Federal Income Tax Incentives
A federal income tax credit equal to 20% of rehabilitation expenses is available only for income-producing properties. The application is first reviewed by the Historic Preservation Division (HPD) and then forwarded to the National Park Service for final decision.
Learn more about federal income tax incentives on the National Park Service website.
State Income Tax Incentives
State Income Tax Incentives freeze the county property tax assessment for over 8 years and is available for personal residences as well as income-producing properties. The owner must increase their fair market value of the building by 50% to 100%, depending on its new use. The Georgia Department of Community Affairs Historic Preservation Division and the Georgia Department of Revenue administers the program.
- The application is a two/three-part process, describing before and after rehabilitation. Ideally, project work should be submitted before work begins and be completed within two years.
- Applications for all three programs are sent to HPD, and must be reviewed and approved by HPD (and afterward National Park Service for the Rehabilitation Investment Tax Credit.)
- There are substantial cost tests that must be met to qualify for each program.
For more information, visit the Georgia Department of Community Affairs website.
A state income tax credit of 25% of rehabilitation expenses is also available. The credit is capped at $100,000 for residences and $300,000 for income-producing properties. This amended tax credit is allowed for the taxable year in which the certified rehabilitation is completed.