITIONS, SO AS TO CLARIFY THAT THE EXISTENCE
OF AN INCOME-PRODUCING USE PRIOR TO THE PERIOD OF ABANDONMENT IS NOT A REQUIREMENT
FOR ELIGIBILITY; BY AMENDING SECTION 12-67-130, RELATING TO APPLICABILITY, SO
AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 12-67-140, RELATING TO
ELIGIBILITY FOR THE CREDIT, SO AS TO CLARIFY CERTAIN TIMING CONSIDERATIONS
RELATED TO THE FILING OF A NOTICE OF INTENT TO REHABILITATE AN ABANDONED
BUILDING AND TO CLARIFY THAT ABANDONED BUILDING TAX CREDITS MAY NOT SERVE AS
COLLATERAL FOR ANY DEBT; AND BY AMENDING SECTION 12-67-160, RELATING TO THE
CERTIFICATION OF ABANDONED BUILDING SITES, SO AS TO REMOVE A REQUIREMENT FOR
CERTAIN CERTIFICATIONS OF STATE-OWNED ABANDONED BUILDING SITES.
    Amend Title To Conform
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Section 12-67-120 (1), (2), (6), and (8) of the S.C.
Code is amended to read:
    (1) "Abandoned building" means a
building or structure, which clearly may be delineated from other buildings or
structures, at least sixty-six percent of the space in which has been closed unoccupied continuously to business or otherwise nonoperational for income producing purposes for a period of at least
five years immediately preceding the date on which the taxpayer files a "Notice
of Intent to Rehabilitate". For purposes of this item, a building or structure
that otherwise qualifies as an "abandoned building" may be subdivided into
separate units or parcels, which units or parcels may be owned by the same
taxpayer or different taxpayers, and each unit or parcel is deemed to be an
abandoned building site for purposes of determining whether each subdivided
parcel is considered to be abandoned. For purposes of this item, an abandoned
building is not a building or structure with an immediate preceding use as a
single-family residence. For purposes of this item, use of any portion of a
building or structure listed on the National Register for Historic Places when
used solely for storage or warehouse purposes is considered nonoperational for income producing purposes; provided, however, that
the credit provided under Section 12-67-140(B) is further limited by
disqualifying for credit purposes the portion of the building or structure that
was operational and used as a for
storage or warehouse for income producing purposes.
This limitation is calculated based on the actual percentage of the space which
has been closed unoccupied continuously
to business or otherwise nonoperational for income producing purposes for a period of at least
five years immediately preceding the date on which the taxpayer files a "Notice
of Intent to Rehabilitate" divided by one hundred percent.
    (2)
"Building site" means the abandoned building together with the parcel of land
upon which it is located and other improvements located on the parcel. However,
the area of the building site is limited to the land upon which the abandoned
building is located and the land immediately surrounding such building used for
parking and other similar purposes directly related to the building's income producing use.
    (6)
"Rehabilitation expenses" means the expenses or capital expenditures incurred
in the rehabilitation, demolition, renovation, or redevelopment of the building
site, including without limitations, the renovation or redevelopment of
existing buildings, environmental remediation, site improvements, and the
construction of new buildings and other improvements on the building site, but
excluding the cost of acquiring the building site or the cost of personal
property located at the building site. For expenses associated with a building
site to qualify for the tax credit, the abandoned buildings on the building
site must be either renovated or redeveloped. Rehabilitation expenses
associated with a building site that increases the amount of square footage on
the building site in excess of two hundred percent of the amount of square
footage of the buildings that existed on the building site as of the filing of
the Notice of Intent to Rehabilitate shall not be considered a rehabilitation
expense for purposes of calculating the amount of the credit. Notwithstanding
any other provision of this section, demolition expenses shall not be
considered a rehabilitation expense for purposes of calculating the amount of
the credit if the abandoned building is demolished and
the building being demolished is on the National Register for Historic Places.
    (8) "State-owned abandoned building" means an abandoned building and
its ancillary service buildings or a project consisting of one or more
abandoned buildings, the aggregate size of which is greater than fifty thousand
square feet, that has been abandoned for more than five years, and, prior to
the taxpayer's acquisition of such building, was most recently owned by the
State, or an agency, instrumentality, or political subdivision of the State.
