Income tax; one-time tax credit for individual taxpayers who filed income tax returns for the 2024 and 2025 taxable years; provide
Summary
HB 1000 creates a one-time Georgia income tax credit for individual taxpayers who filed both their 2024 and 2025 state income tax returns by the 2025 filing deadline, including extensions. The credit is automatic and is calculated as the lesser of the taxpayer’s 2024 Georgia income tax liability or a flat amount based on filing status: up to $250 for single filers or married filing separately, $375 for head of household, and $500 for married filing jointly. The bill also allows certain dependent taxpayers with earned income to qualify, while excluding nonresident aliens, estates, and trusts.
The Department of Revenue must issue the credit as a refund or apply it against outstanding liabilities, and the payment is not treated as taxable income for Georgia income tax purposes. For part-year residents and taxable nonresidents, the credit is prorated based on the share of income taxable to Georgia. The commissioner is authorized to adopt rules to administer the program, and the act takes effect immediately upon gubernatorial approval or becoming law without approval.
Impact
The bill amends Chapter 7 of Title 48 of the Official Code of Georgia Annotated by adding a new Code section governing a one-time individual income tax refund credit. It affects the Department of Revenue’s administration of 2025 returns, requires automatic processing of eligible credits, and interacts with existing tax collection and setoff provisions by allowing credits to be reduced for outstanding debts. It also clarifies that the credit is excluded from Georgia taxable income and caps the refund at the taxpayer’s 2024 liability.
Sentiment
The recorded votes indicate strong overall support for the measure. The House passed the bill unanimously, 170-0, and the Senate ultimately passed it 50-0 after a narrower 30-19 vote on a motion to engross. With no committee transcript available, the available voting history suggests broad bipartisan agreement on providing a one-time tax benefit to individual taxpayers, even though the procedural motion in the Senate drew more division than final passage.
Contention
The main policy questions likely concern eligibility and distribution mechanics rather than the concept of the tax credit itself. The bill limits relief to taxpayers who filed both 2024 and 2025 returns, excludes nonresident aliens and entities, and prorates benefits for part-year residents and taxable nonresidents, which could raise fairness or administrative concerns. The Senate motion to engross drew the only notable split vote in the history provided, suggesting some procedural or drafting-related disagreement, but final passage was unanimous, indicating little substantive opposition to the credit as enacted.