07 LC 21
9507
House
Bill 851
By:
Representatives Peake of the
137th,
Martin of the
47th,
Royal of the
171st,
Stephens of the
164th,
Parrish of the
156th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-29.8 of the Official Code of Georgia Annotated, relating
to income tax credits for the certified rehabilitation of historic structures,
so as to change the method of calculation of the tax credit; to remove the cap
on the amount of credits; to authorize the transfer or assignment of tax credits
under certain circumstances; to provide that proceeds received by the taxpayer
for the assignment or sale of tax credits shall be exempt from taxation as
income; to provide for an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-29.8 of the Official Code of Georgia Annotated, relating to income
tax credits for the certified rehabilitation of historic structures, is amended
by revising subsection (b) as follows:
"(b)
A taxpayer shall be allowed a tax credit against the tax imposed by this chapter
for the taxable year in which the certified rehabilitation is
completed:
(1)
In the case of a historic home, equal to
10
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
20
25
percent of qualified rehabilitation expenditures."
SECTION
2.
Said
Code section is further amended by revising subsection (c) as
follows:
"(c)
In no event
shall credits for a historic home or certified structure exceed $5,000.00 in any
120 month period.
Provided that
the taxpayer has not claimed the credit in whole or in part, taxpayers eligible
for the tax credit may assign, transfer, or convey the credit in whole or in
part by sale or otherwise to any individual or entity. Such transfer or
conveyance may include, but is not limited to, condominium owners if the
certified historic structure is converted into condominiums. The assignor shall
perfect the transfer by notifying the Department of Revenue in writing within 30
calendar days following the effective date of the transfer and shall provide any
information as may be required by the department to administer and carry out the
provisions of this Code
section."
SECTION
3.
Said
Code section is further amended by revising subsection (h) as
follows:
"(h)(1)
If an owner other than a nonprofit corporation sells a historic home within
three years of receiving the credit, the seller shall recapture the credit to
the Department of Revenue as follows:
(A)
If the property is sold within one year of receiving the credit, the recapture
amount will equal the lesser of the credit or the net profit of the
sale;
(B)
If the property is sold within two years of receiving the credit, the recapture
amount will equal the lesser of two-thirds of the credit or the net profit of
the sale; or
(C)
If the property is sold within three years of receiving the credit, the
recapture amount will equal the lesser of one-third of the credit or the net
profit of the sale.
(2)
The recapture provisions of this subsection shall not apply to a sale resulting
from the death of the owner.
(3)
For purposes of this chapter, any proceeds received by the taxpayer for the
assignment or sale of the tax credits allowed pursuant to this Code section
shall be exempt from taxation as
income."
SECTION
4.
Said
Code section is further amended by revising subsection (i) as
follows:
"(i)
The tax credit allowed under this Code section, and any recaptured tax credit,
shall be allocated among some or all of the partners, members, or shareholders
of the entity owning the project
or any entity
to which the tax credit has been transferred under subsection (c) of this Code
section in any manner agreed to by such
persons, whether or not such persons are allocated or allowed any portion of any
other tax credit with respect to the project."
SECTION
5.
This
Act shall become effective on January 1, 2008, and shall apply with respect to
taxable years beginning on or after that date.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.