| 1 | 1 | | 23 LC 43 2629 |
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| 2 | 2 | | H. B. 536 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | House Bill 536 |
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| 5 | 5 | | By: Representative Thomas of the 65 |
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| 6 | 6 | | th |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
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| 11 | 11 | | 1 |
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| 12 | 12 | | income taxes, so as to provide for a tax credit for certain expenses incurred by taxpayers for2 |
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| 13 | 13 | | installing solar energy systems at warehouses or residential dwellings; to provide for3 |
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| 14 | 14 | | definitions; to provide for terms and conditions; to provide for applications and preapprovals;4 |
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| 15 | 15 | | to provide for rules and regulations; to provide for an effective date and applicability; to5 |
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| 16 | 16 | | provide for related matters; to repeal conflicting laws; and for other purposes.6 |
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| 17 | 17 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
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| 18 | 18 | | SECTION 1.8 |
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| 19 | 19 | | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,9 |
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| 20 | 20 | | is amended by adding a new Code section to read as follows:10 |
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| 21 | 21 | | "48-7-29.11A. |
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| 22 | 22 | | 11 |
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| 23 | 23 | | (a) As used in this Code section, the term:12 |
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| 24 | 24 | | (1) 'Eligible residential solar installation' means the installation of solar panels and13 |
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| 25 | 25 | | related equipment on and for a residential dwelling that is owned by one or more related14 |
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| 26 | 26 | | individuals.15 23 LC 43 2629 |
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| 27 | 27 | | H. B. 536 |
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| 28 | 28 | | - 2 - |
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| 29 | 29 | | (2) 'Eligible solar installation' means any eligible residential solar power installation or16 |
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| 30 | 30 | | eligible warehouse solar installation.17 |
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| 31 | 31 | | (3) 'Eligible solar power expenses' means:18 |
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| 32 | 32 | | (A) Expenses incurred during the calendar year from the installation of an eligible solar19 |
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| 33 | 33 | | installation. Such expenses shall be limited to expenses paid or incurred for the20 |
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| 34 | 34 | | installation and purchase of solar panels, battery storage, and requisite electrical21 |
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| 35 | 35 | | equipment for the primary purpose of producing electricity to serve the building or22 |
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| 36 | 36 | | buildings for which the installation occurs. Such expenses may be incurred only once23 |
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| 37 | 37 | | in relation to any building and directly by the taxpayer or through a purchase contract;24 |
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| 38 | 38 | | and25 |
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| 39 | 39 | | (B) Such expenses shall not include any expense that serves as the basis for any other26 |
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| 40 | 40 | | state income tax credit.27 |
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| 41 | 41 | | (4) 'Eligible warehouse solar installation' means the installation of solar panels on the28 |
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| 42 | 42 | | roof of a warehouse that is at least 100,000 square feet in area, provided that the solar29 |
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| 43 | 43 | | panels cover at least 40 percent of the total surface area of the roof of such warehouse.30 |
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| 44 | 44 | | (b) For taxable years beginning on or after January 1, 2024, a taxpayer shall be allowed31 |
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| 45 | 45 | | an income tax credit against the tax imposed by Code Section 48-7-20 or 48-7-21 for a32 |
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| 46 | 46 | | portion of eligible solar power expenses incurred in the corresponding calendar year as33 |
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| 47 | 47 | | follows:34 |
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| 48 | 48 | | (1) For an eligible residential solar installation, the amount of the credit shall be equal35 |
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| 49 | 49 | | to the lesser of $5,000.00 and 35 percent of the eligible solar power expenses incurred by36 |
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| 50 | 50 | | an individual to retrofit his or her residential dwelling; and37 |
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| 51 | 51 | | (2) For an eligible warehouse solar installation, the amount of the credit shall be equal38 |
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| 52 | 52 | | to the lesser of $250,000.00 and 50 percent of the eligible solar power expenses incurred39 |
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| 53 | 53 | | to retrofit up to eight warehouses owned or operated by the same person or related40 |
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| 54 | 54 | | persons, provided that such tax credits shall not be allowed to offset more than 50 percent41 |
