---
title: HB 425. Revenue and taxation; purchase of an emergency power generator to convenience stores and grocery stores; provide tax credit
collection: bills
id: 2025-2026/hb425
cite_as: HB 425, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb425
md_url: https://georgiacommons.org/bills/2025-2026/hb425.md
text_url: https://georgiacommons.org/bills/2025-2026/hb425/text
source_url: https://www.legis.ga.gov/legislation/70270
date: 2025-03-10
status: engrossed
corpus_version: bills-2026-09-12
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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index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 492
omitted_url: https://georgiacommons.org/bills/2025-2026/hb425.md?full=1
bill_number: HB 425
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-03-06
last_action: Senate Read and Referred
sponsors:
- James Burchett
- Leesa Hagan
- Beth Camp
- James Hatchett
- Angie O'Steen
- Jaclyn Ford
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB425/2025
upstream_id: 1968166
summaries_model: claude-sonnet-5
topic_tags:
- tax credits
- emergency preparedness
- convenience stores
- nursing facilities
- hurricane recovery
---
# HB 425. Revenue and taxation; purchase of an emergency power generator to convenience stores and grocery stores; provide tax credit
## Text
House Bill 425 (COMMITTEE SUBSTITUTE)
By: Representatives Burchett of the 176th, Hagan of the 156th, Camp of the 135th, Hatchett
of the 155th, O’Steen of the 169th, 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 for a tax
credit for the purchase of an emergency power generator and related components to certain
convenience stores and skilled nursing facilities; to provide terms, conditions, and
procedures; to limit the tax credit and carry-forward period; to provide for an aggregate cap;
to provide for automatic repeal; to provide for rules and regulations; to provide for
definitions; to provide for legislative findings; to provide for related matters; 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
imposition, rate, computation, exemptions, and credit, is amended by adding a new Code
section to read as follows:
"48-7-29.27.
(a)(1) The General Assembly finds and determines that Hurricane Helene had a
catastrophic impact on the citizens and the economy of Georgia.
(2) The General Assembly further finds and declares that it is appropriate and advisable
to ensure the state is better prepared for future weather events by incentivizing the
purchase and installation of generators in certain critical businesses such that the entire
region will be able to recover faster.
(b) For purposes of this Code section, the term:
(1) 'Convenience store' means a retail establishment which offers for sale packaged or
unprepared food and grocery items for consumption off the premises and may sell fuel
products, household items, or tobacco products and has less than 10,000 square feet of
retail floor space.
(2) 'Emergency power generator and related components' means an alternate backup
power source that provides electricity during utility power outages. Such term shall refer
to any one or more of the following:
(A) A generator itself, whether fixed or mobile;
(B) Any transfer switch or switches; or
(C) The lines, fuel tanks, or other mechanisms needed to provide power to a generator
using diesel, natural gas, propane, or any other fuel source.
(3) 'Skilled nursing facility' means an institution or a distinct part of such institution
which is primarily engaged in providing inpatient skilled nursing care and related services
for patients who require medical or nursing care or rehabilitation services for the
rehabilitation of injured, disabled, or sick persons.
(c)(1) A taxpayer shall be allowed a tax credit against the tax imposed under this article
for expenditures made between July 1, 2025, and December 31, 2026, for the purchase
and installation of emergency power generators and related components, provided that
any such purchase is not for the purpose of resale.
(2) The tax credit allowed under this Code section shall only be applied over a period of
five taxable years and shall not exceed $5,000.00 for any taxable year, and no amount
shall be allowed or carried forward after such years.
(3) A taxpayer shall only be eligible for the tax credit allowed under this Code section
once per convenience store or skilled nursing facility owned or operated by such
taxpayer. No taxpayer shall be eligible for the tax credit allowed under this Code section
for more than five convenience stores.
(d) To claim a tax credit allowed pursuant to this Code section, a taxpayer shall attach to
such taxpayer's state tax return certification from the taxpayer that the requirements of this
Code section have been met and any other information required by the commissioner.
(e)(1) Any tax credit allowed pursuant to this Code section shall be claimed on the
taxpayer's 2026 tax return.
(2) In no event shall the aggregate amount of tax credits allowed under this Code section
exceed $5 million.
