Enter the amount of expenditures that qualify for the federal credit from your federal tax return for a certified rehabilitation of an historic structure located in South Carolina. The taxpayer must attach to his South Carolina income tax return a copy of the appropriate federal forms showing the amount of federal rehabilitation expenditures claimed.

The terms "taxpayer," "qualified rehabilitation expenditures," and "certified historic structure" have the same meaning as provided in Internal Revenue Code Section 47 and the applicable treasury regulations.

The credit is claimed in equal installments over a 5-year period beginning with the year that the property is placed in service. Your current year credit is 20% of 10% of the qualified rehabilitation expenditures for a certified historic structure located in South Carolina that qualify for the federal rehabilitation credit provided in Internal Revenue Code Section 47.

Allowable credit cannot exceed the current year tax liability.

Any unused credit from the current year may be carried forward for the succeeding 5 years. After five years, the credit expires.

See South Carolina Historic Rehabilitation Incentives Act for more information.

NOTE: An "S" corporation, limited liability company, or partnership that qualifies for this credit may pass the credit earned through to each shareholder, member, or partner. The amount of the credit allowed a shareholder, member, or partner is equal to the shareholder's percentage of stock ownership, member's interest in the limited liability company, or partner's interest in the partnership for the taxable year multiplied by the amount of the credit earned by the entity. The credit earned pursuant to this section by an S corporation owing corporate level income tax must be used first at the entity level. Only the remaining credit passes through to each shareholder.

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