HB 1079: Income tax; credits for rehabilitation of historic structures; revise expiration and transferability

House Bill 1079

By: Representatives Jones of the 143rd, Hilton of the 48th, Stephens of the 164th, Washburn of the 144th, Herring of the 145th, and others

A BILL TO BE ENTITLED

AN ACT

To amend Code Section 48-7-29.8 of the Official Code of Georgia Annotated, relating to tax credits for the rehabilitation of historic structures, so as to revise expiration and transferability; to provide for reversion and reporting; to provide for construction; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Code Section 48-7-29.8 of the Official Code of Georgia Annotated, relating to tax credits for the rehabilitation of historic structures, is amended by revising paragraph (1) of subsection

(e) and subsection (f) and adding a new subsection to read as follows: "(e)(1)(A) If the credit allowed under paragraph (1) of subsection (b) of this Code section in any taxable year exceeds the total tax otherwise payable by the taxpayer for that taxable year, the taxpayer may apply the excess as a credit for succeeding years until the earlier of:

(A)(i) The full amount of the excess is used; or

(B)(ii) The expiration of the tenth second taxable year after the taxable year in which the certified rehabilitation has been completed.

(B) Any amount of the historic rehabilitation tax credit that is not claimed within the time frame set forth in division (1)(A)(ii) of this subsection shall expire, be of no further use to the original taxpayer or any transferee, and revert to the state.

(C) The department shall report annually to the Governor and the General Assembly the total amount of historic rehabilitation tax credits that have expired and reverted under subparagraph (B) of this paragraph."

"(f) In the case of any rehabilitation which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, a 60 month period may be substituted for the 24 month period provided for in paragraph (5) of subsection (a) of this Code section Except as otherwise provided in this subsection, in the event a tax credit under this Code section has been claimed and allowed to a taxpayer, upon the sale or transfer of the certified structure, the taxpayer shall be authorized to transfer the remaining unused amount of such credit to the purchaser of such certified structure. A credit transferred under this subsection shall remain subject to the time frame set forth in division (e)(1)(A)(ii) of this Code section and any portion not claimed by the end of such period shall expire and revert to the state." "(h.1)(A) For credits that expire and revert under subparagraph (e)(1)(B) or subsection

(f) of this Code section, the amount of such credits may be appropriated by the General Assembly for other state economic development initiatives, historic preservation programs, community revitalization projects, affordable housing, or other public purposes.

(B) Nothing in this subsection shall create a property right or entitlement to receive such reallocated funds by any specific taxpayer, project, or class of projects."

SECTION 2.

This Act shall become effective on January 1, 2027.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.