HB212: HB212 Clean Energy Production Tax Credit Act; enact

Georgia currently has no income tax credit tied specifically to the greenhouse gas emissions rate of electricity production. House Bill 212, called the Clean Energy Production Tax Credit Act, would add a new credit to Georgia's tax code (O.C.G.A. Article 2 of Chapter 7 of Title 48) for taxable years beginning on or after January 1, 2026. An eligible producer that runs a 'qualified facility', one built in Georgia, placed in service after July 1, 2025, and with a greenhouse gas emissions rate no higher than zero, could claim 3 cents per kilowatt hour of electricity it produces and sells, or in some cases consumes or stores. The credit cannot exceed the taxpayer's tax bill for that year and cannot be applied to past years, but unused credit can carry forward for three years. Credits can also be sold or transferred once to another Georgia taxpayer, who must pay at least 60 percent of the credit's value. The state's Environmental Protection Division must publish emissions rate tables each year to help calculate eligibility. The law would take effect July 1, 2025.

• Creates a new state income tax credit of 3 cents per kilowatt hour for electricity produced at qualifying clean energy facilities in Georgia.
• Limits eligibility to facilities placed in service after July 1, 2025 with a greenhouse gas emissions rate of zero or below, for up to 10 years after startup.
• Caps the credit each year at the taxpayer's income tax liability and bars its use against past years' taxes, while allowing a three-year carry-forward for unused amounts.
• Allows the credit to be sold or transferred once, in whole or in part, to another Georgia taxpayer, who must pay at least 60 percent of the credit's value.
• Requires the Environmental Protection Division to publish annual tables of greenhouse gas emission rates by facility type to determine eligibility.
• Directs the Georgia Department of Revenue to write rules for claiming, verifying, and recordkeeping requirements tied to the credit.

The bill affects owners and operators of electricity generation facilities in Georgia seeking clean energy tax credits, Georgia taxpayers who might buy transferred credits, the Environmental Protection Division, which must publish emissions data, and the Department of Revenue, which administers the credit.

If enacted, clean energy producers in Georgia could reduce their state tax bills or sell that benefit to other companies, potentially making low-emission power projects more financially attractive. Because credits are transferable, businesses without enough tax liability to use the credit themselves could still benefit by selling it.

• Section 1 names the bill the 'Clean Energy Production Tax Credit Act.'
• Section 2 revises O.C.G.A. § 48-7-40.10 to define 'eligible person,' 'greenhouse gas emissions rate,' and 'qualified facility,' the last requiring a facility placed in service after July 1, 2025 with an emissions rate no greater than zero.
• Subsection (b) sets the credit at 3 cents per kilowatt hour for electricity produced, sold, consumed, or stored by an eligible person at a qualified facility, for taxable years starting on or after January 1, 2026.
• Subsection (c) limits the credit to the taxpayer's current-year tax liability, disallows use against prior years, and permits a three-year carry-forward.
• Subsection (d) allows a single transfer or sale of unused credits to Georgia taxpayers, requiring notice to the Department of Revenue within 30 days and a minimum transfer price of 60 percent of the credit's value.
• Subsection (e) requires the Environmental Protection Division to annually publish greenhouse gas emission rate tables by facility type.
• Section 3 sets the effective date as July 1, 2025, applicable to taxable 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
• greenhouse gas emissions
• electricity production
• Georgia income tax