---
title: HB 1159. Income tax; all income received by individuals, corporations, and partnerships under the Farmer Bridge Assistance Program; exempt from taxation
collection: bills
id: 2025-2026/hb1159
cite_as: HB 1159, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1159
md_url: https://georgiacommons.org/bills/2025-2026/hb1159.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1159/text
source_url: https://www.legis.ga.gov/legislation/72731
date: 2026-05-06
status: passed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1183
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1159.md?full=1
bill_number: HB 1159
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-06
last_action: Effective Date 2026-05-06
sponsors:
- Matthew Gambill
- Devan Seabaugh
- Will Wade
- Shaw Blackmon
- Bruce Williamson
- Robert Dickey
- Bo Hatchett
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1159/2025
upstream_id: 2104398
summaries_model: claude-sonnet-5
topic_tags:
- farm income tax exemption
- Georgia income tax
- agriculture assistance programs
- USDA farm payments
---
# HB 1159. Income tax; all income received by individuals, corporations, and partnerships under the Farmer Bridge Assistance Program; exempt from taxation
## Text
House Bill 1159 (AS PASSED HOUSE AND SENATE)
By: Representatives Gambill of the 15th, Seabaugh of the 34th, Wade of the 9th, Blackmon of
the 146th, Williamson of the 112th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to the imposition, rate, computation, exemptions, and credits relative to income
taxes, so as to exempt from taxation all income received by individuals, corporations, and
partnerships under the Farmer Bridge Assistance and Specialty Crop Farmers programs of
the United States Department of Agriculture; to provide for related matters; to provide for
an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended
in subsection (b) of Code Section 48-7-21, relating to taxation of corporations, by adding
new divisions to subparagraph (C) of paragraph (7) and by adding new paragraphs to read
as follows:
"(viii) For taxable years beginning on or after January 1, 2025, there shall be
subtracted from the taxable income of an electing Subchapter 'S' corporation any
income received as payments under the Farmer Bridge Assistance Program of the
United States Department of Agriculture for which payments 2025 acres were
reported to the United States Department of Agriculture on or before
December 19, 2025, to the extent that such income is included in federal adjusted
gross income or federal taxable income.
(ix) For taxable years beginning on or after January 1, 2025, there shall be subtracted
from the taxable income of an electing Subchapter 'S' corporation any income
received as payments under the Assistance for Specialty Crop Farmers Program of the
United States Department of Agriculture for which payments 2025 acres were
reported to the United States Department of Agriculture's Farm Service Agency on
or before March 13, 2026, to the extent that such income is included in federal
adjusted gross income or federal taxable income."
"(19) For taxable years beginning on or after January 1, 2025, there shall be subtracted
from taxable income any income received as payments under the Farmer Bridge
Assistance Program of the United States Department of Agriculture for which payments
2025 acres were reported to the United States Department of Agriculture on or before
December 19, 2025, to the extent that such income is included in federal adjusted gross
income or federal taxable income.
(20) For taxable years beginning on or after January 1, 2025, there shall be subtracted
from taxable income any income received as payments under the Assistance for Specialty
Crop Farmers Program of the United States Department of Agriculture for which
payments 2025 acres were reported to the United States Department of Agriculture's
Farm Service Agency on or before March 13, 2026, to the extent that such income is
included in federal adjusted gross income or federal taxable income."
SECTION 2.
Said article is further amended in Code Section 48-7-23, relating to taxation of partnerships,
by adding new paragraphs to subsection (b) and by adding new subsections to read as
follows:
"(7) Notwithstanding paragraph (6) of this subsection, for taxable years beginning on or
after January 1, 2025, there shall be subtracted from the taxable income of an electing
partnership any income received as payments under the Farmer Bridge Assistance
Program of the United States Department of Agriculture for which payments 2025 acres
were reported to the United States Department of Agriculture on or before December 19,
2025, to the extent that such income is included in federal adjusted gross income or
federal taxable income.
(8) Notwithstanding paragraph (6) of this subsection, for taxable years beginning on or
after January 1, 2025, there shall be subtracted from the taxable income of an electing
partnership any income received as payments under the Assistance for Specialty Crop
Farmers Program of the United States Department of Agriculture for which payments
2025 acres were reported to the United States Department of Agriculture's Farm Service
Agency on or before March 13, 2026, to the extent that such income is included in federal
adjusted gross income or federal taxable income.
(c) Notwithstanding paragraph (6) of subsection (b) of this Code section, for taxable years
beginning on or after January 1, 2025, there shall be subtracted from taxable income any
income received as payments under the Farmer Bridge Assistance Program of the United
States Department of Agriculture for which payments 2025 acres were reported to the
United States Department of Agriculture on or before December 19, 2025, to the extent that
such income is included in federal adjusted gross income or federal taxable income.
(d) Notwithstanding paragraph (6) of subsection (b) of this Code section, for taxable years
beginning on or after January 1, 2025, there shall be subtracted from taxable income any
income received as payments under the Assistance for Specialty Crop Farmers Program of
the United States Department of Agriculture for which payments 2025 acres were reported
to the United States Department of Agriculture's Farm Service Agency on or before March
13, 2026, to the extent that such income is included in federal adjusted gross income or
federal taxable income."
SECTION 3.
Said article is further amended in subsection (a) of Code Section 48-7-27, relating to
computation of taxable net income, by adding new paragraphs to read as follows:
"(11.5) For taxable years beginning on or after January 1, 2025, any income received as
payments under the Farmer Bridge Assistance Program of the United States Department
of Agriculture for which payments 2025 acres were reported to the United States
Department of Agriculture on or before December 19, 2025, to the extent that such
income is included in federal adjusted gross income or federal taxable income;
(11.6) For taxable years beginning on or after January 1, 2025, any income received as
payments under the Assistance for Specialty Crop Farmers Program of the United States
Department of Agriculture for which payments 2025 acres were reported to the United
States Department of Agriculture's Farm Service Agency on or before March 13, 2026,
to the extent that such income is included in federal adjusted gross income or federal
taxable income."
SECTION 4.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 1159 would exempt Georgia individuals, corporations, and partnerships from state income tax on payments they receive through two federal farm aid programs: the Farmer Bridge Assistance Program and the Assistance for Specialty Crop Farmers Program.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Passed (2026-05-06)
- Last action: Effective Date 2026-05-06 (2026-05-06)
- Sponsors: Matthew Gambill, Devan Seabaugh, Will Wade, Shaw Blackmon, Bruce Williamson, Robert Dickey, Bo Hatchett
- Official page: https://www.legis.ga.gov/legislation/72731
> The history, votes, and amendments (1,183 characters) are at https://georgiacommons.org/bills/2025-2026/hb1159.md?full=1