South Carolina General Assembly
126th Session, 2025-2026

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R236, S853

STATUS INFORMATION

General Bill
Sponsors: Senators Davis, Hutto, Sutton, Graham, Turner, Stubbs, Matthews, Zell, Campsen, Kimbrell and Walker
Companion/Similar bill(s): 5252
Document Path: LC-0510SA26.docx

Introduced in the Senate on January 28, 2026
Introduced in the House on February 26, 2026
Last Amended on May 13, 2026
Currently residing in the Senate

Summary: Abandoned Buildings Tax Credit

HISTORY OF LEGISLATIVE ACTIONS

Date Body Action Description with journal page number
1/28/2026 Senate Introduced and read first time (Senate Journal-page 5)
1/28/2026 Senate Referred to Committee on Finance (Senate Journal-page 5)
2/18/2026 Senate Committee report: Favorable Finance (Senate Journal-page 9)
2/24/2026 Senate Read second time (Senate Journal-page 18)
2/24/2026 Senate Roll call Ayes-44 Nays-0 (Senate Journal-page 18)
2/25/2026 Senate Read third time and sent to House (Senate Journal-page 29)
2/25/2026 Senate Roll call Ayes-33 Nays-10 (Senate Journal-page 29)
2/26/2026 House Introduced and read first time (House Journal-page 17)
2/26/2026 House Referred to Committee on Ways and Means (House Journal-page 17)
4/28/2026 House Committee report: Favorable Ways and Means (House Journal-page 5)
4/29/2026 House Debate adjourned
4/30/2026 House Debate adjourned until Tues., 5-5-26 (House Journal-page 86)
5/5/2026 House Requests for debate-Rep(s). Cromer, Gilreath, Harris, White, Beach, Terribile, Morgan, Chumley (House Journal-page 25)
5/7/2026 House Debate adjourned (House Journal-page 45)
5/13/2026 House Requests for debate removed-Rep(s). Terribile, Beach, White, Cromer, Gilreath, Harris, Morgan, Chumley (House Journal-page 62)
5/13/2026 House Amended (House Journal-page 125)
5/13/2026 House Read second time (House Journal-page 125)
5/13/2026 House Roll call Yeas-112 Nays-0 (House Journal-page 126)
5/14/2026 House Read third time and returned to Senate with amendments (House Journal-page 12)
5/14/2026 Senate Concurred in House amendment and enrolled (Senate Journal-page 92)
5/15/2026 Ratified R 236
5/19/2026 Signed By Governor

View the latest legislative information at the website

VERSIONS OF THIS BILL

1/28/2026
2/18/2026
4/28/2026
5/13/2026

NOTE: THIS IS A TEMPORARY VERSION. THIS DOCUMENT WILL REMAIN IN THIS VERSION UNTIL FINAL APPROVAL BY THE LEGISLATIVE COUNCIL.

(R236, S853)

AN ACT 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; 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; AND TO PROVIDE FOR CERTAIN ABEYANCE.

Be it enacted by the General Assembly of the State of South Carolina:

Definitions

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 unoccupied continuously or otherwise nonoperational 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; 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 for storage or warehouse purposes. This limitation is calculated based on the actual percentage of the space which has been unoccupied continuously or otherwise nonoperational 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 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) Reserved.

Applicability

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 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.

Eligibility

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 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.

Certification

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 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 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.

Abeyance

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.

Time effective

SECTION 6.    This act takes effect upon approval by the Governor.

Ratified the 15th day of May, 2026.

______________________________________________________________________

President of the Senate

_____________________________________________________________________

Speaker of the House of Representatives

Approved the _____________ day of _________________________________________2026.

____________________________________________________________________

Governor

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This web page was last updated on May 19, 2026 at 8:25 AM