South Carolina H 5488: Textiles revitalization

Bill Text

2025-2026 Bill 5488 Text of Previous Version (Apr. 28, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5488

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter 
Stricken

Indicates New Matter

Committee Report

April 28, 2026

H. 5488

Introduced 
by Reps. B. Newton and M. M. Smith 

S. Printed 4/28/26--H.

Read the first time April 1, 2026

________

The committee on House Ways and 
Means

To whom was referred a Bill (H. 5488) to amend 
the South Carolina Code of Laws by amending Section 12-65-20, relating to 
definitions for the South Carolina Textiles Communities Revitalization Act, so, 
etc., respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

B.W. BANNISTER for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill amends the South Carolina 
Textiles Communities Revitalization Act tax credit to specify that in order for 
expenses to qualify for the credit, the requirement to renovate or demolish the 
textile mill and buildings in a Notice of Intent to Rehabilitate applies 
independently to each notice without regard to the status of any parcel or 
building not in the notice. This bill would allow a taxpayer that owns a 
contiguous parcel that qualifies for the credit to claim the credit before the 
textile mill has been rehabilitated if the parcel on which the textile mill 
sits is owned by a different, unaffiliated taxpayer. If the parcels are owned 
by the same or an affiliated taxpayer, then the textile mill and building on 
the mill site must be either renovated or demolished in order for the expenses 
related to a contiguous parcel to qualify for the credit.

This bill will not impact expenditures for 
DOR as the changes to forms and guidance can be completed with existing staff 
and resources.

State Revenue

This bill amends the South Carolina 
Textiles Communities Revitalization Act tax credit to specify that in order for 
expenses to qualify for the credit, the requirement to renovate or demolish the 
textile mill and buildings in a Notice of Intent to Rehabilitate applies 
independently to each notice without regard to the status of any parcel or 
building not in the notice. The Act allows taxpayers to claim a credit against local 
real property taxes or state income tax, corporate license fees, insurance 
premium taxes, or bank taxes for qualifying expenses incurred to rehabilitate a 
textile mill site. 

Currently, DOR has provided guidance which 
specifies that in order to qualify for the credit, each owner of a subparcel 
must renovate or demolish all buildings which were on the original textile mill 
site, and each taxpayer's eligibility for the credit is dependent on the 
compliance by all owners of the subparcels with the requirement to renovate or 
demolish the textile mill and all buildings on the mill site. This bill would 
allow a taxpayer that owns a contiguous parcel that qualifies for the credit to 
claim the credit before the textile mill has been rehabilitated if the parcel 
on which the textile mill sits is owned by a different, unaffiliated taxpayer. 
If the parcels are owned by the same or an affiliated taxpayer, then the 
textile mill and buildings on the mill site must be either renovated or 
demolished in order for the expenses related to a contiguous parcel to qualify 
for the credit. 

Based on discussions with DOR, this bill 
would allow a taxpayer to claim a credit for qualifying expenses before the 
unaffiliated taxpayer completes the demolition or renovation of the textile 
mill site, but it does not change the amount of the credit or which properties 
qualify. Therefore, the bill is not expected to change the amount of credits or 
impact state and local revenues overall although the timing of when the credits 
are claimed may change. 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH 
CAROLINA CODE OF LAWS BY AMENDING SECTION 12-65-20, RELATING TO DEFINITIONS FOR 
THE SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT, SO AS TO SPECIFY 
QUALIFYING REQUIREMENTS FOR CERTAIN REHABILITATION EXPENSES.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-65-20(8)(a) of the S.C. Code is amended to 
read:

 (a) "Rehabilitation expenses" means the 
expenses or capital expenditures incurred in the rehabilitation, renovation, or 
redevelopment of the textile mill site, including without limitations, the 
demolition of existing buildings, environmental remediation, site improvements 
and the construction of new buildings and other improvements on the textile 
mill site, but excluding the cost of acquiring the textile mill site or the 
cost of personal property located at the textile