GA
Georgia House Bill HB490

Georgia 2023-2024 Regular Session

Georgia House Bill HB490

Introduced
2/16/23  

Caption

Income tax; depreciation for single-family residential rental property; revise a deduction

Impact

The proposed changes in HB 490 are poised to affect the financial dynamics of owning and operating single-family rental properties. By limiting the applicability of the Section 179 deduction for these types of properties, the bill aims to ensure that corporations are contributing a fairer share of tax revenue. However, this may also lead to increased tax liabilities for corporations owning such properties, to the detriment of their operating margins. Critics of the bill might argue that it could dissuade investment in the single-family rental market, thus affecting housing availability and affordability in the state.

Summary

House Bill 490 is designed to alter the treatment of depreciation deductions related to single-family residential rental properties under Georgia's income tax laws. Specifically, the bill proposes to amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, modifying how corporations can apply deductions as permitted under Section 179 of the Internal Revenue Code. As per the provisions of this bill, for taxable years commencing on or after January 1, 2024, corporations would be required to add back to their taxable income any amount they previously deducted in relation to single-family residential rental properties. This represents a significant shift in how such deductions are viewed for tax purposes, potentially impacting the profitability for entities managing these properties.

Contention

Debate surrounding HB 490 may center on the implications of changing tax deductions for single-family residential rental properties. Supporters could posit that these measures enhance equity in the corporate tax system, compelling corporations to adhere to their responsibilities. Detractors might warn that increasing tax burdens on businesses in this sector could lead to negative consequences like reduced rental inventory or a rise in rental rates, ultimately impacting tenants. As such, the discussions are likely to reflect broader themes of tax fairness versus economic viability in the housing market.

Companion Bills

No companion bills found.

Previously Filed As

GA HB616

Income tax; depreciation for single-family residential rental property; revise a deduction

GA SB908

Income Tax - Addition Modification - Interest for and Depreciation of Residential Rental Property

GA HB1733

Income tax; revise deduction for depreciation for certain expenditures and property.

GA HB965

Income Tax – Credit for Mold Remediation of Residential Rental Properties

GA A1358

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

GA S182

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

GA HB69

Regards taxpayer deduction for depreciation, enhanced expensing

GA S3457

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

GA A4887

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

GA SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

Similar Bills

No similar bills found.