Georgia CommonsHB 1199: Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law
Last action March 20, 2026 · Effective Date 2026-03-20
House Bill 1199 updates Georgia's tax code definitions to match recent changes in federal tax law, caps a low-income housing tax credit at $100 million per year through 2028, and suspends the state's motor fuel tax for 60 days.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest LegiScan holds.
In plain language
Georgia's tax code defines 'Internal Revenue Code' by referencing federal tax law as it existed on a specific date. This bill updates that reference date from January 1, 2025 to January 1, 2026, so Georgia's tax rules incorporate a year's worth of federal tax changes, including new federal provisions on tips, overtime pay, and certain other deductions. It also removes some older exceptions and adds new ones to the list of federal provisions Georgia treats differently. The bill caps the total amount of state tax credits available each year for low-income housing developments at $100 million for 2026 through 2028. It also suspends collection of Georgia's motor fuel excise tax for 60 days starting when the bill takes effect. The law takes effect when the Governor signs it, with the tax code definition change applying to tax years starting on or after January 1, 2025, and the rest applying to tax years starting on or after January 1, 2026.
What the bill does
- Updates the definition of 'Internal Revenue Code' in Georgia law (O.C.G.A. § 48-1-2) to reference federal tax law as of January 1, 2026, instead of January 1, 2025.
- Adjusts the list of federal tax code sections that Georgia treats as not in effect, removing some older exclusions and adding new ones tied to recent federal law changes.
- Caps the total amount of tax credits for qualified low-income housing buildings at $100 million per year for tax years 2026 through 2028 (O.C.G.A. § 48-7-29.6).
- Suspends collection of the state's motor fuel excise tax for 60 days starting on the bill's effective date (O.C.G.A. § 48-9-3).
- Sets the definition change to apply to tax years starting on or after January 1, 2025, while the other changes apply starting January 1, 2026.
Who it affects
Georgia taxpayers filing state income taxes, including workers whose federal tax treatment of tips and overtime pay changed under recent federal law; developers and investors in low-income housing projects that rely on state tax credits; and drivers and fuel retailers affected by the temporary suspension of the motor fuel tax.
Why it matters
By updating which version of federal tax law Georgia follows, the bill determines whether new federal tax breaks, such as those for tips and overtime, also reduce state taxes. The housing credit cap limits how much low-income housing development the state tax credit can support, and the 60-day fuel tax suspension would lower gas prices at the pump for that period.
Key provisions
- Section 1 revises O.C.G.A. § 48-1-2 to move Georgia's reference date for federal tax law from January 1, 2025 to January 1, 2026, and updates the list of federal code sections excluded from Georgia tax law.
- Section 1 adds new exceptions for Section 63(b)(7), Section 163(h)(4), Section 174A, Section 224, and Section 225 of the federal tax code and removes prior exceptions including Section 168(b)(3)(I) and several Section 1400N provisions.
- Section 2 adds a $100 million annual cap on tax credits for qualified low-income buildings for tax years 2026, 2027, and 2028.
- Section 3 suspends collection of the state's motor fuel excise tax for 60 days beginning on the bill's effective date.
- Section 4 makes the Act effective upon the Governor's signature, applying Section 1 to tax years starting on or after January 1, 2025, and the rest of the Act to tax years starting on or after January 1, 2026.
From the bill
“The aggregate annual amount of tax credits allowed pursuant to this Code section shall not exceed $100 million for taxable years 2026 through 2028.”
“The collection of the excise taxes provided for by paragraph (1) of this subsection shall be suspended for 60 days beginning on the effective date of this Act.”
Status timeline
- Effective Date 2026-03-20
- Act 375
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- Senate Transmitted House (Senate)
- Senate Agreed House Amend or Sub (Senate)
- House Immediately Transmitted to Senate (House)
- House Agreed Senate Amend or Sub As Amended (House)
Show full history (22 actions)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Recommitted (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- John Carson (R, HD-046)
- Shaw Blackmon (R, HD-146)
- Trey Kelley (R, HD-016)
- Bruce Williamson (R, HD-112)
- Chuck Hufstetler (R, SD-052)
Votes
- House voteFebruary 20, 2026
106 yea, 54 nay (8 not voting, 9 absent)
- Senate voteMarch 12, 2026
27 yea, 18 nay (5 not voting, 5 absent)
- Senate voteMarch 12, 2026
29 yea, 18 nay (3 not voting, 5 absent)
- Senate voteMarch 12, 2026
31 yea, 18 nay (2 not voting, 4 absent)
- House voteMarch 18, 2026
163 yea, 4 nay (2 not voting, 7 absent)
- Senate voteMarch 19, 2026
51 yea, 0 nay (0 not voting, 3 absent)
Topics
- state taxes
- tax code conformity
- low-income housing tax credits
- motor fuel tax
- overtime and tips taxation