In 2000, the State General Assembly passed the South Carolina Community Economic Development Act (SC CED Act) authorizing the appropriation of $5 million over 5 years ($1 million annually) to state certified community development corporations (CDCs) and community development financial institutions (CDFIs). The purpose of the appropriation is to support CDCs and CDFIs whose primary function is to develop projects and activities that enhance economic opportunities and wealth creation through community economic development.
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 CDCs and CDFIs.
The SC Department of Commerce certifies community-based non-profit economic development organizations that are able to offer state tax credits, which are then leveraged with public and private capital to make loans and grants for projects that include housing, small business development, residential and commercial development, and community facilities.
Since 2011, SCCLF has received $2,325,000 million in investments that utilized the tax credit, which was leveraged 4 to 1 to bring additional dollars to South Carolina. As a result, we were able to finance community economic development projects including DP Cooper Elementary (Williamsburg), One80 Place (Charleston), Harvest Food Hub (Spartanburg), and Madison Station Apartments (Columbia).
After two previous reauthorizations, one in 2005 and the second in 2010, the bill is set to expire this year unless reauthorized by the General Assembly. It is currently in the House Ways and Means Committee and is set to go to the Senate floor within the next two weeks after being voted favorably by the Senate Finance Committee.
We urge you to join us in contacting your local representative and ask that they support legislation to reauthorize the SC Community Economic Development Act of 2000. Doing so will secure a vital flow of capital that is transforming and revitalizing communities in South Carolina.