HB 376: Income tax; rehabilitation of certified structures; increase amount of tax credits

Georgia offers an income tax credit under O.C.G.A. § 48-7-29.8 to encourage people to renovate certified historic structures, including historic homes and other certified buildings. This bill would have raised the minimum amount a property owner must spend on a non-home certified structure to qualify from $5,000 to $25,000 (or the property's adjusted basis, whichever is greater). It also would have changed the credit rate for non-home structures: 25 percent for credits approved before January 1, 2026, dropping to 20 percent afterward, with an extra 10 percent available in counties under 50,000 people. The bill would have raised the maximum credit for an individual large project that creates 200 or more jobs or $5 million in payroll from $10 million to $15 million, and increased the annual statewide cap for non-home structure credits from $30 million to $60 million. The changes would apply to taxable years starting on or after January 1, 2026, and the credit program would end entirely after January 1, 2030. The bill was passed by the House and Senate but was vetoed by the Governor.

• Raises the minimum qualifying rehabilitation spending for non-home certified structures from $5,000 to $25,000 or the property's adjusted basis, whichever is greater.
• Lowers the base credit rate for non-home certified structures from 25 percent to 20 percent for credits approved on or after January 1, 2026, while keeping 25 percent for earlier approvals.
• Adds a 10 percent bonus credit for projects in counties with populations under 50,000 based on the 2010 census or later.
• Raises the maximum credit for a large job-creating or high-payroll project from $10 million to $15 million per individual structure.
• Raises the annual statewide cap on credits for non-home certified structures from $30 million to $60 million.
• Sets a sunset date of January 1, 2030, after which no new credits under this program can be issued.

Property owners and developers rehabilitating certified historic structures in Georgia, including owners of historic homes and larger commercial or institutional buildings, especially in smaller counties with fewer than 50,000 residents. The state Department of Revenue, which administers the credit, and the state budget, through the higher aggregate credit caps, are also affected.

The bill would have made it harder for small projects on non-home structures to qualify by raising the spending floor, but it would have let large job-creating projects and rural county projects claim bigger tax credits, potentially shifting hundreds of millions of dollars in credits used through 2030. Because it was vetoed, none of these changes take effect.

• Section 1 raises the substantial rehabilitation spending threshold for non-home certified structures from $5,000 to $25,000 or the property's adjusted basis, whichever is greater.
• Section 1 restructures the credit rate for non-home structures into 25 percent for pre-2026 approvals and 20 percent afterward, plus a 10 percent bonus in counties under 50,000 people.
• Section 1 changes the rule on double-claiming credits from 'may not' to 'shall not' claim credits for the same expenditures.
• Section 1 raises the large-project credit cap from $10 million to $15 million for structures creating 200+ jobs or $5 million in payroll within two years.
• Section 1 raises the annual aggregate cap on non-home structure credits from $30 million to $60 million and sets a January 1, 2030 end date for the entire credit program.
• 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
• rural counties
• state budget