25 LC 50 0988
House Bill 212
By: Representatives Park of the 107
th
, Miller of the 62
nd
, Drenner of the 85
th
, Romman of the
97
th
, Herring of the 145
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to imposition, rate, computation, exemption, and credits for income taxes, so as to2
create a tax credit for the production of clean energy; to provide for the calculation of credit3
amounts; to provide for definitions; to provide for terms and conditions; to provide for4
transferability; to require the Environmental Protection Division to annually publish5
greenhouse gas emission rates for purposes of such tax credit; to provide for rules and6
regulations; to provide for a short title; to provide for related matters; to provide for an7
effective date and applicability; to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
This Act shall be known and may be cited as the "Clean Energy Production Tax Credit Act."11
SECTION 2.12
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to13
imposition, rate, computation, exemption, and credits for income taxes, is amended by14
revising Code Section 48-7-40.10, which is reserved, as follows:15
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"48-7-40.10.
16
(a) As used in this Code section, the term:
17
(1) 'CO2e per KWh,' 'greenhouse gas,' and 'qualified carbon dioxide' shall have the same18
meaning as set forth in 26 U.S.C. Section 45Y, as effective on January 1, 2025.19
(2) 'Eligible person' means any person that demonstrates eligibility for the tax credit20
allowed pursuant to this Code section in accordance with the requirements of this Code21
section and rules and regulations of the department. Such term shall not include any22
person or any form of business owned, affiliated, or controlled, in whole or in part, by23
any company or person which is in default on any tax obligation to the state, any loan24
made by the state, or any loan guaranteed by the state.25
(3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into26
the atmosphere by a facility in the production of electricity, expressed as grams of CO2e27
per KWh, as provided by the Environmental Protection Division pursuant to28
subsection (e) of this Code section. In the case of a facility which produces electricity29
through combustion or gasification, the greenhouse gas emissions rate for such facility30
shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such31
facility, taking into account lifecycle greenhouse gas emissions in the production of32
electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases33
emitted into the atmosphere by a facility in the production of electricity shall not include34
any qualified carbon dioxide that is captured by the eligible person and disposed of by35
the eligible person in secure geological storage or utilized by the eligible person.36
(4) 'Qualified facility' means a facility located in this state which is used for the37
generation of electricity, is placed in service after July 1, 2025, and for which the38
greenhouse gas emissions rate is not greater than zero. A facility shall only be deemed39
a qualified facility during the 10 year period beginning on the date the facility was40
originally placed in service. Such term shall not include any facility for which a state41
income tax credit for clean energy investment is allowed for the taxable year.42
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(b) For taxable years beginning on or after January 1, 2026, a tax credit is allowed against43
the tax imposed under this article to any eligible person in an amount equal to 3ยข per44
kilowatt hour of electricity produced by the eligible person at a qualified facility and sold45
by the eligible person to an unrelated person during the taxable year or, in the case of a46
qualified facility which is equipped with a metering device which is owned and operated47
by an unrelated person, sold, consumed, or stored by the eligible person during the taxable48
year.49
(c) The tax credit allowed by this Code section shall be subject to the following conditions50
and limitations:51
(1) If used by the eligible person, in no event shall the amount of the tax credit used in52
a taxable year exceed the taxpayer's income tax liability. No such credit shall be used53
against the eligible person's prior years' tax liability;54
(2) If transferred or sold to a Georgia taxpayer as provided for in subsection (d) of this55
Code section, in no event shall the amount of the tax credit used in a taxable year exceed56
the taxpayer's income tax liability. No such credit shall be used against the taxpayer's57
prior years' tax liability;58
(3) Any unused credit amount shall be allowed to be carried forward for three years from59
the taxable year for which it was claimed; and60
(4) To claim a credit allowed by this Code section, the eligible person shall provide any61
information required by the department. Every eligible person claiming a credit under62
this Code section shall maintain and make available for inspection by the department any63
records that either entity considers necessary to determine and verify the amount of the64
credit to which the eligible person is entitled. The burden of proving eligibility for a65
credit and the amount of the credit rests upon the eligible person, and no credit shall be66
allowed to an eligible person that fails to maintain adequate records or to make them67
available for inspection.68
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(d) Any tax credits allowed to an eligible person pursuant to this Code section and69
previously claimed but not used by such person against its income tax liability may be70
transferred or sold in whole or in part by such eligible person to any Georgia taxpayer,71
subject to the following conditions:72
(1) Such eligible person shall make only a single transfer or sale of tax credits earned in73
a taxable year; provided, however, that the transfer or sale may involve one or more74
transferees;75
(2) Such eligible person shall submit to the department a written notification of any76
transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits.77
Such notification shall include the tax credit balance prior to transfer, the credit certificate78
number, the remaining balance after transfer, all tax identification numbers for each79
transferee, the date of transfer, the amount transferred, and any other information required80
by the department;81
(3) The transfer or sale of such tax credit shall not extend the time in which such tax82
credit can be used. The carry-forward period for a tax credit that is transferred or sold83
shall begin on the date on which the tax credit was originally earned;84
(4) A transferee shall have only such rights to claim and use the tax credits that were85
available to such eligible person at the time of the transfer. In the event that such eligible86
person did not have rights to claim or use any such tax credit at the time of the transfer,87
the department shall either disallow the tax credit claimed by the transferee or recapture88
the tax credit from the transferee; and89
(5) The transferee shall acquire such tax credits for a minimum of 60 percent of the90
amount of the tax credits so transferred.91
(e) The Environmental Protection Division shall annually publish a table that sets forth the92
greenhouse gas emission rates for types or categories of facilities, which an eligible person93
and the department shall use for purposes of this Code section.94
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(f) The department shall promulgate any rules and regulations necessary to implement and95
administer the provisions of this Code section. Reserved."96
SECTION 3.97
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years98
beginning on or after January 1, 2026.99
SECTION 4. 100
All laws and parts of laws in conflict with this Act are repealed.101
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