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