HB 1291: Income tax; certain costs in providing a transportation benefit to certain employees; provide credit

Under current Georgia law, businesses that pay for their employees' commuting costs, such as transit passes, vanpool rides, or parking, get no special state income tax break for doing so. This bill would add a new section to Georgia's income tax code (O.C.G.A. § 48-7-29.29) creating a tax credit for corporations that provide these benefits to employees who mostly work in person rather than telework. The credit equals 35 percent of what a company spends on qualifying transportation benefits for each eligible employee, capped at $1,500 per employee per year. Companies cannot use the credit to reduce more tax than they actually owe, cannot carry unused credit forward to future years, and cannot apply it to past years' taxes. The Georgia Department of Revenue would also have to run a public awareness campaign about these transportation benefits and write rules to administer the program.

• Creates a new state income tax credit for corporations that pay for qualified transportation benefits, like transit passes, vanpools, or parking, for their employees.
• Sets the credit at 35 percent of the amount spent per qualifying employee, capped at $1,500 per employee each tax year.
• Limits eligibility to 'qualified employees' who telework less than half their workdays, excluding mostly remote workers.
• Bars companies from carrying unused credit into future tax years or applying it to past tax bills.
• Requires the Georgia Department of Revenue to run a public awareness campaign and issue rules to implement the credit.

Georgia corporations that pay income tax and offer commuting benefits to their employees, and employees who mostly work in person (teleworking less than half their workdays) and receive transit, vanpool, or parking benefits from their employer. The Georgia Department of Revenue would also take on new administrative duties.

Employers could recover part of the cost of subsidizing employee commutes through a state tax credit, potentially making it cheaper to offer transit passes, vanpool access, or parking benefits. Employees who mostly work in person, rather than remotely, are the ones whose benefits would qualify for the credit.

• Section 1 adds new Code section 48-7-29.29, defining 'covered employer' as any corporation subject to Georgia income tax and 'qualified employee' as one who teleworks less than 50 percent of workdays.
• Defines 'qualified transportation fringe benefit' by reference to federal tax law (26 U.S.C. § 132(f)), covering commuter highway vehicles, transit passes, and qualified parking.
• Sets the credit at 35 percent of costs incurred providing these benefits, capped at $1,500 per qualified employee per taxable year.
• Prohibits the credit from exceeding the employer's actual tax liability for the year and bars carrying it forward or applying it to prior years.
• Requires the Department of Revenue to conduct a public awareness campaign about the benefit, targeting both employers and employees.
• Directs the Department of Revenue to create rules and regulations to implement and administer the credit.
• Section 2 repeals any conflicting laws.

1. 2026-02-17House Second Readers (House)
2. 2026-02-12House First Readers (House)
3. 2026-02-11House Hopper (House)

• Eric Gisler (D, HD-121)Primary sponsor
• Samuel Park (D, HD-107)
• Demetrius Douglas (D, HD-078)
• Gabe Okoye (D, HD-102)

• income tax credits
• employer commuter benefits
• public transportation
• teleworking
• corporate taxes