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

25 LC 59 0029-EC/AP House Bill 112 (AS PASSED HOUSE AND SENATE) By: Representatives McDonald III of the 26th, Hong of the 103rd, Gambill of the 15th, Wade of the 9th, Powell of the 33rd, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1 income taxes, so as to provide for a one-time tax credit for in dividual taxpayers who filed2 income tax returns for the 2023 and 2024 taxable years; to provide for a definition; to provide3 for related matters; to provide for an effective date; to repeal conflicting laws; and for other4 purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,8 is amended by adding a new Code section to read as follows:9 "48-7-20.3.10 (a) As used in this Code section, the term 'qualified taxpayer' means an individual taxpayer11 who filed an individual income tax return for both the 2023 and 2024 taxable years by the12 due date for filing the income tax return for the 2024 taxable year, including any extensions13 which have been granted. Such term shall:14 (1) Not include any:15 (A) Nonresident alien individual;16 H. B. 112 - 1 - 25 LC 59 0029-EC/AP (B) Individual who was claimed as a dependent by another taxpa yer for federal or17 Georgia income tax purposes for the 2023 taxable year; or18 (C) Estate or trust; and19 (2) Include any individual taxpayer excluded solely due to sub paragraph (B) of20 paragraph (1) of this subsection, provided that such individual had earned income for the21 2023 taxable year.22 (b)(1) Once a qualified taxpayer files an individual income ta x return for the 202423 taxable year, the department shall automatically credit such qu alified taxpayer with a24 one-time refund amount equal to the lesser of:25 (A) The qualified taxpayer's 2023 individual income tax liability as properly reported26 on Line 16 of the 2023 Georgia Form 500 or Line 4 of the 2023 Georgia Form 500EZ;27 or28 (B) An amount, which is based on such taxpayer's filing status for the 2023 taxable29 year, equal to:30 (i) In the case of a single taxpayer or a married taxpayer fil ing a separate return,31 $250.00;32 (ii) In the case of a head of household, $375.00; or33 (iii) In the case of a married couple filing a joint return, $500.00.34 (2) Notwithstanding the provisions of paragraph (1) of this subsection, in the case of any35 taxable nonresident or part-year resident whose tax was prorate d as provided by Code36 Section 48-7-85, the amount of the refund credit determined pursuant to paragraph (1) of37 this subsection shall be prorated based on the ratio of income taxable to Georgia as38 properly reported on Schedule 3, Line 9 of the Georgia Form 500 for the 2023 taxable39 year.40 (3) In no event shall the department credit pursuant to this C ode section any taxpayer41 with a refund greater than the taxpayer's individual income tax liability as properly42 H. B. 112 - 2 - 25 LC 59 0029-EC/AP reported on Line 16 of the 2023 Georgia Form 500 or Line 4 of the 2023 Georgia Form43 500EZ.44 (c) The refunds and credits provided for in this Code section shall not constitute taxable45 income for Georgia individual income tax purposes.46 (d) Any refunds due under this Code section to a taxpayer shal l be either electronically47 transmitted or sent by check to such taxpayer, based on the taxpayer's refund instructions,48 if any, as indicated on the taxpayer's income tax return for the 2024 taxable year, provided49 that such refund shall first be credited against any outstanding liability existing at the time50 the refund provided for in this Code section is to be issued.51 (e) In no event shall the amount of a refund or credit provide d for in this Code section52 accrue interest for the benefit of the taxpayer or be paid or c redited to the taxpayer with53 interest.54 (f) Any amount due to be refunded or credited to a taxpayer pursuant to this Code section55 shall be subject to the setoff debt collection provisions of Article 7 of this chapter.56 (g) The commissioner may promulgate any rules and regulations necessary to implement57 and administer this Code section."58 SECTION 2.59 This Act shall become effective upon its approval by the Governor or upon its becoming law60 without such approval.61 SECTION 3.62 All laws and parts of laws in conflict with this Act are repealed.63 H. B. 112 - 3 -