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Bill > HB99


GA HB99

Income tax; credit based upon the federal qualified child and dependent care tax credit; revise


summary

Introduced
01/17/2025
In Committee
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, so as to revise a state income tax credit based upon the federal qualified child and dependent care tax credit; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

AI Summary

This bill modifies Georgia's state income tax credit for qualified child and dependent care expenses by updating the existing tax credit structure. Currently, taxpayers can claim a percentage of the federal child and dependent care tax credit, which has been capped at 30% for taxable years before 2025. The bill introduces a new provision that increases the state tax credit to 100% for taxable years beginning on or after January 1, 2025, and adds a significant change allowing taxpayers to receive a refund if the tax credit exceeds their income tax liability, which was previously not permitted. The credit is based on Section 21 of the Internal Revenue Code and is calculated as a percentage of the federal credit claimed. The bill will become effective on July 1, 2025, and will apply to all taxable years starting January 1, 2025, potentially providing more substantial financial relief to Georgia taxpayers with child and dependent care expenses.

Committee Categories

Budget and Finance

Sponsors (6)

Last Action

House Second Readers (on 01/28/2025)

bill text


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