---
title: HB 365. Strategic Industrial Development Enhancement (SIDE) Tax Credit Act; enact
collection: bills
id: 2025-2026/hb365
cite_as: HB 365, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb365
md_url: https://georgiacommons.org/bills/2025-2026/hb365.md
text_url: https://georgiacommons.org/bills/2025-2026/hb365/text
source_url: https://www.legis.ga.gov/legislation/70127
date: 2025-02-12
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/hb365.md?full=1
bill_number: HB 365
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-10
last_action: House Second Readers
sponsors:
- Rick Jasperse
- Lauren McDonald
- Vance Smith
- Joe Campbell
- Leesa Hagan
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB365/2025
upstream_id: 1964637
summaries_model: claude-sonnet-5
topic_tags:
- tax credits
- economic development
- rail infrastructure
- industrial projects
- state income tax
---
# HB 365. Strategic Industrial Development Enhancement (SIDE) Tax Credit Act; enact
## Text
House Bill 365
By: Representatives Jasperse of the 11th, McDonald III of the 26th, Smith of the 138th,
Campbell of the 171st, and Hagan of the 156th
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 the imposition, rate, and computation of and exemptions and credits from state
income taxes, so as to create a temporary income tax credit for certain expenditures relating
to projects promoting industrial infrastructure enhancement and connectivity; to provide for
definitions; to provide for eligibility approval by the Department of Community Affairs; to
provide for limitations upon such tax credit; to authorize the sale or transfer of unused
credits; to provide for an aggregate annual limit; to provide for terms and conditions; to
provide for rules and regulations; to provide for automatic repeal; to provide for related
matters; to provide for a short title; 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.
The Act shall be known and may be cited as the "Strategic Industrial Development
Enhancement (SIDE) Tax Credit Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the
imposition, rate, and computation of and exemptions and credits from state income taxes, is
amended by revising Code Section 48-7-40.35, which is reserved, as follows:
"48-7-40.35.
(a) As used in this Code section, the term:
(1) 'Eligible entity' means an entity incorporated and located in this state with a qualified
project which has been approved by the Department of Community Affairs.
(2) 'Qualified economic development expenditures' means expenditures made by an
eligible entity for costs for improvements to land and construction costs for a qualified
project and the purchase of machinery and any equipment necessary for such
improvements or construction.
(3) 'Qualified initial infrastructure expenditures' means expenditures made by an eligible
entity for new rail infrastructure and improvements for the provision of rail service to a
qualified project, including, but not limited to, right-of-way acquisition, engineering
services, rehabilitation of existing inactive tracks to reinstate operation, construction of
new tracks, loading dock improvements, and transloading structures.
(4) 'Qualified project' means a project that:
(A) Is expected to provide substantial economic benefits and result in job creation;
(B) Is located within an industrial park or economic development zone or adjacent to
a terminal or switching of a railroad; and
(C) Has been approved by the Department of Community Affairs in accordance with
rules and regulations promulgated pursuant to this Code section.
(5) 'Railroad' means a common carrier classified as a railroad by the United States
Surface Transportation Board in accordance with Section 1-1 of 49 C.F.R. 1201, as it
existed on January 1, 2025.
(b) An eligible entity shall be allowed a credit against the tax imposed by this article for
a taxable year in an amount equal to 10 percent of its qualified economic development
expenditures and 50 percent of its qualified initial infrastructure expenditures. The credit
given under this subsection shall be available for each taxable year beginning on or after
January 1, 2026, and ending on or before December 31, 2031.
(c) The tax credit allowed under subsection (b) of this Code section shall be subject to the
following conditions and limitations:
(1) The aggregate amount for qualified economic development expenditures shall not
exceed $8 million per qualified project;
(2) The aggregate amount for qualified initial infrastructure expenditures shall not
exceed $4 million per qualified project; and
(3) The aggregate amount for a combination of qualified economic development
expenditures and qualified initial infrastructure expenditures shall not exceed $8 million
per qualified project.
(d) In no event shall the amount of tax credits allowed pursuant to this Code section
exceed $75 million in aggregate for a taxable year.
(e)(1) The total amount of the tax credits allowed pursuant to this Code section for a
taxable year shall not exceed the taxpayer's income tax liability.
