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HB 1153

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

2025-2026 Regular Session Introduced by Akbar Ali and 5 co-sponsors

Georgia would offer tax credits to homebuilders selling newly constructed homes to buyers earning up to 80% of area median income, aiming to boost affordable housing supply.

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Bill Summary · HB 1153

Legislative bill overview

HB 1153 creates a state tax credit for newly constructed homes built by residential contractors or builders and sold to low-to-moderate income buyers earning no more than 80% of their area's median income. The credit is designed to incentivize developers to build affordable housing by offering them a tax benefit when they sell to qualifying income-restricted purchasers.

Why is this important

Georgia faces a significant affordable housing shortage, and this bill attempts to address it by using tax incentives rather than direct government spending. By making it more financially attractive for private builders to construct homes for lower-income families, the state aims to increase affordable housing supply while potentially reducing pressure on public housing assistance programs.

Potential points of contention

  • Cost to state revenue: The bill foregoes tax revenue without specifying the credit amount or annual cost cap, potentially creating an unpredictable fiscal impact on the state budget
  • Effectiveness uncertainty: No established metrics determine whether tax credits actually produce affordable housing at scale or merely subsidize projects that would occur anyway
  • Geographic disparities: "Area median income" varies widely across counties; the same income level may qualify vastly different numbers of people depending on location, creating unequal benefit distribution
  • Long-term affordability: The bill doesn't clarify whether homes remain deed-restricted for affordability or can be resold at market rates immediately, limiting lasting impact
  • Developer incentives: Unclear whether the credit sufficiently motivates new construction or primarily benefits already-planned projects

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

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