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GA HB365

Strategic Industrial Development Enhancement (SIDE) Tax Credit Act; enact


summary

Introduced
02/10/2025
In Committee
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of and exemptions and credits from state income taxes, so as to create a temporary income tax credit for certain expenditures relating to projects promoting industrial infrastructure enhancement and connectivity; to provide for definitions; to provide for eligibility approval by the Department of Community Affairs; to provide for limitations upon such tax credit; to authorize the sale or transfer of unused credits; to provide for an aggregate annual limit; to provide for terms and conditions; to provide for rules and regulations; to provide for automatic repeal; to provide for related matters; to provide for a short title; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

AI Summary

This bill establishes the Strategic Industrial Development Enhancement (SIDE) Tax Credit Act, which creates a new tax credit program for businesses in Georgia that invest in industrial infrastructure and economic development projects. The bill allows eligible entities (businesses incorporated and located in Georgia) to claim tax credits for qualified economic development expenditures and initial infrastructure expenditures, specifically targeting projects located in industrial parks, economic development zones, or near railroad terminals. Companies can receive a 10% tax credit for economic development expenditures and a 50% credit for initial infrastructure expenditures, with maximum aggregate credits of $8 million per project for development expenses and $4 million for infrastructure expenses. The total tax credits statewide are capped at $75 million annually for taxable years between 2026 and 2031. Unused credits can be carried forward for up to three years and can also be transferred or sold to other Georgia taxpayers. To qualify, projects must be expected to create substantial economic benefits and jobs, and must receive approval from the Department of Community Affairs. The tax credit program will automatically expire on January 1, 2032, providing a time-limited incentive for industrial development in the state.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

House Second Readers (on 02/12/2025)

bill text


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