On December 13, 2006, at 1541 eastern standard time, a Piper J-2, N16651, registered to a private owner, operating as a 14 CFR Part 91 personal flight, had a loss of engine power while on climb out from Peach State Airport, Williamson, Georgia. The pilot initiated a forced landing back to the airport. Visual meteorological conditions prevailed and no flight plan was filed. The airplane received substantial damage. The private pilot reported serious injuries. The flight originated from Peach State Airport on December 13, 2006, at 1540. The pilot stated he had flown the airplane earlier in the morning after completing a preflight inspection. No anomalies were noted during the preflight. He flew a local flight and landed. Two other personnel flew the airplane after his flight. He decided to fly the airplane again later that afternoon. He drained the fuel sump and checked the oil and fuel. He entered the airplane, started it, and taxied out to runway 13 for takeoff at about 1540 EST. While on climb out at 300 feet AGL, the pilot initiated a left cross wind turn and the engine quit. The pilot lowered the nose of the airplane, made a left turn with a 25 to 30 degree angle of bank, pulled the carburetor heat out, and pushed it back in before he started a right descending turn to line up with runway 13. The airplane was low and the pilot did not have enough altitude to level out before the airplane collided with the ground in a right descending attitude. The airplane came to a stop. The pilot unbuckled his seat belt and exited the airplane. The pilot was transported to a local area hospital for treatment. Examination of the logbooks revealed the last annual inspection was conducted on October 24, 2006, at Hobbs time 945.8. The airplane had flown 30.8 hours since the inspection. Examination of the crash site revealed no browning of vegetation and no smell of fuel. Examination of the airplane revealed the upper and lower engine cowling were attached. The engine mounts were bent and broken. The engine firewall and carburetor were damaged. The propeller remained attached to the propeller flange and both propeller blades were damaged. The propeller spinner was destroyed. The cabin area was damaged, the throttle was full forward, the mixture was full rich, and the carburetor heat was in. The fuel selector valve was in the on position. The fuel tank was not ruptured and no fuel was present in the fuel tank. The fuel lines were intact. The fuel line from the carburetor to the gascolator were removed and no fuel was present in the fuel line or the gascolator.The airplane was equipped with seatbelts and the rear seat belt was in use at the time of the accident. The aircraft registration and airworthiness certificate was located in the airplane. The left and right main landing gear remained attached to the airframe. The right wing remained attached to the airframe. The right wing was pushed aft and the leading edge of the right wing was damaged. The right aileron remained attached to its attachment point. The right main wing strut was attached and damaged. The empennage was not damaged. The vertical fin and rudder assembly were not damaged. The left and right horizontal stabilizers and elevators were not damaged. The tail wheel was attached to the empennage. The left wing remained attached to the airframe and was not damaged. The left aileron remained attached to its attachment points. The left wing strut remained attached to the wing and at the fuselage attachment point. The airplane was released to recovery personnel for recovery on December 14, 2006. The engine was removed from the airframe and placed in a test stand for an engine run on December 21, 2006. The carburetor was removed from the engine and a new carburetor was installed. An alternate fuel and, battery source, electric fuel pump, engine controls and magneto grounding wires were installed. The engine was started and ran at idle power. The propeller was damaged and prevented the engine from being advanced to the full power setting. The engine was shut down with the mixture control. The FAA released the airplane to Atlanta Air Recovery on December 21, 2006.