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HB 230

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

2025-2026 Regular Session Introduced by Yasmin Neal and 3 co-sponsors

House Bill 230 offers a 20% tax credit for construction costs of new homes sold for $200,000 or less, boosting affordable housing and homeownership in Georgia.

House Second Readers
#property #revenueandtaxation
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WeVote Research Nonpartisan
Bill Summary · HB 230

Summary of House Bill 230

Bill Number: HB 230
Title: 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
Status: House Second Readers
Introduced: February 04, 2025
Classification: Bill

Purpose and Intent

House Bill 230 aims to provide a tax incentive for taxpayers involved in the construction and sale of new single-family homes. The bill introduces a tax credit for eligible construction expenses incurred when selling these homes to individuals or related individuals at a price not exceeding $200,000. The intent is to stimulate the housing market and support affordable homeownership in Georgia.

Key Provisions

  1. Definition of Eligible Expenses:

    • The bill defines "eligible construction expenses" as costs incurred after January 1, 2026, related to the construction of single-family residential homes sold for $200,000 or less.

  2. Tax Credit Amount:

    • Taxpayers will be allowed a tax credit equal to 20% of their eligible construction expenses for taxable years beginning on or after January 1, 2026.

  3. Limitations on Tax Credit:

    • The total tax credit for any taxable year cannot exceed the taxpayer's income tax liability.
    • Unused credits can be carried forward for up to five years or transferred to another Georgia taxpayer under specific conditions.

  4. Transfer of Tax Credits:

    • Tax credits can be transferred or sold, but only once per taxable year.
    • Taxpayers must notify the Department of Revenue within 30 days of any transfer, providing detailed information about the transaction.
    • The transferee must acquire at least 60% of the amount of the tax credits being transferred.

  5. Compliance Requirements:

    • Failure to comply with transfer notification requirements may result in disallowance of the tax credit until compliance is achieved.

Affected Parties

  • Taxpayers: Individuals or entities constructing and selling new single-family homes priced at $200,000 or less.
  • Homebuyers: Individuals purchasing these homes may benefit indirectly from the increased availability of affordable housing.
  • Georgia Department of Revenue: Responsible for administering the tax credit and ensuring compliance with the transfer provisions.

Procedural Aspects

  • The bill was introduced on February 4, 2025, and has passed the House First Readers stage, currently awaiting further consideration as it moves through the legislative process.
  • The provisions of the bill will take effect on January 1, 2026, applying to taxable years beginning on or after this date.

Conclusion

House Bill 230 represents a strategic effort to enhance the affordability of new homes in Georgia by offering tax credits to builders. By incentivizing the construction of homes priced at $200,000 or less, the bill aims to promote homeownership and stimulate economic activity in the housing sector.

Compiled from official sources — confirm details with the bill’s official record.

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