Georgia 2025-2026 Regular Session

Georgia House Bill HB365

Caption

Strategic Industrial Development Enhancement (SIDE) Tax Credit Act; enact

Summary

House Bill 365 creates a temporary Georgia income tax credit for certain industrial development projects that include both site development and rail-related infrastructure. The bill establishes the “Strategic Industrial Development Enhancement (SIDE) Tax Credit Act” and allows an eligible entity to claim a credit equal to 10 percent of qualified economic development expenditures and 50 percent of qualified initial infrastructure expenditures for approved projects beginning in tax year 2026 through tax year 2031. To qualify, a project must be located in an industrial park, economic development zone, or adjacent to a railroad terminal or switching point, and it must be approved by the Department of Community Affairs as expected to generate substantial economic benefits and job creation. The bill defines eligible expenditures to include land improvements, construction costs, machinery and equipment, and rail infrastructure such as right-of-way acquisition, track rehabilitation, new track construction, loading docks, and transloading structures. The credit is capped at $8 million per project for economic development expenditures, $4 million per project for rail infrastructure expenditures, and $75 million statewide per tax year.

Impact

HB365 would amend Georgia’s income tax code by adding a new, temporary credit under Article 2 of Chapter 7 of Title 48. It would create a new incentive structure for industrial and rail-adjacent development projects, authorize credit transferability and carryforwards, and require administrative rules from both the Department of Community Affairs and the state revenue commissioner. The credit would apply only to taxable years beginning on or after January 1, 2026, and the new code section would automatically repeal on January 1, 2032.

Sentiment

The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate, amendments, or partisan division in the provided materials. Based on the bill text alone, the measure appears designed as an economic development incentive aimed at attracting industrial investment, improving logistics infrastructure, and supporting job creation. The structure of the bill suggests a generally pro-development policy approach.

Contention

No specific points of contention are documented in the provided context because there are no committee transcripts or vote records. Potential areas of debate inherent in the bill include the size of the tax credit, the statewide annual cap of $75 million, the use of transferable credits, and whether the benefits will be concentrated among a limited number of large industrial projects. Another possible issue is the administrative role of the Department of Community Affairs in approving projects and determining eligibility.

Companion Bills

No companion bills found.

Previously Filed As

GA SF1666

Minnesota Strategic Industrial Development Enhancement tax credits establishment

GA HF2049

Minnesota Strategic Industrial Development Enhancement tax credits established, and rulemaking authorized.

GA HF2049

Minnesota Strategic Industrial Development Enhancement tax credits established, and rulemaking authorized.

GA HB608

Income Tax; to create the R&D Tax Credit Enhancement Act

GA HB419

Natural Gas - Strategic Infrastructure Development and Enhancement (Ratepayer Protection Act)

GA SB998

Natural Gas - Strategic Infrastructure Development and Enhancement (Ratepayer Protection Act)

GA HB213

Clean Energy Investment Tax Credit Act; enact

GA HB21

Healthy Food Access Tax Credit Act; enact

GA HB1373

Regional special ed.; DOE to assess enhancements & strategies to maximize use of funds for students.

GA B26-0016

Strategic Parking Enforcement Enhancement Act of 2025

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