Income tax; tax credit for certain expenses incurred by taxpayers that sell new construction homes to certain individuals for up to a certain price; provide
Summary
HB 230 would create a new Georgia income tax credit for taxpayers who incur construction expenses for a single-family residential home that is sold to an individual or related individuals for no more than $200,000. The credit would equal 20 percent of eligible construction expenses and would apply to taxable years beginning on or after January 1, 2026. The bill defines eligible construction expenses as those incurred on or after January 1, 2026, and limits the credit to homes meeting the price cap and sale requirements.
The bill also establishes rules for using and transferring the credit. A taxpayer may use the credit only up to the amount of their income tax liability in a given year, with unused amounts carried forward for up to five years. In addition, unused credits may be transferred or sold to another Georgia taxpayer, but only once per taxable year, with notice requirements to the Department of Revenue and other conditions intended to prevent improper claims or transfers. The bill becomes effective January 1, 2026, and applies to taxable years beginning on or after that date.
Impact
HB 230 would amend Georgia’s income tax code by adding a new credit for certain homebuilders or taxpayers engaged in qualifying new construction home sales. It would create a targeted tax incentive for construction of lower-priced single-family homes, potentially affecting housing supply, builder behavior, and state revenue collections. The bill also adds administrative and compliance provisions for the Georgia Department of Revenue, including transfer reporting, recapture authority, and rules governing carryforwards and credit sales.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears neutral and policy-oriented rather than contentious. The measure is framed as a tax incentive for new home construction and affordable housing-related development, suggesting support for encouraging construction activity and homeownership opportunities at lower price points. No formal opposition or recorded vote history is available in the provided context.
Contention
The main potential points of contention are the fiscal cost of the credit, the choice to target homes sold for $200,000 or less, and the complexity of allowing credits to be transferred or sold. Supporters would likely emphasize incentives for builders and increased production of lower-cost homes, while critics may question whether the credit is the most efficient use of tax policy or whether the transferability provisions could complicate administration and oversight. Because no committee transcript or vote record is provided, no specific legislator or stakeholder objections are documented.
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