Georgia CommonsHouse · Vetoed · 2025-2026 Regular Session
HB 519: Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide
Last action May 12, 2026 · Veto V3
House Bill 519 would let Georgia taxpayers claim a state income tax credit matching the federal work opportunity tax credit they receive for hiring workers from certain disadvantaged groups, up to $500 per employee per year.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“A taxpayer subject to tax under this article shall be allowed a credit against such tax in an amount equal to 100 percent of the tax credit allowed to such taxpayer under Section 51 of the Internal Revenue Code”
“Such credit shall not exceed $500.00 per eligible employee per year in any given tax year.”
“Aggregate limit of tax credits allowed under this Code section for any year exceed $10 million.”
Discussed in meetings (14)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Ways & Means Committee, February 11, 2026
From 0:09:13 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 519 would give employers a $500 tax credit, subject to a $10 million cap, for hiring people who face barriers to employment. The sponsor described 10 eligible groups, including disabled veterans, people with felony records and people receiving government assistance, and said the incentive would help people enter the workforce. A committee member asked whether eligibility was limited to veterans. The sponsor said it was not and clarified that the credit goes to employers, not employees. The member supported the bill while raising broader concerns about criminal background checks preventing people from finding work. The committee approved the bill by voice vote.
House Rules Committee, February 17, 2026
From 0:53:10 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the bill would provide employers a $500 work opportunity tax credit for hiring people who face employment barriers, including disabled veterans and people receiving welfare. The sponsor said the total program would be capped at $10 million. No questions or decision followed.
House Rules Committee, February 25, 2026
From 1:27:55 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter said HB 519 would offer employers a tax credit of up to $500 per person, with a $10 million total limit, for hiring people who face employment barriers, including disabled veterans. The presenter said it would help people move from public assistance into employment. Later, the committee placed it on the current day's floor calendar without stated opposition.
House floor session, February 25, 2026 (legislative day 24)
From 1:24:52 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1202
Summary by Georgia Commons: The sponsor said HB 519 would encourage employers to hire people who face barriers to employment, including disabled veterans and others covered by the federal work opportunity program. The sponsor described a $500 credit per employee, with a $10 million overall cap, for the period from January 1, 2026, through December 2030. No members asked questions. The House passed the bill 158 to 14.
Senate Finance Committee, March 11, 2026
From 0:17:36 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 519 would encourage employers to hire workers facing employment barriers, including disabled veterans and people qualifying for certain public benefits. The sponsor described a credit of up to $500 per eligible worker, a $10 million annual cap and a December 31, 2030, expiration. The sponsor said employment could reduce government benefit spending by an average of $17,700 per person and cited support from the Georgia Utility Contractors Association. The chair clarified that employers, not workers, receive the credit and asked whether evidence showed an additional $500 would change hiring decisions. No supporting data was presented. One member argued that putting people to work could generate income and sales tax revenue, which the sponsor said matched the bill's intent. Asked how eligibility was defined, the sponsor pointed to ten categories in federal tax law. In response to another member, the sponsor said federal rules require 400 hours of work before eligibility. The committee approved the bill, with the chair estimating the vote at six to two after uncertainty about participation. A later speaker questioned whether $500 would influence employers.
Senate Rules Committee, March 16, 2026
From 0:14:08 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 519 would give employers a tax credit for hiring people who face barriers to employment, including disabled veterans. The sponsor described a credit of up to $500 per employee after 400 hours of work, a $10 million cap and an expiration date of December 31, 2030. No substantive debate or vote followed.
Senate Rules Committee, March 18, 2026
From 0:09:02 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 519 would provide employers a $500 tax credit for hiring people who face difficulty finding work, including disabled veterans. The sponsor described a $10 million annual limit, a December 31, 2030 expiration date and estimated net savings of about $17,700 per job. There were no substantive questions or recorded vote.
Senate Rules Committee, March 19, 2026
From 0:11:48 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor renewed a request for the bill, describing it as an incentive for employers to hire disabled veterans. No questions or scheduling decision followed.
Senate Rules Committee, March 20, 2026
From 0:40:30 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair asked whether the bill had been covered, and a committee member confirmed that it had. No explanation of its provisions, substantive questions or calendar decision followed.
Senate Rules Committee, March 23, 2026
From 0:29:29 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor described HB 519 as an income tax incentive to help disabled veterans find jobs. No questions were asked. A committee member later requested it for the floor calendar, and it was included in the package approved unanimously.
Senate floor session, March 25, 2026 (legislative day 37)
From 2:39:52 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)
Summary by Georgia Commons: The Senate included HB 519 in an initial 32-to-19 vote preventing floor amendments. During presentation, the sponsor described a Georgia tax credit modeled on the federal Work Opportunity Tax Credit to encourage hiring veterans and other people facing employment barriers. The sponsor listed recipients of public benefits, people unemployed for at least six months, people with disabilities, former felons and people experiencing homelessness. The sponsor described a $500 credit and a $10 million program limit, payable only when a job was filled. The sponsor said the credit could not exceed tax liability, be refunded or be carried to another tax year, and cited research estimating $2 returned for every $1 invested. No substantive questions or opposition followed. The Senate passed the bill 47 to 1.
Status timeline
- Veto V3
- House Date Vetoed by Governor (House)
- House Sent to Governor (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
Show full history (15 actions)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Ron Stephens (R, HD-164)
- Danny Mathis (R, HD-133)
- Matt Reeves (R, HD-99)
- Noel Williams, Jr. (R, HD-148)
- Billy Hickman (R, SD-4)
Votes
- House voteFebruary 25, 2026
158 yea, 14 nay (4 not voting, 1 excused)
- Senate voteMarch 25, 2026
32 yea, 19 nay (2 not voting, 1 excused)
- Senate voteMarch 25, 2026
47 yea, 1 nay (3 not voting, 3 excused)
Topics
- state income tax credits
- work opportunity tax credit
- hiring incentives
- Georgia tax law
- employment