For purposes of this definition, the taxpayer shall include any entity under
common control or common ownership with the taxpayer. Reserved.
SECTION 2.  Section 12-67-130(B) of the S.C. Code is amended to
read:
    (B) This chapter only applies to
abandoned building sites or phases or portions thereof put into operation for
income producing purposes and that meet the purpose of
this chapter set forth in Section 12-67-110 otherwise
meet the requirements of this chapter. The construction or operation of
a charter school, private or parochial school, or other similar educational
institution does meet the purpose of this chapter. The construction of a
single-family residence is not an income producing purpose and does not meet
the purpose of this chapter.
SECTION 3.  Section 12-67-140(B)(1) and (5) of the S.C. Code is
amended to read:
    (1) The taxpayer shall file with the
department a Notice of Intent to Rehabilitate before
incurring its first rehabilitation expenses obtaining
a building permit at the building site. Failure to provide the Notice of
Intent to Rehabilitate prior to obtaining a building
permit results in qualification of only those rehabilitation expenses
incurred after the notice is provided.
[ ]
       (5)(a) If the taxpayer leases the
building site, or part of the building site, the taxpayer may transfer any
applicable remaining credit associated with the rehabilitation expenses
incurred with respect to that part of the site to the lessee of the site. If a
taxpayer sells or otherwise transfers the building
site, or any phase or portion of the building site, the taxpayer may transfer
all or part of the remaining credit, associated with the rehabilitation
expenses incurred with respect to that phase or portion of the site, to the
purchaser or transferee of the applicable portion
of the building site.
  (b)
To the extent that the taxpayer transfers the credit, the taxpayer shall notify
the department of the transfer in the manner the department prescribes.
  (c) The taxpayer may not pledge,
assign, hypothecate, or otherwise collateralize any portion of the credit
earned pursuant to this chapter as security for debt in any way.
SECTION 4.  Section 12-67-160 of the S.C. Code is amended to read:
    Section
12-67-160. (A) Notwithstanding any
other provision of law, the taxpayer may apply to the municipality or county in
which the abandoned building is located for a certification of the abandoned
building site made by ordinance or binding resolution of the governing body of
the municipality or county. The certification must include findings that the:
       (1)
building or buildings situated on the abandoned
building site or sites was is an abandoned building as defined in Section
12-67-120(1); and
       (2)
geographic area of the abandoned building site or sites
is consistent with Section 12-67-120(2).
    (B) The taxpayer may apply to the
municipality or county in which the state-owned abandoned building is located
for a certification of the state-owned abandoned building site made by
ordinance or binding resolution of the governing body of the municipality or
county. The certification must include findings that the:
       (1) state-owned abandoned building
site was a state-owned abandoned building as defined in Section 12-67-120(8);
and
       (2) geographic area of the state-owned
abandoned building site is consistent with Section 12-67-120(8).
    (C)(B) The taxpayer conclusively may rely upon the
certification in determining the credit allowed; provided, however, that if the
taxpayer is relying upon the certification, the taxpayer shall include a copy
of the certification on the first return for which the credit is claimed.
SECTION 5.  (A)
For property tax years 2026 and 2027, notwithstanding Section
12-37-220(B)(11)(e) of the S.C. Code, and except as provided in subsection (B),
the Department of Revenue shall not grant final approval of any application for
an exemption under that subsection filed on or after June 30, 2026. The
department shall hold any such application in abeyance and, upon expiration of
this section, shall evaluate the application under the law then in effect.
    (B) Subsection (A)
does not apply to an application for an exemption under Section
12-37-220(B)(11)(e) of the S.C. Code with respect to property owned entirely by
a nonprofit housing corporation, either directly or through a wholly owned
instrumentality, that is devoted to providing housing to low or very low income
residents and that satisfies the safe harbor provisions of Revenue Procedure
96-32 issued by the Internal Revenue Service. The department may process and
grant final approval of such applications during the period this section is in
effect.
    (C) No applicant
acquires a vested right to an exemption under Section 12-37-220(B)(11)(e) of
the S.C. Code by filing an application subject to subsection (A), by expending
funds in reliance on the exemption, or by receiving any preliminary
determination from the department.
    (D) This section
expires June 30, 2027.
SECTION 6.  This act takes effect upon approval
by the Governor.
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This web page was last updated on May 13, 2026 at 11:32 PM