AIA Georgia received some very disappointing news from the Governor’s office on Tuesday afternoon.  Governor Kemp was forced to veto House Bill 376, which would have greatly expanded the scope and impact of Georgia’s Historic Building Tax Credit.  We know that many of your firms gain substantial benefit from the existing tax credit, and this expansion would have been important to you and all Georgians.

The Governor struck many items from the budget due to a revenue shortfall generated by the General Assembly’s passage of a steep reduction in the state income tax.  Once the Governor’s office fully vetted the deep financial impact of this change, it was clear Georgia had a deficit budget on its hands.  The Georgia Constitution requires a balanced budget, so Governor Kemp’s team had to find places to cut the budget to meet state law, and the expansion of the HBTC (as a new item) was particularly attractive.

Although the HBTC is not a direct state expense, the forgone 2027 tax revenue from these credits was still viewed as a drain on state resources.  The tax credit generates a 3:1 revenue return to the state, but this takes many years to materialize, and cannot be considered in the balanced budget requirement.   Cutting the income tax was the number one priority of the Senate and House Republican leadership in 2026, and this important tax credit expansion has been vetoed because of some financial miscalcuations along this journey.

Please know that AIA and our partners at the Georgia Trust for Historic Preservation did everything within our power to both pass the bill, and to prevent this veto from occurring.  While this outcome is not what we wanted, the AIA Georgia Board is deeply proud of the work done in support of this legislation by AIA members, firms, our lobbyists at Peachtree Government Relations, and the historic preservation groups around the state.

Once we have had time to assess the full and future situation, we will begin formulating our political strategy for next year.  Please know that we share your disappointment and appreciate your ongoing support of our work on this and other issues.

View Gov. Kemp’s Veto Statement >

Ai-Lien Vuong, AIA
AIA Georgia Political Advocacy Chair

David Southerland
Executive Director
AIA Georgia and AIA Atlanta