25 LC 50 1178S
House Bill 248 (COMMITTEE SUBSTITUTE)
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, conditions, and procedures; to provide for a sunset date; to provide for4
related matters; to provide for an effective date and applicability; to repeal conflicting laws;5
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: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 after24
January 1, 2026, and meets or exceeds applicable federal Energy Star requirements on25
the date that 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 after29
January 1, 2026, and meets or exceeds applicable federal Energy Star requirements on30
the date that 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)(1) In no event shall the aggregate limit of tax credits allowed under this Code section39
for any year exceed $2.5 million. In no event shall the total amount of any tax credit40
allowed under this Code section for a taxable year exceed the taxpayer's income tax41
liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.42
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(2) Except as provided in subsection (b) of this Code section, no amount of the tax credit43
shall be allowed to be carried forward to apply to the taxpayer's succeeding years' tax44
liability.45
(d) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an46
application to the department for preapproval of such tax credit in the manner specified by47
the department. The department shall preapprove such application within 30 days based48
on the order in which properly completed applications were submitted. In the event that49
two or more applications were submitted on the same day and the amount of funds50
available will not be sufficient to fully fund the tax credits requested, the commissioner51
shall prorate the available funds between or among the applicants.52
(e) This Code section shall stand repealed and reserved by operation of law on53
December 31, 2031."54
SECTION 2.55
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years56
beginning on or after January 1, 2026.57
SECTION 3.58
All laws and parts of laws in conflict with this Act are repealed.59
H. B. 248 (SUB)
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