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

26 HB 376/AP House Bill 376 (AS PASSED HOUSE AND SENATE) By: Representatives Hilton of the 48th, Sainz of the 180th, Hagan of the 156th, Stephens of the 164th, Buckner of the 137th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to the imposition, rate, computation, exemptions, and credits for state income tax,2 so as to revise a tax credit for the rehabilitation of certified structures; to increase the amount3 of expenditures required for certain certified structures to qu alify; to provide for credit4 amounts and limits; to provide for related matters; to provide for an effective date and5 applicability; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the9 imposition, rate, computation, exemptions, and credits for state income tax, is amended in10 Code Section 48-7-29.8, relating to tax credits for the rehabilitation of historic structures, by11 revising paragraph (5) of subsection (a) and subsections (b) and (c) as follows:12 "(5) 'Substantial rehabilitation' means rehabilitation of a certified structure for which the13 qualified rehabilitation expenditures, at least 5 percent of which must be allocable to the14 exterior during the 24 month period selected by the taxpayer en ding with or within the15 taxable year, exceed:16 H. B. 376 - 1 - 26 HB 376/AP (A) For a historic home, the lesser of $25,000.00 or 50 percent of the adjusted basis of17 the property as defined in subparagraph (a)(1)(B) of Code Section 48-5-7.2; or, in the18 case of a historic home located in a target area, $5,000.00; or19 (B) For any other certified structure, the greater of $5,000.0 0 $25,000.00 o r t h e20 adjusted basis of the property."21 "(b)(1) A taxpayer shall be allowed a tax credit against the tax imposed by this chapter22 in the year that the certified rehabilitation is placed in service, which may be up to two23 years after the end of the taxable year for which the credit was originally reserved:24 (1)(A) In the case of a historic home, equal to 25 percent of qualif ied rehabilitation25 expenditures, except that, in the case of a historic home located within a target area, an26 additional credit equal to 5 percent of qualified rehabilitatio n expenditures shall be27 allowed; and28 (2)(B) In the case of any other certified structure, equal to:29 (i) Twenty-five 2 5 percent of qualified rehabilitation expenditures for credits30 approved prior to January 1, 2026; or31 (ii) Twenty percent of qualified rehabilitation expenditures for credits approved on32 or after January 1, 2026, except that, in the case of any other certified structure33 located in a county having a population of less than 50,000 according to the United34 States decennial census of 2010 or any such future census, an additional credit equal35 to 10 percent of qualified rehabilitation expenditures shall be allowed.36 (2) Qualified rehabilitation expenditures may only be counted once in determining the37 amount of the tax credit available, and more than one entity may shall not claim a credit38 for the same qualified rehabilitation expenditures."39 "(c)(1) In no event shall credits for a historic home exceed $100,000.00 in any 120 month40 period.41 (2) The maximum credit for any other individual certified structure shall be $5 million42 for any taxable year, except in the case that the project creates 200 or more full-time,43 H. B. 376 - 2 - 26 HB 376/AP permanent jobs or $5 million in annual payroll within two years of the placed in service44 date, in which case the project is eligible for credits up to $ 10 $15 million for an45 individual certified structure. In no event shall more than on e application for any46 individual certified structure under this paragraph be approved in any 120 month47 period.48 (3)(A) In no event shall credits issued under this Code sectio n for historic homes49 exceed $5 million in aggregate per year.50 (B) In no event shall credits issued under this Code section for certified structures other51 than historic homes exceed $30 $60 million in aggregate per year.52 (C) On and after January 1, 2030, in no event shall credits be issued under this Code53 section."54 SECTION 2.55 This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years56 beginning on or after January 1, 2026.57 SECTION 3.58 All laws and parts of laws in conflict with this Act are repealed.59 H. B. 376 - 3 -