---
title: HB 364. Income tax; allow a noncustodial parent to claim a tax credit based upon the federal qualified child and dependent care tax credit
collection: bills
id: 2025-2026/hb364
cite_as: HB 364, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb364
md_url: https://georgiacommons.org/bills/2025-2026/hb364.md
text_url: https://georgiacommons.org/bills/2025-2026/hb364/text
source_url: https://www.legis.ga.gov/legislation/70126
date: 2025-02-12
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/hb364.md?full=1
bill_number: HB 364
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-10
last_action: House Second Readers
sponsors:
  - Yasmin Neal
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB364/2025
upstream_id: 1964629
summaries_model: claude-sonnet-5
topic_tags:
  - income tax credits
  - child care costs
  - noncustodial parents
  - family tax law
---

# HB 364. Income tax; allow a noncustodial parent to claim a tax credit based upon the federal qualified child and dependent care tax credit

## Text

House Bill 364
By: Representative Neal of the 79th
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 allow a noncustodial parent to claim a tax credit based upon the federal
qualified child and dependent care tax credit; 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 in Code Section 48-7-29.10, relating to tax credits for qualified child and
dependent care tax credits, by revising subsection (a) as follows:
"(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20
for qualified child and dependent care expenses. Such credit shall be <del>determined by
applying a percentage to</del> <ins>30 percent of</ins> the amount of the credit provided for in Section 21
of the Internal Revenue Code which is claimed and allowed pursuant to the Internal
Revenue Code; <ins>provided, however, that, if a taxpayer is not allowed the credit pursuant to
the Internal Revenue Code because such taxpayer was not the qualifying child's custodial
parent, such taxpayer shall be allowed the credit pursuant to this Code section if such
</ins>
<ins>taxpayer provided at least one-half of the qualifying child's support for the year.</ins> <del>Such
percentage shall be:
(1) Ten percent for all taxable years beginning on or after January 1, 2006, and prior to
January 1, 2007;
(2) Twenty percent for all taxable years beginning on or after January 1, 2007, and prior
to January 1, 2008;
(3) Thirty percent for all taxable years beginning on or after January 1, 2008."
</del> 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, 2026.
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 let a noncustodial parent claim the state's child and dependent care tax credit if they paid at least half the child's support for the year, and would lock the credit at 30 percent of the federal credit.

### Plain-language summary

Georgia currently offers a state income tax credit for child and dependent care expenses that is based on a percentage of the federal child and dependent care tax credit, and that federal credit is normally only available to a child's custodial parent. This bill changes Georgia's version of the credit (O.C.G.A. § 48-7-29.10) in two ways. First, it sets the state credit permanently at 30 percent of the federal credit amount, replacing an old phased-in schedule that started at 10 percent in 2006 and rose to 30 percent by 2008. Second, and more significantly, it adds a new rule: if a taxpayer is denied the federal credit only because they are not the child's custodial parent, they can still claim the Georgia credit as long as they provided at least half of the child's financial support for the year.
The change would take effect July 1, 2025, and would apply starting with tax years that begin on or after January 1, 2026.

### What it does

- Sets Georgia's child and dependent care tax credit at a flat 30 percent of the federal qualified child and dependent care tax credit under Section 21 of the Internal Revenue Code.
- Removes the old phased-in percentage schedule that gradually raised the credit from 10 percent to 30 percent between 2006 and 2008.
- Creates a new path for noncustodial parents to claim the state credit if they provided at least half of the qualifying child's support for the year, even though the federal credit normally goes to the custodial parent.
- Sets the law to take effect July 1, 2025, applying to tax years starting on or after January 1, 2026.

### Who it affects

Georgia parents who pay for child or dependent care, especially noncustodial parents (often those who do not have primary physical custody after a divorce or separation) who currently cannot claim the state credit because the federal credit goes to the custodial parent. The Georgia Department of Revenue would also administer the updated rule.

### Why it matters

Noncustodial parents who financially support their children but do not have primary custody would gain access to a state tax credit they currently cannot claim, potentially lowering their Georgia income tax bill starting with the 2026 tax year, provided they cover at least half the child's support costs.

### Key provisions

- Section 1 revises subsection (a) of O.C.G.A. § 48-7-29.10 to set the state credit at 30 percent of the federal child and dependent care credit amount, removing the prior year-by-year percentage schedule.
- Section 1 adds language allowing a taxpayer who is denied the federal credit solely because they are not the custodial parent to still claim the Georgia credit if they provided at least half of the child's support for the year.
- Section 2 sets the effective date as July 1, 2025, and specifies the change applies to taxable years beginning on or after January 1, 2026.
- Section 3 repeals any conflicting state laws.

## Status

- Status: Introduced (2025-02-10)
- Last action: House Second Readers (2025-02-12)
- Sponsors: Yasmin Neal
- Official page: https://www.legis.ga.gov/legislation/70126

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb364.md?full=1