---
title: HB 1291. Income tax; certain costs in providing a transportation benefit to certain employees; provide credit
collection: bills
id: 2025-2026/hb1291
cite_as: HB 1291, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1291
md_url: https://georgiacommons.org/bills/2025-2026/hb1291.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1291/text
source_url: https://www.legis.ga.gov/legislation/73160
date: 2026-02-17
status: introduced
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.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1290.md
next: https://georgiacommons.org/bills/2025-2026/hb1292.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1291.md?full=1
bill_number: HB 1291
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-11
last_action: House Second Readers
sponsors:
- Eric Gisler
- Samuel Park
- Demetrius Douglas
- Gabe Okoye
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1291/2025
upstream_id: 2114641
summaries_model: claude-sonnet-5
topic_tags:
- income tax credits
- employer commuter benefits
- public transportation
- teleworking
- corporate taxes
---
# HB 1291. Income tax; certain costs in providing a transportation benefit to certain employees; provide credit
## Text
House Bill 1291
By: Representatives Gisler of the 121st, Park of the 107th, Douglas of the 78th, and Okoye of
the 102nd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to provide for an income tax credit for certain costs in providing a
transportation benefit to certain employees; to provide for limitations; to provide for a public
awareness campaign; to provide for rules and regulations; to provide for definitions; to
provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,
is amended by adding a new Code section to read as follows:
"48-7-29.29.
(a) As used in this Code section, the term:
(1) 'Covered employer' means any corporation required to pay income tax as provided
in this chapter.
(2) 'Qualified employee' means any employee of a covered employer who teleworks for
less than 50 percent of such employee's workdays.
(3) 'Qualified transportation fringe benefit' means the provision of a transportation
commuter highway vehicle, a transit pass, or qualified parking provided in compliance
with subsection (f) of 26 U.S.C. Section 132.
(4) 'Telework' means to perform normal and regular work functions on a workday that
ordinarily would be performed at the covered employer's principal place of business at
a different location, thereby eliminating or substantially reducing the physical commute
to and from the covered employer's principal place of business. Such term shall not
include home based businesses, extensions of the workday, or work performed on a
weekend or holiday.
(b) A covered employer shall be allowed a credit against the tax imposed by Code
Section 48-7-20 for costs incurred in providing qualified transportation fringe benefits to
qualified employees. The credit shall be equal to 35 percent of the total amount spent on
such benefits, not to exceed $1,500.00 per qualified employee per taxable year.
(c) In no event shall the total amount of any tax credit under this Code section for a taxable
year exceed the covered employer's income tax liability. No unused tax credit shall be
allowed to be carried forward to apply to the covered employer's succeeding years' tax
liability. No such tax credit shall be allowed the covered employer against prior years' tax
liability.
(d) The department shall conduct a public awareness campaign about qualified
transportation fringe benefits. Such campaign may include both employer and employee
targeted outreach and advertising.
(e) The department shall promulgate any rules and regulations necessary to implement and
administer the provisions of this Code section."
SECTION 2.
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.
A Georgia House bill would give companies a state income tax credit for helping employees get to work by transit, vanpool, or subsidized parking, capped at $1,500 per eligible worker per year.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2026-02-11)
- Last action: House Second Readers (2026-02-17)
- Sponsors: Eric Gisler, Samuel Park, Demetrius Douglas, Gabe Okoye
- Official page: https://www.legis.ga.gov/legislation/73160
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1291.md?full=1