Preserving Georgia’s Landscape
December 9, 2016
Atlanta’s landscape is more vibrant than ever. As new developments emerge, historic buildings are often tossed aside for new, modern style architecture. This trend is not limited to Atlanta; it is happening across the state to varying degrees. That said, Georgia preservationists are raising awareness about the state’s historic and cultural developments in hopes to preserve endangered historic properties and the State is doing its part to make preservation more appealing from an economic standpoint.
A local example is the disassembly and preservation of the Randolph-Lucas House that was originally located at the intersection of Lindbergh Drive and Peachtree Road. The house was built in 1924 for the great, great grandson of Thomas Jefferson, Hollins Randolph. The home was purchased in 1935 by Margaret Lucas who lived there until her death in 1987.
Following 1987, the home served as an office and would host special events from time to time. However, in 2013 after being threatened with demolition, the brick mansion found new owners, Christopher Jones and Roger Smith, founders of NewTown Partners.
NewTown Partners specializes in historic preservation and saved the Randolph-Lucas house from demolition. In fact, Jones and Smith moved the home to an empty lot on Peachtree Circle in Ansley Park. This is just one of the many examples of ways Georgians can preserve historic property around the state. Preservation is not limited to residential properties; commercial buildings are also in peril or have been demolished.
As owners and developers plan for redevelopment in and around Georgia, there are significant tax incentives to keep in mind. These federal and state tax incentives are in place to assist in the preservation of historic property in Georgia. Georgia’s income tax program is going to reflect additional changes for those engaging in rehabilitation projects after January 1, 2017.
What properties qualify for the tax incentives?
The property(s) must be considered a certified structure, meaning the property is a historic building or structure located in a national historic district or is listed in the National Register for Historic Places. There are currently two federal tax incentives and two state incentives that can provide income tax credits of up to 25%.
In addition, large projects that are completed after January 1, 2017 can qualify for up to $5 million in income tax credits based on total “qualified rehabilitation expenditures (QRE),” and up to $10 million in income tax credits based on total QREs with additional employment or annual payroll requirements.
Every property is different and different incentives may be applied. To see if your property(s) are eligible for the various tax incentives, please contact real estate team at 404.874.6244 or fill out the form below and we would be happy to assist you.
The Georgia Trust for Historic Preservation released its 2017 list of 10 Places in Peril, which highlights endangered historic properties in Georgia.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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