Income tax; credits for rehabilitation of historic structures; revise expiration and transferability
Summary
HB 1079 revises Georgia’s income tax credit for the rehabilitation of historic structures. The bill changes how long unused credits may be carried forward, shortens the carryforward period to the earlier of full use or the end of the tenth taxable year after the rehabilitation is completed, and provides that any unused amount after that period expires and reverts to the state. It also requires the Department of Revenue to report annually to the Governor and General Assembly on credits that expire and revert.
The bill also updates transferability rules for historic rehabilitation credits. If a certified structure is sold or transferred, the remaining unused credit may be transferred to the purchaser, but the transferred credit remains subject to the same expiration rule and any unused portion at the end of the period also reverts to the state. In addition, the bill adds a provision allowing the General Assembly to appropriate reverted credits for other state economic development initiatives, historic preservation, community revitalization projects, affordable housing, or other public purposes, while clarifying that no taxpayer has a right to receive those funds.
Impact
HB 1079 amends Code Section 48-7-29.8, affecting the state historic rehabilitation tax credit program and the administration of unused credits. It limits the duration of credit carryforwards, preserves transferability in property sales but with a fixed expiration date, and creates a reporting requirement for expired credits. The bill also authorizes the legislature to redirect reverted credit amounts to other state priorities, potentially reducing long-term unused tax credit liabilities and increasing flexibility in state budgeting and economic development policy. The effective date is January 1, 2027.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a technical and policy-oriented adjustment to an existing tax credit rather than a highly controversial proposal. The structure of the bill suggests support for historic preservation and redevelopment incentives while tightening fiscal controls and improving transparency through reporting. No formal vote history or transcript indicates strong opposition or support in the available record.
Contention
The main points of potential contention are the shortened carryforward period and the reversion of unused credits to the state, which may concern taxpayers, developers, and preservation advocates who rely on long-term monetization of historic rehabilitation credits. Another possible issue is the bill’s authorization to reallocate reverted credits to other purposes, which could be viewed as beneficial fiscal stewardship by some and as a reduction in certainty for project sponsors by others. The transferability change is generally preserved, but the new expiration rule may limit the practical value of transferred credits for purchasers.
An act to amend Section 17053.91 of, and to add and repeal Sections 17053.92 and 23692 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Establishes a tax credit for eligible expenses incurred in the rehabilitation of historic structures included on the National Register of Historic Places (Item #19) (RE DECREASE GF RV See Note)
To amend sections 149.311 and 175.16 of the Revised Code to allow area agencies on aging to couple the state historic rehabilitation and low-income housing tax credits and require a minimum price for low-income housing tax credits transferred by area agencies on aging.
Extends the date for eligible expenses to qualify for the tax credit for the rehabilitation of historic structures and extends the effectiveness of the credit (Item #19) (EN SEE FISC NOTE GF RV See Note)