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Reflecting on 2025: Another Milestone Year for Tax Credit Investment in South Carolina

This past year has shown us firsthand how South Carolina and federal tax credits continue to connect developers, investors, and communities through shared financial opportunities.

On December 31, 2025, we officially closed our 2025 South Carolina Tax Credit Fund, marking another record-breaking year. This year’s fund sourced $61 million in income tax credits—a 37% increase from 2024—further showing the momentum behind tax credit investments in the Palmetto State’s commercial real estate market.

Our 2025 Fund included over 160 investors and supported 29 rehabilitation and development projects in ten counties across the state including: Greenville, Anderson, Spartanburg, Richland, York, Charleston, Florence, Lexington, Sumter, and Kershaw. From historic restorations to new mixed-use and multifamily developments, these projects represented more than $240 million in total development costs— a clear indicator of the accelerating market momentum behind tax credit–driven investment.

The Power of Tax Credits in Real Estate

For developers, these tax credits are valuable because they create a simple way to source additional equity into their projects that reduces financial strain and increases cash flow. Through our annual state fund, developers can monetize tax credits generated from qualifying projects—whether it’s the restoration of historic properties, the rehabilitation of abandoned buildings, or the construction of new residential and commercial spaces.

Qualified investors, in turn, can subscribe to these credits to offset their South Carolina state tax liability—creating a win-win scenario that fuels economic growth and revitalization.

Our annual state fund invests directly into qualifying projects by purchasing a limited partnership interest. This structure allows the fund— and its investors —to be allocated the state tax credits that are generated by its projects. Those credits offer investors a savings on their state tax payments while simultaneously providing liquidity for developers to put into new projects. The diversity of our investments allows us to deploy capital across a wide range of transformative redevelopment projects throughout South Carolina.

We work hand in hand with developers to help them maximize the value of available credits. Our team assists in structuring projects to meet state and federal compliance requirements, ensuring that every credit opportunity is fully realized.

This collaborative effort benefits everyone involved—developers, investors, and the communities we’re helping to grow.

Diverse Projects with Meaningful Impact

Our 2025 Fund invested across a variety of asset classes, including hospitality, industrial, retail, mixed-use, and student housing developments. Beyond state tax credits, our team also facilitated the placement of $1.2 million in Federal Historic Tax Credits, broadening the financial reach of our investments and creating even more impact across the state.

But, beyond the numbers, it’s the stories that matter—the historic buildings brought back to life, the underutilized spaces transformed into economic anchors, and the neighborhoods strengthened by new opportunities. Every project represents more than just financial success—it’s a step toward preserving South Carolina’s heritage and building a stronger future for its residents and growing population.

Looking Ahead

As we look ahead to 2026, we continue to be encouraged by the continued growth of tax credit investment in South Carolina. Developer demand remains strong, investor participation continues to expand, and the state’s ongoing population and job growth are creating new opportunities. Our team is engaged with our state legislators as we advocate for the extension and improvement of tax policy updates that secure state tax credits for the communities we serve. 

At Tax Credit Marketplace, we’re committed to helping our partners navigate this evolving landscape. With an even larger fund already in development for 2026, we’re excited to continue combining capital and elevating communities.