Bill > HB316

This bill creates a new state income tax credit in Georgia equal to 20 percent of the federal Earned Income Tax Credit (EITC), which is a tax benefit designed to assist low to moderate-income working individuals and families. Under this legislation, taxpayers can claim a credit against their state income tax liability based on the amount of their federal EITC, but only if they would have originally qualified for the federal credit after accounting for any net operating loss deductions. Importantly, if the state tax credit exceeds the taxpayer's total state income tax liability, the excess credit cannot be refunded or carried forward to future tax years. The bill will become effective on July 1, 2025, and will apply to all taxable years beginning on or after January 1, 2025. The state tax commissioner is authorized to create rules and regulations to implement this new tax credit provision. The legislation aims to provide additional tax relief for working individuals and families with lower to moderate incomes by piggybacking on the existing federal Earned Income Tax Credit structure.

Budget and Finance

https://www.legis.ga.gov/legislation/70027