HB212: HB212 Clean Energy Production Tax Credit Act; enact

25 LC 50 0988 House Bill 212 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 for income taxes, so as to2 create a tax credit for the production of 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 Production 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 for incom e taxes, is amended by14 revising Code Section 48-7-40.10, which is reserved, as follows:15 H. B. 212 - 1 - 25 LC 50 0988 "48-7-40.10.16 (a) As used in this Code section, the term:17 (1) 'CO2e per KWh,' 'greenhouse gas,' and 'qualified carbon dioxide' shall have the same18 meaning as set forth in 26 U.S.C. Section 45Y, as effective on January 1, 2025.19 (2) 'Eligible person' means any person that demonstrates eligi bility for the tax credit20 allowed pursuant to this Code section in accordance with the requirements of this Code21 section and rules and regulations of the department. Such term shall not include any22 person or any form of business owned, affiliated, or controlled , in whole or in part, by23 any company or person which is in default on any tax obligation to the state, any loan24 made by the state, or any loan guaranteed by the state.25 (3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into26 the atmosphere by a facility in the production of electricity, expressed as grams of CO2e27 per KWh, as provided by the Environmental Protection Division p ursuant to28 subsection (e) of this Code section. In the case of a facility which produces electricity29 through combustion or gasification, the greenhouse gas emissions rate for such facility30 shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such31 facility, taking into account lifecycle greenhouse gas emission s in the production of32 electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases33 emitted into the atmosphere by a facility in the production of electricity shall not include34 any qualified carbon dioxide that is captured by the eligible p erson and disposed of by35 the eligible person in secure geological storage or utilized by the eligible person.36 (4) 'Qualified facility' means a facility located in this stat e which is used for the37 generation of electricity, is placed in service after July 1, 2 025, and for which the38 greenhouse gas emissions rate is not greater than zero. A facility shall only be deemed39 a qualified facility during the 10 year period beginning on the date the facility was40 originally placed in service. Such term shall not include any facility for which a state41 income tax credit for clean energy investment is allowed for the taxable year.42 H. B. 212 - 2 - 25 LC 50 0988 (b) For taxable years beginning on or after January 1, 2026, a tax credit is allowed against43 the tax imposed under this article to any eligible person in an amount equal to 3¢ per44 kilowatt hour of electricity produced by the eligible person at a qualified facility and sold45 by the eligible person to an unrelated person during the taxabl e year or, in the case of a46 qualified facility which is equipped with a metering device which is owned and operated47 by an unrelated person, sold, consumed, or stored by the eligible person during the taxable48 year.49 (c) The tax credit allowed by this Code section shall be subject to the following conditions50 and limitations:51 (1) If used by the eligible person, in no event shall the amount of the tax credit used in52 a taxable year exceed the taxpayer's income tax liability. No s uch credit shall be used53 against the eligible person's prior years' tax liability;54 (2) If transferred or sold to a Georgia taxpayer as provided for in subsection (d) of this55 Code section, in no event shall the amount of the tax credit used in a taxable year exceed56 the taxpayer's income tax liability. No such credit shall be u sed against the taxpayer's57 prior years' tax liability;58 (3) Any unused credit amount shall be allowed to be carried forward for three years from59 the taxable year for which it was claimed; and60 (4) To claim a credit allowed by this Code section, the eligible person shall provide any61 information required by the department. Every eligible person claiming a credit under62 this Code section shall maintain and make available for inspection by the department any63 records that either entity considers necessary to determine and verify the amount of the64 credit to which the eligible person is entitled. The burden of proving eligibility for a65 credit and the amount of the credit rests upon the eligible person, and no credit shall be66 allowed to an eligible person that fails to maintain adequate r ecords or to make them67 available for inspection.68 H. B. 212 - 3 - 25 LC 50 0988 (d) Any tax credits allowed to an eligible person pursuant to this Code section and69 previously claimed but not used by such person against its inco me tax liability may be70 transferred or sold in whole or in part by such eligible person to any Georgia taxpayer,71 subject to the following conditions:72 (1) Such eligible person shall make only a single transfer or sale of tax credits earned in73 a taxable year; provided, however, that the transfer or sale ma y involve one or more74 transferees;75 (2) Such eligible person shall submit to the department a writ ten notification of any76 transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits.77 Such notification shall include the tax credit balance prior to transfer, the credit certificate78 number, the remaining balance after transfer, all tax identific ation numbers for each79 transferee, the date of transfer, the amount transferred, and any other information required80 by the department;81 (3) The transfer or sale of such tax credit shall not extend t he time in which such tax82 credit can be used. The carry-forward period for a tax credit that is transferred or sold83 shall begin on the date on which the tax credit was originally earned;84 (4) A transferee shall have only such rights to claim and use the tax credits that were85 available to such eligible person at the time of the transfer. In the event that such eligible86 person did not have rights to claim or use any such tax credit at the time of the transfer,87 the department shall either disallow the tax credit claimed by the transferee or recapture88 the tax credit from the transferee; and89 (5) The transferee shall acquire such tax credits for a minimu m of 60 percent of the90 amount of the tax credits so transferred.91 (e) The Environmental Protection Division shall annually publish a table that sets forth the92 greenhouse gas emission rates for types or categories of facilities, which an eligible person93 and the department shall use for purposes of this Code section.94 H. B. 212 - 4 - 25 LC 50 0988 (f) The department shall promulgate any rules and regulations necessary to implement and95 administer the provisions of this Code section. Reserved."96 SECTION 3.97 This Act shall become effective on July 1, 2025, and shall be a pplicable to taxable years98 beginning on or after January 1, 2026.99 SECTION 4. 100 All laws and parts of laws in conflict with this Act are repealed.101 H. B. 212 - 5 -