On Wednesday, Georgia Governor Brian Kemp vetoed 12 state bills before the signing deadline, including HB 376, a bill that would have expanded tax incentives for historic property preservation.
The bill, passed in the House and Senate, would have increased the limit on the available tax credits from $30 million to $60 million. It was popular among preservationists. The Georgia Trust for Historic Preservation said if there is a building that has been “brought back to life in the past 20 years,” it’s due to the tax credit.
Before Kemp’s veto, the Georgia Trust warned the program would be “effectively dead” with only limited credits available through the program’s sunset date in 2029. Now the governor has dealt a killing blow.
Publicly, he reasoned the general assembly had not accounted for the loss of revenue from reducing income tax statewide. The plan to slash income tax for all residents making less than $100,000 by 2027 and get rid of all income tax by 2032. It raised questions about where Georgia would make up for lost funding, since income tax revenue makes up about 47% of the state’s general fund.
The Georgia Senate Special Committee on the Elimination of Georgia’s Income Tax pointed to nearly $30 billion worth of tax credits that could be cut or reduced to make up a funding gap – tax credits like the historic rehabilitation program.
“While cutting income taxes may be a popular initiative, it can have unintended consequences for tax credit programs like HRTC,” Georgia Trust for Historic Preservation Executive Director W. Wright Mitchell said. “As reducing Georgia’s income taxes becomes an increasing legislative priority, the state must identify alternative ways to incentivize developers and owners of historic properties to revitalize Georgia’s historic resources.”
Earlier this year, certain cities also pushed for the expanded tax credit. Macon, Georgia leadership said the credit had been a “game-changing” tool in redevelopment. According to the trust, the state program has driven over $1 billion in private investment since 2020.
Atlanta Preservation Center Executive Director David Y. Mitchell called it a “complex disappointment to digest.” Y. Mitchell has spent months focused on a battle with the state over its controversial “skybridge” project to connect the State Capitol with a new legislative office building.
Despite opposition on alterations to the 1885 Capitol Building facade, the project is moving forward – construction is already underway. Y. Mitchell said he will continue to be “vigilant in promoting his craft,” despite the legislative blowback.
“Moving past the myriad advantages and cultural enhancements it would have provided statewide, it is a sobering reminder that we can never be confident that the history, heritage and the humanities of Georgia are safe,” Y. Mitchell said.
He continued: “I am grateful for all those that labored to see the bill pass both the House and Senate, and know that those of us who love the architecture and character of Georgia will continue to defend and protect it.”
