An uncapped 25% state credit that stacks on the 20% federal historic credit — the program behind the mill revival in Greenville, Spartanburg, and across the Upstate.
| Quick Facts — SC Textile Mill Credit | |
|---|---|
| Credit amount | 25% of qualified rehabilitation expenses |
| Cap | No per-site dollar cap on the income tax election |
| Eligibility | Textile mill site — the mill, its land, and ancillary uses — at least 80% closed or nonoperational for one year or more |
| How claimed | Income tax / corporate license fee credit in equal installments over five years beginning when placed in service; or a property tax election |
| Site scope | Successive statutory amendments have progressively expanded the eligible surrounding property and qualifying expenses |
| Stacks with | 20% federal historic credit and the SC state historic credit — expressly claimable in addition |
The absence of a per-site cap is what separates this credit from every other rehabilitation incentive in the state. A $40 million mill rehabilitation generates $10 million of South Carolina credit — where the abandoned buildings credit would cap out at $700,000 and the state historic credit at $1 million under its 25% election. It is the reason South Carolina mills are among the most financeable historic assets in America.
The five-year installment schedule is the structuring constraint. Credits arrive over five years while construction costs arrive immediately, so bridge financing against committed equity is usually part of the capital stack rather than an afterthought.
Mill deals live or die on structuring: the five-year installment schedule, the federal and state stack, and the investor’s tax appetite all have to align. We have modelled and closed this exact structure dozens of times — and we invest our own fund capital in qualifying mills.
Bring us your millOfficial references: S.C. Code §12-65 (Textiles Communities Revitalization Act); SC Department of Revenue.
The textile statute expressly permits the credit to be claimed in addition to historic rehabilitation credits. That produces the deepest state-plus-federal stack available on a Carolina building.
| Illustrative — $30M qualified expenses, certified historic mill | |
|---|---|
| Federal historic credit (20%) | $6,000,000, claimed ratably over five years |
| SC textile mill credit (25%) | $7,500,000, uncapped, over five years |
| SC historic credit (10% uncapped option) | $3,000,000, over three years |
| Combined credits | $16,500,000 — 55% of qualified expenses |
On a mill converting to affordable housing, federal LIHTC and the SC Housing Tax Credit can layer on top of that — the most intricate capital stacks in American real estate, and the most rewarding when structured correctly.
Illustration only, not a projection or tax advice. Actual credits depend on certified expenditures, elections, and investor pricing.
This is the program that transformed Greenville, Spartanburg, and mill towns across the state — and it is where The Sherbert Group has its deepest track record. Moxie Investment Funds has invested in dozens of South Carolina textile mill projects, and Sherbert Consulting has structured and closed the credit stack on many more.
If you are weighing a Carolina mill site on either side of the border, note that North Carolina answers this with a different instrument: the Article 3H mill credit at 40% of qualified expenditures, also uncapped, but mutually exclusive with the NC historic credit. We model both states.
We price the full stack, place each credit with the investor best able to use it, coordinate the bridge against the five-year installment timing, and close. Moxie can invest alongside.
Submit your mill projectThe Textiles Communities Revitalization Act provides a credit equal to 25% of rehabilitation expenses at abandoned textile mill sites — sites at least 80% nonoperational for one year or more. The taxpayer elects either a 25% income tax and corporate license fee credit claimed over five years, or a 25% real property tax credit.
No. There is no per-site dollar cap on the income tax election, which is what distinguishes this credit from every other South Carolina rehabilitation incentive. The abandoned buildings credit caps at $700,000 per site and the state historic credit at $1 million under its 25% election.
Yes. The statute expressly allows the textile mill credit to be claimed in addition to historic rehabilitation credits. A qualifying mill can stack the 25% SC textile credit, the 20% federal historic credit, and the SC state historic credit on the same rehabilitation.
Under the income tax election, in equal installments over five years beginning in the year the site is placed in service. Because credits arrive over five years while construction costs arrive immediately, bridge financing against committed equity is usually part of the capital stack.
The mill itself plus its land and ancillary uses, at least 80% closed or nonoperational for one year or more. Successive amendments have progressively expanded the eligible surrounding property and the expenses that qualify, so a current reading of the site definition matters on a large parcel.
North Carolina's Article 3H mill credit is 40% of qualified expenditures in a tier one or two county, also uncapped, but it cannot be combined with the NC state historic credit. South Carolina's 25% is lower but stacks with both state and federal historic credits. Which state nets more depends on the project — we model both.
If your project is a South Carolina textile mill, you will not find a team that has closed more of these credit structures.
