S853 expands and clarifies the state tax credit for redeveloping abandoned buildings. It allows buildings to qualify even if they were not used to generate income before becoming abandoned, clarifies which rehabilitation expenses are eligible, and requires developers to file notice before obtaining a building permit to receive the full credit. The law also prohibits using the tax credit as collateral for debt.
The South Carolina State Senate passed S853 on February 25, 2026 by a vote of 33 to 10. We have assigned pluses to the nays because this legislation expands a preferential tax credit that allows government to favor certain property owners and development projects over others. Such targeted credits distort the free market, shift a greater share of the tax burden onto those who do not qualify, and empower government to pick economic winners and losers. Instead, the Legislature should reduce and eliminate taxes broadly and uniformly for all individuals and businesses.
