SB187: SB187 State Income Tax; amount of tax credits available for qualified caregiving expenses; increase

Georgia currently allows a state income tax credit for people who pay for certain caregiving expenses, capped at $150 or the taxpayer's tax liability, whichever is less (O.C.G.A. § 48-7-29.2). This bill would raise that cap to $500. The credit still cannot exceed the taxpayer's actual state income tax liability for the year, unused amounts still cannot be carried forward to future years, and the credit still cannot be applied against past years' taxes. If enacted, the change would take effect July 1, 2025, and would apply to tax years beginning on or after January 1, 2025, meaning it could affect returns for the current tax year.

• Raises the maximum caregiving expense tax credit under Georgia's income tax code (O.C.G.A. § 48-7-29.2) from $150 to $500 per taxpayer.
• Keeps the existing rule that the credit cannot exceed the taxpayer's actual income tax liability for the year.
• Keeps the existing bar on carrying unused credit forward to future tax years.
• Keeps the existing bar on applying the credit against a prior year's tax liability.
• Sets the change to apply retroactively to tax years starting on or after January 1, 2025, even though the law would not formally take effect until July 1, 2025.

Georgia taxpayers who claim the state's qualified caregiving expense tax credit, typically people paying for care of a family member or dependent, would see a higher maximum credit. The Georgia Department of Revenue would administer the updated cap.

Taxpayers who already qualify for this credit and owe enough state income tax could receive up to $500 back instead of $150, meaning more of their caregiving costs would be offset. The change would apply to the 2025 tax year filings.

• Section 1 amends subsection (c) of O.C.G.A. § 48-7-29.2 to change the maximum credit amount from $150.00 to $500.00.
• Section 1 retains the existing limit that the credit cannot exceed the taxpayer's income tax liability for the year.
• Section 1 retains the existing prohibitions on carrying the credit forward or applying it to prior years' taxes.
• Section 2 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2025.
• Section 3 repeals any conflicting laws.

1. 2025-02-19Senate Read and Referred (Senate)
2. 2025-02-18Senate Hopper (Senate)

• Jason Esteves (D, SD-035)Primary sponsor
• Harold Jones (D, SD-022)
• Kim Jackson (D, SD-041)
• Elena Parent (D, SD-044)
• Nabilah Islam Parkes (D, SD-007)
• RaShaun Kemp (D, SD-038)
• Kenya Wicks (D, SD-034)
• Donzella James (D, SD-028)
• Gail Davenport (D, SD-017)
• Sally Harrell (D, SD-040)
• Nan Orrock (D, SD-036)
• Nikki Merritt (D, SD-009)
• Tonya Anderson (D, SD-043)
• Michael Rhett (D, SD-033)
• Ed Harbison (D, SD-015)
• Josh McLaurin (D, SD-014)

• state income tax
• tax credits
• caregiving
• family caregivers