Income Taxes; income tax credit equal to 20 percent of the federal earned income tax credit; provide
Summary
SB67 would amend Georgia’s income tax code to create a state earned income tax credit tied to the federal Earned Income Tax Credit (EITC). The bill allows a taxpayer to claim a Georgia income tax credit equal to 20 percent of the federal EITC the taxpayer is eligible for under Section 32 of the Internal Revenue Code. Eligibility is limited to taxpayers who would receive the federal credit after accounting for any applicable net operating loss carryforward used in determining federal EITC eligibility.
The credit would be refundable, meaning that if the credit exceeds a taxpayer’s Georgia income tax liability, the excess would be paid back to the taxpayer. The Department of Revenue commissioner would be authorized to adopt rules and regulations to administer the credit. The bill would take effect July 1, 2025, and apply to taxable years beginning on or after January 1, 2025.
Impact
SB67 would add a new refundable income tax credit to Georgia law and expand the state tax code’s treatment of low- and moderate-income working taxpayers who qualify for the federal EITC. It would create a new Code section in Title 48, Chapter 7, and require the Department of Revenue to implement and administer the credit through rulemaking. Because the credit is refundable, it could reduce state revenue beyond taxpayers’ existing liability and provide direct cash refunds to eligible filers.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears designed as a tax relief and anti-poverty policy for working families, which typically draws support from advocates for low-income taxpayers. However, without hearing records or vote history, the overall legislative sentiment cannot be determined with certainty.
Contention
The main policy issue likely to generate contention is the fiscal impact of making the credit refundable, since refunds can increase state expenditures or reduce net revenue more than a nonrefundable credit would. Another possible point of debate is the size of the credit—20 percent of the federal EITC—which may be viewed by supporters as meaningful assistance but by critics as insufficient or too costly depending on budget priorities. No specific objections or sponsor arguments are available in the provided record.