R.U.R.A.L. Tax Credits | Revitalizing Underdeveloped Rural Areas Legislation
Recognizing that many small, rural downtown areas have experienced varying levels of economic distress, DCA worked with the Georgia General Assembly to secure passage of a bill calling for the development of “Rural Zones.” Rural Zones focus on job creation and private investment in designated areas. The program includes three tax credit incentives: a Job Tax Credit, Investment Credit, and Rehabilitation Credit.
Federal Income Tax Incentives
A federal income tax credit equal to 20% of rehabilitation expenses. Available ONLY for income-producing properties. The application is first reviewed by the Historic Preservation Division (HPD) then forwarded to the National Park Service for final decision.
State Income Tax Incentives
A state income tax credit of 25% of rehabilitation expenses. 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.
State Preferential Property Tax Assessment for Rehabilitated Historic Property
Freezes the county property tax assessment for over 8 years. Available for personal residences as well as income-producing properties. The owner must increase their fair market value of the building by 50-100%, depending on its new use. The Georgia Department of Natural Resources’ 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.