| 1 | 1 | | 25 LC 59 0030 |
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| 2 | 2 | | House Bill 230 |
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| 3 | 3 | | By: Representatives Neal of the 79 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Washburn of the 144 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Seabaugh of the 34 |
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| 8 | 8 | | th |
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| 9 | 9 | | , and |
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| 10 | 10 | | Williams of the 148 |
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| 11 | 11 | | th |
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| 12 | 12 | | |
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| 13 | 13 | | A BILL TO BE ENTITLED |
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| 14 | 14 | | AN ACT |
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| 15 | 15 | | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
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| 16 | 16 | | 1 |
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| 17 | 17 | | income taxes, so as to provide for a tax credit for certain expenses incurred by taxpayers that2 |
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| 18 | 18 | | sell new construction homes to an individual or related individuals for up to a certain price;3 |
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| 19 | 19 | | to define a term; to provide for terms and conditions; to provide for the sale and transfer of4 |
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| 20 | 20 | | tax credits; to provide for related matters; to provide for an effective date and applicability;5 |
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| 21 | 21 | | to repeal conflicting laws; and for other purposes.6 |
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| 22 | 22 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
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| 23 | 23 | | SECTION 1.8 |
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| 24 | 24 | | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,9 |
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| 25 | 25 | | is amended by adding a new Code section to read as follows:10 |
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| 26 | 26 | | "48-7-29.27. |
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| 27 | 27 | | 11 |
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| 28 | 28 | | (a) As used in this Code section, the term 'eligible construction expenses' means expenses12 |
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| 29 | 29 | | incurred on or after January 1, 2026, by a taxpayer in the construction of a single-family13 |
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| 30 | 30 | | residential home sold to an individual or related individuals for an amount that does not14 |
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| 31 | 31 | | exceed $200,000.00.15 |
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| 32 | 32 | | H. B. 230 |
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| 33 | 33 | | - 1 - 25 LC 59 0030 |
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| 34 | 34 | | (b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed16 |
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| 35 | 35 | | an income tax credit against the tax imposed by this article equal to 20 percent of such17 |
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| 36 | 36 | | taxpayer's eligible construction expenses.18 |
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| 37 | 37 | | (c) Except as provided in subsection (d) of this Code section, in no event shall the total19 |
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| 38 | 38 | | amount of any tax credit allowed to a taxpayer under this Code section for a taxable year20 |
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| 39 | 39 | | exceed the taxpayer's income tax liability. No such tax credit shall be allowed the taxpayer21 |
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| 40 | 40 | | against prior years' tax liability. Any unused tax credit shall be allowed to be carried22 |
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| 41 | 41 | | forward to apply to the taxpayer's next five years' tax liability or transferred pursuant to23 |
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| 42 | 42 | | subsection (d) of this Code section.24 |
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| 43 | 43 | | (d) Any tax credits earned under this Code section by a taxpayer and previously claimed25 |
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| 44 | 44 | | but not used by the taxpayer against the taxpayer's income tax liability may be transferred26 |
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| 45 | 45 | | or sold in whole or in part by such taxpayer to another Georgia taxpayer, subject to the27 |
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| 46 | 46 | | following conditions:28 |
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| 47 | 47 | | (1) Such taxpayer may make only a single transfer or sale of tax credits earned in a29 |
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| 48 | 48 | | taxable year; provided, however, that the transfer or sale may involve one or more30 |
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| 49 | 49 | | transferees;31 |
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| 50 | 50 | | (2) Such taxpayer shall submit to the department a written notification of any transfer or32 |
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| 51 | 51 | | sale of tax credits within 30 days after the transfer or sale of such tax credits. The33 |
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| 52 | 52 | | notification shall include such taxpayer's tax credit balance prior to transfer, the credit34 |
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| 53 | 53 | | certificate number, the remaining balance after transfer, all tax identification numbers for35 |
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| 54 | 54 | | each transferee, the date of transfer, the amount transferred, and any other information36 |
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| 55 | 55 | | required by the department;37 |
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| 56 | 56 | | (3) Failure to comply with this subsection shall result in the disallowance of the tax38 |
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| 57 | 57 | | credit until the taxpayer is in full compliance;39 |
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| 58 | 58 | | (4) The transfer or sale of this tax credit does not extend the time in which such tax credit40 |
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| 59 | 59 | | can be used. The carry-forward period for a tax credit that is transferred or sold shall41 |
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| 60 | 60 | | begin on the date on which the tax credit was originally earned;42 |
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| 61 | 61 | | H. B. 230 |
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| 62 | 62 | | - 2 - 25 LC 59 0030 |
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| 63 | 63 | | (5) To the extent that a taxpayer did not have rights to claim or use the tax credit at the43 |
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| 64 | 64 | | time of the transfer, the department shall either disallow the tax credit claimed by the44 |
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| 65 | 65 | | transferee or recapture the tax credit from the transferee; and45 |
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| 66 | 66 | | (6) The transferee must acquire a minimum of 60 percent of the amount of the tax credits46 |
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| 67 | 67 | | in this Code section so transferred."47 |
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| 68 | 68 | | SECTION 2.48 |
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| 69 | 69 | | This Act shall become effective on January 1, 2026, and shall be applicable to taxable years49 |
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| 70 | 70 | | beginning on or after January 1, 2026.50 |
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| 71 | 71 | | SECTION 3.51 |
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| 72 | 72 | | All laws and parts of laws in conflict with this Act are repealed.52 |
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| 73 | 73 | | H. B. 230 |
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| 74 | 74 | | - 3 - |
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