24 LC 50 0683
House Bill 1134
By: Representatives Stephens of the 164
th
, Sainz of the 180
th
, and Buckner of the 137
th
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to the imposition, rate, computation, exemptions, and credits relative to income2
taxes, so as to extend the sunset date for the tax credits for the rehabilitation of historic3
structures; to expand the criteria for historic homes to qualify for such credits; to increase the4
aggregate caps for credits related to historic structures other than historic homes; to provide5
for a five-year carry-forward period for credits for historic structures other than historic6
homes; to extend a provision for an automatic repeal; to provide for related matters; to7
provide for an effective date and applicability; to repeal conflicting laws; and for other8
purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the12
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended13
by revising Code Section 48-7-29.8, relating to tax credits for the rehabilitation of historic14
structures and conditions, and limitations, as follows:15
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"48-7-29.8.
16
(a) As used in this Code section, the term:17
(1) 'Certified rehabilitation' means repairs or alterations to a certified structure which are18
certified by the Department of Community Affairs as meeting the United States Secretary19
of the Interior's Standards for Rehabilitation or the Georgia Standards for Rehabilitation20
as provided by the Department of Community Affairs.21
(2) 'Certified structure' means a historic building or structure that is located within a22
national historic district, individually listed on the National Register of Historic Places,23
individually listed in the Georgia Register of Historic Places, or is certified by the24
Department of Community Affairs as contributing to the historic significance of a25
Georgia Register Historic District; provided, however, that on and after January 1, 2026,
26
such term, as it relates to historic homes, means a historic building or structure that is27
certified by the Department of Community Affairs as contributing to the historic28
significance of a listed National Register Historic District, individually listed on the29
National Register of Historic Places, is certified by the Department of Community Affairs30
as contributing to the historic significance of a listed Georgia Register Historic District,31
individually listed in the Georgia Register of Historic Places, or designated as a historic32
property or contributing to a district under local law and certified by the Department of33
Community Affairs as meeting National Register criteria.34
(3) 'Historic home' means a certified structure which, or any portion of which is or will,35
within a reasonable period, be owned and used as the principal residence of the person36
claiming the tax credit allowed under this Code section. Historic home Such term shall37
include any structure or group of structures that constitute a multifamily or multipurpose38
structure, including a cooperative or condominium. If only a portion of a building is used39
as such person's principal residence, only those qualified rehabilitation expenditures that40
are properly allocable to such portion shall be deemed to be made to a historic home.41
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(4) 'Qualified rehabilitation expenditure' means any qualified rehabilitation expenditure
42
as defined by Section 47(c)(2) of the Internal Revenue Code of 1986 and any amount43
properly chargeable to a capital account expended in the substantial rehabilitation of a44
structure that by the end of the taxable year in which the certified rehabilitation is45
completed is a certified structure. This
Such term does shall not include the cost of46
acquisition of the certified structure, the cost attributable to enlargement or additions to47
an existing building, site preparation, or personal property.48
(5) 'Substantial rehabilitation' means rehabilitation of a certified structure for which the49
qualified rehabilitation expenditures, at least 5 percent of which must shall be allocable50
to the exterior during the 24 month period selected by the taxpayer ending with or within51
the taxable year, exceed:52
(A) For a historic home, the lesser of $25,000.00 or 50 percent of the adjusted basis of53
the property as defined provided for in subparagraph (a)(1)(B) of Code Section54
48-5-7.2; or, in the case of a historic home located in a target area, $5,000.00; or55
(B) For any other certified structure, the greater of $5,000.00 or the adjusted basis of56
the property.57
(6) 'Target area' means a qualified census tract under Section 42 of the Internal Revenue58
Code of 1986, found in the United States Department of Housing and Urban59
Development document number N-94-3821; FR-3796-N-01.60
(b) A taxpayer shall be allowed a tax credit against the tax imposed by this chapter in the61
year that the certified rehabilitation is placed in service, which may be up to two years after62
the end of the taxable year for which the credit was originally reserved:63
(1) In the case of a historic home, equal to 25 percent of qualified rehabilitation64
expenditures, except that, in the case of a historic home located within a target area, an65
additional credit equal to 5 percent of qualified rehabilitation expenditures shall be66
allowed; and67
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(2) In the case of any other certified structure, equal to 25 percent of qualified
68
rehabilitation expenditures.69
Qualified rehabilitation expenditures may
shall only be counted once in determining the70
amount of the tax credit available, and more than one entity may shall not claim a credit71
for the same qualified rehabilitation expenditures.72
(c)(1) In no event shall credits for a historic home exceed $100,000.00 in any 120 month73
period.74
(2) The maximum credit for any other individual certified structure shall be $5 $7.575
million for any taxable year, except in the case that the project creates 200 or more76
full-time, permanent jobs or $5 million in annual payroll within two years of the placed77
