HB425: HB425 Revenue and taxation; purchase of an emergency power generator to convenience stores and grocery stores; provide tax credit

After Hurricane Helene, the Georgia General Assembly is considering a new tax credit to encourage certain businesses to install backup generators before the next major storm. The bill adds a new section to Georgia's tax code (O.C.G.A. § 48-7-29.27) letting convenience stores under 10,000 square feet and skilled nursing facilities claim a credit for money spent between July 1, 2025 and December 31, 2026 on generators, transfer switches, fuel lines, and related equipment, as long as the purchase is not for resale. The credit is spread over five tax years, capped at $5,000 per year, and each taxpayer can only claim it once per store or facility, with a five-store limit per taxpayer. Taxpayers must apply to the Georgia Department of Revenue for preapproval, and the credit cannot exceed a taxpayer's tax bill or be carried forward beyond the five years except as specified. The whole program has a $5 million statewide cap and the law automatically repeals on December 31, 2031.

• Creates a new Georgia income tax credit for convenience stores and skilled nursing facilities that buy and install emergency backup generators and related equipment like transfer switches and fuel lines.
• Limits the credit to purchases made between July 1, 2025 and December 31, 2026, and caps it at $5,000 per taxable year spread over five years.
• Restricts each taxpayer to claiming the credit once per store or facility and bars any taxpayer from claiming it for more than five convenience stores.
• Sets a statewide cap of $5 million total for all credits claimed under this program.
• Requires taxpayers to apply to the Georgia Department of Revenue for preapproval before claiming the credit, with funds awarded in the order applications are received.
• Automatically repeals the tax credit program on December 31, 2031.

Convenience store owners with less than 10,000 square feet of retail space and skilled nursing facilities across Georgia, as well as the Georgia Department of Revenue, which must review applications, preapprove credits, and administer the $5 million statewide cap.

Businesses that provide fuel, food, and medical care could get help paying for backup generators, potentially keeping them running during future power outages like those after Hurricane Helene. The $5 million cap and preapproval process mean not every applicant may receive funding, especially if demand is high.

• Section 1 adds O.C.G.A. § 48-7-29.27, creating a tax credit for emergency generator purchases at convenience stores and skilled nursing facilities.
• Subsection (b) defines 'convenience store', 'emergency power generator and related components', and 'skilled nursing facility' for purposes of the credit.
• Subsection (c) limits the credit to purchases made between July 1, 2025 and December 31, 2026, caps it at $5,000 per year over five years, and limits eligibility to once per location and five stores per taxpayer.
• Subsection (e) sets a $5 million aggregate statewide cap and bars the credit from exceeding a taxpayer's tax liability or being applied to past years.
• Subsection (f) requires taxpayers to submit applications for preapproval, with the Department of Revenue prorating funds if demand exceeds available money on a given day.
• Subsection (h) repeals the entire tax credit program on December 31, 2031.

1. 2025-03-10Senate Read and Referred (Senate)
2. 2025-03-06House Passed/Adopted By Substitute (House)
3. 2025-03-06House Third Readers (House)
4. 2025-02-26House Committee Favorably Reported By Substitute (House)
5. 2025-02-18House Second Readers (House)
6. 2025-02-13House First Readers (House)
7. 2025-02-12House Hopper (House)

• James Burchett (R, HD-176)Primary sponsor
• Leesa Hagan (R, HD-156)
• Beth Camp (R, HD-135)
• James Hatchett (R, HD-155)
• Angie O'Steen (R, HD-169)
• Jaclyn Ford (R, HD-170)

1. PassedHouse voteMarch 6, 2025

   171 yea, 2 nay (4 not voting, 3 absent)

   Passage: House Vote #195

• tax credits
• emergency preparedness
• convenience stores
• nursing facilities
• hurricane recovery