House Bill 1199 (AS PASSED HOUSE AND SENATE)
By: Representatives Carson of the 46th, Blackmon of the 146th, Kelley of the 16th, and
Williamson of the 112th
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
taxation, so as to revise the definition of the terms "Internal Revenue Code" and "Internal
Revenue Code of 1986" to incorporate certain provisions of the federal law into Georgia law;
to provide for exemption of income taxes on overtime and tips; to provide for a sunset of
such exemption; to provide for a cap on tax credits for qualified low-income buildings; to
temporarily suspend collection of taxes on motor fuels; to provide for related matters; to
provide for an effective date and applicability; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is
amended in Code Section 48-1-2, relating to definitions, by revising paragraph (14) as
follows:
"(14) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' means for taxable years
beginning on or after January 1, <del>2024</del> <ins>2025,</ins> the provisions of the United States Internal
Revenue Code of 1986, as amended, provided for in federal law enacted on or before
January 1, <del>2025</del> <ins>2026,</ins> except that <ins>Section 63(b)(7),</ins> Section 108(i), Section 163(e)(5)(F),
<ins>Section 163(h)(4),</ins> <del>Section 168(b)(3)(I),</del> Section 168(e)(3)(B)(vii),
<del>Section 168(e)(3)(E)(ix), Section 168(e)(8),</del> Section 168(k), Section 168(m),
Section 168(n), <ins>Section 174A,</ins> Section 179(d)(1)(B)(ii), <del>Section 179(f)</del> <ins>Section 179(e),
</ins> Section 199, <ins>Section 224, Section 225</ins> Section 381(c)(20), <ins>and</ins> Section 382(d)(3),
<del>Section 810(b)(4), Section 1400L, Section 1400N(d)(1), Section 1400N(f),
Section 1400N(j), Section 1400N(k), and Section 1400N(o)</del> of the Internal Revenue Code
of 1986, as amended, shall be treated as if they were not in effect, <ins>and except that Section
170(p) of the Internal Revenue Code of 1986, as amended, shall be treated as they were
in effect before the 2025 enactment of federal Public Law 119-21,</ins> and except that Section
168(e)(7), Section 172(b)(1)(F), and Section 172(i)(1) of the Internal Revenue Code of
1986, as amended, shall be treated as they were in effect before the 2008 enactment of
federal Public Law 110-343, and except that Section 163(i)(1) of the Internal Revenue
Code of 1986, as amended, shall be treated as it was in effect before the 2009 enactment
of federal Public Law 111-5, and except that Section 13(e)(4) of 2009 federal Public Law
111-92 shall be treated as if it was not in effect, and except that Section 118, Section
163(j), Section 382(k)(1), and Section 174 of the Internal Revenue Code of 1986, as
amended, shall be treated as they were in effect before the 2017 enactment of federal
Public Law 115-97; provided, however, that all provisions in federal Public Law 117-58
(Infrastructure Investment and Jobs Act) that change or affect in any manner Section 118
shall be treated as if they were in effect, and except that all provisions in federal Public
Law 116-136 (CARES Act) that change or affect in any manner Section 172 and Section
461(l) shall be treated as if they were not in effect, and except that all provisions in
federal Public Law 117-2 (American Rescue Plan Act of 2021) that change or affect in
any manner Section 461(l) shall be treated as if they were not in effect, and except that
the limitations provided in Section 179(b)(1) shall be $250,000.00 for tax years beginning
in 2010, shall be $250,000.00 for tax years beginning in 2011, shall be $250,000.00 for
tax years beginning in 2012, shall be $250,000.00 for tax years beginning in 2013, and
shall be $500,000.00 for tax years beginning in 2014, and except that the limitations
provided in Section 179(b)(2) shall be $800,000.00 for tax years beginning in 2010, shall
be $800,000.00 for tax years beginning in 2011, shall be $800,000.00 for tax years
beginning in 2012, shall be $800,000.00 for tax years beginning in 2013, and shall be $2
million for tax years beginning in 2014, and provided that Section 1106 of federal Public
Law 112-95 as amended by federal Public Law 113-243 shall be treated as if it is in
effect, except the phrase 'Code Section 48-2-35 (or, if later, November 15, 2015)' shall
be substituted for the phrase 'section 6511(a) of such Code (or, if later, April 15, 2015),'
and notwithstanding any other provision in this title, no interest shall be refunded with
respect to any claim for refund filed pursuant to Section 1106 of federal Public Law
112-95, and provided that subsection (b) of Section 3 of federal Public Law 114-292 shall
be treated as if it is in effect, except the phrase 'Code Section 48-2-35' shall be substituted
for the phrase 'section 6511(a) of the Internal Revenue Code of 1986' and the phrase 'such
section' shall be substituted for the phrase 'such subsection.' In the event a reference is
made in this title to the Internal Revenue Code or the Internal Revenue Code of 1954 as
it existed on a specific date prior to January 1, <del>2025</del> <ins>2026,</ins> the term means the provisions
of the Internal Revenue Code or the Internal Revenue Code of 1954 as it existed on the
prior date. Unless otherwise provided in this title, any term used in this title shall have
the same meaning as when used in a comparable provision or context in the Internal
Revenue Code of 1986, as amended. For taxable years beginning on or after January 1,
<del>2024</del> <ins>2025,</ins> provisions of the Internal Revenue Code of 1986, as amended, which were
as of January 1, <del>2025</del> <ins>2026,</ins> enacted into law but not yet effective shall become effective
for purposes of Georgia taxation on the same dates upon which they become effective for
federal tax purposes."
SECTION 2.
Said title is further amended in Code Section 48-7-29.6, relating to tax credits for qualified
low-income buildings, by adding a new paragraph to subsection (b) to read as follows:
<ins>"(5) The aggregate annual amount of tax credits allowed pursuant to this Code section
shall not exceed $100 million for taxable years 2026 through 2028."
</ins> SECTION 3.
Said title is further amended in Code Section 48-9-3, relating to levy of excise tax, rates,
exemptions, and prohibition on tax by political subdivisions, by adding a new paragraph to
subsection (a) to read as follows:
<ins>"(1.2) 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."
</ins> SECTION 4.
(a) This Act shall become effective upon its approval by the Governor or upon its becoming
law without such approval and, except as otherwise provided in subsection (b) of this section,
this Act shall be applicable to all taxable years beginning on or after January 1, 2026.
(b) Section 1 of this Act shall be applicable to all taxable years beginning on or after
January 1, 2025.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.