(3) In no event shall the total amount of any tax credit allowed 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. Except as provided in
subsection (c) of this Code section, no amount of the tax credit shall be allowed to be
carried forward to apply to the taxpayer's succeeding years' tax liability.
(f) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an
application to the department for preapproval of such tax credit, in the manner specified
by the department. The department shall preapprove the tax credits within 30 days based
on the order in which properly completed applications were submitted. In the event that
two or more applications were submitted on the same day and the amount of funds
available will not be sufficient to fully fund the tax credits requested, the commissioner
shall prorate the available funds between or among the applicants.
(g) The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer this Code section.
(h) This Code section shall stand repealed on December 31, 2031."
SECTION 2.
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.
HB425 would create a Georgia state income tax credit for convenience stores and skilled nursing facilities that buy and install emergency backup power generators, capped at $5,000 per year and $5 million statewide.
### Plain-language summary
After Hurricane Helene, the Georgia General Assembly is considering a new tax credit to encourage certain businesses to install backup generators before the next major storm. The bill adds a new section to Georgia's tax code (O.C.G.A. § 48-7-29.27) letting convenience stores under 10,000 square feet and skilled nursing facilities claim a credit for money spent between July 1, 2025 and December 31, 2026 on generators, transfer switches, fuel lines, and related equipment, as long as the purchase is not for resale.
The credit is spread over five tax years, capped at $5,000 per year, and each taxpayer can only claim it once per store or facility, with a five-store limit per taxpayer. Taxpayers must apply to the Georgia Department of Revenue for preapproval, and the credit cannot exceed a taxpayer's tax bill or be carried forward beyond the five years except as specified. The whole program has a $5 million statewide cap and the law automatically repeals on December 31, 2031.
### What it does
- Creates a new Georgia income tax credit for convenience stores and skilled nursing facilities that buy and install emergency backup generators and related equipment like transfer switches and fuel lines.
- Limits the credit to purchases made between July 1, 2025 and December 31, 2026, and caps it at $5,000 per taxable year spread over five years.
- Restricts each taxpayer to claiming the credit once per store or facility and bars any taxpayer from claiming it for more than five convenience stores.
- Sets a statewide cap of $5 million total for all credits claimed under this program.
- Requires taxpayers to apply to the Georgia Department of Revenue for preapproval before claiming the credit, with funds awarded in the order applications are received.
- Automatically repeals the tax credit program on December 31, 2031.
### Who it affects
Convenience store owners with less than 10,000 square feet of retail space and skilled nursing facilities across Georgia, as well as the Georgia Department of Revenue, which must review applications, preapprove credits, and administer the $5 million statewide cap.
### Why it matters
Businesses that provide fuel, food, and medical care could get help paying for backup generators, potentially keeping them running during future power outages like those after Hurricane Helene. The $5 million cap and preapproval process mean not every applicant may receive funding, especially if demand is high.
### Key provisions
- Section 1 adds O.C.G.A. § 48-7-29.27, creating a tax credit for emergency generator purchases at convenience stores and skilled nursing facilities.
- Subsection (b) defines 'convenience store', 'emergency power generator and related components', and 'skilled nursing facility' for purposes of the credit.
- Subsection (c) limits the credit to purchases made between July 1, 2025 and December 31, 2026, caps it at $5,000 per year over five years, and limits eligibility to once per location and five stores per taxpayer.
- Subsection (e) sets a $5 million aggregate statewide cap and bars the credit from exceeding a taxpayer's tax liability or being applied to past years.
- Subsection (f) requires taxpayers to submit applications for preapproval, with the Department of Revenue prorating funds if demand exceeds available money on a given day.
- Subsection (h) repeals the entire tax credit program on December 31, 2031.
## Status
- Status: Engrossed (2025-03-06)
- Last action: Senate Read and Referred (2025-03-10)
- Sponsors: James Burchett, Leesa Hagan, Beth Camp, James Hatchett, Angie O'Steen, Jaclyn Ford
- Official page: https://www.legis.ga.gov/legislation/70270
> The history, votes, and amendments (492 characters) are at https://georgiacommons.org/bills/2025-2026/hb425.md?full=1