Bill > HB616

This bill modifies Georgia tax law regarding Section 179 depreciation deductions for single-family residential rental properties, specifically changing how corporations can claim these deductions. Currently, corporations can subtract from their taxable income the depreciation deduction allowed under Section 179 of the Internal Revenue Code as it existed on or before January 1, 2005. However, starting January 1, 2026, corporations will no longer be able to take this deduction for single-family residential rental properties. Instead, any amount previously deducted under Section 179 for such properties must be added back to the corporation's taxable income. This means that for tax years beginning on or after January 1, 2026, corporations will effectively lose the tax benefit of depreciating single-family residential rental properties under Section 179, potentially increasing their tax liability. The bill will become effective on January 1, 2026, and will apply to all taxable years starting on or after that date, giving businesses advance notice of the upcoming change in tax treatment.

Budget and Finance

https://www.legis.ga.gov/legislation/70746