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Bill

S 856

Community development corporation tax credit

2025-2026 Regular Session Introduced by Karl Allen and 6 co-sponsors

South Carolina proposes tax credits for investments in Community Development Corporations to stimulate private funding for economic development and affordable housing initiatives.

Referred to Committee on Finance
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Bill Summary · S 856

Legislative bill overview

S 856 establishes a tax credit for taxpayers who invest in or donate to Community Development Corporations (CDCs) in South Carolina. The bill aims to incentivize private capital and philanthropic support for organizations that focus on economic development, affordable housing, job creation, and community revitalization in underserved areas.

Why is this important

CDCs play a critical role in addressing economic inequality and disinvestment in disadvantaged communities. Tax incentives can unlock private funding for projects that might otherwise struggle to attract capital, potentially creating jobs and improving living conditions in underresourced neighborhoods across South Carolina.

Potential points of contention

  • Revenue impact: Tax credits reduce state revenue; analysis needed on fiscal cost versus economic returns and whether benefits justify foregone tax income
  • CDC eligibility and accountability: Questions about which organizations qualify, how effectiveness is measured, and whether credits truly drive incremental investment versus subsidizing activities that would occur anyway
  • Geographic equity: Risk that credits concentrate in certain regions or serve organizations with stronger fundraising capacity rather than those addressing greatest need
  • Corporate vs. individual benefits: Unclear whether credit structure favors large corporate donors over individual investors or community members

Compiled from official sources — confirm details with the bill’s official record.

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