HB723: HB723 Income tax; expenses incurred in the provision of a warming center to unsheltered individuals on certain days of inclement weather; provide tax credit

Currently, Georgia's income tax law does not offer a specific credit for people or businesses who open buildings as emergency warming centers during cold weather. This bill would add a new tax credit for taxpayers who let their owned or leased property be used as a warming center for at least ten hours on days when the wind chill drops below 45 degrees Fahrenheit. The center must keep the space at or above 60 degrees Fahrenheit and provide enough room for people to lie down. Taxpayers could claim their actual costs, such as utilities, security, food, water, blankets, and toiletries, up to $75 per unsheltered person for as many as 20 people. Claimants must keep receipts and attendance logs, and misuse of the credit results in a five-year ban from claiming it again. Unused credit can carry forward three years but cannot offset past tax bills. The credit would take effect January 1, 2026, for taxable years beginning on or after that date.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-40.37) for taxpayers who provide warming centers to unsheltered individuals during cold weather.
• Defines a qualifying warming center as space kept at 60 degrees Fahrenheit or warmer with room for people to lie down, offered on days with wind chill below 45 degrees for at least ten hours.
• Limits reimbursable expenses to specific costs like utilities, security personnel, food, water, blankets, cots, and toiletries.
• Caps the credit at $75 per unsheltered individual for up to 20 people, and disallows the credit from exceeding a taxpayer's total income tax liability for the year.
• Requires taxpayers to keep itemized receipts and attendance logs, and bans misuse of the credit for five years.
• Allows unused credit to carry forward for three years but not to be applied to past tax years.

Property owners and lessees, including businesses, nonprofits, churches, and individuals, who choose to open buildings as warming centers for unsheltered people. It also affects unsheltered individuals who might use these centers, and the Georgia Department of Revenue, which must write rules to administer the credit.

The credit gives property owners a financial incentive to open emergency shelters during dangerous cold weather, potentially increasing the number of warming centers available. Because the credit is capped and tied to strict recordkeeping, only taxpayers who track detailed expenses and attendance would benefit.

• Subsection (a) defines a warming center as a short-term emergency shelter kept at 60 degrees Fahrenheit or above with space for individuals to lie down.
• Subsection (b) sets eligibility starting January 1, 2026, requiring at least ten hours of operation on days with wind chill below 45 degrees Fahrenheit, and lists eligible expenses like energy, water, security, and supplies.
• Subsection (c) requires taxpayers to claim actual expenses on their tax return with itemized receipts, and bars misuse of the credit for five years.
• Subsection (d) caps the credit at $75 per unsheltered individual for up to 20 individuals per taxpayer.
• Subsection (e) requires taxpayers to keep attendance logs documenting time each individual spent at the center.
• Subsection (f) prevents the credit from exceeding the taxpayer's tax liability, allows a three-year carryforward, and bars applying it to prior years' taxes.
• Section 2 sets the effective date as January 1, 2026, applicable to taxable years beginning on or after that date.

1. 2025-03-10House Second Readers (House)
2. 2025-03-06House First Readers (House)
3. 2025-03-04House Hopper (House)

• El-Mahdi Holly (D, HD-116)Primary sponsor
• Mekyah McQueen (D, HD-061)
• Lydia Glaize (D, HD-067)
• Spencer Frye (D, HD-122)
• Karen Lupton (D, HD-083)
• Solomon Adesanya (D, HD-043)

• income tax credit
• homelessness
• winter shelter
• warming centers
• Georgia tax law