The Georgia State Income Tax Credit Program for Rehabilitated Historic Properties provides a state tax credit equal to 25 percent of qualified rehabilitation costs (QREs) 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.
Aggregate cap ($300,000 credit cap): None
Aggregate cap ($5 million and $10 million credit caps): $25 million annually for all projects
Projects applying for the $5 million and $10 million credit caps are allocated credits sequentially. In order for a project to qualify, the building must be a certified historic structure and the rehabilitation must be a substantial rehabilitation and follow the Secretary of the Interior’s Standards for Rehabilitation. The tax credit program requires that a two-part application be submitted to the SHPO usually submitted with the federal tax credit application.
Sunset date: 2021
MHA is participating in a statewide effort to extend the current state income-producing properties historic tax credit program past its 2021 sunset date. Tax credit allocations have already been depleted through 2021 and new historic rehabilitation projects are no longer receiving state tax credit allocations. MHA has worked on many successful Georgia historic rehabilitation projects and is working to ensure that this important tax credit program is renewed for future years. If you are interested in joining the Georgia coalition, please contact MHA.
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
cOMPLETION dATE: 2017
Sibley Mill (Phase 1)
Office and Educational
Client: Cape Augusta
Project Costs: $9.04 million
HTC equity: Over $3.71 million
cOMPLETION dATE: 2018