Bill > HB99

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.

Budget and Finance

https://www.legis.ga.gov/legislation/69452