An article in the Post & Courier a few weeks back sparked national attention on South Carolina’s Community Development Tax Credit, its purpose, and the benefits it provides CDCs and CDFIs in the state.

The South Carolina Community Economic Development Act of 2000 was authorized to support projects and activities of community-based, non-profit organizations that focus on improving the quality of life and creating economic opportunity in low-income communities through partnerships.

The legislation authorizes 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 or donated to certified Community Development Corporations (CDCs) & Community Development Financial Institutions (CDFIs).

Since the legislation was last reauthorized in 2010, SCCLF has received $1,675,000 in tax credit investments that have been leveraged to attract an additional $7.6M in capital to support the development of affordable housing, healthy food outlets, community facilities, and community businesses throughout South Carolina. We believe the SC CD Tax Credit is an effective public-private tool and urge our legislators to reauthorize the SC CED Act in 2015.