25 LC 50 1011
House Bill 248
By: Representatives Jasperse of the 11
th
, Kelley of the 16
th
, Powell of the 33
rd
, Williams of
the 148
th
, and Camp of the 135
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
certain geothermal machinery installations at residential dwellings; to provide for definitions;3
to provide for terms and conditions; to provide for a sunset date; to provide for related4
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for5
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:12
(1) 'Eligible geothermal installation expenses' means expenses incurred by a taxpayer for13
a geothermal machinery installation for a residential dwelling that is owned by the14
taxpayer.15
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(2) 'Geothermal machinery and equipment' means all controls, tanks, pumps, heat16
exchangers, and other equipment used directly and exclusively for a geothermal17
machinery installation. Such term excludes any land or structural elements of any18
building or any equipment ordinarily contained within a dwelling regardless of a19
geothermal machinery installation.20
(3) 'Geothermal machinery installation' means the installation of any:21
(A) Heat pump that uses the ground or ground water as a thermal energy source to heat22
a structure or as a thermal energy sink to cool a structure, together with necessary23
geothermal and machinery equipment, which is placed in service on or after July 1,24
2025, and meets or exceeds applicable federal Energy Star requirements on the date that25
it is placed in service; or26
(B) System that uses the internal heat of the earth as a substitute for traditional energy27
sources for water heating or active space heating or cooling, together with necessary28
geothermal machinery and equipment, which is placed in service on or after July 1,29
2025, and meets or exceeds applicable federal Energy Star requirements on the date that30
it is placed in service.31
(b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed32
an income tax credit against the tax imposed by Code Section 48-7-20 that is equal to 2533
percent of the eligible geothermal installation expenses incurred by the taxpayer for a34
dwelling; provided, however, that such tax credit shall only be applied over a period of five35
taxable years and shall not exceed $5,000.00 for any taxable year and no amount shall be36
allowed or carried forward after such years. A taxpayer shall only be eligible for the tax37
credit allowed under this Code section once per dwelling.38
(c) In no event shall the total amount of any tax credit allowed under this Code section for39
a taxable year exceed the taxpayer's income tax liability. No such tax credit shall be40
allowed the taxpayer against prior years' tax liability. Except as provided in subsection (b)41
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of this Code section, no amount of the tax credit shall be allowed to be carried forward to42
apply to the taxpayer's succeeding years' tax liability.43
(d) This Code section shall stand repealed and reserved by operation of law on44
December 31, 2030."45
SECTION 2.46
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years47
beginning on or after January 1, 2026.48
SECTION 3.49
All laws and parts of laws in conflict with this Act are repealed.50
H. B. 248
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