Bill > HB230

This bill establishes a new tax credit program for homebuilders in Georgia that provides a 20 percent income tax credit for eligible construction expenses related to building and selling single-family homes priced at or below $200,000. The tax credit applies to construction expenses incurred on or after January 1, 2026, and can be used against the taxpayer's income tax liability for up to five subsequent years. Notably, the bill allows taxpayers to transfer or sell their unused tax credits to other Georgia taxpayers, with specific conditions: builders can make only one transfer per taxable year, must notify the department within 30 days of the transfer, and transferees must acquire at least 60 percent of the available credits. If a taxpayer transfers credits they did not have the right to claim, the department can disallow or recapture the credits from the transferee. The primary goal appears to be incentivizing the construction of more affordable housing by providing financial relief to homebuilders who create homes in the $200,000 or below price range. The bill will become effective on January 1, 2026, and apply to taxable years beginning on or after that date.

Budget and Finance

https://www.legis.ga.gov/legislation/69835