HB 880: Income tax; reduce tax rate that may be reached under certain conditions

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Discussed in meetings (7)

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.

1. House Ways & Means Committee, February 11, 2026

   From 0:20:33 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said the substitute for HB 880 would restore financial conditions for phased tax cuts, lower the income tax rate to 3.99%, raise the standard deduction to $15,000 and the dependent deduction to $5,000, and increase the exemption for seniors age 65 and older from $65,000 to $70,000. The sponsor also described a reserve limit of 20% of prior-year net revenue and permission to use undesignated surplus for legislatively authorized taxpayer relief. One member opposed the bill, saying it would reduce revenue by about $4 billion and primarily benefit higher earners. The sponsor responded that every taxpayer would receive a cut and that financial conditions would protect revenue. Another member proposed an immediate $50,000 standard deduction; the sponsor said that was outside the bill. A member offered an amendment linking rate reductions to the process governing deduction increases, saying it would preserve financial conditions and avoid conflict with HB 1001. Legislative counsel confirmed that intent. The committee adopted the amendment and passed the amended substitute after a show-of-hands vote. Opposition was expressed, but no count was announced.

2. House Rules Committee, February 17, 2026

   From 0:59:42 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: A committee member moved to return the bill to the Ways and Means Committee. The motion was seconded and approved without stated opposition. The bill's substance was not discussed.

3. House Ways & Means Committee, February 26, 2026

   From 0:54:20 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The presenter said the committee had already passed HB 880 and described a revised substitute. According to the presenter, the only change was to increase the standard deduction over time to $18,000 and the dependent deduction to $6,000, double the amounts in the previous version. Following a motion to pass, the committee held a voice vote. A member then requested a show of hands, and the chair called for hands for and against. No count or explicit outcome was announced before the next bill.

4. House Rules Committee, March 2, 2026

   From 1:06:38 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: A presenter speaking for the sponsor said HB 880 would reduce the income tax rate by 20%, increase standard and dependent deductions by 50% when specified conditions were met, raise the strategic reserve to 20% and increase an exemption for seniors. One member asked whether it would cost $4.1 billion, with $2.4 billion benefiting the top 1% of earners, and argued that it would worsen inequality. The presenter disputed the premise and emphasized the larger deductions' benefit to lower-income taxpayers. A second member asked how the proposal related to an earlier tax-rate bill. The presenter described this as another opportunity to lower the rate, from 4.99% to 3.99%. Another member said the reduction would occur in later years after financial conditions were met and framed forgone revenue as taxpayer savings. No decision was recorded.

5. House Rules Committee, March 5, 2026

   From 0:46:53 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2014

   Summary by Georgia Commons: A member objected to placing HB 880 on the floor calendar. The chair called a voice vote and declared that the motion carried. No vote count, reasons for the objection or substantive discussion were given.

6. House floor session, March 6, 2026 (legislative day 28, PM, part 1)

   From 1:02:42 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2121

   Summary by Georgia Commons: The sponsor said the bill would phase in 50% increases in standard and dependent deductions, reduce the income-tax rate by 20% in one-tenth increments subject to revenue benchmarks, increase the age-65 retirement exemption from $65,000 to $75,000, and raise the reserve cap from 15% to 20%. The sponsor said a family of four would eventually owe no income tax on its first $48,000 and estimated roughly $600 million per annual step. Supporters argued that taxpayers should retain more earnings, larger deductions especially help lower earners, and revenue safeguards would protect services. Opposing members argued that benefits favored wealthy households and corporations and that revenue losses would threaten schools, healthcare and infrastructure. One opponent estimated a 32% revenue reduction and said 63% of benefits would go to the top 20%; another preferred faster deduction increases without rate cuts. Members disputed whether safeguards remained and whether a fiscal note covered the current version. The sponsor said safeguards were reinserted and offered a fiscal note for an earlier version, explaining that deduction changes required adjusted estimates. The House adopted the committee substitute and passed the bill 102-69.

• Read aloud: Senate floor session, March 9, 2026 (legislative day 29), 0:26:25

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