---
title: HB 407. Georgia Hemp Industry Growth and Business Partnership Tax Credit Act; enact
collection: bills
id: 2025-2026/hb407
cite_as: HB 407, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb407
md_url: https://georgiacommons.org/bills/2025-2026/hb407.md
text_url: https://georgiacommons.org/bills/2025-2026/hb407/text
source_url: https://www.legis.ga.gov/legislation/70248
date: 2025-02-18
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/hb406.md
next: https://georgiacommons.org/bills/2025-2026/hb408.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb407.md?full=1
bill_number: HB 407
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-12
last_action: House Second Readers
sponsors:
- Carl Gilliard
- Omari Crawford
- El-Mahdi Holly
- Long Tran
- Kim Schofield
- Viola Davis
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB407/2025
upstream_id: 1968116
summaries_model: claude-sonnet-5
topic_tags:
- hemp industry
- tax credits
- agriculture
- small business incentives
- Georgia income tax
---
# HB 407. Georgia Hemp Industry Growth and Business Partnership Tax Credit Act; enact
## Text
House Bill 407
By: Representatives Gilliard of the 162nd, Crawford of the 89th, Holly of the 116th, Tran of
the 80th, Schofield of the 63rd, and others
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 a tax credit for costs of doing business with Georgia grown
hemp owners and suppliers; to provide for terms and conditions; to provide for related
matters; to provide for a short title; 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.
This Act shall be known and may be cited as the "Georgia Hemp Industry Growth and
Business Partnership Tax Credit Act."
SECTION 2.
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:
"48-7-29.27.
(a) For taxable years beginning on or after January 1, 2026, each taxpayer shall be allowed
an income tax credit against the tax imposed by this article equal to 10 percent of such
taxpayer's costs of doing business with Georgia grown hemp owners and suppliers,
or $100,000.00 per taxpayer, whichever is less.
(b) The Commissioner of Agriculture shall provide clear guidelines for the application and
distribution of the tax credit.
(c) The Commissioner of Agriculture shall provide annual reports on the status of the tax
credit program, including the number of applicants, the amount of tax credits issued, and
the impact of the tax credit on the Georgia grown hemp industry.
(d) Noncompliance with the provisions of this Code section may result in revocation of
the tax credit.
(e) In no event shall the total amount of any tax credit allowed under this Code section for
a taxable year exceed the taxpayer's income tax liability. No such tax credit shall be
allowed the taxpayer against prior years' tax liability. Any unused tax credit shall be
allowed to be carried forward to apply to the taxpayer's next five years' tax liability."
SECTION 3.
This Act shall become effective on January 1, 2026, and shall be applicable to taxable years
beginning on or after January 1, 2026.
SECTION 4.
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 state income tax credit for businesses that spend money working with Georgia grown hemp owners and suppliers, starting with the 2026 tax year.
### Plain-language summary
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.
### What it does
- Creates a new income tax credit (O.C.G.A. ยง 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2025-02-12)
- Last action: House Second Readers (2025-02-18)
- Sponsors: Carl Gilliard, Omari Crawford, El-Mahdi Holly, Long Tran, Kim Schofield, Viola Davis
- Official page: https://www.legis.ga.gov/legislation/70248
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb407.md?full=1