Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law
HB 290 updates Georgia’s statutory definition of the “Internal Revenue Code” and “Internal Revenue Code of 1986” so that the state’s tax code conforms to federal tax law as amended through January 1, 2025, for taxable years beginning on or after January 1, 2024. The bill is a conformity measure: it incorporates many federal tax provisions into Georgia law by reference, while also specifying several federal sections that Georgia will continue to treat as not in effect or as in effect under prior-law versions. It also preserves certain Georgia-specific treatment for items such as Section 179 expensing limits and refund-claim rules tied to federal disaster-relief and other federal enactments.
The bill’s practical effect is to keep Georgia’s income tax and related tax administration aligned with the federal tax code for the 2024 tax year and beyond, reducing the need for separate state-law updates when federal tax provisions change. It affects taxpayers, tax preparers, and the Department of Revenue by determining which federal deductions, depreciation rules, loss limitations, and other tax provisions are recognized for Georgia purposes. The bill also includes an effective date tied to gubernatorial approval and repeals conflicting laws.
The overall sentiment around HB 290 appears strongly favorable and largely noncontroversial. It passed the House unanimously, 176-0, and later passed the Senate 54-0 after a 31-22 Senate motion to engross the bill. The final passage votes suggest broad bipartisan support for routine tax-code conformity, even though the engrossment motion indicates some procedural division in the Senate.
The main point of contention is not the general goal of conformity, but the specific policy choices embedded in the conformity language. The bill selectively excludes or modifies certain federal provisions, including some related to business deductions, net operating losses, interest limitations, and depreciation, while expressly adopting others such as changes affecting Section 118 from the Infrastructure Investment and Jobs Act. Those technical choices can matter to businesses and tax practitioners because they determine whether Georgia follows, decouples from, or partially adopts federal tax changes. No committee testimony is available in the provided record, so the debate can only be inferred from the vote pattern and the detailed statutory carve-outs.
HB 290 amends Georgia’s revenue and taxation code, specifically Code Section 48-1-2, to update the state’s reference to the federal Internal Revenue Code and to conform Georgia tax law to federal law enacted through January 1, 2025, for tax years beginning on or after January 1, 2024. It changes which federal provisions are automatically incorporated into Georgia law and which are decoupled or treated under prior-law rules, thereby affecting state income tax calculations, deductions, depreciation, loss carryforwards, and related administrative rules for taxpayers and the Department of Revenue.
The bill appears to have been viewed as a routine, technical tax conformity measure with broad support. It passed the House unanimously and ultimately passed the Senate unanimously on final passage, indicating little opposition to the bill’s overall purpose. The only notable split was on a Senate motion to engross, suggesting some procedural or technical disagreement rather than opposition to the bill’s substance.
The main contention lies in the bill’s detailed conformity choices rather than its general objective. Some federal provisions are expressly excluded from Georgia conformity, while others are adopted or preserved with modifications, which can affect business taxpayers, depreciation schedules, loss deductions, and refund claims. These technical carve-outs are the likely source of any concern, especially among taxpayers and practitioners who may be affected differently depending on how Georgia treats specific federal tax changes.