The State of Georgia income tax credit program provides a state tax credit equal to 25% of qualified rehabilitation costs with project credit caps set at $300,000, $5 million, and $10 million. To receive the $10 million cap, the project must generate 200 or more full-time, permanent jobs or $5 million in annual payroll. The state will not provide more than $25 million total in credits for projects applying for the $5 million and $10 million caps on an annual basis. Projects are allocated credits sequentially, with the $25 million allocations per year ending in 2021. There is no limit on allocations for those projects applying for the $300,000 cap. The tax credit program requires that a two-part application be submitted to the SHPO usually submitted with the federal tax credit application.
Who can use the credit?
The Georgia State Income Tax Credit can be used by any owner or pass-through entity (with the proper documentation showing ownership or membership of such entity). The credits may be transferred in whole or in part to another Georgia taxpayer or multiple different Georgia taxpayers, but each credit may only be transferred once (the transferee(s) may not then transfer the credits).
State preferential property tax assessment for rehabilitated historic property
The assessment program freezes the assessed value of the property during the rehabilitation (not to exceed 24 months) and continues the pre-rehabilitation assessment value for eight years following completion of the project.
Client: National Church Residences
Project Costs: $9.9 million
HTC equity: Over $1.8 million
Sibley Mill (Phase 1)
Office and Educational
Client: Cape Augusta
Project Costs: $9.04 million
HTC equity: Over $3.71 million