Ga. Comp. R. & Regs. R. 110-37-6-.03 - Program Benefits and Limitations; Substantial Rehabilitation
(1)
The amount of the credit shall be determined pursuant to O.C.G.A. Sec.
48-7-29.8.
(a) For all certified rehabilitations the
amount of the credit equals 25% of qualified rehabilitation
expenditures.
(b) For certified
rehabilitation of a historic home in a HUD designated target area the amount of
the credit equals 30% of qualified rehabilitation expenditures.
(2) Effective for tax years
beginning on or after January 1, 2009:
(a) The
amount of the credit for a certified rehabilitation of a historic home may not
exceed $100,000 in any 120 month (10-year) period.
1. If only a portion of a historic home is
used as the owner's principal residence, only those qualified rehabilitation
expenditures that are properly allocable to such portion shall be deemed to be
made to a historic home. The expenditures that then are allocable to the
remainder of the building are not eligible for the credit.
2. In the case of a certified rehabilitation
of a historic home that is a unit of a multifamily or multipurpose structure or
group of structures the credit for the entire certified structure is limited to
$100,000. In this situation the $100,000 credit shall be allocated between the
owners based upon the qualified rehabilitation expenditures of each
owner.
(b) The amount of
the credit for a certified rehabilitation of a certified structure, excluding
historic homes, may not exceed $300,000 in any 120 month (10-year) period.
1. Individual buildings within a group of
buildings listed in the Georgia Register as an individual property/building(s),
judged by the Department to be functionally related historically and with
distinct primary/secondary hierarchical and proportional relationships, are
collectively a single certified structure. Accordingly, the credit for the
certified structure in aggregate is limited to $300,000.
2. Individual buildings within a group of
buildings listed in the Georgia Register as an individual property/building(s),
judged by the Department to be functionally related historically and without
distinct primary/secondary hierarchical and proportional relationships, may be
separately eligible for the credit.
3. Individual buildings within a group of
buildings determined to be contributing to a Georgia Register listed historic
district, judged by the Department to be functionally related historically and
with distinct primary/secondary hierarchical and proportional relationships,
are collectively a single certified structure. Accordingly, the credit for the
certified structure in aggregate is limited to $300,000.
4. Individual buildings within a group of
buildings determined to be contributing to a Georgia Register-listed historic
district, judged by the Department to be functionally related historically and
without distinct primary/secondary hierarchical and proportional relationships,
may be separately eligible for the credit.
5. In the case of a certified rehabilitation
of a certified structure with multiple units and ownership, the credit for the
entire certified structure is limited to $300,000. In this situation the
$300,000 credit shall be allocated between the owners based upon the qualified
rehabilitation expenditures of each owner.
(c) The aggregate amount of credits for
certified rehabilitations, including historic homes, earning and applying for
$300,000 or less in credits may not exceed $5,000,000 in calendar year 2022.
1. Assignment and award of credits shall be
in accordance with rules and procedures established by the Department of
Revenue.
2. Determination and
assignment of actual amount of available credit for an individual project shall
be in accordance with rules and procedures established by the Department of
Revenue
(3)
Effective for certified rehabilitations completed on or after January 1, 2017
and on or before December 31, 2027:
(a) The
amount of the credit for a certified rehabilitation of a certified structure,
excluding historic homes, may not exceed $5,000,000 in any 120 month (10-year)
period during which time only a single application for any individual certified
structure may be approved if the amount of credits received is greater than
$300,000.
1. Individual buildings within a
group of buildings listed in the Georgia Register as an individual
property/building(s), judged by the Department to be functionally related
historically and with distinct primary/secondary hierarchical and proportional
relationships, are collectively a single certified structure. Accordingly, the
credit for the certified structure in aggregate is limited to
$5,000,000.
2. Individual buildings
within a group of buildings listed in the Georgia Register as an individual
property/building(s), judged by the Department to be functionally related
historically and without distinct primary/secondary hierarchical and
proportional relationships, may be separately eligible for the
credit.
3. Individual buildings
within a group of buildings determined to be contributing to a Georgia Register
listed historic district, judged by the Department to be functionally related
historically and with distinct primary/secondary hierarchical and proportional
relationships, are collectively a single certified structure. Accordingly, the
credit for the certified structure in aggregate is limited to
$5,000,000.
4. Individual buildings
within a group of buildings determined to be contributing to a Georgia
Register-listed historic district, judged by the Department to be functionally
related historically and without distinct primary/secondary hierarchical and
proportional relationships, may be separately eligible for the
credit.
5. In the case of a
certified rehabilitation of a certified structure with multiple units and
ownership, the credit for the entire certified structure is limited to
$5,000,000. In this situation the $5,000,000 credit shall be allocated between
the owners based upon the qualified rehabilitation expenditures of each owner.
