Income tax; one-time tax credit for taxpayers who filed returns for both 2023 and 2024 taxable years; provide
HB 112 creates a one-time Georgia individual income tax credit for taxpayers who filed returns for both the 2023 and 2024 taxable years. The credit is automatic for qualifying taxpayers once they file their 2024 return, and it is capped at the lesser of the taxpayer’s 2023 Georgia income tax liability or a flat amount based on filing status: up to $250 for single or married filing separately, $375 for head of household, and $500 for married filing jointly. The bill excludes nonresident aliens, estates and trusts, and most dependents, though dependents with earned income for 2023 may still qualify.
The measure also specifies how the credit is administered. For part-year residents and taxable nonresidents, the credit is prorated based on the share of income taxable to Georgia. The refund or credit cannot exceed the taxpayer’s 2023 liability, is not treated as taxable income for Georgia purposes, does not earn interest, and may be offset against existing debts under state setoff collection rules. The Department of Revenue is authorized to adopt rules to implement the program, and the act takes effect upon gubernatorial approval or becoming law without approval.
In practical terms, the bill reduces state income tax revenue by returning a portion of 2023 tax liability to eligible individuals who also filed in 2024. It amends Georgia’s income tax code in Title 48 by adding a new Code section governing eligibility, calculation, payment, and administration of the credit, while leaving other income tax provisions intact except where they conflict with the new law.
The overall sentiment around HB 112 appears strongly favorable and noncontroversial. It passed the House unanimously, 175-0, and later passed the Senate 52-0, indicating broad bipartisan support. The only notable procedural resistance was a Senate motion to engross that received some opposition, but the final passage was still unanimous in the Senate chamber.
There is little evidence of substantive contention in the available record. The main policy choices embedded in the bill are the income-tax refund structure, the eligibility limits, and the cap tied to prior-year liability, but no committee debate or recorded opposition is provided. The bill’s design suggests the principal concern was administrative clarity and ensuring the credit was limited to taxpayers who had filed both years and had actual 2023 tax liability.
HB 112 amends Georgia’s income tax laws in Chapter 7 of Title 48 by adding a new section that authorizes a one-time refundable-style tax credit for qualifying individual taxpayers. It affects the Department of Revenue’s administration of individual income tax refunds, establishes eligibility rules, sets credit amounts and proration rules, excludes certain taxpayers, and allows the state to offset the credit against outstanding debts. The credit is excluded from Georgia taxable income and takes effect immediately upon enactment.
The bill appears to have enjoyed broad, bipartisan support with no recorded substantive opposition in the available votes. It passed the House 175-0 and the Senate 52-0, suggesting the measure was viewed as a straightforward tax relief bill. The only recorded split vote was on a Senate motion to engross, but the final passage was unanimous, indicating the chamber ultimately supported the bill as presented.
No major policy controversy is evident from the available materials. The only potentially debatable issues are the size of the credit, the exclusion of nonresidents, estates, trusts, and most dependents, and the decision to limit the refund to the lesser of the taxpayer’s 2023 liability or a fixed amount by filing status. The bill also prorates credits for part-year residents and taxable nonresidents and permits offsets for outstanding debts, but there is no indication these provisions generated significant opposition.