HB 425: Revenue and taxation; purchase of an emergency power generator to convenience stores and grocery stores; provide tax credit

After Hurricane Helene's impact on Georgia, this bill creates a new tax credit under the Official Code of Georgia Annotated (O.C.G.A. § 48-7-29.27) to encourage convenience stores and skilled nursing facilities to buy backup generators so they can keep operating during power outages. The credit covers money spent between July 1, 2025 and December 31, 2026 on generators, transfer switches, fuel lines, and related equipment, as long as the purchase isn't for resale. The credit is capped at $5,000 per year and can be spread over five tax years, but must be claimed starting on the 2026 tax return. A taxpayer can only claim it once per store or facility, and no taxpayer can claim it for more than five convenience stores. The statewide total for all credits combined cannot exceed $5 million, and businesses must apply to the Georgia Department of Revenue for preapproval before claiming it. The new tax break automatically expires on December 31, 2031.

• Creates a new Georgia income tax credit for convenience stores and skilled nursing facilities that buy and install emergency backup generators and related equipment.
• Limits the credit to $5,000 per taxable year, spread across five years, for generator purchases made between July 1, 2025 and December 31, 2026.
• Caps use of the credit to once per store or facility and limits any single taxpayer to claiming it for no more than five convenience stores.
• Sets a statewide $5 million ceiling on the total amount of credits that can be given out, requiring the Department of Revenue to prorate funds if demand exceeds the cap.
• Requires businesses to apply to the state for preapproval before claiming the credit, with applications processed in the order received.
• Automatically repeals the entire tax credit program on December 31, 2031.

Convenience stores with less than 10,000 square feet of retail space, skilled nursing facilities providing inpatient care, and taxpayers who own or operate them. The Georgia Department of Revenue would also be responsible for reviewing applications and administering the credit.

Eligible stores and nursing facilities that install backup generators could offset part of the cost through their state taxes, potentially helping them stay open during power outages after storms like Hurricane Helene. The $5 million statewide cap means only a limited number of businesses would ultimately benefit before funds run out.

• Section 1 adds new Code section 48-7-29.27, citing Hurricane Helene's impact as the legislative reason for creating the credit.
• Defines 'convenience store' as a retail outlet under 10,000 square feet selling food, fuel, or tobacco, and defines 'skilled nursing facility' and 'emergency power generator and related components.'
• Subsection (c) limits the credit to $5,000 per year over five years for qualifying purchases made between July 1, 2025 and December 31, 2026, and restricts it to one claim per location.
• Subsection (e) caps total statewide credits at $5 million and bars using the credit against prior years' taxes or carrying it forward beyond what subsection (c) allows.
• Subsection (f) requires taxpayers to apply for preapproval, with the Department of Revenue approving applications in the order received and prorating funds if oversubscribed.
• Subsection (h) sets an automatic repeal date of December 31, 2031 for the entire tax credit program.
• Section 2 repeals any conflicting laws.

1. 2025-03-10Senate Read and Referred (Senado)
2. 2025-03-06House Passed/Adopted By Substitute (Cámara de Representantes)
3. 2025-03-06House Third Readers (Cámara de Representantes)
4. 2025-02-26House Committee Favorably Reported By Substitute (Cámara de Representantes)
5. 2025-02-18House Second Readers (Cámara de Representantes)
6. 2025-02-13House First Readers (Cámara de Representantes)
7. 2025-02-12House Hopper (Cámara de Representantes)

• James Burchett (R, HD-176)Patrocinador principal
• Leesa Hagan (R, HD-156)
• Beth Camp (R, HD-135)
• James Hatchett (R, HD-155)
• Angie O'Steen (R, HD-169)
• Jaclyn Ford (R, HD-170)

1. AprobadaVotación: Cámara de Representantes6 de marzo de 2025

   171 a favor, 2 en contra (4 sin votar, 3 ausentes)

   Passage: House Vote #195

• tax credits
• disaster preparedness
• small business
• convenience stores
• nursing facilities