(b) The amount of the
credit for a certified rehabilitation of a certified structure, excluding
historic homes, where the project creates 200 or more full-time, permanent jobs
or $5,000,000 in annual payroll within two years of the placed in service date
may not exceed $10,000,000 in any 120 month (10-year) period during which time
only a single application for any individual certified structure may be
approved.
1. Individual buildings within a
group of buildings listed in the Georgia Register as an individual
property/building(s), judged by the Department to be functionally related
historically and with distinct primary/secondary hierarchical and proportional
relationships, are collectively a single certified structure. Accordingly, the
credit for the certified structure in aggregate is limited to
$10,000,000.
2. Individual
buildings within a group of buildings listed in the Georgia Register as an
individual property/building(s), judged by the Department to be functionally
related historically and without distinct primary/secondary hierarchical and
proportional relationships, may be separately eligible for the
credit.
3. Individual buildings
within a group of buildings determined to be contributing to a Georgia
Register-listed historic district, judged by the Department to be functionally
related historically and with distinct primary/secondary hierarchical and
proportional relationships, are collectively a single certified structure.
Accordingly, the credit for the certified structure in aggregate is limited to
$10,000,000.
4. Individual
buildings within a group of buildings determined to be contributing to a
Georgia Register-listed historic district, judged by the Department to be
functionally related historically and without distinct primary/secondary
hierarchical and proportional relationships, may be separately eligible for the
credit.
5. In the case of a
certified rehabilitation of a certified structure with multiple units and
ownership, the credit for the entire certified structure is limited to
$10,000,000. In this situation the $10,000,000 credit shall be allocated
between the owners based upon the qualified rehabilitation expenditures of each
owner.
(4) The
aggregate amount of credits may not exceed:
(a) $25,000,000 in each calendar year 2017
through 2022 for certified rehabilitations earning and applying for more than
$300,000 in credits
(b) $5,000,000
in calendar year 2022 for certified rehabilitations earning and applying for
$300,000 or less in credits, including historic homes
(c) $5,000,000 in each calendar year 2023 and
2024 for certified rehabilitations earning and applying for $100,000 or less in
credits for historic homes
(d)
$30,000,000 in each calendar year 2023 through 2027 for certified
rehabilitations, excluding historic homes.
(5) Assignment and award of credits shall be
in accordance with rules and procedures established by the Department of
Revenue.
(6) Determination and
assignment of actual amount of available credit for an individual project shall
be in accordance with rules and procedures established by the Department of
Revenue.
(7) Assignment, sale, or
transfer of tax credits provided by O.C.G.A. Sec.
48-7-29.8 shall be in accordance
with rules and procedures established by the Department of Revenue.
(8) Substantial rehabilitation of a certified
structure requirements:
(a) Qualified
rehabilitation expenditures for substantial rehabilitation purposes must be
expended during a continuous 24 month period selected by the taxpayer.
1. For phased projects a 60 month period may
be substituted for the 24 month period.
(i)
Phased projects must be identified at preliminary certification
application.
(b) A minimum of 5 percent of qualified
rehabilitation expenditures for substantial rehabilitation purposes must be
allocable to the exterior of the certified structure.
(c) For a historic home the qualified
rehabilitation expenditures for substantial rehabilitation purposes must exceed
the lesser of $25,000 or 50 percent of the adjusted basis of the property at
the beginning of the 24 month period, as defined in subparagraph (a)(1)(B) of
O.C.G.A. Sec.
48-5-7.2, which is the fair market
value of the building (exclusive of the land) as determined by the county tax
assessor.
1. For a historic home located in a
target area the qualified rehabilitation expenditures for substantial
rehabilitation purposes must be at least $5,000.
(d) For any other certified structure the
qualified rehabilitation expenditures for substantial rehabilitation purposes
must exceed the greater of $5,000 or the adjusted basis of the property as of
the beginning of the 24 month period (60 month period for phased projects). For
purposes of this subparagraph, the term "adjusted basis of the property" means
the same as used in the Internal Revenue Code of 1986 (exclusive of the land),
which is the basis used to determine gain or loss upon sale or disposition
exclusive of the land.
(e)
Qualified rehabilitation expenditures may only be counted once in determining
substantial rehabilitation or determining the amount of the credit.
1. More than one entity may not claim a
credit for the same qualified rehabilitation expenditures.
(9) For purposes of the
Georgia State Income Tax Credit Program for Rehabilitated Historic Property, no
costs pertaining to new additions to the certified structure(s) or new
construction adjacent to or related to the certified structure(s) shall be
considered a qualified rehabilitation expenditure or be recoverable as a tax
credit.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.