State Tax Incentives

Upcoming Changes to the State Income Tax Credit for Rehabilitated Historic Property

Historic Preservation Division has received several inquiries relative to the State Income Tax Credit for Rehabilitated Historic Property, which is currently scheduled under Senate Bill 6 to sunset on December 31, 2022. 

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.

https://dor.georgia.gov/help/subscribe-revenue-emails

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 Natural Resources 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 personal 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 personal residence, and $300,000, $5 million or $10 million for all other properties.

Note: Historic residential and commercial 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.

WARNING: Projects that are initially submitted substantially complete or that do not comply with DNR’s conditions included in our project review letter may preclude use of tax credits.

Case Studies

• Waynesborough Academy Senior Residences - February 2012