HB 519: Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide

Georgia currently has no state-level equivalent to the federal work opportunity tax credit, which rewards employers for hiring people who face barriers to employment, such as veterans, people who have been unemployed long-term, or people receiving certain public assistance. This bill would add a new section to Georgia's tax code (O.C.G.A. § 48-7-29.27) letting employers claim a state income tax credit equal to 100 percent of the federal credit they receive for qualified wages paid to eligible Georgia resident employees. The state credit would be capped at $500 per eligible employee per year, and total credits claimed statewide could not exceed $10 million in any year. Taxpayers would have to keep records to prove eligibility, and the state could recapture credits if the underlying federal credit is later disallowed. The credit would apply to tax years starting January 1, 2026, and the whole provision would automatically expire on December 31, 2030. The bill has been vetoed as of May 12, 2026.

• Creates a new Georgia state income tax credit equal to 100 percent of the federal work opportunity tax credit an employer receives for hiring eligible workers.
• Caps the state credit at $500 per eligible employee per year and limits total statewide credits to $10 million per year.
• Requires taxpayers to keep and produce records proving they qualify for the credit, with the burden of proof on the taxpayer.
• Lets the Department of Revenue recapture a proportional share of the state credit if the related federal credit is later reduced or denied.
• Automatically repeals the entire credit program on December 31, 2030 unless the legislature acts again.
• Sets the credit to apply to tax years beginning on or after January 1, 2026.

Georgia employers who hire workers certified under the federal work opportunity tax credit program, such as veterans, long-term unemployed workers, and people receiving certain public assistance; the Georgia Department of Revenue, which would administer and audit the credit; and Georgia resident employees whose hiring generates the credit for their employer.

Employers who already qualify for the federal work opportunity credit could get an added state tax benefit for hiring workers from groups that often face employment barriers, potentially lowering their overall tax bill by up to $500 per qualifying employee, while the state caps its total exposure at $10 million a year.

• Section 1 adds new Code section 48-7-29.27, defining 'federal work opportunity tax credit,' 'qualified wages,' and 'targeted group' by reference to Section 51 of the Internal Revenue Code.
• Subsection (b) allows a state credit equal to 100 percent of the federal credit for qualified wages paid to a certified Georgia resident employee, capped at $500 per employee per year.
• Subsection (c) requires taxpayers to maintain and produce records to prove eligibility, placing the burden of proof on the taxpayer.
• Subsection (d) authorizes the Department of Revenue to recapture a proportional share of the state credit if the federal credit is later recaptured.
• Subsection (e) bars the credit from exceeding a taxpayer's tax liability for the year, bars carrying it to other tax years, and caps total statewide credits at $10 million annually.
• Subsection (g) automatically repeals the credit on December 31, 2030.
• Section 2 sets the effective date as January 1, 2026, applicable to taxable years beginning on or after that date.

1. 2026-05-12Veto V3
2. 2026-05-12House Date Vetoed by Governor (House)
3. 2026-04-06House Sent to Governor (House)
4. 2026-03-25Senate Passed/Adopted (Senate)
5. 2026-03-25Senate Third Read (Senate)
6. 2026-03-25Senate Engrossed (Senate)
7. 2026-03-16Senate Read Second Time (Senate)
8. 2026-03-12Senate Committee Favorably Reported (Senate)

• Ron Stephens (R, HD-164)Primary sponsor
• Danny Mathis (R, HD-133)
• Matt Reeves (R, HD-099)
• Noel Williams (R, HD-148)
• Billy Hickman (R, SD-004)

1. PassedHouse voteFebruary 25, 2026

   158 yea, 14 nay (4 not voting, 1 absent)

   Passage: House Vote #551

2. PassedSenate voteMarch 25, 2026

   32 yea, 19 nay (2 not voting, 1 absent)

   Motion To Engross: Hb 328, Hb 369, Hb 519, Hb 1112: Senate Vote #800

3. PassedSenate voteMarch 25, 2026

   47 yea, 1 nay (3 not voting, 3 absent)

   Passage: Senate Vote #805

• state income tax credits
• work opportunity tax credit
• hiring incentives
• Georgia tax law
• employment