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 has approved new rules which incorporate the changes made by HB 469 . To receive notice regarding future DOR changes to their income tax credit regulation please join DOR’s income and withholding listserve at the link below.
PROGRAM UPDATE: After August 15th, all state and federal applications submitted to HPD must be submitted digitally. Neither NPS nor HPD will accept any applications or amendments in physical form after that date. Additional information regarding new federal forms, instructions, naming conventions, and file formats will be provided by July 10th.
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.
