HB519: HB519 Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide

Georgia currently has no state-level version of the federal work opportunity tax credit, which rewards employers for hiring workers from certain groups who often face barriers to employment, such as veterans or people receiving public assistance. This bill would create a new state tax credit (O.C.G.A. § 48-7-29.27) that mirrors the federal credit dollar for dollar, letting a business claim the full amount of its federal work opportunity credit again against its Georgia income taxes, up to $500 per eligible employee per year. The credit could not exceed a taxpayer's total tax liability for the year and could not be carried forward or back to other years. Statewide, all these credits combined could not exceed $10 million in a single year. The Department of Revenue could recapture credits if it later finds an employer was not eligible. The new credit would apply to tax years beginning on or after January 1, 2026, and would automatically expire on December 31, 2030. The bill passed both chambers but was vetoed by the Governor.

• Creates a new Georgia income tax credit equal to 100 percent of the federal work opportunity tax credit an employer claims for hiring workers from certain targeted groups.
• Caps the new state credit at $500 per eligible employee per year for each employer.
• Sets a statewide cap of $10 million total in these credits for any given year.
• Bars the credit from exceeding a taxpayer's tax liability for the year and from being carried forward or back to other tax years.
• Allows the Department of Revenue to recapture (take back) credits if it finds an employer was not actually eligible.
• Automatically repeals the entire credit program on December 31, 2030.

Georgia employers who hire workers certified by the U.S. Department of Labor as members of a federally defined 'targeted group,' such as certain veterans, people receiving public assistance, or formerly incarcerated individuals; the Georgia Department of Revenue, which administers and can audit the credit.

If it had become law, businesses that already qualify for the federal work opportunity credit could have gotten a matching state tax break for hiring workers from groups facing employment barriers, potentially lowering the cost of hiring them. Because Governor Kemp vetoed the bill, no such state credit currently exists.

• Section 1 adds new Code section O.C.G.A. § 48-7-29.27, defining 'federal work opportunity tax credit,' 'qualified wages,' and 'targeted group' by reference to Section 51 of the Internal Revenue Code.
• Subsection (b) grants a state credit equal to 100 percent of the federal credit for qualified wages paid to a Georgia resident who is a certified member of a targeted group, capped at $500 per employee per year.
• Subsection (c) requires taxpayers to keep and provide records proving eligibility, placing the burden of proof on the taxpayer.
• Subsection (d) allows the Department of Revenue to recapture a proportionate share of the credit if it finds the underlying federal credit should not have been allowed.
• Subsection (e) prohibits the credit from exceeding the taxpayer's tax liability for that year, bars carryforward or carryback, and caps total statewide credits at $10 million per year.
• Subsection (g) provides that the credit automatically repeals on December 31, 2030.
• Section 2 sets the effective date as January 1, 2026, applicable to tax years beginning on or after that date.

1. 2026-05-12Veto V3
2. 2026-05-12House Date Vetoed by Governor (House)
3. 2026-04-06House Sent to Governor (House)
4. 2026-03-25Senate Passed/Adopted (Senate)
5. 2026-03-25Senate Third Read (Senate)
6. 2026-03-25Senate Engrossed (Senate)
7. 2026-03-16Senate Read Second Time (Senate)
8. 2026-03-12Senate Committee Favorably Reported (Senate)

• Ron Stephens (R, HD-164)Primary sponsor
• Danny Mathis (R, HD-133)
• Matt Reeves (R, HD-099)
• Noel Williams (R, HD-148)
• Billy Hickman (R, SD-004)

1. PassedHouse voteFebruary 25, 2026

   158 yea, 14 nay (4 not voting, 1 absent)

   Passage: House Vote #551

2. PassedSenate voteMarch 25, 2026

   32 yea, 19 nay (2 not voting, 1 absent)

   Motion To Engross: Hb 328, Hb 369, Hb 519, Hb 1112: Senate Vote #800

3. PassedSenate voteMarch 25, 2026

   47 yea, 1 nay (3 not voting, 3 absent)

   Passage: Senate Vote #805

• tax credits
• work opportunity tax credit
• business taxes
• hiring incentives
• state income tax