Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
Summary
House Bill 95 would amend Georgia’s income tax code to create a state income tax credit equal to 20 percent of the federal Earned Income Tax Credit (EITC) a taxpayer is allowed under Section 32 of the Internal Revenue Code. The credit would apply only if the taxpayer would have qualified for the federal EITC after accounting for any relevant net operating loss carryforward used in determining federal eligibility.
The bill also makes the credit refundable, meaning that if the credit exceeds a taxpayer’s Georgia income tax liability, the excess would be paid back to the taxpayer as a refund. The Department of Revenue commissioner would be authorized to adopt rules and regulations to administer the credit, and the measure would take effect on July 1, 2025, applying to taxable years beginning on or after January 1, 2025.
Impact
HB95 would expand Georgia’s income tax law by adding a new refundable credit tied directly to the federal Earned Income Tax Credit, which would primarily benefit low- to moderate-income working taxpayers who qualify for the federal EITC. Because the credit is refundable, it could reduce tax liability below zero and generate cash refunds for eligible filers, increasing the fiscal impact relative to a nonrefundable credit. The bill would also require administrative implementation by the Georgia Department of Revenue and would apply prospectively to tax years beginning in 2025.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a tax relief and anti-poverty policy for working families, with no recorded committee debate or vote history provided. The absence of opposition or recorded controversy in the available materials suggests the bill was introduced in a straightforward, supportive policy context focused on expanding the state EITC benefit.
Contention
No specific points of contention are documented in the provided transcripts or voting history. In general, bills creating refundable tax credits can raise concerns about state revenue loss, administrative complexity, and eligibility verification, while supporters typically emphasize assistance to low-income working households and the refundability feature. However, no named legislators or stakeholder groups are shown taking opposing positions in the materials provided.