HB376: HB376 Income tax; rehabilitation of certified structures; increase amount of tax credits

Georgia currently offers an income tax credit for rehabilitating certified historic structures, aimed at encouraging renovation of older buildings. This bill changes the rules under O.C.G.A. § 48-7-29.8. It raises the minimum qualified rehabilitation spending needed for a non-home certified structure to count as 'substantial rehabilitation' from $5,000 to $25,000 or the property's adjusted basis, whichever is greater. The bill also adjusts credit percentages: for non-home structures, credits approved before 2026 stay at 25 percent, but those approved on or after January 1, 2026 drop to 20 percent, with an extra 10 percent for structures in counties under 50,000 people. It raises the top per-project credit for job-creating projects from $10 million to $15 million, and raises the statewide annual cap for non-home structures from $30 million to $60 million. The changes would apply to taxable years beginning on or after January 1, 2026, with an effective date of July 1, 2026. The credit program would end for new credits issued after January 1, 2030.

• Raises the minimum qualified rehabilitation spending for non-home certified structures to qualify as 'substantial rehabilitation' to $25,000 or the property's adjusted basis, whichever is greater.
• Lowers the base credit rate for non-home certified structures approved on or after January 1, 2026 from 25 percent to 20 percent of qualified expenditures.
• Adds a 10 percent bonus credit for rehabilitation projects in counties with fewer than 50,000 residents based on the 2010 census.
• Raises the maximum per-project credit for job-creating rehabilitations (200+ jobs or $5 million payroll) from $10 million to $15 million.
• Doubles the statewide annual aggregate cap on credits for non-home certified structures from $30 million to $60 million.
• Clarifies that qualified rehabilitation expenditures can only be counted once and cannot be claimed by more than one entity for the same expenditures.

Property owners and developers who rehabilitate certified historic structures in Georgia, including owners of historic homes and larger commercial or institutional buildings, as well as the Georgia Department of Revenue, which administers the tax credit program.

Developers seeking Georgia's historic rehabilitation credit would need to spend more to qualify and would receive a lower base credit rate on larger projects, but could access higher overall credit caps, especially for job-creating projects and buildings in smaller counties, changing the financial calculus for renovating older Georgia buildings.

• Section 1 revises the definition of 'substantial rehabilitation' in O.C.G.A. § 48-7-29.8(a)(5), raising the qualifying expenditure threshold for non-home structures to $25,000 or the adjusted basis, whichever is greater.
• Section 1 sets the credit rate for non-home certified structures at 20 percent for approvals on or after January 1, 2026, down from 25 percent, with a 10 percent bonus for projects in counties under 50,000 residents.
• Section 1 raises the maximum credit for job-creating individual certified structure projects from $10 million to $15 million.
• Section 1 raises the annual aggregate cap on credits for certified structures other than historic homes from $30 million to $60 million.
• Section 1 states that no credits under this Code section shall be issued on or after January 1, 2030.
• Section 2 sets the effective date as July 1, 2026, applicable to taxable years beginning on or after January 1, 2026.

1. 2026-05-12Veto V2
2. 2026-05-12House Date Vetoed by Governor (House)
3. 2026-04-06House Sent to Governor (House)
4. 2026-03-23House Agreed Senate Amend or Sub (House)
5. 2026-03-18Senate Passed/Adopted By Substitute (Senate)
6. 2026-03-18Senate Third Read (Senate)
7. 2026-03-18Senate Engrossed (Senate)
8. 2026-03-16Senate Read Second Time (Senate)

• Scott Hilton (R, HD-048)Primary sponsor
• Steven Sainz (R, HD-180)
• Leesa Hagan (R, HD-156)
• Ron Stephens (R, HD-164)
• Debbie Buckner (D, HD-137)
• Patty Stinson (D, HD-150)
• Mike Hodges (R, SD-003)

1. PassedHouse voteMarch 4, 2026

   161 yea, 9 nay (4 not voting, 3 absent)

   Passage: House Vote #624

2. PassedSenate voteMarch 18, 2026

   30 yea, 20 nay (3 not voting, 1 absent)

   Motion To Engross: Hb 376, Hb 1159: Senate Vote #729

3. PassedSenate voteMarch 18, 2026

   46 yea, 2 nay (0 not voting, 6 absent)

   Passage By Substitute: Senate Vote #740

4. PassedHouse voteMarch 23, 2026

   152 yea, 10 nay (7 not voting, 7 absent)

   Agree To Senate Substitute: House Vote #740

• income tax credits
• historic preservation
• economic development
• real estate rehabilitation