HB1153: HB1153 Revenue and taxation; tax credit for newly constructed residences built by a residential contractor or builder that are sold to taxpayers earning no more than 80 percent of the area median income; provide

Georgia currently has no specific state tax credit tied to selling newly built homes to lower- and moderate-income buyers. This bill would add a new section to Georgia's tax code creating one. Beginning January 1, 2027, a residential contractor or builder who sells a newly constructed home to a taxpayer earning no more than 80 percent of the area median income (a measure of typical income for that region) could claim a state income tax credit. The credit cannot exceed the taxpayer's total income tax liability for the year. Builders seeking the credit must apply to the state revenue commissioner, who must approve qualifying applications within 60 days. The Department of Revenue would be allowed to write rules and forms to administer the program. The change would apply to tax years starting on or after January 1, 2027, and takes effect once signed by the Governor or becoming law without a signature.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-43) for newly built homes sold to buyers earning up to 80 percent of the area median income.
• Caps the credit so it cannot exceed the taxpayer's income tax liability for that year, meaning it cannot create a refund beyond taxes owed.
• Requires builders or contractors seeking the credit to apply to the state revenue commissioner for approval.
• Requires the commissioner to review and approve qualifying applications within 60 days of receipt.
• Authorizes the Department of Revenue to adopt rules, regulations, and forms to run the credit program.
• Sets the credit to begin for home sales starting January 1, 2027.

The bill affects residential contractors and home builders who could claim the credit, homebuyers earning at or below 80 percent of their area's median income who purchase newly built homes, and the Georgia Department of Revenue, which would review applications and write administrative rules.

Builders who sell new homes to moderate- and lower-income buyers could reduce their state tax bill, which may create a financial incentive to build or price homes within reach of these buyers. The practical effect on home prices or availability would depend on how many builders apply and are approved.

• Section 1 adds new Code section 48-7-43 defining 'area median income' as the median income for the area where the home is located, as determined by the Department of Revenue.
• Subsection (b) creates the tax credit for builders selling newly constructed homes to buyers earning no more than 80 percent of area median income, effective January 1, 2027.
• Subsection (b) limits the credit so it cannot exceed the taxpayer's income tax liability for the year.
• Subsection (c) requires builders to apply to the commissioner, who must approve qualifying applications within 60 days.
• Subsection (d) authorizes the Department of Revenue and commissioner to adopt rules, regulations, and forms for administering the credit.
• Section 2 sets the effective date as upon the Governor's approval (or becoming law without approval), applicable to tax years beginning on or after January 1, 2027.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Mary Oliver (D, HD-084)Primary sponsor
• Scott Holcomb (D, HD-101)
• Spencer Frye (D, HD-122)
• Akbar Ali (D, HD-106)
• Mary Williams (D, HD-037)
• Carolyn Hugley (D, HD-141)

• tax credits
• affordable housing
• home construction
• income taxes