Georgia 2025-2026 Regular Session

Georgia House Bill HB212 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25 LC 50 0988
2	2	House Bill 212
3	3	By: Representatives Park of the 107
4	4	th
5	5	, Miller of the 62
6	6	nd
7	7	, Drenner of the 85
8	8	th
9	9	, Romman of the
10	10	97
11	11	th
12	12	, Herring of the 145
13	13	th
14	14	, and others
15	15	A BILL TO BE ENTITLED
16	16	AN ACT
17	17	To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
18	18	1
19	19	relating to imposition, rate, computation, exemption, and credits for income taxes, so as to2
20	20	create a tax credit for the production of clean energy; to provide for the calculation of credit3
21	21	amounts; to provide for definitions; to provide for terms and conditions; to provide for4
22	22	transferability; to require the Environmental Protection Division to annually publish5
23	23	greenhouse gas emission rates for purposes of such tax credit; to provide for rules and6
24	24	regulations; to provide for a short title; to provide for related matters; to provide for an7
25	25	effective date and applicability; to repeal conflicting laws; and for other purposes.8
26	26	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
27	27	SECTION 1.10
28	28	This Act shall be known and may be cited as the "Clean Energy Production Tax Credit Act."11
29	29	SECTION 2.12
30	30	Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to13
31	31	imposition, rate, computation, exemption, and credits for income taxes, is amended by14
32	32	revising Code Section 48-7-40.10, which is reserved, as follows:15
33	33	H. B. 212
34	34	- 1 - 25 LC 50 0988
35	35	"48-7-40.10.
36	36	16
37	37	(a) As used in this Code section, the term:
38	38	17
39	39	(1) 'CO2e per KWh,' 'greenhouse gas,' and 'qualified carbon dioxide' shall have the same18
40	40	meaning as set forth in 26 U.S.C. Section 45Y, as effective on January 1, 2025.19
41	41	(2) 'Eligible person' means any person that demonstrates eligibility for the tax credit20
42	42	allowed pursuant to this Code section in accordance with the requirements of this Code21
43	43	section and rules and regulations of the department. Such term shall not include any22
44	44	person or any form of business owned, affiliated, or controlled, in whole or in part, by23
45	45	any company or person which is in default on any tax obligation to the state, any loan24
46	46	made by the state, or any loan guaranteed by the state.25
47	47	(3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into26
48	48	the atmosphere by a facility in the production of electricity, expressed as grams of CO2e27
49	49	per KWh, as provided by the Environmental Protection Division pursuant to28
50	50	subsection (e) of this Code section. In the case of a facility which produces electricity29
51	51	through combustion or gasification, the greenhouse gas emissions rate for such facility30
52	52	shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such31
53	53	facility, taking into account lifecycle greenhouse gas emissions in the production of32
54	54	electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases33
55	55	emitted into the atmosphere by a facility in the production of electricity shall not include34
56	56	any qualified carbon dioxide that is captured by the eligible person and disposed of by35
57	57	the eligible person in secure geological storage or utilized by the eligible person.36
58	58	(4) 'Qualified facility' means a facility located in this state which is used for the37
59	59	generation of electricity, is placed in service after July 1, 2025, and for which the38
60	60	greenhouse gas emissions rate is not greater than zero. A facility shall only be deemed39
61	61	a qualified facility during the 10 year period beginning on the date the facility was40
62	62	originally placed in service. Such term shall not include any facility for which a state41
63	63	income tax credit for clean energy investment is allowed for the taxable year.42
64	64	H. B. 212
65	65	- 2 - 25 LC 50 0988
66	66	(b) For taxable years beginning on or after January 1, 2026, a tax credit is allowed against43
67	67	the tax imposed under this article to any eligible person in an amount equal to 3¢ per44
68	68	kilowatt hour of electricity produced by the eligible person at a qualified facility and sold45
69	69	by the eligible person to an unrelated person during the taxable year or, in the case of a46
70	70	qualified facility which is equipped with a metering device which is owned and operated47
