HB 407: Georgia Hemp Industry Growth and Business Partnership Tax Credit Act; enact

Georgia currently has no specific income tax break tied to buying from in-state hemp growers or suppliers. This bill, called the Georgia Hemp Industry Growth and Business Partnership Tax Credit Act, would add a new section to Georgia's income tax code creating such a credit. Starting with taxable years beginning on or after January 1, 2026, a taxpayer could claim a credit equal to 10 percent of what they spend doing business with Georgia grown hemp owners and suppliers, capped at $100,000 per taxpayer. The Commissioner of Agriculture would set guidelines for applying for and distributing the credit and would issue annual reports on how many businesses use it and its effect on the hemp industry. The credit cannot exceed a taxpayer's actual tax bill for the year, cannot be applied to past years, but unused amounts can carry forward for up to five years.

• Creates a new income tax credit (O.C.G.A. § 48-7-29.27) worth 10 percent of a taxpayer's costs of doing business with Georgia grown hemp owners and suppliers.
• Caps the credit at $100,000 per taxpayer per year, whichever is less between that amount and the 10 percent calculation.
• Directs the Commissioner of Agriculture to write guidelines for applying for and distributing the credit and to publish annual reports on its use and impact.
• Allows revocation of the credit if a taxpayer does not comply with the law's requirements.
• Limits the credit so it cannot exceed a taxpayer's income tax liability for the year, cannot offset past taxes, and allows leftover credit to carry forward up to five years.
• Sets the law to take effect January 1, 2026, applying to taxable years beginning on or after that date.

Businesses in Georgia that purchase goods or services from Georgia grown hemp owners and suppliers, the hemp growers and suppliers themselves who stand to gain new business partners, and the Georgia Department of Agriculture, which would administer and report on the credit program.

Businesses that work with Georgia hemp growers could lower their state income tax bill by up to $100,000 a year, which may encourage more companies to buy from in-state hemp suppliers rather than out-of-state ones, potentially boosting demand for Georgia grown hemp.

• Section 1 names the law the 'Georgia Hemp Industry Growth and Business Partnership Tax Credit Act.'
• Section 2 adds new Code section 48-7-29.27, setting the credit at 10 percent of costs of doing business with Georgia grown hemp owners and suppliers, capped at $100,000 per taxpayer.
• Section 2(b) puts the Commissioner of Agriculture in charge of writing rules for applying for and distributing the credit.
• Section 2(c) requires the Commissioner of Agriculture to file annual reports on applicants, credits issued, and the program's impact on the hemp industry.
• Section 2(d) allows the credit to be revoked for noncompliance with the law's terms.
• Section 2(e) caps the credit at the taxpayer's actual tax liability, bars retroactive use against prior years, and permits a five-year carryforward of unused credit.
• Section 3 sets the effective date as January 1, 2026, applying to taxable years starting on or after that date.

1. 2025-02-18House Second Readers (House)
2. 2025-02-13House First Readers (House)
3. 2025-02-12House Hopper (House)

• Carl Gilliard (D, HD-162)Primary sponsor
• Omari Crawford (D, HD-089)
• El-Mahdi Holly (D, HD-116)
• Long Tran (D, HD-080)
• Kim Schofield (D, HD-063)
• Viola Davis (D, HD-087)

• hemp industry
• tax credits
• agriculture
• small business incentives
• Georgia income tax