CD Tax Credits
The South Carolina Community Economic Development Act of 2000 was authorized to support community-based, non-profit organizations that focus on improving quality of life and creating economic opportunity in low-income communities. In addition to creating the Community Economic Development Fund grant program, the legislation also authorized $5 million in South Carolina Community Development Tax Credits for eligible investments and contributions to certified organizations.
The state allows a 33% credit against state tax liabilities to South Carolina businesses, corporations, insurance companies, financial institutions and individuals for each dollar invested in or donated to certified Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs).
2016 Community Development Tax Credit Usage
$1,000,000 in credits claimed
$0 in credits available
As of June 16, 2016 all Community Development Tax Credits have been claimed.
Only donations made to SC Department of Commerce certified CDCs and CDFIs qualify for the 33% tax credit. CDCs are non-profit community-based development organizations that are established to promote economic opportunities in low-wealth communities. CDFIs are non-profit community-based financial institutions that are established to provide responsible and affordable financial products and services that will promote economic growth in under-served neighborhoods and communities.
Make an Investment
Note: If the amount of the credit determined exceeds the taxpayer’s state tax liability for the applicable taxable year, the taxpayer may carry forward the excess to the immediately succeeding taxable years. However, the credit carry-over may not be used for a taxable year that begins on or after the ten years from the date of the investment-contribution.
Raise Money for Your Organization
Could your organization benefit from the CD Tax Credit Program? Only certified CDCs and CDFIs qualify for these tax credit donations.