Income tax; credit based upon the federal qualified child and dependent care tax credit; revise
Summary
HB99 revises Georgia’s income tax credit for qualified child and dependent care expenses. Under current law, the state credit is calculated as a percentage of the federal child and dependent care tax credit; this bill would keep that structure but increase the percentage to 100 percent for taxable years beginning on or after January 1, 2025. In practical terms, the bill would make the state credit equal to the full federal credit amount for eligible taxpayers starting in 2025.
The bill also changes how the credit works when it exceeds a taxpayer’s Georgia income tax liability. Under existing language, the credit cannot exceed tax liability and any unused amount cannot be carried forward or applied to prior years. HB99 adds a refundability provision for tax years beginning on or after January 1, 2025, so any excess credit beyond the taxpayer’s liability would be refunded rather than lost. The bill becomes effective July 1, 2025, and applies to taxable years beginning on or after January 1, 2025.
Impact
HB99 would amend Code Section 48-7-29.10 in Chapter 7 of Title 48 of the Official Code of Georgia Annotated, which governs state income tax credits tied to the federal child and dependent care credit. The bill would increase the state credit rate to 100 percent for 2025 and later tax years and make the credit refundable for those years, affecting taxpayers who incur qualifying child and dependent care expenses and potentially reducing state income tax revenue.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a straightforward tax relief proposal aimed at supporting working families with child and dependent care costs. The available context does not show formal opposition or support statements, but the policy direction suggests a generally pro-taxpayer, family-supportive intent.
Contention
The main policy issue is fiscal impact: making the credit equal to the full federal amount and refundable could increase state revenue losses compared with the current partial, nonrefundable credit. Any contention would likely center on whether the expanded benefit is an appropriate use of state funds and whether it should be targeted to families with dependent care expenses. No specific objections or amendments are reflected in the provided committee or voting history.