HB407: HB407 Georgia Hemp Industry Growth and Business Partnership Tax Credit Act; enact

Georgia currently offers no specific tax break tied to buying from the state's hemp farmers and suppliers. This bill, called the Georgia Hemp Industry Growth and Business Partnership Tax Credit Act, would add a new section to Georgia's income tax law (O.C.G.A. Chapter 7 of Title 48) letting any taxpayer claim a credit equal to 10 percent of what they spend doing business with Georgia grown hemp owners and suppliers, capped at $100,000 per taxpayer. The Georgia Commissioner of Agriculture would write guidelines for applying for the credit and would issue annual reports on how many businesses use it, how much money is credited, and its effect on the hemp industry. The credit cannot exceed a taxpayer's total income tax bill for the year, cannot be applied to past years, but unused amounts can carry forward for up to five years. Businesses that fail to follow the rules could have their credit revoked. The law would take effect January 1, 2026, and apply to tax years starting on or after that date.

• Creates a new Georgia income tax credit worth 10 percent of a taxpayer's costs of doing business with Georgia grown hemp owners and suppliers.
• Caps the credit at $100,000 per taxpayer per year, whichever is less between that amount and the 10 percent calculation.
• Directs the Commissioner of Agriculture to set application guidelines and issue annual public reports on the program's use and impact.
• Allows revocation of the credit if a taxpayer does not comply with the law's requirements.
• Limits the credit so it cannot exceed a taxpayer's tax liability for the year and cannot be applied retroactively, but allows unused credit to carry forward up to five years.
• Sets the effective date as January 1, 2026, applying to taxable years beginning on or after that date.

Georgia businesses and individual taxpayers that purchase goods or services from Georgia hemp growers and suppliers, the Georgia hemp industry itself, and the Georgia Department of Agriculture, which would administer guidelines and reporting for the new tax credit program.

Businesses that buy from Georgia hemp growers and suppliers could lower their state income tax bills by up to $100,000 a year, which could make it more financially attractive to source hemp products in-state rather than from out-of-state suppliers, potentially boosting demand for Georgia hemp businesses.

• Section 1 gives the bill its short title, the Georgia Hemp Industry Growth and Business Partnership Tax Credit Act.
• Section 2 adds new Code Section 48-7-29.27 creating the tax credit at 10 percent of qualifying business costs, capped at $100,000 per taxpayer.
• Section 2(b) requires the Commissioner of Agriculture to issue clear guidelines for applying for and distributing the credit.
• Section 2(c) requires annual reports on applicant numbers, credits issued, and the program's impact on the Georgia hemp industry.
• Section 2(d) allows the credit to be revoked for noncompliance with the law's provisions.
• Section 2(e) bars the credit from exceeding a taxpayer's tax liability or applying to past years, but allows a five-year carry forward of unused credit.
• Section 3 sets the effective date as January 1, 2026, applicable to taxable years beginning on or after that date.

1. 2025-02-18House Second Readers (House)
2. 2025-02-13House First Readers (House)
3. 2025-02-12House Hopper (House)

• Carl Gilliard (D, HD-162)Primary sponsor
• Omari Crawford (D, HD-089)
• El-Mahdi Holly (D, HD-116)
• Long Tran (D, HD-080)
• Kim Schofield (D, HD-063)
• Viola Davis (D, HD-087)

• hemp industry
• income tax credits
• agriculture policy
• Georgia small business incentives