HB213: HB213 Clean Energy Investment Tax Credit Act; enact

Georgia currently has no state income tax credit specifically for clean energy generation investments under this section of law, which has been reserved. This bill fills that gap by creating the Clean Energy Investment Tax Credit Act. It allows a tax credit equal to 6 percent of a taxpayer's qualified investment in a qualified facility (a Georgia electricity generation facility placed in service after July 1, 2025 with a greenhouse gas emissions rate of zero or less) or in energy storage technology. The credit cannot exceed the taxpayer's income tax liability for the year, cannot be applied to past years' taxes, and unused amounts can be carried forward for three years. Taxpayers can sell or transfer unused credits to other Georgia taxpayers under specific rules, including a requirement that buyers pay at least 60 percent of the credit's value. The Environmental Protection Division must publish annual greenhouse gas emission rate tables to help determine eligibility. The law would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2026.

• Creates a new state income tax credit equal to 6 percent of qualified investment in zero-emission electricity facilities and energy storage technology placed in service in Georgia.
• Defines a 'qualified facility' as one located in Georgia, placed in service after July 1, 2025, with a greenhouse gas emissions rate of zero or less.
• Limits the credit so it cannot exceed a taxpayer's income tax liability for the year and cannot offset prior years' taxes, but allows a three year carry-forward of unused amounts.
• Allows eligible taxpayers to sell or transfer unused credits to other Georgia taxpayers, provided buyers pay at least 60 percent of the credit's value and transfers are reported to the Department of Revenue within 30 days.
• Requires the Environmental Protection Division to publish an annual table of greenhouse gas emissions rates by facility type to determine which facilities qualify.
• Directs the Department of Revenue to create rules and regulations to administer the credit program.

Companies and individuals that build or invest in zero-emission electricity generation facilities or energy storage systems in Georgia, Georgia taxpayers who might buy transferred tax credits, the Department of Revenue, which administers the credit, and the Environmental Protection Division, which must publish emissions data.

Businesses developing solar, wind, or other zero-emission power projects and storage systems in Georgia could reduce their state tax bills starting in 2026, and could also sell unused credits for cash to other Georgia taxpayers, potentially making clean energy projects more financially attractive to build.

• Section 1 names the law the 'Clean Energy Investment Tax Credit Act.'
• Section 2 rewrites O.C.G.A. § 48-7-40.10 to define terms like 'eligible person,' 'qualified facility,' 'qualified investment,' and 'greenhouse gas emissions rate,' largely borrowing definitions from federal tax code (26 U.S.C. § 48E).
• Subsection (b) sets the credit amount at 6 percent of qualified investment for tax years beginning on or after January 1, 2026.
• Subsection (c) caps the credit at the taxpayer's income tax liability, bars use against past years' taxes, and permits a three-year carry-forward of unused credit.
• Subsection (d) allows eligible persons to transfer or sell unused credits to Georgia taxpayers in a single transaction per year, with a 30-day notification requirement and a 60 percent minimum sale price rule.
• Subsection (e) requires the Environmental Protection Division to annually publish greenhouse gas emissions rate tables by facility type.
• Section 3 sets the effective date as July 1, 2025, applicable to tax years beginning on or after January 1, 2026.

1. 2025-02-04House Second Readers (House)
2. 2025-02-03House First Readers (House)
3. 2025-01-30House Hopper (House)

• Samuel Park (D, HD-107)Primary sponsor
• Tanya Miller (D, HD-062)
• Karla Drenner (D, HD-085)
• Ruwa Romman (D, HD-097)
• Tangie Herring (D, HD-145)
• Jasmine Clark (D, HD-108)

• clean energy
• tax credits
• renewable energy
• energy storage
• greenhouse gas emissions