---
title: HB 316. Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
collection: bills
id: 2025-2026/hb316
cite_as: HB 316, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb316
md_url: https://georgiacommons.org/bills/2025-2026/hb316.md
text_url: https://georgiacommons.org/bills/2025-2026/hb316/text
source_url: https://www.legis.ga.gov/legislation/70027
date: 2025-02-11
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.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb316.md?full=1
bill_number: HB 316
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-06
last_action: House Second Readers
sponsors:
- Samuel Park
- Mack Jackson
- Tangie Herring
- Floyd Griffin
- Patty Stinson
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB316/2025
upstream_id: 1961003
summaries_model: claude-sonnet-5
topic_tags:
- income tax
- earned income tax credit
- tax credits
- state budget
- low income families
---
# HB 316. Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
## Text
House Bill 316
By: Representatives Park of the 107th, Jackson of the 128th, Herring of the 145th, Griffin of
the 149th, and Stinson of the 150th
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 equal to 20 percent of the federal
earned income tax credit; to provide for rules and regulations; 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.
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:
"48-7-29.28.
(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20
in an amount equal to 20 percent of the federal credit that such taxpayer is allowed under
Section 32 of the Internal Revenue Code. Such credit shall be allowed only if the
individual would have received the federal credit allowed under Section 32 of the Internal
Revenue Code after adding any carryforward of a net operating loss that was deducted
pursuant to such section in determining eligibility for the federal credit.
(b) If the total amount of the tax credit provided for in this Code section exceeds the
taxpayer's income tax liability for a taxable year, such excess funds shall not be refunded
to the taxpayer or applied to any preceding or succeeding years' tax liability.
(c) The commissioner shall be authorized to promulgate rules and regulations necessary
to implement and administer the provisions of this Code section."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years
beginning on or after January 1, 2025.
SECTION 3.
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 create a new state income tax credit equal to 20 percent of the federal earned income tax credit, for taxpayers who qualify for the federal credit.
### Plain-language summary
Georgia currently has no state-level earned income tax credit, even though many Georgians qualify for the federal earned income tax credit under Section 32 of the Internal Revenue Code. This bill would add a new section to Georgia's income tax code creating a state credit worth 20 percent of whatever federal earned income tax credit a taxpayer receives.
The credit could only be claimed if the taxpayer would have qualified for the federal credit, factoring in any net operating loss carryforward used in that federal calculation. If the credit is larger than what the taxpayer owes in state income tax, the extra amount would not be refunded or carried to another tax year. The Georgia Department of Revenue commissioner would be allowed to write rules to administer the credit. The change would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2025.
### What it does
- Creates a new Georgia income tax credit (O.C.G.A. ยง 48-7-29.28) equal to 20 percent of a taxpayer's federal earned income tax credit.
- Limits eligibility to taxpayers who would qualify for the federal credit, including after accounting for certain net operating loss carryforwards.
- Bars any unused portion of the credit from being refunded to the taxpayer or carried forward or back to other tax years.
- Authorizes the state revenue commissioner to create rules and regulations to put the credit into practice.
- Sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.
### Who it affects
Georgia taxpayers who qualify for the federal earned income tax credit, typically lower and moderate income working individuals and families, would be eligible for the new state credit. The Georgia Department of Revenue would also be affected, since it would administer and write rules for the credit.
### Why it matters
Eligible working Georgians could see a reduction in their state income tax bill tied to their federal earned income tax credit, potentially easing the tax burden for lower income households. Because the credit is nonrefundable, it would only offset taxes owed and would not provide a cash refund beyond that.
### Key provisions
- Section 1 adds new Code Section 48-7-29.28 creating a state income tax credit equal to 20 percent of the taxpayer's federal earned income tax credit under Internal Revenue Code Section 32.
- Subsection (a) ties eligibility to whether the taxpayer would have received the federal credit, including after adding back certain net operating loss carryforwards.
- Subsection (b) makes the credit nonrefundable, meaning any excess over the taxpayer's tax liability is lost rather than refunded or carried to other years.
- Subsection (c) gives the state revenue commissioner authority to issue rules and regulations implementing the credit.
- Section 2 sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.
## Status
- Status: Introduced (2025-02-06)
- Last action: House Second Readers (2025-02-11)
- Sponsors: Samuel Park, Mack Jackson, Tangie Herring, Floyd Griffin, Patty Stinson
- Official page: https://www.legis.ga.gov/legislation/70027
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb316.md?full=1