Georgia HB 213: Clean Energy Investment Tax Credit Act; enact

Bill Text

25 LC 50 0989
House Bill 213
By: Representatives Park of the 107
th, Miller of the 62
nd, Drenner of the 85
th, Romman of the
97
th, Herring of the 145
th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,1
relating to imposition, rate, computation, exemption, and credits from income taxes, so as to2
create a tax credit for investment in clean energy; to provide for the calculation of credit3
amounts; to provide for definitions; to provide for terms and conditions; to provide for4
transferability; to require the Environmental Protection Division to annually publish5
greenhouse gas emission rates for purposes of such tax credit; to provide for rules and6
regulations; to provide for a short title; to provide for related matters; to provide for an7
effective date and applicability; to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
This Act shall be known and may be cited as the "Clean Energy Investment Tax Credit Act."11
SECTION 2.12
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to13
imposition, rate, computation, exemption, and credits from income taxes, is amended by14
revising Code Section 48-7-40.10, which is reserved, as follows:15
H. B. 213
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"48-7-40.10.16
(a) As used in this Code section, the term:17
(1) 'CO2e per KWh,' 'energy storage technology,' 'greenhouse gas,' and 'qualified18
interconnection property' shall have the same meaning as provided for such terms in 2619
U.S.C. Section 48E, as effective on January 1, 2025.20
(2) 'Eligible person' means any person that demonstrates eligibility for the tax credit21
allowed pursuant to this Code section in accordance with the requirements of this Code22
section and rules and regulations of the department. Such term shall not include any23
person or any form of business owned, affiliated, or controlled, in whole or in part, by24
any company or person which is in default on any tax obligation to the state, any loan25
made by the state, or any loan guaranteed by the state.26
(3) 'Greenhouse gas emissions rate' means the amount of greenhouse gases emitted into27
the atmosphere by a facility in the production of electricity, expressed as grams of CO2e28
per KWh, as provided by the Environmental Protection Division pursuant to29
subsection (e) of this Code section. In the case of a facility which produces electricity30
through combustion or gasification, the greenhouse gas emissions rate for such facility31
shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such32
facility, taking into account lifecycle greenhouse gas emissions in the production of33
electricity, expressed as grams of CO2e per KWh. The amount of greenhouse gases34
emitted into the atmosphere by a facility in the production of electricity shall not include35
any qualified carbon dioxide that is captured by the qualified person and disposed of by36
the eligible person in secure geological storage or utilized by the qualified person.37
(4) 'Qualified facility' means a facility located in this state which is used for the38
generation of electricity, is placed in service after July 1, 2025, and for which the39
greenhouse gas emissions rate is not greater than zero. Such term shall not include any40
facility for which a state income tax credit for clean energy production is allowed for the41
taxable year.42
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(5) 'Qualified investment' means:43
(A) With respect to any qualified facility for any taxable year, the sum of:44
(i) The basis of any qualified property placed in service by the eligible person during45
such taxable year which is part of a qualified facility; and46
(ii) The amount of any expenditures which are:47
(I) Paid or incurred by the eligible person for qualified interconnection property in48
connection with a qualified facility which has a maximum net output of not greater49
than 5 megawatts, as measured in alternating current, and placed in service during50
the taxable year; and51
(II) Properly chargeable to the capital account of the taxpayer; and52
(B) With respect to energy storage technology for any taxable year, the basis of any53
energy storage technology placed in service by the eligible person during such taxable54
year.55
(6) 'Qualified property' means property:56
(A) Which is tangible personal property, or other tangible property, not including a57
building or its structural components, but only if such property is used as an integral58
part of the qualified facility:59
(B) With respect to which depreciation, or amortization in lieu of depreciation, is60
allowable; and61
(C)(i) The construction, reconstruction, or erection of which is completed by the62
eligible person; or63
(ii) Which is acquired by the eligible person if the original use of such property64
commences with the eligible person.65
(b) For taxable years