25 LC 59 0030
House Bill 230
By: Representatives Neal of the 79
th
, Washburn of the 144
th
, Seabaugh of the 34
th
, and
Williams of the 148
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 that2
sell new construction homes to an individual or related individuals for up to a certain price;3
to define a term; to provide for terms and conditions; to provide for the sale and transfer of4
tax credits; to provide for related matters; to provide for an effective date and applicability;5
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
"48-7-29.27.
11
(a) As used in this Code section, the term 'eligible construction expenses' means expenses12
incurred on or after January 1, 2026, by a taxpayer in the construction of a single-family13
residential home sold to an individual or related individuals for an amount that does not14
exceed $200,000.00.15
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(b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed16
an income tax credit against the tax imposed by this article equal to 20 percent of such17
taxpayer's eligible construction expenses.18
(c) Except as provided in subsection (d) of this Code section, in no event shall the total19
amount of any tax credit allowed to a taxpayer under this Code section for a taxable year20
exceed the taxpayer's income tax liability. No such tax credit shall be allowed the taxpayer21
against prior years' tax liability. Any unused tax credit shall be allowed to be carried22
forward to apply to the taxpayer's next five years' tax liability or transferred pursuant to23
subsection (d) of this Code section.24
(d) Any tax credits earned under this Code section by a taxpayer and previously claimed25
but not used by the taxpayer against the taxpayer's income tax liability may be transferred26
or sold in whole or in part by such taxpayer to another Georgia taxpayer, subject to the27
following conditions:28
(1) Such taxpayer may make only a single transfer or sale of tax credits earned in a29
taxable year; provided, however, that the transfer or sale may involve one or more30
transferees;31
(2) Such taxpayer shall submit to the department a written notification of any transfer or32
sale of tax credits within 30 days after the transfer or sale of such tax credits. The33
notification shall include such taxpayer's tax credit balance prior to transfer, the credit34
certificate number, the remaining balance after transfer, all tax identification numbers for35
each transferee, the date of transfer, the amount transferred, and any other information36
required by the department;37
(3) Failure to comply with this subsection shall result in the disallowance of the tax38
credit until the taxpayer is in full compliance;39
(4) The transfer or sale of this tax credit does not extend the time in which such tax credit40
can be used. The carry-forward period for a tax credit that is transferred or sold shall41
begin on the date on which the tax credit was originally earned;42
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(5) To the extent that a taxpayer did not have rights to claim or use the tax credit at the43
time of the transfer, the department shall either disallow the tax credit claimed by the44
transferee or recapture the tax credit from the transferee; and45
(6) The transferee must acquire a minimum of 60 percent of the amount of the tax credits46
in this Code section so transferred."47
SECTION 2.48
This Act shall become effective on January 1, 2026, and shall be applicable to taxable years49
beginning on or after January 1, 2026.50
SECTION 3.51
All laws and parts of laws in conflict with this Act are repealed.52
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