---
title: 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
collection: bills
id: 2025-2026/hb1153
cite_as: HB 1153, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1153
md_url: https://georgiacommons.org/bills/2025-2026/hb1153.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1153/text
source_url: https://www.legis.ga.gov/legislation/72718
date: 2026-02-04
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1153.md?full=1
bill_number: HB 1153
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-02
last_action: House Second Readers
sponsors:
- Mary Oliver
- Scott Holcomb
- Spencer Frye
- Akbar Ali
- Mary Williams
- Carolyn Hugley
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1153/2025
upstream_id: 2104381
summaries_model: claude-sonnet-5
topic_tags:
- tax credits
- housing affordability
- home builders
- income tax
- area median income
---
# 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
## Text
House Bill 1153
By: Representatives Oliver of the 84th, Holcomb of the 101st, Frye of the 122nd, Ali of the
106th, Williams of the 37th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to imposition, rate, computation, exemptions, and credits, so as to provide a 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; to provide for
application and approval; to provide for rules, regulations, and forms; to provide for related
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for
other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
relating to imposition, rate, computation, exemptions, and credits, is amended by adding a
new Code section to read as follows:
"48-7-43.
(a) As used in this Code section, the term 'area median income' means the median income
for the area in which a newly constructed residence is located as determined by the
department.
(b) Beginning January 1, 2027, a state tax credit against the tax imposed by this article
shall be allowed with respect to each newly constructed residence built by a residential
contractor or builder that is sold to a taxpayer earning no more than 80 percent of the area
median income. In no event shall the total amount of the tax credit under this Code section
for a taxable year exceed the taxpayer's income tax liability.
(c) A taxpayer seeking to claim a tax credit under this Code section shall submit an
application to the commissioner for approval of such tax credit. The commissioner shall
review such application and shall approve such application upon determining that it meets
the requirements of this Code section within 60 days after receiving such application.
(d)(1) The department shall be authorized to adopt rules and regulations to provide for
the administration of the tax credit provided by this Code section.
(2) The commissioner shall be authorized to promulgate any rules and forms relative to
the provisions of this Code section."
SECTION 2.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval and shall be applicable to all taxable years beginning on or after
January 1, 2027.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia House bill would create a new state income tax credit for residential builders who sell newly built homes to buyers earning no more than 80 percent of the area median income, starting in 2027.
### Plain-language summary
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. ยง 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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2026-02-02)
- Last action: House Second Readers (2026-02-04)
- Sponsors: Mary Oliver, Scott Holcomb, Spencer Frye, Akbar Ali, Mary Williams, Carolyn Hugley
- Official page: https://www.legis.ga.gov/legislation/72718
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1153.md?full=1