The South Carolina Association for Community Economic Development provides members a platform for collaborative advocacy. We support institutional and system changes that will positively impact low wealth communities and the non-profits that serve them. Learn more about our Public Policy Agenda below.
2019 Public Policy Agenda
Pass New Community Development Tax Credit Legislation
Currently, the Community Economic Development law provides a 33% state tax credit to donors and investors who invest in certified Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs). These tax credits increase economic development by attracting private capital; and incentivizing equity investments and contributions. Between 2014 and 2017 these credits attracted over $15 million in private capital to low-wealth communities to increase economic activities by creating: over 900 jobs, over 75 small businesses and having an economic impact of over $88 million. This innovative economic development tool is completely depleted.
Senate Bill S.424 & House Bill H. 4133 highlights:
Equity investments receive a 33% state tax credit & contributions receive a 50% state tax credit
Statewide total tax credits will be:
$1M in tax year 2019
$2M in tax year 2020
$3M in tax year 2021- 2023
Tax credits will be issued on a first-come, first served basis as follows:
A single CDC or CDFI may not receive more than 25% of the statewide grand total per year
During the first three quarters of each tax year, 25% of tax credits must be held in reserve for small rural CDCs and CDFIs
All remaining credits must be released during the fourth quarter.
Credits must be claimed by investors within three years of being acquired
Any bank or financial institution with tax liabilities in South Carolina may invest and receive tax credits
The statutory sunset of this tax credit is extended to 2023
Host site visits in partnership with certified organizations across South Carolina for legislators to see community development projects that benefited from the CD Tax Credit.
Mobilize SCACED members and partners to advocate to legislators for passage of CD Tax Credit legislation.
Host legislative luncheon on February 6, 2019.
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. To ensure Opportunity Zones have a positive impact on low income communities, SCACED will educate and advocate to potential investors and opportunity fund managers about the appropriate projects (projects developed by SCACED members) in which to invest. These efforts aim to minimize any potential long-term adverse consequences Opportunity Zones may have on low-income census tracts.
SCACED, in collaboration with the SC Community Capital Alliance, has developed and promoted Guiding Principles to the public and the investor community.
SCACED is working with The Federal Reserve of Richmond to connect investors with potential projects in designated Opportunity Zones.
SC Housing (SC Housing Development Finance and Development Authority)
SCACED recognizes the importance of affordable housing in South Carolina and values SC Housing as the key agency for resources and programs. As a collective voice, SCACED is advocating on behalf of our nonprofit members to strengthen the relationship between nonprofits and SC Housing. SC Housing has recently experienced a leadership change and SCACED has started open communications with the new Executive Director.
Compile information from SCACED members on SC Housing delivery and accessibility of programs. The report will highlight not only barriers, but solutions to a more improved relationship with SC Housing in their programs.
Host "Meet and Greet'" breakfast for members to meet Executive Director and Leadership Team.