Saturday, June 5, 2010

SC Textile Mill Tax Credit Amendments Signed Into Law

Governor Sanford has signed a bill recently passed by the SC General Assembly making several notable changes to the SC Textiles Communities Revitalization Act ("Act").

The Act provides tax credits for expenditures related to the rehabilitation of buildings in South Carolina previously used as textile manufacturing facilities.

The amendments address several concerns raised by tax credit investors and others in the tax credit industry. Most notably, it makes the credits easier to specially allocate among partners in a partnership or limited liability company, adds transition rules for projects that were acquired or commenced prior to previous amendments in 2008, and allows the credits to be used against SC insurance premium taxes.

The text of the bill (S728)is available here. Thanks to Chris Rogers for bringing this legislation to the Blog's attention.