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; <ins>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.
</ins>
<ins>(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."
</ins> 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; <ins>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."
</ins> 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.