How It Works?

Property Developers who rehabilitate qualifying South Carolina properties generate South Carolina income tax credits (“SC Tax Credits”).  Often these projects generate more SC Tax Credits than the Property Developers can utilize.  These Developers then seek to monetize the excess, which provide additional capital contributions into their Projects.  TCM assists Property Developers with properly applying for SC Tax Credits and structuring their Projects so they can take full advantage of SC Tax Credits.

While the rehabilitation work is being completed, the Developer tracks qualifying expenses.  The total of these qualifying expenses establishes the amount of SC Tax Credits the Project will generate under the applicable Act(s).  In concert with this process, TCM reviews the Project’s financial statements, formation/operating agreements and qualifying expenses and then ensures the SC Tax Credits are certified by an outside accounting firm.  TCM will also work with local municipalities to secure the proper documentation required. TCM's guidance creates a turnkey process, which greatly simplifies the Developer’s ongoing role and expenses in monetizing its SC Tax Credits.  

TCM establishes annual funds (each, a “Fund”) to invest additional capital in these credit-generating Projects completed within the applicable year.  The Fund purchases limited ownership interests in the Projects (usually in the form of limited liability memberships) and is allocated all or a portion of such Projects’ SC Tax Credits. 

Separately that year's fund sets forth: Information about the year’s Projects and their available SC Tax Credits are normally set forth in Offering Documents provided by the Fund to Qualified Buyers (see next steps tab under Tax Credit Buyers).  Each Fund usually has multiple types of SC Tax Credits available.  Qualified Buyers may purchase units of the Fund and then receive an allocation of the Fund’s SC Tax Credits.  This allocation is individually tailored to best suit each Qualified Buyer’s needs.  

TCM’s marketplace provides SC Tax Credit owners (Property Developers) a single source to monetize their unused SC Tax Credits and concurrently provides Qualified Buyers a single source for Project and tax credit research and a convenient purchasing vehicle. The actual structuring and transfer of the LLC units/tax credits can be a complex process.  TCM’s extensive experience and its streamlined processes help to close these transactions quickly and efficiently.    TCM brings efficiency to an otherwise inefficient market.