HB 1159: Income tax; all income received by individuals, corporations, and partnerships under the Farmer Bridge Assistance Program; exempt from taxation

Georgia farmers can receive payments from two U.S. Department of Agriculture programs, the Farmer Bridge Assistance Program and the Assistance for Specialty Crop Farmers Program. Normally, income included in federal adjusted gross income or federal taxable income also counts toward Georgia taxable income. This bill changes that for these two specific programs. The bill amends Georgia's income tax law (O.C.G.A. §§ 48-7-21, 48-7-23, and 48-7-27) to let individuals, corporations (including Subchapter S corporations), and partnerships subtract this federal farm aid income from their Georgia taxable income, so it is not taxed at the state level. The exemption applies to taxable years beginning on or after January 1, 2025, but only for payments tied to 2025 acreage reported to the USDA by December 19, 2025 for the Bridge Assistance Program, or by March 13, 2026 for the Specialty Crop program. The law would take effect as soon as the Governor signs it or lets it become law without signature.

• Lets individuals subtract Farmer Bridge Assistance Program and Specialty Crop Farmers Program payments from their Georgia taxable income under O.C.G.A. § 48-7-27.
• Lets corporations, including electing Subchapter S corporations, exclude the same federal farm payments from Georgia corporate income tax under O.C.G.A. § 48-7-21.
• Lets partnerships, including electing partnerships, subtract these federal farm payments from Georgia taxable income under O.C.G.A. § 48-7-23.
• Limits the tax break to payments tied to 2025 acres reported to the USDA by set deadlines: December 19, 2025 for Bridge Assistance and March 13, 2026 for Specialty Crop Farmers.
• Applies the exemption to taxable years beginning on or after January 1, 2025, and takes effect immediately once signed by the Governor.

Georgia farmers, whether they operate as individuals, corporations, or partnerships, who received payments from the USDA's Farmer Bridge Assistance Program or Assistance for Specialty Crop Farmers Program tied to 2025 acreage. It also affects the state revenue collected from this category of farm income.

Farmers who received these federal payments would keep more of that money because Georgia would not tax it, even though it still counts toward their federal taxable income. This lowers their state tax bill for the 2025 tax year and reduces the amount of farm-related income the state collects revenue from.

• Section 1 adds new subtraction provisions to O.C.G.A. § 48-7-21 letting corporations and Subchapter S corporations exclude the two USDA payment types from Georgia taxable income.
• Section 2 adds similar subtraction provisions to O.C.G.A. § 48-7-23 for partnerships and electing partnerships.
• Section 3 adds paragraphs (11.5) and (11.6) to O.C.G.A. § 48-7-27 allowing individuals to exclude the same USDA payments from taxable net income.
• Each provision requires that 2025 acres tied to the payments were reported to the USDA by December 19, 2025 (Bridge Assistance) or March 13, 2026 (Specialty Crop Farmers).
• Section 4 sets the effective date as the date of the Governor's signature or the date the bill becomes law without signature.
• Section 5 repeals any conflicting laws.

1. 2026-05-06Effective Date 2026-05-06
2. 2026-05-06Act 424
3. 2026-05-06House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-18Senate Passed/Adopted (Senate)
6. 2026-03-18Senate Third Read (Senate)
7. 2026-03-18Senate Engrossed (Senate)
8. 2026-03-16Senate Read Second Time (Senate)

• Matthew Gambill (R, HD-015)Primary sponsor
• Devan Seabaugh (R, HD-034)
• Will Wade (R, HD-009)
• Shaw Blackmon (R, HD-146)
• Bruce Williamson (R, HD-112)
• Robert Dickey (R, HD-134)
• Bo Hatchett (R, SD-050)

1. PassedHouse voteMarch 4, 2026

   170 yea, 2 nay (2 not voting, 3 absent)

   Passage: House Vote #615

2. PassedSenate voteMarch 18, 2026

   30 yea, 20 nay (3 not voting, 1 absent)

   Motion To Engross: Hb 376, Hb 1159: Senate Vote #729

3. PassedSenate voteMarch 18, 2026

   51 yea, 0 nay (2 not voting, 1 absent)

   Passage: Senate Vote #733

• farm income tax exemption
• Georgia income tax
• agriculture assistance programs
• USDA farm payments