Georgia 2025-2026 Regular Session

Georgia House Bill HB365 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25 LC 39 4528
2	2	House Bill 365
3	3	By: Representatives Jasperse of the 11
4	4	th
5	5	, McDonald III of the 26
6	6	th
7	7	, Smith of the 138
8	8	th
9	9	,
10	10	Campbell of the 171
11	11	st
12	12	, and Hagan of the 156
13	13	th
14	14
15	15	A BILL TO BE ENTITLED
16	16	AN ACT
17	17	To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
18	18	1
19	19	relating to the imposition, rate, and computation of and exemptions and credits from state2
20	20	income taxes, so as to create a temporary income tax credit for certain expenditures relating3
21	21	to projects promoting industrial infrastructure enhancement and connectivity; to provide for4
22	22	definitions; to provide for eligibility approval by the Department of Community Affairs; to5
23	23	provide for limitations upon such tax credit; to authorize the sale or transfer of unused6
24	24	credits; to provide for an aggregate annual limit; to provide for terms and conditions; to7
25	25	provide for rules and regulations; to provide for automatic repeal; to provide for related8
26	26	matters; to provide for a short title; to provide for an effective date and applicability; to9
27	27	repeal conflicting laws; and for other purposes.10
28	28	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
29	29	SECTION 1.12
30	30	The Act shall be known and may be cited as the "Strategic Industrial Development13
31	31	Enhancement (SIDE) Tax Credit Act."14
32	32	H. B. 365
33	33	- 1 - 25 LC 39 4528
34	34	SECTION 2.
35	35	15
36	36	Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the16
37	37	imposition, rate, and computation of and exemptions and credits from state income taxes, is17
38	38	amended by revising Code Section 48-7-40.35, which is reserved, as follows:18
39	39	"48-7-40.35.19
40	40	(a) As used in this Code section, the term:
41	41	20
42	42	(1) 'Eligible entity' means an entity incorporated and located in this state with a qualified21
43	43	project which has been approved by the Department of Community Affairs.22
44	44	(2) 'Qualified economic development expenditures' means expenditures made by an23
45	45	eligible entity for costs for improvements to land and construction costs for a qualified24
46	46	project and the purchase of machinery and any equipment necessary for such25
47	47	improvements or construction.26
48	48	(3) 'Qualified initial infrastructure expenditures' means expenditures made by an eligible27
49	49	entity for new rail infrastructure and improvements for the provision of rail service to a28
50	50	qualified project, including, but not limited to, right-of-way acquisition, engineering29
51	51	services, rehabilitation of existing inactive tracks to reinstate operation, construction of30
52	52	new tracks, loading dock improvements, and transloading structures.31
53	53	(4) 'Qualified project' means a project that:32
54	54	(A) Is expected to provide substantial economic benefits and result in job creation;33
55	55	(B) Is located within an industrial park or economic development zone or adjacent to34
56	56	a terminal or switching of a railroad; and35
57	57	(C) Has been approved by the Department of Community Affairs in accordance with36
58	58	rules and regulations promulgated pursuant to this Code section.37
59	59	(5) 'Railroad' means a common carrier classified as a railroad by the United States38
60	60	Surface Transportation Board in accordance with Section 1-1 of 49 C.F.R. 1201, as it39
61	61	existed on January 1, 2025.40
62	62	H. B. 365
63	63	- 2 - 25 LC 39 4528
64	64	(b) An eligible entity shall be allowed a credit against the tax imposed by this article for41
65	65	a taxable year in an amount equal to 10 percent of its qualified economic development42
66	66	expenditures and 50 percent of its qualified initial infrastructure expenditures. The credit43
67	67	given under this subsection shall be available for each taxable year beginning on or after44
68	68	January 1, 2026, and ending on or before December 31, 2031.45
69	69	(c) The tax credit allowed under subsection (b) of this Code section shall be subject to the46
70	70	following conditions and limitations:47
71	71	(1) The aggregate amount for qualified economic development expenditures shall not48
72	72	exceed $8 million per qualified project;49
73	73	(2) The aggregate amount for qualified initial infrastructure expenditures shall not50
74	74	exceed $4 million per qualified project; and51
75	75	(3) The aggregate amount for a combination of qualified economic development52
76	76	expenditures and qualified initial infrastructure expenditures shall not exceed $8 million53
77	77	per qualified project.54
78	78	(d) In no event shall the amount of tax credits allowed pursuant to this Code section55
79	79	exceed $75 million in aggregate for a taxable year.56
80	80	(e)(1) The total amount of the tax credits allowed pursuant to this Code section for a57
81	81	taxable year shall not exceed the taxpayer's income tax liability.58
82	82	(2) Tax credits claimed pursuant to this Code section but not used in any taxable year59
83	83	may be carried forward for three years from the close of the taxable year in which the60
84	84	credits are claimed.61
85	85	(3) Any tax credits earned by a taxpayer under this Code section and previously claimed62
86	86	but not used by such taxpayer against its income tax may be transferred or sold in whole63
87	87	or in part by such taxpayer to another Georgia taxpayer up to three years from the date64
88	88	the credit was earned and subject to the maximum total limits provided by subsection (c)65
89	89	of this Code section.66
90	90	H. B. 365
91	91	- 3 - 25 LC 39 4528
92	92	(f) The Department of Community Affairs shall develop rules and regulations for67
93	93	application and approval of a project as a qualified project eligible for the tax credits68
94	94	authorized under this Code section, provided that applications for approval as a qualified69
95	95	project shall include a description of the project, project location, detailed project costs, and70
96	96	a summary of expected economic benefits and job creation. Applications approved by the71
97	97	Department of Community Affairs shall be submitted to the state revenue commissioner.72
98	98	(g) The state revenue commissioner shall develop such rules and regulations as are73
99	99	necessary to implement and administer this Code section.74
100	100	(h) This Code section shall stand repealed and reserved on January 1, 2032. Reserved."75
101	101	SECTION 3.76
102	102	This Act shall become effective upon its approval by the Governor or upon its becoming law77
103	103	without such approval and shall be applicable to taxable years beginning on or after78
104	104	January 1, 2026.79
105	105	SECTION 4.80
106	106	All laws and parts of laws in conflict with this Act are repealed.81
107	107	H. B. 365
108	108	- 4 -