71	71	by an unrelated person, sold, consumed, or stored by the eligible person during the taxable48
72	72	year.49
73	73	(c) The tax credit allowed by this Code section shall be subject to the following conditions50
74	74	and limitations:51
75	75	(1) If used by the eligible person, in no event shall the amount of the tax credit used in52
76	76	a taxable year exceed the taxpayer's income tax liability. No such credit shall be used53
77	77	against the eligible person's prior years' tax liability;54
78	78	(2) If transferred or sold to a Georgia taxpayer as provided for in subsection (d) of this55
79	79	Code section, in no event shall the amount of the tax credit used in a taxable year exceed56
80	80	the taxpayer's income tax liability. No such credit shall be used against the taxpayer's57
81	81	prior years' tax liability;58
82	82	(3) Any unused credit amount shall be allowed to be carried forward for three years from59
83	83	the taxable year for which it was claimed; and60
84	84	(4) To claim a credit allowed by this Code section, the eligible person shall provide any61
85	85	information required by the department. Every eligible person claiming a credit under62
86	86	this Code section shall maintain and make available for inspection by the department any63
87	87	records that either entity considers necessary to determine and verify the amount of the64
88	88	credit to which the eligible person is entitled. The burden of proving eligibility for a65
89	89	credit and the amount of the credit rests upon the eligible person, and no credit shall be66
90	90	allowed to an eligible person that fails to maintain adequate records or to make them67
91	91	available for inspection.68
92	92	H. B. 212
93	93	- 3 - 25 LC 50 0988
94	94	(d) Any tax credits allowed to an eligible person pursuant to this Code section and69
95	95	previously claimed but not used by such person against its income tax liability may be70
96	96	transferred or sold in whole or in part by such eligible person to any Georgia taxpayer,71
97	97	subject to the following conditions:72
98	98	(1) Such eligible person shall make only a single transfer or sale of tax credits earned in73
99	99	a taxable year; provided, however, that the transfer or sale may involve one or more74
100	100	transferees;75
101	101	(2) Such eligible person shall submit to the department a written notification of any76
102	102	transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits.77
103	103	Such notification shall include the tax credit balance prior to transfer, the credit certificate78
104	104	number, the remaining balance after transfer, all tax identification numbers for each79
105	105	transferee, the date of transfer, the amount transferred, and any other information required80
106	106	by the department;81
107	107	(3) The transfer or sale of such tax credit shall not extend the time in which such tax82
108	108	credit can be used. The carry-forward period for a tax credit that is transferred or sold83
109	109	shall begin on the date on which the tax credit was originally earned;84
110	110	(4) A transferee shall have only such rights to claim and use the tax credits that were85
111	111	available to such eligible person at the time of the transfer. In the event that such eligible86
112	112	person did not have rights to claim or use any such tax credit at the time of the transfer,87
113	113	the department shall either disallow the tax credit claimed by the transferee or recapture88
114	114	the tax credit from the transferee; and89
115	115	(5) The transferee shall acquire such tax credits for a minimum of 60 percent of the90
116	116	amount of the tax credits so transferred.91
117	117	(e) The Environmental Protection Division shall annually publish a table that sets forth the92
118	118	greenhouse gas emission rates for types or categories of facilities, which an eligible person93
119	119	and the department shall use for purposes of this Code section.94
120	120	H. B. 212
121	121	- 4 - 25 LC 50 0988
122	122	(f) The department shall promulgate any rules and regulations necessary to implement and95
123	123	administer the provisions of this Code section. Reserved."96
124	124	SECTION 3.97
125	125	This Act shall become effective on July 1, 2025, and shall be applicable to taxable years98
126	126	beginning on or after January 1, 2026.99
127	127	SECTION 4. 100
128	128	All laws and parts of laws in conflict with this Act are repealed.101
129	129	H. B. 212
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