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