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 <del>$5,000.00</del> <ins>$25,000.00</ins> 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:
<ins>(1)(A)</ins> 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
<ins>(2)(B)</ins> In the case of any other certified structure, equal to:
<ins>(i) Twenty-five</ins> <del>25</del> percent of qualified rehabilitation expenditures <ins>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)</ins> Qualified rehabilitation expenditures may only be counted once in determining the
amount of the tax credit available, and more than one entity <del>may</del> <ins>shall</ins> 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 <del>$10</del> <ins>$15</ins> 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 <del>$30</del> <ins>$60</ins> 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.