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Governor Signs Bill to Expand Preservation Tax Credits

ATLANTA, May 15, 2008 – Gov. Sonny Perdue signed a bill yesterday to increase the current tax credit to rehabilitate historic buildings.

House Bill 851, sponsored by Rep. Allen Peake, R-Macon, raises the $5,000 per building project cap to $100,000 for residential properties and $300,000 for commercial. The bill also increases the tax credit to 25% of the total project cost, formerly 10% for residential and 20% for commercial.

 “Tax incentives are the most important tool we have for preservation,” said Ray Christman, interim president of The Georgia Trust for Historic Preservation. “This bill strengthens what was an important but inadequate financial incentive for preservation and makes it into something far more usable and effective.”

“As someone passionate about preservation and because of my involvement in several large-scale rehabilitation projects, I couldn’t be more pleased to see Georgia taking these steps to improve its tax incentives,” said Clay Boardman of Augusta Capital LLC. “It is a downright shame to watch the reinvestment dollars flow to the states with better incentives for preservation. Now, I think we’ll start to see the much-needed investment in Georgia’s abandoned historic industrial buildings and textile mills,” Boardman added.

The economic impact of the revised preservation tax credits is expected to be significant.  The new bill provides to businesses and homeowners a substantial incentive to rehabilitate historic properties, encouraging the revitalization of deteriorating neighborhoods and drastically improving historic communities and downtown areas.  Rehabilitation of historic buildings often creates new businesses, increases property and sales tax revenues, and stimulates private investment.  Studies in other states have shown that each dollar spent on rehabilitation leverages over five dollars in economic impact.

For additional information about House Bill 851, contact Traci Clark at 404-885-7802 or visit http://www.georgiatrust.org/whatwedo/GaPA_HB851.htm.

 About the Georgia Trust

Founded in 1973, The Georgia Trust for Historic Preservation is one of the country's largest statewide, non-profit preservation organizations.

Committed to preserving and enhancing Georgia's communities and their diverse historic resources for the education and enjoyment of all, the Trust generates community revitalization by acquiring endangered properties and finding appropriate buyers for them; provides design assistance and encourages neighborhood revitalization in 102 Georgia Main Street cities; trains teachers in 63 Georgia school systems to engage students to discover state and national history through local historic resources; and advocates for funding, tax incentives and other laws aiding preservation efforts.  For more information about the Trust, go to www.georgiatrust.org or call 404-885-7802.