---
title: HB 230. Income tax; tax credit for certain expenses incurred by taxpayers that sell new construction homes to certain individuals for up to a certain price; provide
collection: bills
id: 2025-2026/hb230
cite_as: HB 230, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb230
md_url: https://georgiacommons.org/bills/2025-2026/hb230.md
text_url: https://georgiacommons.org/bills/2025-2026/hb230/text
source_url: https://www.legis.ga.gov/legislation/69835
date: 2025-02-06
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/hb230.md?full=1
bill_number: HB 230
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-04
last_action: House Second Readers
sponsors:
- Yasmin Neal
- Dale Washburn
- Devan Seabaugh
- Noel Williams
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB230/2025
upstream_id: 1955686
summaries_model: claude-sonnet-5
topic_tags:
- income tax credits
- affordable housing
- home construction
- property development
- tax credit transfers
---
# HB 230. Income tax; tax credit for certain expenses incurred by taxpayers that sell new construction homes to certain individuals for up to a certain price; provide
## Text
House Bill 230
By: Representatives Neal of the 79th, Washburn of the 144th, Seabaugh of the 34th, and
Williams of the 148th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to provide for a tax credit for certain expenses incurred by taxpayers that
sell new construction homes to an individual or related individuals for up to a certain price;
to define a term; to provide for terms and conditions; to provide for the sale and transfer of
tax credits; 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.
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,
is amended by adding a new Code section to read as follows:
"48-7-29.27.
(a) As used in this Code section, the term 'eligible construction expenses' means expenses
incurred on or after January 1, 2026, by a taxpayer in the construction of a single-family
residential home sold to an individual or related individuals for an amount that does not
exceed $200,000.00.
(b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed
an income tax credit against the tax imposed by this article equal to 20 percent of such
taxpayer's eligible construction expenses.
(c) Except as provided in subsection (d) of this Code section, in no event shall the total
amount of any tax credit allowed to a taxpayer under this Code section for a taxable year
exceed the taxpayer's income tax liability. No such tax credit shall be allowed the taxpayer
against prior years' tax liability. Any unused tax credit shall be allowed to be carried
forward to apply to the taxpayer's next five years' tax liability or transferred pursuant to
subsection (d) of this Code section.
(d) Any tax credits earned under this Code section by a taxpayer and previously claimed
but not used by the taxpayer against the taxpayer's income tax liability may be transferred
or sold in whole or in part by such taxpayer to another Georgia taxpayer, subject to the
following conditions:
(1) Such taxpayer may 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;
(2) Such taxpayer 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. The
notification shall include such taxpayer's 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) Failure to comply with this subsection shall result in the disallowance of the tax
credit until the taxpayer is in full compliance;
(4) The transfer or sale of this tax credit does 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;
(5) To the extent that a taxpayer 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
(6) The transferee must acquire a minimum of 60 percent of the amount of the tax credits
in this Code section so transferred."
SECTION 2.
This Act shall become effective on January 1, 2026, and shall be applicable to taxable years
beginning on or after January 1, 2026.
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.
House Bill 230 would give Georgia homebuilders a state income tax credit equal to 20 percent of construction costs for new single-family homes sold for $200,000 or less starting in 2026.
### Plain-language summary
Georgia currently offers no specific state income tax credit tied to building lower-priced starter homes. House Bill 230 would create one. Beginning with expenses incurred on or after January 1, 2026, a taxpayer who builds a new single-family home and sells it to an individual or related individuals for no more than $200,000 could claim a state income tax credit equal to 20 percent of the construction costs for that home.
The credit cannot exceed the taxpayer's income tax liability for the year and cannot be applied to past years' taxes, but unused credit can be carried forward for up to five years. Taxpayers may also sell or transfer unused credits to other Georgia taxpayers once, subject to notification and compliance rules, including a requirement that any buyer of the credits acquire at least 60 percent of the transferred amount. The law would take effect January 1, 2026, applying to taxable years beginning on or after that date.
### What it does
- Creates a new state income tax credit (O.C.G.A. § 48-7-29.27) worth 20 percent of construction expenses for new single-family homes sold at or below $200,000.
- Limits eligibility to construction expenses incurred on or after January 1, 2026, for homes sold to an individual or related individuals within that price cap.
- Caps the credit at the taxpayer's income tax liability for the year, bars use against prior years' taxes, and allows a five-year carry-forward of unused credit.
- Allows a taxpayer to sell or transfer unused credits once to another Georgia taxpayer, with a written notice to the Department of Revenue within 30 days.
- Requires any buyer of transferred credits to acquire at least 60 percent of the credits being transferred, and allows the state to disallow or recapture credits improperly claimed by a transferee.
- Sets the law's effective date as January 1, 2026, applying to taxable years beginning on or after that date.
### Who it affects
Homebuilders and developers who construct new single-family homes priced at $200,000 or less, buyers of those homes, and other Georgia taxpayers who might purchase unused tax credits from builders. The Georgia Department of Revenue would administer the credit and transfer notifications.
### Why it matters
Builders who construct lower-priced new homes could offset a fifth of their construction costs through a state tax credit, potentially making it more financially attractive to build homes near the $200,000 price point. Buyers of those homes are not directly taxed differently, but the incentive targets the supply of affordably priced new construction.
### Key provisions
- Section 1 adds O.C.G.A. § 48-7-29.27, defining 'eligible construction expenses' as costs incurred on or after January 1, 2026, to build a home sold for $200,000 or less.
- Subsection (b) sets the credit at 20 percent of eligible construction expenses for taxable years beginning on or after January 1, 2026.
- Subsection (c) limits the credit to the taxpayer's tax liability, bars retroactive use, and allows a five-year carry-forward or transfer of unused amounts.
- Subsection (d) lays out transfer and sale rules, including a single-transfer limit, a 30-day notification requirement to the department, and disallowance for noncompliance.
- Subsection (d)(6) requires any transferee to acquire at least 60 percent of the transferred tax credits.
- Section 2 sets the effective date as January 1, 2026, applying to taxable years beginning on or after that date.
## Status
- Status: Introduced (2025-02-04)
- Last action: House Second Readers (2025-02-06)
- Sponsors: Yasmin Neal, Dale Washburn, Devan Seabaugh, Noel Williams
- Official page: https://www.legis.ga.gov/legislation/69835
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb230.md?full=1