Georgia 2025-2026 Regular Session

Georgia House Bill HB248 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		25 LC 50 1178S
2		-	House Bill 248 (COMMITTEE SUBSTITUTE)
3		-	By: Representatives Jasperse of the 11
4		-	th
5		-	, Kelley of the 16
6		-	th
7		-	, Powell of the 33
8		-	rd
9		-	, Williams of
10		-	the 148
11		-	th
12		-	, and Camp of the 135
13		-	th
14		-
	2	+	The House Committee on Ways and Means offers the following substitute to HB 248:
15	3		A BILL TO BE ENTITLED
16	4		AN ACT
17		-	To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
18		-	1
	5	+	To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1
19	6		income taxes, so as to provide for a tax credit for certain expenses incurred by taxpayers for2
20	7		certain geothermal machinery installations at residential dwellings; to provide for definitions;3
21	8		to provide for terms, conditions, and procedures; to provide for a sunset date; to provide for4
22	9		related matters; to provide for an effective date and applicability; to repeal conflicting laws;5
23	10		and for other purposes.6
24	11		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
25	12		SECTION 1.8
26	13		Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,9
27	14		is amended by adding a new Code section to read as follows:10
28		-	"48-7-29.27.
29		-	11
	15	+	"48-7-29.27.11
30	16		(a) As used in this Code section, the term:12
31	17		(1) 'Eligible geothermal installation expenses' means expenses incurred by a taxpayer for13
32	18		a geothermal machinery installation for a residential dwelling that is owned by the14
33	19		taxpayer.15
34	20		H. B. 248 (SUB)
35	21		- 1 - 25 LC 50 1178S
36	22		(2) 'Geothermal machinery and equipment' means all controls, tanks, pumps, heat16
37	23		exchangers, and other equipment used directly and exclusively for a geothermal17
38	24		machinery installation. Such term excludes any land or structural elements of any18
39	25		building or any equipment ordinarily contained within a dwelling regardless of a19
40	26		geothermal machinery installation.20
41	27		(3) 'Geothermal machinery installation' means the installation of any:21
42	28		(A) Heat pump that uses the ground or ground water as a thermal energy source to heat22
43	29		a structure or as a thermal energy sink to cool a structure, together with necessary23
44	30		geothermal and machinery equipment, which is placed in service on or after24
45	31		January 1, 2026, and meets or exceeds applicable federal Energy Star requirements on25
46	32		the date that it is placed in service; or26
47	33		(B) System that uses the internal heat of the earth as a substitute for traditional energy27
48	34		sources for water heating or active space heating or cooling, together with necessary28
49	35		geothermal machinery and equipment, which is placed in service on or after29
50	36		January 1, 2026, and meets or exceeds applicable federal Energy Star requirements on30
51	37		the date that it is placed in service.31
52	38		(b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed32
53	39		an income tax credit against the tax imposed by Code Section 48-7-20 that is equal to 2533
54	40		percent of the eligible geothermal installation expenses incurred by the taxpayer for a34
55	41		dwelling; provided, however, that such tax credit shall only be applied over a period of five35
56	42		taxable years and shall not exceed $5,000.00 for any taxable year and no amount shall be36
57	43		allowed or carried forward after such years. A taxpayer shall only be eligible for the tax37
58	44		credit allowed under this Code section once per dwelling.38
59	45		(c)(1) In no event shall the aggregate limit of tax credits allowed under this Code section39
60	46		for any year exceed $2.5 million. In no event shall the total amount of any tax credit40
61	47		allowed under this Code section for a taxable year exceed the taxpayer's income tax41
62	48		liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.42
63	49		H. B. 248 (SUB)
64	50		- 2 - 25 LC 50 1178S
65	51		(2) Except as provided in subsection (b) of this Code section, no amount of the tax credit43
66	52		shall be allowed to be carried forward to apply to the taxpayer's succeeding years' tax44
67	53		liability.45
68	54		(d) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an46
69	55		application to the department for preapproval of such tax credit in the manner specified by47
70	56		the department. The department shall preapprove such application within 30 days based48
71	57		on the order in which properly completed applications were submitted. In the event that49
72	58		two or more applications were submitted on the same day and the amount of funds50
73	59		available will not be sufficient to fully fund the tax credits requested, the commissioner51
74	60		shall prorate the available funds between or among the applicants.52
75	61		(e) This Code section shall stand repealed and reserved by operation of law on53
76	62		December 31, 2031."54
77	63		SECTION 2.55
78	64		This Act shall become effective on July 1, 2025, and shall be applicable to taxable years56
79	65		beginning on or after January 1, 2026.57
80	66		SECTION 3.58
81	67		All laws and parts of laws in conflict with this Act are repealed.59
82	68		H. B. 248 (SUB)
83	69		- 3 -