A state credit of up to the federal LIHTC award — and the layer that makes a mill-to-affordable-housing conversion work. Capacity is the variable to watch.
| Quick Facts — SC Housing Tax Credit (State LIHTC) | |
|---|---|
| Credit amount | Up to the federal LIHTC amount approved for the project — the state credit mirrors, but does not automatically equal, the federal award |
| Administered by | SC Housing, alongside the federal 9% and 4% LIHTC programs |
| Status | Originally uncapped (2020); a one-time $100 million authorization followed in 2022; 2025 legislation allocated approximately $29.8 million of remaining credits. Confirm current capacity before underwriting. |
| Applies to | Buildings placed in service January 1, 2020 – December 31, 2030 under the current act |
| Stacks with | Federal LIHTC; federal and state historic credits; the SC textile mill credit; the SC abandoned buildings credit |
The phrase that matters in underwriting is “up to.” The state credit is measured against the federal LIHTC amount approved for the project, and a project should not be underwritten on the assumption that the state award will match the federal number dollar for dollar. Run the projections both with and without it.
We track SC Housing’s allocation cycles and the legislative authorizations in real time, prepare projections with and without the state credit, and structure twinned historic and LIHTC deals so each credit lands with the investor best able to use it.
Ask about current SC LIHTC capacityOfficial references: S.C. Code §12-6-3795; SC Housing; Workforce and Senior Affordable Housing Act.
This credit’s history is a series of authorizations rather than a standing annual allocation. It was enacted in 2020 without a cap, drew a one-time $100 million authorization in 2022, and in 2025 legislation allocated roughly $29.8 million of remaining credits. Capacity has therefore been episodic, and a deal that pencils on the state credit in one allocation cycle may not in the next.
The practical discipline: treat the state credit as upside in the base case, not as the thing that makes the deal work, unless SC Housing has confirmed the award. Then, where it is awarded, make sure the capital stack can actually absorb it — state LIHTC investors are a narrower market than federal.
We confirm live capacity before you underwrite, and we know which investors are actually buying South Carolina housing credits in the current cycle.
Check current capacity for my dealThe most powerful version of this credit is the layered one. A historic mill converted to affordable housing can carry federal and state historic credits, the textile mill credit, and federal and state LIHTC on the same building.
| Program | Stacks? |
|---|---|
| Federal LIHTC (9% or 4%) | Yes — the state credit is measured against the federal award |
| SC textile mill credit (25%) | Yes, on a qualifying mill-to-housing conversion |
| SC abandoned buildings credit (25%) | Yes, on a qualifying residential conversion |
| Federal and SC historic credits | Yes, on certified historic adaptive reuse |
These are the most intricate capital stacks in real estate. Each credit has its own compliance period, its own investor market, and its own basis interactions — and LIHTC basis adjustments in particular change the historic credit math. Layer them in the wrong order and value leaks out.
Yes. The South Carolina Housing Tax Credit, enacted in 2020, provides a credit of up to the federal low-income housing tax credit amount approved for the project, for qualified developments approved by SC Housing. Availability is subject to legislative authorization, so current capacity should be confirmed before underwriting.
Not necessarily. The credit is up to the federal LIHTC amount approved for the project. A deal should not be underwritten on the assumption that the state award matches the federal number dollar for dollar — run the projections both with and without it.
Capacity has been episodic rather than a standing annual allocation: uncapped at enactment in 2020, a one-time $100 million authorization in 2022, and roughly $29.8 million of remaining credits allocated by 2025 legislation. Confirm the current position with SC Housing before relying on it.
Yes. On a qualifying conversion the SC Housing Tax Credit can stack with the SC textile mill credit or the SC abandoned buildings credit, as well as with federal and state historic credits and federal LIHTC. Mill-to-affordable-housing conversions are the classic case.
Under the current act the credit applies to buildings placed in service between January 1, 2020 and December 31, 2030.
Historic, textile, federal LIHTC and state LIHTC on one building. We have done it. Send us the deal.
