HB112: HB112 Income tax; one-time tax credit for taxpayers who filed returns for both 2023 and 2024 taxable years; provide

Georgia currently has no mechanism for a one-time refund tied to filing both the 2023 and 2024 tax years. This bill adds a new section to Georgia's income tax law (O.C.G.A. § 48-7-20.3) creating that refund. Any 'qualified taxpayer,' generally someone who filed individual income tax returns for both 2023 and 2024 by the applicable deadlines, would automatically get a credit once they file their 2024 return. The refund amount is the lesser of the taxpayer's actual 2023 tax liability or a capped amount based on filing status: $250 for single filers or married people filing separately, $375 for heads of household, and $500 for married couples filing jointly. Nonresident aliens, dependents claimed by someone else (unless they had earned income), and estates or trusts do not qualify. The refund is not taxable income, does not earn interest, and can be applied first against any debts the taxpayer owes the state. The law would take effect as soon as the Governor signs it.

• Creates a one-time state income tax refund for individual taxpayers who filed returns for both the 2023 and 2024 taxable years.
• Sets refund caps of $250 for single or separately-filing married taxpayers, $375 for heads of household, and $500 for joint filers, capped at their actual 2023 tax liability.
• Excludes nonresident aliens, estates, trusts, and most dependents claimed by another taxpayer, unless the dependent had earned income in 2023.
• Requires the Department of Revenue to apply any refund first against a taxpayer's outstanding debts before paying it out.
• Specifies the refund is not taxable income and will not accrue interest for the taxpayer.
• Takes effect immediately upon the Governor's signature or becoming law without signature.

Georgia individual income taxpayers who filed returns for both 2023 and 2024, including single filers, heads of household, and married couples. It excludes nonresident aliens, estates and trusts, and most people claimed as dependents. The Department of Revenue administers the refunds.

Eligible Georgia taxpayers would receive an automatic payment of up to $500 without needing to apply, once they file their 2024 return. The refund is capped by each person's actual 2023 tax bill and will be reduced first by any money they already owe the state.

• Section 1 adds new Code Section 48-7-20.3, defining a 'qualified taxpayer' as someone who filed both 2023 and 2024 Georgia income tax returns by the applicable deadline, including extensions.
• Subsection (a) excludes nonresident aliens, estates, trusts, and dependents claimed by another taxpayer in 2023, but restores eligibility for dependents who had earned income that year.
• Subsection (b) sets the refund as the lesser of the taxpayer's actual 2023 tax liability or a fixed amount: $250 single/separate, $375 head of household, $500 joint filers, with proration for nonresidents or part-year residents.
• Subsection (c) states the refund does not count as taxable income for Georgia purposes.
• Subsection (d) requires refunds to be sent electronically or by check based on the taxpayer's 2024 return instructions, after first offsetting any outstanding debt owed to the state.
• Subsection (e) bars any interest from accruing on or being paid with the refund.
• Subsection (f) makes the refund subject to Georgia's debt setoff collection rules under Article 7 of Chapter 7.
• Section 2 makes the Act effective upon the Governor's signature or upon becoming law without signature.

1. 2025-04-15Effective Date 2025-04-15
2. 2025-04-15Act 8
3. 2025-04-15House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-20Senate Passed/Adopted (Senate)
6. 2025-03-20Senate Third Read (Senate)
7. 2025-03-20Senate Engrossed (Senate)
8. 2025-03-18Senate Read Second Time (Senate)

• Lauren McDonald (R, HD-026)Primary sponsor
• Soo Hong (R, HD-103)
• Matthew Gambill (R, HD-015)
• Will Wade (R, HD-009)
• Alan Powell (R, HD-033)
• Shaw Blackmon (R, HD-146)
• Drew Echols (R, SD-049)

1. PassedHouse voteMarch 6, 2025

   175 yea, 0 nay (1 not voting, 4 absent)

   Passage: House Vote #197

2. PassedSenate voteMarch 20, 2025

   32 yea, 20 nay (4 not voting, 0 absent)

   Motion To Engross: Hb 112, Hr 42: Senate Vote #253

3. PassedSenate voteMarch 20, 2025

   52 yea, 0 nay (1 not voting, 3 absent)

   Passage: Senate Vote #257

• income tax refund
• state tax credit
• Georgia Department of Revenue
• tax filing