HB213: HB213 Clean Energy Investment Tax Credit Act; enact

25 LC 50 0989 House Bill 213 By: Representatives Park of the 107th, Miller of the 62nd, Drenner of the 85th, Romman of the 97th, Herring of the 145th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemption, and credits from income taxes, so as to2 create a tax credit for investment in clean energy; to provide for the calculation of credit3 amounts; to provide for definitions; to provide for terms and c onditions; to pr ovide for4 transferability; to require the Environmental Protection Divisi on to annually publish5 greenhouse gas emission rates for purposes of such tax credit; to provide for rules and6 regulations; to provide for a short title; to provide for relat ed matters; to provide for an7 effective date and applicability; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 This Act shall be known and may be cited as the "Clean Energy Investment Tax Credit Act."11 SECTION 2.12 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to13 imposition, rate, computation, exemption, and credits from inco me taxes, is amended by14 revising Code Section 48-7-40.10, which is reserved, as follows:15 H. B. 213 - 1 - 25 LC 50 0989 "48-7-40.10.16 (a) As used in this Code section, the term:17 (1) 'CO2e per KWh,' 'energy storage technology,' 'greenhouse g as,' and 'qualified18 interconnection property' shall have the same meaning as provided for such terms in 2619 U.S.C. Section 48E, as effective on January 1, 2025.20 (2) 'Eligible person' means any person that demonstrates eligi bility for the tax credit21 allowed pursuant to this Code section in accordance with the requirements of this Code22 section and rules and regulations of the department. Such term shall not include any23 person or any form of business owned, affiliated, or controlled , in whole or in part, by24 any company or person which is in default on any tax obligation to the state, any loan25 made by the state, or any loan guaranteed by the state.26 (3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into27 the atmosphere by a facility in the production of electricity, expressed as grams of CO2e28 per KWh, as provided by the Environmental Protection Division p ursuant to29 subsection (e) of this Code section. In the case of a facility which produces electricity30 through combustion or gasification, the greenhouse gas emissions rate for such facility31 shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such32 facility, taking into account lifecycle greenhouse gas emission s in the production of33 electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases34 emitted into the atmosphere by a facility in the production of electricity shall not include35 any qualified carbon dioxide that is captured by the qualified person and disposed of by36 the eligible person in secure geological storage or utilized by the qualified person.37 (4) 'Qualified facility' means a facility located in this stat e which is used for the38 generation of electricity, is placed in service after July 1, 2 025, and for which the39 greenhouse gas emissions rate is not greater than zero. Such term shall not include any40 facility for which a state income tax credit for clean energy production is allowed for the41 taxable year.42 H. B. 213 - 2 - 25 LC 50 0989 (5) 'Qualified investment' means:43 (A) With respect to any qualified facility for any taxable year, the sum of:44 (i) The basis of any qualified property placed in service by the eligible person during45 such taxable year which is part of a qualified facility; and46 (ii) The amount of any expenditures which are:47 (I) Paid or incurred by the eligible person for qualified interconnection property in48 connection with a qualified facility which has a maximum net output of not greater49 than 5 megawatts, as measured in alternating current, and placed in service during50 the taxable year; and51 (II) Properly chargeable to the capital account of the taxpayer; and52 (B) With respect to energy storage technology for any taxable year, the basis of any53 energy storage technology placed in service by the eligible person during such taxable54 year.55 (6) 'Qualified property' means property:56 (A) Which is tangible personal property, or other tangible pro perty, not including a57 building or its structural components, but only if such propert y is used as an integral58 part of the qualified facility:59 (B) With respect to which depreciation, or amortization in lie u of depreciation, is60 allowable; and61 (C)(i) The construction, reconstruction, or erection of which is completed by the62 eligible person; or63 (ii) Which is acquired by the eligible person if the original use of such property64 commences with the eligible person.65 (b) For taxable years beginning on or after January 1, 2026, a tax credit is allowed against66 the tax imposed under this article to any eligible person in an amount equal to 6 percent of67 the qualified investment for such taxable year with respect to any qualified facility and any68 energy storage technology located in this state.69 H. B. 213 - 3 - 25 LC 50 0989 (c) The tax credit allowed by this Code section shall be subject to the following conditions70 and limitations:71 (1) If used by the eligible person, in no event shall the amount of the tax credit used in72 a taxable year exceed the taxpayer's income tax liability. No s uch credit shall be used73 against the eligible person's prior years' tax liability;74 (2) If transferred or sold to a Georgia taxpayer as provided for in subsection (d) of this75 Code section, in no event shall the amount of the tax credit used in a taxable year exceed76 the taxpayer's income tax liability. No such credit shall be u sed against the taxpayer's77 prior years' tax liability;78 (3) Any unused credit amount shall be allowed to be carried forward for three years from79 the taxable year for which it was claimed; and80 (4) To claim a credit allowed by this Code section, the eligible person shall provide any81 information required by the department. Every eligible person claiming a credit under82 this Code section shall maintain and make available for inspection by the department any83 records that either entity considers necessary to determine and verify the amount of the84 credit to which the eligible person is entitled. The burden of proving eligibility for a85 credit and the amount of the credit rests upon the eligible person, and no credit shall be86 allowed to an eligible person that fails to maintain adequate r ecords or to make them87 available for inspection.88 (d) Any tax credits allowed to an eligible person pursuant to this Code section and89 previously claimed but not used by such person against its inco me tax liability may be90 transferred or sold in whole or in part by such eligible person to any Georgia taxpayer,91 subject to the following conditions:92 (1) Such eligible person shall make only a single transfer or sale of tax credits earned in93 a taxable year; provided, however, that the transfer or sale ma y involve one or more94 transferees;95 H. B. 213 - 4 - 25 LC 50 0989 (2) Such eligible person shall submit to the department a writ ten notification of any96 transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits.97 Such notification shall include the tax credit balance prior to transfer, the credit certificate98 number, the remaining balance after transfer, all tax identific ation numbers for each99 transferee, the date of transfer, the amount transferred, and any other information required100 by the department;101 (3) The transfer or sale of such tax credit shall not extend t he time in which such tax102 credit can be used. The carry-forward period for a tax credit that is transferred or sold103 shall begin on the date on which the tax credit was originally earned;104 (4) A transferee shall have only such rights to claim and use the tax credit that were105 available to such eligible person at the time of the transfer. To the extent that such106 eligible person did not have rights to claim or use the tax credit at the time of the transfer,107 the department shall either disallow the tax credit claimed by the transferee or recapture108 the tax credit from the transferee; and109 (5) The transferee shall acquire such tax credits for a minimu m of 60 percent of the110 amount of the tax credits so transferred.111 (e) The Environmental Protection Division shall annually publish a table that sets forth the112 greenhouse gas emissions rates for types or categories of facilities, which an eligible person113 and the department shall use for purposes of this Code section.114 (f) The department shall promulgate any rules and regulations necessary to implement and115 administer the provisions of this Code section. Reserved."116 SECTION 3.117 This Act shall become effective on July 1, 2025, and shall be a pplicable to taxable years118 beginning on or after January 1, 2026.119 H. B. 213 - 5 - 25 LC 50 0989 SECTION 4.120 All laws and parts of laws in conflict with this Act are repealed. 121 H. B. 213 - 6 -