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

26 LC 59 0219 House Bill 1153 By: Representatives Oliver of the 84 th, Holcomb of the 101st, Frye of the 122nd, Ali of the 106th, Williams of the 37th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemptions, and cred its, so as to provide a tax2 credit for newly constructed residences built by a residential contractor or builder that are3 sold to taxpayers earning no more than 80 percent of the area median income; to provide for4 application and approval; to provide for rules, regulations, and forms; to provide for related5 matters; to provide for an effective date and applicability; to repeal conflicting laws; and for6 other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to10 relating to imposition, rate, computation, exemptions, and credits, is amended by adding a11 new Code section to read as follows:12 "48-7-43.13 (a) As used in this Code section, the term 'area median income' means the median income14 for the area in which a newly constructed residence is located as determined by the15 department.16 H. B. 1153 - 1 - 26 LC 59 0219 (b) Beginning January 1, 2027, a state tax credit against the tax imposed by this article17 shall be allowed with respect to each newly constructed residen ce built by a residential18 contractor or builder that is sold to a taxpayer earning no more than 80 percent of the area19 median income. In no event shall the total amount of the tax credit under this Code section20 for a taxable year exceed the taxpayer's income tax liability.21 (c) A taxpayer seeking to claim a tax credit under this Code s ection shall submit an22 application to the commissioner for approval of such tax credit. The commissioner shall23 review such application and shall approve such application upon determining that it meets24 the requirements of this Code section within 60 days after receiving such application.25 (d)(1) The department shall be authorized to adopt rules and regulations to provide for26 the administration of the tax credit provided by this Code section.27 (2) The commissioner shall be authorized to promulgate any rules and forms relative to28 the provisions of this Code section."29 SECTION 2.30 This Act shall become effective upon its approval by the Governor or upon its becoming law31 without such approval and shall be applicable to all taxable ye ars beginning on or after32 January 1, 2027.33 SECTION 3.34 All laws and parts of laws in conflict with this Act are repealed.35 H. B. 1153 - 2 -