---
title: HB 616. Income tax; depreciation for single-family residential rental property; revise a deduction
collection: bills
id: 2025-2026/hb616
cite_as: HB 616, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb616
md_url: https://georgiacommons.org/bills/2025-2026/hb616.md
text_url: https://georgiacommons.org/bills/2025-2026/hb616/text
source_url: https://www.legis.ga.gov/legislation/70746
date: 2025-02-27
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/hb616.md?full=1
bill_number: HB 616
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-24
last_action: House Second Readers
sponsors:
- Ruwa Romman
- Spencer Frye
- El-Mahdi Holly
- Bryce Berry
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB616/2025
upstream_id: 1982024
summaries_model: claude-sonnet-5
topic_tags:
- income tax
- corporate taxes
- rental property
- tax deductions
- housing policy
---
# HB 616. Income tax; depreciation for single-family residential rental property; revise a deduction
## Text
House Bill 616
By: Representatives Romman of the 97th, Frye of the 122nd, Holly of the 116th, and Berry of
the 56th
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 revise a deduction related to depreciation for single-family residential
rental property; 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 revising paragraph (14) of subsection (b) of Code Section 48-7-21, relating
to taxation of corporations, as follows:
"(14)(A) There shall be subtracted from taxable income the deduction provided and
allowed by Section 179 of the Internal Revenue Code of 1986 as enacted on or before
January 1, 2005, to the extent the deduction has not been included in the corporation's
taxable income, as defined under the Internal Revenue Code of 1986; provided,
however, that for taxable years beginning on or after January 1, 2026, the provisions
of this subparagraph shall not be applicable for single-family residential rental property.
(B) For taxable years beginning on or after January 1, 2026, to the extent any amount
was taken by a corporation as a deduction allowed by Section 179 of the Internal
Revenue Code in connection with any single-family residential rental property, such
amount shall be added to the taxable income of the corporation."
SECTION 2.
Said chapter is further amended by revising paragraph (15) of subsection (a) of Code Section
48-7-27, relating to computation of taxable income, as follows:
"(15)(A) The deduction provided and allowed by Section 179 of the Internal Revenue
Code of 1986 as enacted on or before January 1, 2005, to the extent the deduction has
not been included in federal adjusted gross income, as defined under the Internal
Revenue Code of 1986, and the expenses have not been included in itemized
nonbusiness deductions; provided, however, that for taxable years beginning on or after
January 1, 2026, the provisions of this subparagraph shall not be applicable for
single-family residential rental property.
(B) For taxable years beginning on or after January 1, 2026, to the extent any amount
was taken by a corporation as a deduction allowed by Section 179 of the Internal
Revenue Code in connection with any single-family residential rental property, such
amount shall be added to the taxable income of the corporation."
SECTION 3.
This Act shall become effective on January 1, 2026, and shall be applicable to all taxable
years beginning on or after such date.
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 end a state income tax deduction that lets corporations write off the cost of single-family rental homes under Section 179 depreciation rules, starting with the 2026 tax year.
### Plain-language summary
Georgia's tax code currently lets corporations subtract certain equipment and property costs from their taxable income using a deduction tied to Section 179 of the federal Internal Revenue Code as it existed in 2005. This bill amends two sections of Georgia's income tax law (O.C.G.A. §§ 48-7-21 and 48-7-27) so that, starting with tax years beginning on or after January 1, 2026, this deduction can no longer be used for single-family residential rental property.
The bill also requires corporations to add back to their taxable income any amount they previously deducted under this provision in connection with single-family rental homes, for tax years beginning on or after that date. The changes apply to both the corporate income tax computation and the broader computation of taxable income sections of the tax code. The law would take effect January 1, 2026, and apply to all tax years starting on or after that date.
### What it does
- Removes the Section 179 depreciation-style deduction for single-family residential rental property from Georgia's corporate income tax law, effective for tax years starting January 1, 2026.
- Requires corporations to add back into taxable income any amount previously deducted under this provision for single-family rental homes, for tax years beginning on or after January 1, 2026.
- Makes the same change in two separate code sections: one governing corporate taxation (O.C.G.A. § 48-7-21) and one governing computation of taxable income (O.C.G.A. § 48-7-27).
- Leaves the deduction in place for property types other than single-family residential rental property.
### Who it affects
Corporations that own or invest in single-family residential rental homes in Georgia and currently claim this depreciation-related tax deduction. It does not appear to change the deduction for other kinds of property or for non-corporate taxpayers under these specific sections.
### Why it matters
Corporate owners of single-family rental houses in Georgia would lose a tax deduction they currently rely on, and would have to add back previously deducted amounts starting in 2026, which would raise their state taxable income and likely their tax bills tied to that property.
### Key provisions
- Section 1 revises O.C.G.A. § 48-7-21(b)(14) so the Section 179 deduction no longer applies to single-family residential rental property for tax years starting on or after January 1, 2026.
- Section 1 also requires corporations to add back previously taken Section 179 deductions tied to single-family rental property to their taxable income.
- Section 2 makes the identical change in O.C.G.A. § 48-7-27(a)(15), which governs the broader computation of taxable income.
- Section 3 sets the effective date as January 1, 2026, applying to all tax years beginning on or after that date.
- Section 4 repeals any conflicting laws.
## Status
- Status: Introduced (2025-02-24)
- Last action: House Second Readers (2025-02-27)
- Sponsors: Ruwa Romman, Spencer Frye, El-Mahdi Holly, Bryce Berry
- Official page: https://www.legis.ga.gov/legislation/70746
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb616.md?full=1