in service date, in which case the project is shall be eligible for credits up to $10 $1578
million for an individual certified structure. In no event shall more than one application79
for any individual certified structure under this paragraph be approved in any 120 month80
period.81
(3)(A) Prior to January 1, 2022, in no event shall credits issued under this Code section82
for projects earning more than $300,000.00 in credits exceed in the aggregate $2583
million per calendar year.84
(B) For calendar year 2022, in no event shall credits issued under this Code section85
exceed $5 million in aggregate for all projects earning $300,000.00 or less, or $2586
million in aggregate for all projects earning more than $300,000.00.87
(C) For calendar years 2023 and 2024, in In no event shall credits issued under this88
Code section for historic homes exceed $5 million in aggregate per year. On and after89
January 1, 2025, no credits shall be issued under this Code section for historic homes.90
(D)(B) For calendar years 2023 through 2027, in In no event shall credits issued under91
this Code section for certified structures other than historic homes exceed $30 $6092
million in aggregate per year.93
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(E)(C) On and after January 1, 2028 2029, in no event shall credits be issued under this94
Code section.95
(d)(1) A taxpayer seeking to claim a tax credit under paragraph (2) of subsection (b) of96
this Code section shall submit an application to the commissioner for preapproval of such97
tax credit. Such application shall include a precertification from the Department of98
Community Affairs certifying that the improvements to the certified structure are to be99
consistent with the Department of Community Affairs Standards for Rehabilitation. The100
Department department shall have the authority to require electronic submission of such101
application in the manner specified by the department. The commissioner shall102
preapprove the tax credits within 30 days based on the order in which properly completed103
applications were submitted. In the event that two or more applications were submitted104
on the same day and the amount of funds available will not be sufficient to fully fund the105
tax credits requested, the commissioner shall prorate the available funds between or106
among the applicants. Applications submitted after the annual limitations provided for107
in paragraph (3) of subsection (c) of this Code section have been met shall be given108
priority the following year.109
(2) In order to be eligible to receive the credit authorized under subsection (b) of this110
Code section, a taxpayer must shall attach to the taxpayer's state tax return a copy of the111
completed certification of the Department of Community Affairs verifying that the112
improvements to the certified structure are consistent with the Department of Community113
Affairs Standards for Rehabilitation.114
(e)(1) If the credit allowed under paragraph (1) of subsection (b) of this Code section in115
any taxable year exceeds the total tax otherwise payable by the taxpayer for that taxable116
year, the taxpayer may apply the excess as a credit for succeeding years until the earlier117
of:118
(A) The full amount of the excess is used; or119
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(B) The expiration of the tenth taxable year after the taxable year in which the certified
120
rehabilitation has been completed.121
(2) If the credit allowed under paragraph (2) of subsection (b) of this Code section in any
122
taxable year exceeds the total tax otherwise payable by the taxpayer for that taxable year,123
the taxpayer may apply the excess as a credit for succeeding years until the earlier of:124
(A) The full amount of the excess is used; or125
(B) The expiration of the fifth taxable year after the taxable year in which the certified126
rehabilitation has been completed.127
(2)(3) Any tax credits with respect to credits earned by a taxpayer under paragraph (2)128
of subsection (b) of this Code section and previously claimed but not used by such129
taxpayer against its income tax may be transferred or sold in whole or in part by such130
taxpayer to another Georgia taxpayer, subject to the following conditions:131
(A) A taxpayer who that makes qualified rehabilitation expenditures may sell or assign132
all or part of the tax credit that may be claimed for such costs and expenses to one or133
more entities, but no further sale or assignment of any credit previously sold or assigned134
pursuant to this subparagraph shall be allowed. All such transfers shall be subject to135
the maximum total limits provided by subsection (c) of this Code section;136
(B) A taxpayer who that sells or assigns a credit under this Code section and the entity137
to which the credit is sold or assigned shall jointly submit written notice of the sale or138
assignment to the department not later than 30 days after the date of the sale or139
assignment. The Such notice must shall include:140
(i) The date of the sale or assignment;141
(ii) The amount of the credit sold or assigned;142
(iii) The names and federal tax identification numbers of the entity that sold or143
assigned the credit or part of the credit and the entity to which the credit or part of the144
credit was sold or assigned; and145
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(iv) The amount of the credit owned by the selling or assigning entity before the sale
146
or assignment and the amount the selling or assigning entity retained, if any, after the147
sale or assignment;148
(C) The sale or assignment of a credit in accordance with this Code section does
shall149
not extend the period for which a credit may be carried forward and does shall not150
increase the total amount of the credit that may be claimed. After an entity claims a151
credit for eligible costs and expenses, another entity may shall not use the same costs152
and expenses as the basis for claiming a credit;153
(D) Notwithstanding the requirements of this subsection, a credit earned or purchased154
by, or assigned to a partnership, limited liability company, Subchapter 'S' corporation,155
