HB 1153: Revenue and taxation; tax credit for newly constructed residences built by a residential contractor or builder that are sold to taxpayers earning no more than 80 percent of the area median income; provide

Georgia law does not currently offer a state tax credit tied to selling newly built homes to moderate or lower income buyers. This bill would add a new section to Georgia's tax code (O.C.G.A. § 48-7-43) creating such a credit. Beginning January 1, 2027, a residential contractor or builder who sells a newly constructed home to a taxpayer earning no more than 80 percent of the area median income could claim a state income tax credit. The area median income would be defined and calculated by the Georgia Department of Revenue based on where the home is located. The credit could not exceed the taxpayer's income tax liability for the year. Taxpayers who want to claim it would have to apply to the state revenue commissioner, who must approve or deny the application within 60 days if it meets the law's requirements. The department would be allowed to write rules and forms to administer the credit. The bill would take effect once signed by the Governor and would apply to tax years beginning on or after January 1, 2027.

• Creates a new state income tax credit for residential contractors or builders who sell newly constructed homes to buyers earning 80 percent or less of the area median income.
• Caps the credit so it cannot exceed the taxpayer's income tax liability for the year it is claimed.
• Requires taxpayers to apply to the state revenue commissioner, who must approve qualifying applications within 60 days.
• Authorizes the Georgia Department of Revenue to adopt rules, regulations, and forms to administer the new credit.
• Sets the credit to begin applying to tax years starting on or after January 1, 2027.

Residential contractors and builders who construct and sell new homes, home buyers earning at or below 80 percent of their area's median income, and the Georgia Department of Revenue, which would define area median income, review applications, and administer the credit.

Builders who sell new homes to moderate or lower income buyers could reduce their state tax bill, which may create an incentive to build or price homes within reach of these buyers. The actual size of the credit and eligibility details would depend on rules the Department of Revenue still has to write.

• Adds new Code section 48-7-43 to Georgia's tax law, defining 'area median income' as the income figure the Department of Revenue determines for the home's location.
• Subsection (b) creates the credit for homes sold to buyers earning no more than 80 percent of area median income, starting January 1, 2027, and caps it at the taxpayer's tax liability.
• Subsection (c) requires an application to the commissioner, who must approve qualifying applications within 60 days of receiving them.
• Subsection (d) authorizes the Department of Revenue and the commissioner to adopt rules, regulations, and forms to administer the credit.
• Section 2 sets the effective date as upon the Governor's signature (or becoming law without signature), applying to tax years beginning on or after January 1, 2027.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Mary Oliver (D, HD-084)Primary sponsor
• Scott Holcomb (D, HD-101)
• Spencer Frye (D, HD-122)
• Akbar Ali (D, HD-106)
• Mary Williams (D, HD-037)
• Carolyn Hugley (D, HD-141)

• tax credits
• housing affordability
• home builders
• income tax
• area median income