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

25 LC 50 1179S House Bill 425 (COMMITTEE SUBSTITUTE) By: Representatives Burchett of the 176th, Hagan of the 156th, Camp of the 135th, Hatchett of the 155th, O’Steen of the 169th, 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, exemptions, and credits, so as to provide for a tax2 credit for the purchase of an emergency power generator and related components to certain3 convenience stores and skilled nursing facilities; to provide t erms, conditions, and4 procedures; to limit the tax credit and carry-forward period; to provide for an aggregate cap;5 to provide for automatic repeal; to provide for rules and regul ations; to provide for6 definitions; to provide for legislative findings; to provide fo r related matters; to repeal7 conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to11 imposition, rate, computation, exemptions, and credit, is amend ed by adding a new Code12 section to read as follows:13 "48-7-29.27.14 ( a ) ( 1 ) T h e G e n e r a l A s s e m b l y f i n d s a n d d e t e r m i n e s t h a t H u r r i c a ne Helene had a15 catastrophic impact on the citizens and the economy of Georgia.16 H. B. 425 (SUB) - 1 - 25 LC 50 1179S (2) The General Assembly further finds and declares that it is appropriate and advisable17 to ensure the state is better prepared for future weather event s by incentivizing the18 purchase and installation of generators in certain critical businesses such that the entire19 region will be able to recover faster.20 (b) For purposes of this Code section, the term:21 (1) 'Convenience store' means a retail establishment which offers for sale packaged or22 unprepared food and grocery items for consumption off the premises and may sell fuel23 products, household items, or tobacco products and has less tha n 10,000 square feet of24 retail floor space.25 (2) 'Emergency power generator and related components' means a n alternate backup26 power source that provides electricity during utility power outages. Such term shall refer27 to any one or more of the following:28 (A) A generator itself, whether fixed or mobile;29 (B) Any transfer switch or switches; or30 (C) The lines, fuel tanks, or other mechanisms needed to provide power to a generator31 using diesel, natural gas, propane, or any other fuel source.32 (3) 'Skilled nursing facility' means an instit ution or a disti nct part of such institution33 which is primarily engaged in providing inpatient skilled nursing care and related services34 for patients who require medical or nursing care or rehabilitat ion services for the35 rehabilitation of injured, disabled, or sick persons.36 (c)(1) A taxpayer shall be allowed a tax credit against the tax imposed under this article37 for expenditures made between July 1, 2025, and December 31, 2026, for the purchase38 and installation of emergency power generators and related components, provided that39 any such purchase is not for the purpose of resale.40 (2) The tax credit allowed under this Code section shall only be applied over a period of41 five taxable years and shall not exceed $5,000.00 for any taxab le year, and no amount42 shall be allowed or carried forward after such years.43 H. B. 425 (SUB) - 2 - 25 LC 50 1179S (3) A taxpayer shall only be eligible for the tax credit allowed under this Code section44 once per convenience store or skilled nursing facility owned or operated by such45 taxpayer. No taxpayer shall be eligible for the tax credit allowed under this Code section46 for more than five convenience stores.47 (d) To claim a tax credit allowed pursuant to this Code section, a taxpayer shall attach to48 such taxpayer's state tax return certification from the taxpayer that the requirements of this49 Code section have been met and any other information required by the commissioner.50 (e)(1) Any tax credit allowed pursuant to this Code section sh all be claimed on the51 taxpayer's 2026 tax return.52 (2) In no event shall the aggregate amount of tax credits allowed under this Code section53 exceed $5 million.54 (3) In no event shall the total amount of any tax credit allowed under this Code section55 for a taxable year exceed the taxpayer's income tax liability. No such tax credit shall be56 allowed the taxpayer against prior years' tax liability. Excep t as provided in57 subsection (c) of this Code section, no amount of the tax credi t shall be allowed to be58 carried forward to apply to the taxpayer's succeeding years' tax liability.59 (f) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an60 application to the department for preapproval of such tax credi t, in the manner specified61 by the department. The department shall preapprove the tax credits within 30 days based62 on the order in which properly completed applications were subm itted. In the event that63 two or more applications were submitted on the same day and the amount of funds64 available will not be sufficient to fully fund the tax credits requested, the commissioner65 shall prorate the available funds between or among the applicants.66 (g) The commissioner shall be authorized to promulgate any rul es and regulations67 necessary to implement and administer this Code section.68 (h) This Code section shall stand repealed on December 31, 2031."69 H. B. 425 (SUB) - 3 - 25 LC 50 1179S SECTION 2.70 All laws and parts of laws in conflict with this Act are repealed.71 H. B. 425 (SUB) - 4 -