or other pass-through entity may be allocated to the partners, members, or shareholders156
of that entity and claimed under this Code section in accordance with the provisions of157
any agreement among the partners, members, or shareholders of that entity and without158
regard to the ownership interest of the partners, members, or shareholders in the159
rehabilitated certified structure, provided that the entity or person that claims the credit160
must shall be subject to Georgia tax; and161
(E) Only a taxpayer who earned a credit, and no subsequent good faith transferee, shall162
be responsible in the event of a recapture, reduction, disallowance, or other failure163
related to such credit.164
(3)(4) No such credit shall be allowed the taxpayer against prior years' tax liability.165
(f) In the case of any rehabilitation which may reasonably be expected to be completed in166
phases set forth in architectural plans and specifications completed before the rehabilitation167
begins, a 60 month period may be substituted for the 24 month period provided for in168
paragraph (5) of subsection (a) of this Code section.169
(g)(1) Except as otherwise provided in subsection (h) of this Code section, in the event170
a tax credit under this Code section has been claimed and allowed the taxpayer, upon the171
sale or transfer of the certified structure, the taxpayer shall be authorized to transfer the172
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remaining unused amount of such credit to the purchaser of such certified structure. If
173
a historic home for which a certified rehabilitation has been completed by a nonprofit174
corporation is sold or transferred, the full amount of the credit to which the nonprofit175
corporation would be entitled if taxable shall be transferred to the purchaser or transferee176
at the time of sale or transfer.177
(2) Such purchaser shall be subject to the limitations of subsection (e) of this Code178
section. Such purchaser shall file with such purchaser's tax return a copy of the approval179
of the rehabilitation by the Department of Community Affairs as provided in subsection180
(d) of this Code section and a copy of the form evidencing the transfer of the tax credit.181
(3) Such purchaser shall be entitled to rely in good faith on the information contained in182
and used in connection with obtaining the approval of the credit including, without183
limitation, the amount of qualified rehabilitation expenditures.184
(h)(1) If an owner other than a nonprofit corporation sells a historic home within three185
years of receiving the credit, the seller shall recapture the credit to the Department of186
Revenue as follows:187
(A) If the property is sold within one year of receiving the credit, the recapture amount188
will
shall equal the lesser of the credit or the net profit of the sale;189
(B) If the property is sold within two years of receiving the credit, the recapture190
amount will shall equal the lesser of two-thirds of the credit or the net profit of the sale;191
or192
(C) If the property is sold within three years of receiving the credit, the recapture193
amount will shall equal the lesser of one-third of the credit or the net profit of the sale.194
(2) The recapture provisions of this subsection shall not apply to a sale resulting from the195
death of the owner.196
(i)(1) In the event that a taxpayer claims the tax credit under paragraph (2) of subsection197
(b) of this Code section and leases such certified structure, the department shall aggregate198
all total sales tax receipts from the certified structure.199
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(2) Any taxpayer claiming credits under paragraph (2) of subsection (b) of this Code
200
section shall report to the department the average full-time employees employed at the201
certified structure. A full-time employee for the purposes of this Code section shall mean202
a person who works a job that requires 30 or more hours per week. Such reports must
203
shall be submitted to the department for five calendar years following the year in which204
the credit is claimed by the taxpayer.205
(3) In the event that a taxpayer claims the tax credit under paragraph (2) of subsection206
(b) of this Code section and leases such certified structure, the department shall aggregate207
all total full-time employees at the certified structure.208
(j) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, the department shall209
furnish a report to the chairperson of the House Committee on Ways and Means and the210
chairperson of the Senate Finance Committee by June 30 of each year. Such report shall211
contain the total sales tax collected in the prior calendar year and the average number of212
full-time employees at the certified structure and the total value of credits claimed for each213
taxpayer claiming credits under paragraph (2) of subsection (b) of this Code section.214
(k) The tax credit allowed under paragraph (1) of subsection (b) of this Code section, and215
any recaptured tax credit, shall be allocated among some or all of the partners, members,216
or shareholders of the entity owning the project in any manner agreed to by such persons,217
whether or not such persons are allocated or allowed any portion of any other tax credit218
with respect to the project.219
(l) The Department of Community Affairs and the Department of Revenue shall prescribe220
such regulations as may be appropriate to carry out the purposes of this Code section.221
(m) The Department of Community Affairs shall report, on an annual basis, on the overall222
economic activity, usage, and impact to the state from the rehabilitation of eligible223
properties for which credits provided by this Code section have been allowed.224
(n) This Code section shall stand repealed and reserved by operation of law on December225
31, 2027 2028."226
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SECTION 3.
227
This Act shall become effective on January 1, 2025, and shall be applicable to taxable years228
beginning on or after such date.229
SECTION 4.230
All laws and parts of laws in conflict with this Act are repealed.231
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