| 1 | 1 | | 25 LC 59 0096 |
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| 2 | 2 | | House Bill 616 |
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| 3 | 3 | | By: Representatives Romman of the 97 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Frye of the 122 |
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| 6 | 6 | | nd |
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| 7 | 7 | | , Holly of the 116 |
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| 8 | 8 | | th |
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| 9 | 9 | | , and Berry of |
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| 10 | 10 | | the 56 |
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| 11 | 11 | | th |
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| 12 | 12 | | |
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| 13 | 13 | | A BILL TO BE ENTITLED |
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| 14 | 14 | | AN ACT |
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| 15 | 15 | | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
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| 16 | 16 | | 1 |
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| 17 | 17 | | income taxes, so as to revise a deduction related to depreciation for single-family residential2 |
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| 18 | 18 | | rental property; to provide for related matters; to provide for an effective date and3 |
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| 19 | 19 | | applicability; to repeal conflicting laws; and for other purposes.4 |
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| 20 | 20 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 |
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| 21 | 21 | | SECTION 1.6 |
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| 22 | 22 | | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,7 |
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| 23 | 23 | | is amended by revising paragraph (14) of subsection (b) of Code Section 48-7-21, relating8 |
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| 24 | 24 | | to taxation of corporations, as follows:9 |
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| 25 | 25 | | "(14)(A) |
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| 26 | 26 | | There shall be subtracted from taxable income the deduction provided and10 |
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| 27 | 27 | | allowed by Section 179 of the Internal Revenue Code of 1986 as enacted on or before11 |
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| 28 | 28 | | January 1, 2005, to the extent the deduction has not been included in the corporation's12 |
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| 29 | 29 | | taxable income, as defined under the Internal Revenue Code of 1986; provided,13 |
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| 30 | 30 | | however, that for taxable years beginning on or after January 1, 2026, the provisions14 |
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| 31 | 31 | | of this subparagraph shall not be applicable for single-family residential rental property.15 |
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| 32 | 32 | | H. B. 616 |
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| 33 | 33 | | - 1 - 25 LC 59 0096 |
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| 34 | 34 | | (B) For taxable years beginning on or after January 1, 2026, to the extent any amount16 |
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| 35 | 35 | | was taken by a corporation as a deduction allowed by Section 179 of the Internal17 |
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| 36 | 36 | | Revenue Code in connection with any single-family residential rental property, such18 |
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| 37 | 37 | | amount shall be added to the taxable income of the corporation."19 |
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| 38 | 38 | | SECTION 2.20 |
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| 39 | 39 | | Said chapter is further amended by revising paragraph (15) of subsection (a) of Code Section21 |
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| 40 | 40 | | 48-7-27, relating to computation of taxable income, as follows:22 |
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| 41 | 41 | | "(15)(A) The deduction provided and allowed by Section 179 of the Internal Revenue23 |
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| 42 | 42 | | Code of 1986 as enacted on or before January 1, 2005, to the extent the deduction has24 |
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| 43 | 43 | | not been included in federal adjusted gross income, as defined under the Internal25 |
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| 44 | 44 | | Revenue Code of 1986, and the expenses have not been included in itemized26 |
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| 45 | 45 | | nonbusiness deductions; provided, however, that for taxable years beginning on or after27 |
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| 46 | 46 | | January 1, 2026, the provisions of this subparagraph shall not be applicable for28 |
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| 47 | 47 | | single-family residential rental property.29 |
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| 48 | 48 | | (B) For taxable years beginning on or after January 1, 2026, to the extent any amount30 |
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| 49 | 49 | | was taken by a corporation as a deduction allowed by Section 179 of the Internal31 |
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| 50 | 50 | | Revenue Code in connection with any single-family residential rental property, such32 |
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| 51 | 51 | | amount shall be added to the taxable income of the corporation."33 |
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| 52 | 52 | | SECTION 3.34 |
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| 53 | 53 | | This Act shall become effective on January 1, 2026, and shall be applicable to all taxable35 |
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| 54 | 54 | | years beginning on or after such date.36 |
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| 55 | 55 | | SECTION 4.37 |
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| 56 | 56 | | All laws and parts of laws in conflict with this Act are repealed.38 |
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| 57 | 57 | | H. B. 616 |
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| 58 | 58 | | - 2 - |
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