(2) Tax credits claimed pursuant to this Code section but not used in any taxable year
may be carried forward for three years from the close of the taxable year in which the
credits are claimed.
(3) Any tax credits earned by a taxpayer under this Code section and previously claimed
but not used by such taxpayer against its income tax may be transferred or sold in whole
or in part by such taxpayer to another Georgia taxpayer up to three years from the date
the credit was earned and subject to the maximum total limits provided by subsection (c)
of this Code section.
(f) The Department of Community Affairs shall develop rules and regulations for
application and approval of a project as a qualified project eligible for the tax credits
authorized under this Code section, provided that applications for approval as a qualified
project shall include a description of the project, project location, detailed project costs, and
a summary of expected economic benefits and job creation. Applications approved by the
Department of Community Affairs shall be submitted to the state revenue commissioner.
(g) The state revenue commissioner shall develop such rules and regulations as are
necessary to implement and administer this Code section.
(h) This Code section shall stand repealed and reserved on January 1, 2032. Reserved."
SECTION 3.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval 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.
## 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 companies that build industrial infrastructure and rail connections tied to approved development projects, running from 2026 through 2031.
### Plain-language summary
This bill creates the Strategic Industrial Development Enhancement (SIDE) Tax Credit Act, adding a new tax credit to Georgia's income tax code (O.C.G.A. ยง 48-7-40.35). Companies that build or improve qualified industrial projects, ones expected to create jobs and located in industrial parks, economic development zones, or near rail terminals, could get a credit worth 10 percent of qualified economic development costs and 50 percent of qualified rail infrastructure costs, once the Department of Community Affairs approves the project.
The credit is capped at $8 million per project for economic development costs and $4 million per project for rail infrastructure, with a combined per-project cap of $8 million. Statewide, no more than $75 million in credits could be claimed in any single year. Unused credits can be carried forward three years or sold to other Georgia taxpayers. The credit applies to tax years from January 1, 2026 through December 31, 2031, after which the law repeals itself.
### What it does
- Creates a new Georgia income tax credit for companies that spend money improving land, buildings, or equipment for approved industrial projects.
- Adds a bigger tax credit, 50 percent of costs, for building or upgrading rail infrastructure connected to those projects.
- Requires the Department of Community Affairs to approve any project as 'qualified' before a company can claim the credit.
- Caps total credits at $75 million statewide per year and sets per-project dollar limits on both types of expenditures.
- Allows companies to carry forward unused credits for three years or sell/transfer them to other Georgia taxpayers.
- Automatically repeals the tax credit program on January 1, 2032.
### Who it affects
Georgia-incorporated businesses developing industrial projects in industrial parks, economic development zones, or near railroad terminals; the Department of Community Affairs, which must approve projects and write rules; the Georgia Department of Revenue, which administers the credit; and other Georgia taxpayers who might buy transferred credits.
### Why it matters
Companies building qualifying industrial or rail projects could significantly lower their state tax bills, potentially encouraging new construction and job creation near rail lines and industrial parks, while the state caps its total exposure at $75 million a year through 2031.
### Key provisions
- Section 2 adds new Code Section 48-7-40.35 defining 'eligible entity,' 'qualified project,' and other terms tied to the credit.
- Subsection (b) sets the credit at 10 percent of qualified economic development expenditures and 50 percent of qualified initial infrastructure expenditures for tax years 2026 through 2031.
- Subsection (c) caps per-project credits at $8 million for economic development costs, $4 million for infrastructure costs, and $8 million combined.
- Subsection (d) limits total statewide credits to $75 million per tax year.
- Subsection (e) allows unused credits to carry forward three years or be sold/transferred to other Georgia taxpayers.
- Subsection (f) requires Department of Community Affairs approval of projects, including project description, costs, and expected job creation, before submission to the state revenue commissioner.
- Subsection (h) automatically repeals the entire Code section on January 1, 2032.
- Section 3 makes the law effective upon the Governor's signature and applicable to tax years beginning on or after January 1, 2026.
## Status
- Status: Introduced (2025-02-10)
- Last action: House Second Readers (2025-02-12)
- Sponsors: Rick Jasperse, Lauren McDonald, Vance Smith, Joe Campbell, Leesa Hagan
- Official page: https://www.legis.ga.gov/legislation/70127
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb365.md?full=1