HB290: HB290 Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law

Georgia law does not automatically follow every change to the federal tax code. Instead, state law defines "Internal Revenue Code" as the federal code as it existed on a specific date, and the General Assembly updates that date each year so Georgia's income tax rules stay in sync with recent federal tax changes, while carving out certain federal provisions Georgia chooses not to adopt. House Bill 290 amends O.C.G.A. § 48-1-2 to move that reference date from January 1, 2024 to January 1, 2025, and to apply it to taxable years beginning on or after January 1, 2024 instead of January 1, 2023. It keeps in place a long list of specific federal tax code sections that Georgia continues to treat as not in effect or as effective on an earlier date, covering things like bonus depreciation, certain net operating loss rules, and Section 179 expensing limits. The law would take effect as soon as the Governor signs it, and applies to tax years beginning on or after January 1, 2024.

• Updates the definition of "Internal Revenue Code" and "Internal Revenue Code of 1986" in Georgia tax law (O.C.G.A. § 48-1-2) to mean the federal tax code as enacted through January 1, 2025, instead of January 1, 2024.
• Shifts the applicable tax years for this updated definition to those beginning on or after January 1, 2024, instead of January 1, 2023.
• Keeps a detailed list of federal tax code sections, such as those on bonus depreciation and net operating losses, that Georgia continues to treat as not in effect or as effective on an earlier date.
• Sets the dollar limits for Section 179 business expense deductions for tax years 2010 through 2014 exactly as they appeared in prior law.
• Makes the changes effective immediately upon the Governor's signature and applies them to tax years beginning on or after January 1, 2024.

Georgia individual and business taxpayers whose state income tax liability depends on federal tax code definitions, along with the tax professionals and the Georgia Department of Revenue who apply these rules when calculating state taxable income.

Because Georgia's income tax calculations start from federal tax law, this annual update determines which recent federal tax changes taxpayers can rely on when filing Georgia returns for 2024 tax years, and which older federal provisions still apply because Georgia has opted out of them.

• Section 1 revises paragraph (14) of O.C.G.A. § 48-1-2 to update the Internal Revenue Code reference date from January 1, 2024 to January 1, 2025.
• Section 1 changes the applicable taxable year threshold from years beginning on or after January 1, 2023 to years beginning on or after January 1, 2024.
• Section 1 preserves the existing list of federal code sections Georgia treats as not in effect, including provisions on bonus depreciation (Section 168(k)) and certain net operating loss carrybacks.
• Section 1 retains the fixed Section 179(b)(1) and 179(b)(2) expensing limits set for tax years 2010 through 2014, ranging from $250,000 to $2 million.
• Section 2 sets the effective date as upon the Governor's approval, applicable to taxable years beginning on or after January 1, 2024.
• Section 3 repeals any conflicting laws.

1. 2025-05-14Effective Date 2025-05-14
2. 2025-05-14Act 370
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-25Senate Passed/Adopted (Senate)
6. 2025-03-25Senate Third Read (Senate)
7. 2025-03-25Senate Engrossed (Senate)
8. 2025-03-13Senate Read Second Time (Senate)

• John Carson (R, HD-046)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Trey Kelley (R, HD-016)
• David Wilkerson (D, HD-038)
• Bruce Williamson (R, HD-112)
• John Albers (R, SD-056)

1. PassedHouse voteMarch 3, 2025

   176 yea, 0 nay (2 not voting, 2 absent)

   Passage: House Vote #128

2. PassedSenate voteMarch 25, 2025

   31 yea, 22 nay (2 not voting, 1 absent)

   Motion To Engross: Hb 92, Hb 290: Senate Vote #278

3. PassedSenate voteMarch 25, 2025

   54 yea, 0 nay (0 not voting, 2 absent)

   Passage: Senate Vote #282

• state income tax
• tax conformity
• Internal Revenue Code
• business tax deductions
• Georgia Department of Revenue