HB 290: Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law

Georgia's tax law defines what counts as the 'Internal Revenue Code' by referencing a specific date, since Georgia doesn't automatically follow every federal tax change as it happens. This bill moves that reference date forward, from federal law as it existed on January 1, 2024, to federal law as it existed on January 1, 2025. It also updates the tax year language so the change applies for taxable years beginning on or after January 1, 2024, instead of 2023. The bill keeps in place a long list of federal tax provisions that Georgia has chosen not to follow, such as certain depreciation and loss-carryback rules tied to specific federal laws like the CARES Act and the 2017 federal tax overhaul. It does not change which provisions are excluded, only the overall date reference. The law would take effect as soon as the Governor signs it and applies to taxable years beginning on or after January 1, 2024.

• Updates the definition of 'Internal Revenue Code' and 'Internal Revenue Code of 1986' in Georgia law (O.C.G.A. § 48-1-2) to reference federal law as it existed on January 1, 2025, instead of January 1, 2024.
• Shifts the applicable tax year language from taxable years beginning on or after January 1, 2023 to those beginning on or after January 1, 2024.
• Keeps unchanged the long list of specific federal tax code sections that Georgia treats as not in effect, such as certain bonus depreciation and net operating loss provisions.
• Sets the law to take effect immediately upon the Governor's signature and apply retroactively to taxable years beginning on or after January 1, 2024.

Georgia individual and business taxpayers whose state income tax calculations depend on federal tax code definitions, along with tax preparers, accountants, and the Georgia Department of Revenue, which administers the state's conformity with federal tax law.

Because Georgia's income tax rules borrow definitions and provisions from federal tax law as of a fixed date, this update determines which recent federal tax changes Georgia taxpayers can or cannot use when filing state returns for 2024 and beyond.

• Section 1 revises O.C.G.A. § 48-1-2(14) so the Internal Revenue Code reference date moves from January 1, 2024 to January 1, 2025, for federal law Georgia will incorporate.
• Section 1 also updates the applicable taxable year from 2023 to 2024 for when the new conformity date applies.
• Section 1 preserves the existing carve-outs treating specific Internal Revenue Code sections (including provisions on depreciation, net operating losses, and disaster relief) as not in effect for Georgia tax purposes.
• Section 2 sets the effective date as upon the Governor's approval or becoming law without approval, applicable to taxable years beginning on or after January 1, 2024.
• Section 3 repeals any conflicting laws.

1. 2025-05-14Effective Date
2. 2025-05-14Act 370
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-25Senate Passed/Adopted (Senate)
6. 2025-03-25Senate Third Read (Senate)
7. 2025-03-25Senate Engrossed (Senate)
8. 2025-03-13Senate Read Second Time (Senate)

• John Carson (R, HD-46)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Trey Kelley (R, HD-16)
• David Wilkerson (D, HD-38)
• Bruce Williamson (R, HD-112)
• John Albers (R, SD-56)

1. PassedHouse voteMarch 3, 2025

   176 yea, 0 nay (2 not voting, 2 excused)

   PASSAGE: House Vote #128

2. PassedSenate voteMarch 25, 2025

   31 yea, 22 nay (2 not voting, 1 excused)

   MOTION TO ENGROSS: HB 92, HB 290: Senate Vote #278

3. PassedSenate voteMarch 25, 2025

   54 yea, 0 nay (0 not voting, 2 excused)

   PASSAGE: Senate Vote #282

• state income tax
• tax conformity
• Internal Revenue Code
• Georgia tax law