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| 55 | 55 | | of the taxpayer's total income tax liability in any year.42 23 LC 43 2629 |
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| 56 | 56 | | H. B. 536 |
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| 57 | 57 | | - 3 - |
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| 58 | 58 | | (c) In no event shall the total amount of any tax credit allowed under this Code section for43 |
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| 59 | 59 | | a taxable year exceed the taxpayer's income tax liability. No such tax credit shall be44 |
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| 60 | 60 | | allowed the taxpayer against prior years' tax liability. Any unused tax credit shall be45 |
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| 61 | 61 | | allowed to be carried forward to apply to no more than the taxpayer's three succeeding46 |
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| 62 | 62 | | years' tax liability.47 |
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| 63 | 63 | | (d)(1) Any person seeking to claim a tax credit for an eligible warehouse solar48 |
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| 64 | 64 | | installation must submit an application to the commissioner for tentative approval of the49 |
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| 65 | 65 | | tax credit between September 1 and October 31 of the year preceding the calendar year50 |
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| 66 | 66 | | for which the tax credit is to be earned. The commissioner shall promulgate the rules and51 |
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| 67 | 67 | | forms on which the application is to be submitted. Amounts specified on such52 |
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| 68 | 68 | | application shall not be changed by the taxpayer after the application is approved by the53 |
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| 69 | 69 | | commissioner. The commissioner shall review such application and shall tentatively54 |
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| 70 | 70 | | approve such application upon determining that it meets the requirements of this Code55 |
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| 71 | 71 | | section.56 |
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| 72 | 72 | | (2) The commissioner shall provide tentative approval of the applications by the date57 |
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| 73 | 73 | | provided in paragraph (3) of this subsection. In no event shall the aggregate amount of58 |
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| 74 | 74 | | tax credits approved by the commissioner for eligible warehouse solar installations under59 |
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| 75 | 75 | | this Code section in a calendar year exceed $25 million per year.60 |
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| 76 | 76 | | (3) The department shall notify each taxpayer of the tax credits tentatively approved and61 |
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| 77 | 77 | | allocated to such employer by December 31 of the year in which the application was62 |
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| 78 | 78 | | submitted. In the event that the credit amounts on the tax credit applications filed with63 |
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| 79 | 79 | | the commissioner exceed the maximum aggregate limit of tax credits under this64 |
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| 80 | 80 | | subsection, then the tax credits shall be allocated among the applicants who filed a timely65 |
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| 81 | 81 | | application on a pro rata basis based upon the amounts otherwise allowed by this Code66 |
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| 82 | 82 | | section.67 |
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| 83 | 83 | | (4) Once the tax credit application has been approved and the amount approved has been68 |
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| 84 | 84 | | communicated to the applicant, the taxpayer may incur expenses approved for the tax69 23 LC 43 2629 |
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| 85 | 85 | | H. B. 536 |
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| 86 | 86 | | - 4 - |
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| 87 | 87 | | credit at any time during the calendar year following the approval of the application. The70 |
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| 88 | 88 | | taxpayer may then apply the amount of the approved tax credit to its tax liability for the71 |
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| 89 | 89 | | tax year or years for which the approved application applies. In the event the taxpayer72 |
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| 90 | 90 | | has a tax year other than a calendar year and the calendar year expenses are incurred in73 |
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| 91 | 91 | | more than one taxable year, the credit shall be applied to each taxable year based upon74 |
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| 92 | 92 | | when the expenses were incurred.75 |
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| 93 | 93 | | (e) The commissioner shall promulgate any rules and regulations necessary to implement76 |
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| 94 | 94 | | and administer this Code section."77 |
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| 95 | 95 | | SECTION 2.78 |
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| 96 | 96 | | This Act shall become effective on July 1, 2023, and shall be applicable to taxable years79 |
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| 97 | 97 | | beginning on or after January 1, 2024.80 |
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| 98 | 98 | | SECTION 3.81 |
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| 99 | 99 | | All laws and parts of laws in conflict with this Act are repealed.82 |
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