HB 970 — Income tax; credits for the rehabilitation of historic structures; revise procedures, conditions, and limitations

Summary

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, and exemptions from state income taxes, so as to revise procedures, conditions, and limitations relating to tax credits for the rehabilitation of historic structures; to authorize promulgation of regulations; to provide for preapproval of additional tax credits for current recipients of tax credits; to provide for related matters; to provide for effective dates; to provide for applicability; to provide for an automatic repeal and for reenactment of prior provisions; to repeal conflicting laws; and for other purposes.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 2 section(s) of the Official Code of Georgia Annotated: O.C.G.A. § 48-5-7.2; O.C.G.A. § 48-7-29.8.

• O.C.G.A. § 48-5-7.2

  must in the year that $5 , 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 million for an individual certified structure $300,000.00 A taxpayer commissioner department must earned A , but no further sale or assignment of any credit previously sold or assigned pursuant to this subparagraph shall be allowed A must and must . Only a , and no subsequent good faith transferee credits must owning the project → 0 1392 claiming the tax credit hom shal e any structu e or group of s multi urpo cture, includi g a cooperativ uilding is such person' principal resi expendit at are properly allocable to s a hi toric (4) 'Qualified rehabilit abili ation diture as defi ed by Section 198 and mount properly chargeable to ntial ehab n of a structu e that by the tifie reh ion is completed is a certifie e cos of a ion of the cer ified structure, dditi ns t isting building, site preparati (5) 'Substantial rehabi structure f ch the qualifi d rehabilitation shall cable to the exterior during t within the tax ble year, excee (A) For a historic ho sis of the p operty as defin in the case f a historic ho (B) or any other ce sis of the p operty. (6) 'Ta get area' means venue Code f 1986, foun Urban Development docume (b) A ta payer shall be at such time as LC 44 1392 (2) The maximum credit for any other individual certified structure shall be $7.5 million for any taxable year . In no event shall more than one application for any individual certified structure under this paragraph be approved in any 120 month period. (3) In no event shall credits issued under this Code section for projects earning more than $500,000.00 in credits exceed in the aggregate $25 million per calendar year. If in any calendar year the aggregate amount available is not fully applied, allocated, returned, and used, the balance of unused aggregate amount shall increase the aggregate maximum of the subsequent calendar year by such balance. (d)(1) An applicant seeking to claim a tax credit under paragraph (2) of subsection (b) of this Code section shall submit an application to the department for preapproval of such tax credit. An applicant shall, at the time of application, either own the real property for which said tax credit is to be claimed, or be a party to a written purchase contract, written option contract, written lease-purchase contract, or written lease having a term of more than 40 years. Such application shall include a precertification from the Department of Natural Resources certifying that the improvements to the certified structure are to be consistent with the Department of Natural Resources Standards for Rehabilitation. The commissioner shall have the authority to require electronic submission of such application in the manner specified by the department. The commissioner shall preapprove the tax credits within 30 days based on the order in which properly completed applications were submitted. In the event that two or more applications were submitted on the same day and the amount of funds available will not be sufficient to fully fund the tax credits requested, the commissioner shall prorate the available funds between or among the applicants. For applications on projects over the annual $25 million limitation together with any applicable rollover as authorized under paragraph (3) of subsection (c) of this Code section s sha l be the e to eceiv utho shall such LC 44 1392 ear, the taxpayer may apply the excess as a credit for succeeding years until the earlier : (A) The full amount of the excess is used; or (B) The expiration of the tenth taxable year after the taxable year in which the certified rehabilitation has been completed. ) Any tax credits with respect to credits held by a taxpayer under paragraph (2) subsection (b) of this Code section and previously claimed by the taxpayer but not ed by such taxpayer against its income tax may be transferred or sold in whole or in art by such taxpayer to another Georgia taxpayer, subject to the following conditions: (A) An applicant or taxpayer who makes qualified rehabilitation expenditures may sell or assign all or part of the tax credit that may be claimed for such costs and expenses to one or more entities until the full amount of the credit is fully used All such tr s provided by s b c) of his C An applicant or r who sells it is s ld or depa tmen shall ign sol tax he c nd ow the a cr redi ma the LC 44 1392 regard to

  amended

• O.C.G.A. § 48-7-29.8

  rticle 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to come tax imposition, rate, computation, and exemptions, is amended by repealing Code ection 48-7-29.8, relating to tax credits for the rehabilitation of historic structures, and acting a new Code Section 48-7-29.8 to read as follows: "48-7-29.8. (a) As used in this Code section, the term: (1) 'Certified rehabilitation' means repairs or alterations to a certified structure which are certified by the Department of Natural Resources as meeting the United States Secretary of the Interior's Standards for Rehabilitation or the Georgia Standards for Rehabilitation as provided by the Department of Natural Resources. (2) 'Certified structure' means a historic building or structure that is located within a national historic district, individually listed on the National Register of Historic Places, individually listed in the Georgia Register of Historic Places, or is certified by the Department of Natural Resources as contributing to the historic significance of a Georgia Register Historic District. (3) 'Historic home' means a certified structure which, or any portion of which is or will, within a reasonable period, be owned and used as the principal residence of the person claiming the tax credit allowed under this Code section. Historic home shall include any structure or group of structures that constitute a multifamily or multipurpose structure, including a cooperative or condominium. If only a portion of a building is used as such person'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. (4) 'Qualified rehabilitation expenditure' means any qualified rehabilitation expenditure as defined by Section 47(c)(2) of the Internal Revenue Code of 1986 and any amount properly chargeable to a capital account expended in the substantial rehabilitation of a structure that by the end of the taxable year in which the certified rehabilitation is completed is a certified structure. This term does not include the cost of acquisition of the certified structure, the cost attributable to enlargement or additions to an existing building, site preparation, or personal property. (5) 'Substantial rehabilitation' means rehabilitation of a certified structure for which the qualified rehabilitation expenditures, at least 5 percent of which shall 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 0 LC 44 1392 (B) For any other certified structure, the greater of $5,000.00 or the adjusted basis of the property. (6) 'Target area' means a qualified census tract under Section 42 of the Internal Revenue Code of 1986, found in the United States Department of Housing and Urban Development document number N-94-3821; FR-3796-N-01. (b) A taxpayer shall be allowed a tax credit against the tax imposed by this chapter at such time as the certified rehabilitation is completed: (1) 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) In the case of any other certified structure, equal to 25 percent of qualified rehabilitation expenditures. Qualified rehabilitation expenditures may only be counted once in determining the amount of the tax credit available, and more than one entity may 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.

  amended

Action History

1. February 24, 2020

   House Second Readers

2. February 21, 2020

   House First Readers

3. February 20, 2020

   House Hopper

Sponsors

• Vance Smith · Primary
• Calvin Smyre · Primary
• Bonnie Rich · Primary
• Matt Hatchett · Primary
• Debbie Buckner · Primary
• Mark Newton · Primary

Subjects