SB67: SB67 Income Taxes; income tax credit equal to 20 percent of the federal earned income tax credit; provide

Georgia does not currently offer a state-level earned income tax credit, a benefit aimed at low- and moderate-income working people that supplements what they receive from the federal earned income tax credit (EITC). This bill would add a new section to Georgia's income tax law (O.C.G.A. Chapter 7 of Title 48) creating a state credit equal to 20 percent of whatever federal EITC amount a taxpayer receives under Section 32 of the federal tax code. The credit would only apply to taxpayers who actually qualify for the federal credit, including after accounting for any net operating loss carryforward used in that federal calculation. If the state credit is worth more than a taxpayer owes in state income tax, the leftover amount would be paid to the taxpayer as a refund rather than lost. The Georgia Department of Revenue commissioner would be allowed to write rules to administer the credit. The change would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2025.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-29.28) equal to 20 percent of a taxpayer's federal earned income tax credit under Section 32 of the Internal Revenue Code.
• Limits eligibility to taxpayers who would qualify for the federal credit, including after adding back any net operating loss carryforward used in that federal determination.
• Makes the credit refundable, meaning any amount exceeding a taxpayer's state income tax bill is paid back to them rather than forfeited.
• Authorizes the state revenue commissioner to create rules and regulations to implement and administer the credit.
• Sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.

Georgia taxpayers who qualify for the federal earned income tax credit, typically lower- and moderate-income working individuals and families, would receive a new state credit. The Georgia Department of Revenue would also be responsible for administering the credit and issuing refunds where owed.

Eligible working Georgians could see a reduction in their state income tax bill or a refund check worth 20 percent of their federal earned income tax credit, providing extra money to households that already qualify for the federal benefit, starting with the 2025 tax year.

• Section 1 adds new Code Section 48-7-29.28, creating the credit equal to 20 percent of the taxpayer's federal earned income tax credit under Internal Revenue Code Section 32.
• Section 1(a) ties eligibility to actual federal EITC eligibility, including recalculating after adding back net operating loss carryforwards used federally.
• Section 1(b) makes the credit refundable, so excess credit beyond tax liability is paid to the taxpayer.
• Section 1(c) gives the state revenue commissioner authority to issue rules and regulations to implement the credit.
• Section 2 sets the effective date at July 1, 2025, applying to taxable years beginning on or after January 1, 2025.
• Section 3 repeals any conflicting laws.

1. 2025-02-03Senate Read and Referred (Senate)
2. 2025-01-30Senate Hopper (Senate)

• Elena Parent (D, SD-044)Primary sponsor
• Jason Esteves (D, SD-035)
• Kim Jackson (D, SD-041)
• Harold Jones (D, SD-022)
• Nan Orrock (D, SD-036)
• Sonya Halpern (D, SD-039)
• Nikki Merritt (D, SD-009)
• Freddie Sims (D, SD-012)
• Michael Rhett (D, SD-033)
• Kenya Wicks (D, SD-034)
• Gail Davenport (D, SD-017)
• David Lucas (D, SD-026)
• Nabilah Islam Parkes (D, SD-007)
• Ed Harbison (D, SD-015)
• Tonya Anderson (D, SD-043)
• Josh McLaurin (D, SD-014)
• Derek Mallow (D, SD-002)
• RaShaun Kemp (D, SD-038)

• income taxes
• earned income tax credit
• tax refunds
• low-income tax relief