Historic rehabilitation tax credits are directly responsible for the revitalization of many commercial buildings and historic homes in the State of Georgia each year. Aside from the intrinsic value of saving historic structures, the State of Georgia Residential and Commercial Historic Rehabilitation Tax Credit Program (HRTC) brings significant economic value to the state economy.
According to a 2017 study conducted by Georgia Tech’s Enterprise Innovation Institute, every $1 of net commercial tax credit awarded by the state generates $75 in direct investment and $139 in overall economic activity. In total, between 2011 and 2016, the state awarded $27.6 million in commercial tax incentives that leveraged $630.5 million in private investment.
On the residential front, the economic impact is equally impressive. In a 2024 report, Dr. Greg George, Director of the Center for Economic Analysis at Middle Georgia State University, stated that the total net economic impact to the State of Georgia over the past decade on the residential program is roughly $104,198,907 for only $7,200,000 awarded in credits.
In other words, for every $1 returned to taxpayers via the historic rehabilitation tax credit, $14.41 of economic activity was generated. The intrinsic and economic value of the State of Georgia HRTC Program is undeniable. Despite this fact, the program is currently threatened with extinction as the residential program is scheduled to expire this year, and the commercial program will expire at the end of 2027.
To avert this catastrophe, The Georgia Trust and its local preservation partners, including the Atlanta Preservation Center, are spearheading legislation that will extend both the commercial and residential programs through 2029. The legislation will also expand the residential program to allow locally designated properties that are certified by the Georgia Department of Community Affairs to qualify for the tax credits. Currently the residential credits are only available to National Register-eligible properties.
The proposed legislation will significantly expand the commercial program by raising the existing aggregate cap from $30 million to $60 million, and the per-project caps from $5 million to $7.5 million and $10 million to $15 million. The legislation will also allow for a five-year carryover of unused commercial credits. This legislation, known as House Bill 1116, overwhelmingly passed the House of Representatives and is now awaiting a vote in the Senate.
If passed, the new legislation will extend and expand Georgia’s existing historic rehabilitation tax program to allow for an even broader revitalization of our state’s important historic infrastructure. The new legislation will also create jobs, encourage investment in older neighborhoods, expand low-income housing opportunities and enable more owners of historic homes to rehabilitate their homes in a cost-effective manner. This benefits not only historic preservation in the State of Georgia but also the economic development of our great state. We encourage every Georgian to contact their State Senator and encourage them to support House Bill 1116.
