---
title: HB 376. Income tax; rehabilitation of certified structures; increase amount of tax credits
collection: bills
id: 2025-2026/hb376
cite_as: HB 376, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb376
md_url: https://georgiacommons.org/bills/2025-2026/hb376.md
text_url: https://georgiacommons.org/bills/2025-2026/hb376/text
source_url: https://www.legis.ga.gov/legislation/70138
date: 2026-05-12
status: vetoed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1634
omitted_url: https://georgiacommons.org/bills/2025-2026/hb376.md?full=1
bill_number: HB 376
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-12
last_action: Veto V2
sponsors:
- Scott Hilton
- Steven Sainz
- Leesa Hagan
- Ron Stephens
- Debbie Buckner
- Patty Stinson
- Mike Hodges
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB376/2025
upstream_id: 1964556
summaries_model: claude-sonnet-5
topic_tags:
- income tax credits
- historic preservation
- economic development
- rural counties
- state budget
---
# HB 376. Income tax; rehabilitation of certified structures; increase amount of tax credits
## Text
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 Code of Georgia Annotated,
relating to the imposition, rate, computation, exemptions, and credits for state income tax,
so as to revise a tax credit for the rehabilitation of certified structures; to increase the amount
of expenditures required for certain certified structures to qualify; to provide for credit
amounts and limits; to provide for related matters; to provide for an effective date and
applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the
imposition, rate, computation, exemptions, and credits for state income tax, is amended in
Code Section 48-7-29.8, relating to tax credits for the rehabilitation of historic structures, by
revising paragraph (5) of subsection (a) and subsections (b) and (c) as follows:
"(5) 'Substantial rehabilitation' means rehabilitation of a certified structure for which the
qualified rehabilitation expenditures, at least 5 percent of which must be allocable to the
exterior during the 24 month period selected by the taxpayer ending with or within the
taxable year, exceed:
(A) For a historic home, the lesser of $25,000.00 or 50 percent of the adjusted basis of
the property as defined in subparagraph (a)(1)(B) of Code Section 48-5-7.2; or, in the
case of a historic home located in a target area, $5,000.00; or
(B) For any other certified structure, the greater of $5,000.00 $25,000.00 or the
adjusted basis of the property."
"(b)(1) A taxpayer shall be allowed a tax credit against the tax imposed by this chapter
in the year that the certified rehabilitation is placed in service, which may be up to two
years after the end of the taxable year for which the credit was originally reserved:
(1)(A) In the case of a historic home, equal to 25 percent of qualified rehabilitation
expenditures, except that, in the case of a historic home located within a target area, an
additional credit equal to 5 percent of qualified rehabilitation expenditures shall be
allowed; and
(2)(B) In the case of any other certified structure, equal to:
(i) Twenty-five 25 percent of qualified rehabilitation expenditures for credits
approved prior to January 1, 2026; or
(ii) Twenty percent of qualified rehabilitation expenditures for credits approved on
or after January 1, 2026, except that, in the case of any other certified structure
located in a county having a population of less than 50,000 according to the United
States decennial census of 2010 or any such future census, an additional credit equal
to 10 percent of qualified rehabilitation expenditures shall be allowed.
(2) Qualified rehabilitation expenditures may only be counted once in determining the
amount of the tax credit available, and more than one entity may shall not claim a credit
for the same qualified rehabilitation expenditures."
"(c)(1) In no event shall credits for a historic home exceed $100,000.00 in any 120 month
period.
(2) The maximum credit for any other individual certified structure shall be $5 million
for any taxable year, except in the case that the project creates 200 or more full-time,
permanent jobs or $5 million in annual payroll within two years of the placed in service
date, in which case the project is eligible for credits up to $10 $15 million for an
individual certified structure. In no event shall more than one application for any
individual certified structure under this paragraph be approved in any 120 month
period.
(3)(A) In no event shall credits issued under this Code section for historic homes
exceed $5 million in aggregate per year.
(B) In no event shall credits issued under this Code section for certified structures other
than historic homes exceed $30 $60 million in aggregate per year.
(C) On and after January 1, 2030, in no event shall credits be issued under this Code
section."
SECTION 2.
This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years
beginning on or after January 1, 2026.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 376 would expand Georgia's income tax credit for rehabilitating certified historic structures, raising spending thresholds, credit percentages for job-creating projects, and yearly statewide caps. The Governor vetoed the bill.
### Plain-language summary
Georgia offers an income tax credit under O.C.G.A. ยง 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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Vetoed (2026-05-12)
- Last action: Veto V2 (2026-05-12)
- Sponsors: Scott Hilton, Steven Sainz, Leesa Hagan, Ron Stephens, Debbie Buckner, Patty Stinson, Mike Hodges
- Official page: https://www.legis.ga.gov/legislation/70138
> The history, votes, and amendments (1,634 characters) are at https://georgiacommons.org/bills/2025-2026/hb376.md?full=1