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Online marketplace lets developers sell revitalization credits

South Carolina developers interested in monetizing their revitalization credits now have a marketplace for transactions.
 

The Tax Credit Marketplace opened in October of last year and provides an online auction website for accredited investors to invest in projects, receive allocated credits, and reduce their state income tax, said John W. Boyd, founder of the Tax Credit Marketplace.

The company was formed following requests by real estate developers to assist them in sourcing investors for tax credits they were unable to use during economic decline, said Boyd.

“I realized in 2013 there was an opportunity for commercializing the idea and putting it in an online forum,” he said.

Developers have three options now available to generate South Carolina tax credits: the South Carolina Textiles Communities Revitalization Act, the South Carolina Abandoned Buildings Revitalization Act, and the Retail Facilities Revitalization Act.

Boyd said developers earn the credits based on the amount of money they spend on a particular project.

He said the Mills Mill project provides a good local example of the textiles act, Claussen Bakery in West Greenville is an example of the abandoned buildings act, and the ONE project in downtown Greenville provides a good example of retail revitalization.

The tax credits can be used in lieu of cash payment against South Carolina state income taxes, Boyd said.

“If you’re a taxpayer that has a $35,000 state income tax liability and you’ve got $25,000 worth of credit, you can apply those credits against your tax liability,” he said.

The Tax Credit Marketplace is building a database for developers to monetize their tax credits, bringing additional, often substantial dollars back into their projects, Boyd said.

“We’re looking for two different people to place in our database – one is the developer with the credits, and the other is the investor,” he said. “We provide a avenue that puts these folks together.”

http://upstatebusinessjournal.com/news/online-marketplace-lets-developers-sell-revitalization-credits/