Changes to the State Income Tax Credit for Rehabilitated Historic Property
The Georgia Department of Revenue (DOR) has statutory responsibility for the associated regulation, Revenue Regulation 560-7-8-.56. DOR will propose changes to the regulation which will incorporate the changes made by SB 6 and provide instructions. DOR is working on that regulation and will propose it as soon as the work is done. To receive notice that DOR has posted a proposed income tax credit regulation please join DOR’s income and withholding listserve at the link below.
State tax incentives are available for owners of a historic property who carry out a substantial rehabilitation. All properties must be listed in, or eligible for, the National/Georgia Register of Historic Places, either individually or as part of a National/Georgia Register Historic District. Project work must meet the Secretary of the Interior’s Standards for Rehabilitation and the Georgia Department of Community Affairs Standards for Rehabilitation (pdf).
- State Preferential Property Tax Assessment for Rehabilitated Historic Property – Freezes the county property tax assessment for more than 8 years. Available for principal residences as well as income-producing properties. The owner must increase the fair market value of the building by 50 – 100%, depending on its new use.
- State Income Tax Credit for Rehabilitated Historic Property – The Georgia State Income Tax Credit Program for Rehabilitated Historic Property allows eligible participants to apply for a state income tax credit equaling 25 percent of qualifying rehabilitation expenses capped at $100,000 for a principal residence, and $5 million or $10 million for all other properties.
Important things to note before continuing
- Properties are eligible to participate in both programs.
- Property must be a “certified structure," which means it must be listed in the National/Georgia Register(s) of Historic Places. The Historic Preservation Division must certify the rehabilitation.
- Per HB 469, the state income tax credit for principal residences sunsets in 2024.
- Projects that are initially submitted substantially complete or that do not comply with DCA’s conditions included in our project review letter may preclude use of tax incentives.