House Bill 213
By: Representatives Park of the 107th, Miller of the 62nd, Drenner of the 85th, Romman of the
97th, Herring of the 145th, 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, exemption, and credits from income taxes, so as to
create a tax credit for investment in clean energy; to provide for the calculation of credit
amounts; to provide for definitions; to provide for terms and conditions; to provide for
transferability; to require the Environmental Protection Division to annually publish
greenhouse gas emission rates for purposes of such tax credit; to provide for rules and
regulations; to provide for a short title; 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.
This Act shall be known and may be cited as the "Clean Energy Investment Tax Credit Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemption, and credits from income taxes, is amended by
revising Code Section 48-7-40.10, which is reserved, as follows:
"48-7-40.10.
<ins>(a) As used in this Code section, the term:
(1) 'CO2e per KWh,' 'energy storage technology,' 'greenhouse gas,' and 'qualified
interconnection property' shall have the same meaning as provided for such terms in 26
U.S.C. Section 48E, as effective on January 1, 2025.
(2) 'Eligible person' means any person that demonstrates eligibility for the tax credit
allowed pursuant to this Code section in accordance with the requirements of this Code
section and rules and regulations of the department. Such term shall not include any
person or any form of business owned, affiliated, or controlled, in whole or in part, by
any company or person which is in default on any tax obligation to the state, any loan
made by the state, or any loan guaranteed by the state.
(3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into
the atmosphere by a facility in the production of electricity, expressed as grams of CO2e
per KWh, as provided by the Environmental Protection Division pursuant to
subsection (e) of this Code section. In the case of a facility which produces electricity
through combustion or gasification, the greenhouse gas emissions rate for such facility
shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such
facility, taking into account lifecycle greenhouse gas emissions in the production of
electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases
emitted into the atmosphere by a facility in the production of electricity shall not include
any qualified carbon dioxide that is captured by the qualified person and disposed of by
the eligible person in secure geological storage or utilized by the qualified person.
(4) 'Qualified facility' means a facility located in this state which is used for the
generation of electricity, is placed in service after July 1, 2025, and for which the
greenhouse gas emissions rate is not greater than zero. Such term shall not include any
facility for which a state income tax credit for clean energy production is allowed for the
taxable year.
</ins>
<ins>(5) 'Qualified investment' means:
(A) With respect to any qualified facility for any taxable year, the sum of:
(i) The basis of any qualified property placed in service by the eligible person during
such taxable year which is part of a qualified facility; and
(ii) The amount of any expenditures which are:
(I) Paid or incurred by the eligible person for qualified interconnection property in
connection with a qualified facility which has a maximum net output of not greater
than 5 megawatts, as measured in alternating current, and placed in service during
the taxable year; and
(II) Properly chargeable to the capital account of the taxpayer; and
(B) With respect to energy storage technology for any taxable year, the basis of any
energy storage technology placed in service by the eligible person during such taxable
year.
(6) 'Qualified property' means property:
(A) Which is tangible personal property, or other tangible property, not including a
building or its structural components, but only if such property is used as an integral
part of the qualified facility:
(B) With respect to which depreciation, or amortization in lieu of depreciation, is
allowable; and
(C)(i) The construction, reconstruction, or erection of which is completed by the
eligible person; or
(ii) Which is acquired by the eligible person if the original use of such property
commences with the eligible person.
(b) For taxable years beginning on or after January 1, 2026, a tax credit is allowed against
the tax imposed under this article to any eligible person in an amount equal to 6 percent of
the qualified investment for such taxable year with respect to any qualified facility and any
energy storage technology located in this state.
</ins>
<ins>(c) The tax credit allowed by this Code section shall be subject to the following conditions
and limitations:
(1) If used by the eligible person, in no event shall the amount of the tax credit used in
a taxable year exceed the taxpayer's income tax liability. No such credit shall be used
against the eligible person's prior years' tax liability;
(2) If transferred or sold to a Georgia taxpayer as provided for in subsection (d) of this
Code section, in no event shall the amount of the tax credit used in a taxable year exceed
the taxpayer's income tax liability. No such credit shall be used against the taxpayer's
prior years' tax liability;
(3) Any unused credit amount shall be allowed to be carried forward for three years from
the taxable year for which it was claimed; and
(4) To claim a credit allowed by this Code section, the eligible person shall provide any
information required by the department. Every eligible person claiming a credit under
this Code section shall maintain and make available for inspection by the department any
records that either entity considers necessary to determine and verify the amount of the
credit to which the eligible person is entitled. The burden of proving eligibility for a
credit and the amount of the credit rests upon the eligible person, and no credit shall be
allowed to an eligible person that fails to maintain adequate records or to make them
available for inspection.
(d) Any tax credits allowed to an eligible person pursuant to this Code section and
previously claimed but not used by such person against its income tax liability may be
transferred or sold in whole or in part by such eligible person to any Georgia taxpayer,
subject to the following conditions:
(1) Such eligible person shall make only a single transfer or sale of tax credits earned in
a taxable year; provided, however, that the transfer or sale may involve one or more
transferees;
</ins>
<ins>(2) Such eligible person shall submit to the department a written notification of any
transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits.
Such notification shall include the tax credit balance prior to transfer, the credit certificate
number, the remaining balance after transfer, all tax identification numbers for each
transferee, the date of transfer, the amount transferred, and any other information required
by the department;
(3) The transfer or sale of such tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date on which the tax credit was originally earned;
(4) A transferee shall have only such rights to claim and use the tax credit that were
available to such eligible person at the time of the transfer. To the extent that such
eligible person did not have rights to claim or use the tax credit at the time of the transfer,
the department shall either disallow the tax credit claimed by the transferee or recapture
the tax credit from the transferee; and
(5) The transferee shall acquire such tax credits for a minimum of 60 percent of the
amount of the tax credits so transferred.
(e) The Environmental Protection Division shall annually publish a table that sets forth the
greenhouse gas emissions rates for types or categories of facilities, which an eligible person
and the department shall use for purposes of this Code section.
(f) The department shall promulgate any rules and regulations necessary to implement and
administer the provisions of this Code section.</ins> <del>Reserved."
</del> SECTION 3.
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years
beginning on or after January 1, 2026.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.