South Carolina Tax Increment Financing

South Carolina Department of Commerce

Program Type:

Tax Increment Financing

Eligible Geography:

South Carolina

Program URL:

https://www.scstatehouse.gov/code/t31c006.php

Summary:

In South Carolina, the use of tax increment financing by eligible local governments is authorized by South Carolina law Title 31, Chapter 6, Tax Increment Financing for Development Projects. A TIF is a tool that allows eligible municipalities and counties to promote economic development using revenues from future funding streams. The governing body makes public improvements in a defined, eligible project area with the intent of stimulating economic development. As the development occurs, the value of the property increases within the district, and so do revenues generated from property taxes paid by the owners. Through a TIF, the governing body is allowed to use the revenues generated by the incremental increase in property tax values to pay for the improvements it made to support the development and to help pay for other infrastructure improvements.

Eligible Recipients:

Local Government; For-Profit Business

Eligible Recipients Detail:

Municipalities and counties are eligible to implement tax increment financing in eligible areas of their jusrisidiction.

Eligible Purpose:

General Infrastructure; Last Mile Infrastructure; Building Infrastructure; Anchor Institution Infrastructure

Eligible Purpose Detail:

Eligible redevelopment projects include: publicly owned infrastructure within public rights-of-way; public transit stations and right-of-way; public transit vehicles; public school construction; public beautification (lighting, streetscape, landscaping, etc); public parking structures; municipal building construction; other public buildings (e.g. police, fire stations); land/building acquisition by a public body; interest costs on public financing obligations; site preparation, demolition, cleanup of publicly owned land; park construction; planning, engineering, and other redevelopment-related "soft costs".

Excluded Programs:

X

Other Eligibility Criteria:

TIF districts in South Carolina must be designated a blighted, conservation or agricultural area located within the municipality's or the county's boundaries. Additionally, the redevelopment project area requirements hold an area ineligible for TIF unless the sound growth and redevelopment of that area cannot be accomplished without public intervention (known as a "but for" test). State law also requires each project to be publicly owned. Public hearings are also required to implement a TIF district.

Funding Match/Terms:

X

Source:

https://www.masc.sc/Pages/newsroom/uptown/July%202017/Tax-Increment-Financing-in-South-Carolina.aspx