HB 930: Income tax; refundable credit for grocery, transportation, and utility costs; provide

House Bill 930

By: Representatives Lupton of the 83rd and Lim of the 98th

A BILL TO BE ENTITLED

AN ACT

To amend Titles 33, 34, and 48 of the Official Code of Georgia Annotated, relating to insurance, labor and industrial relations, and revenue and taxation, respectively, so as to provide for a refundable tax credit for grocery, transportation, and utility costs; to provide for a refundable tax credit for certain workforce development training expenses; to require the State Workforce Development Board to approve and publish a list of training programs most critical to the state's current and future workforce needs; to provide for a tax credit for rural attorneys; to provide for eligibility, terms, conditions, limitations, and procedures for such credits; to provide for definitions; to provide for rules and regulations; to provide for a sunset; to expand a low income housing tax credit to include certain qualified Georgia projects that do not receive a federal housing tax credit; to provide for an additional state tax on retail sales of certain tangible personal property facilitated by a marketplace facilitator; to provide for the collection and administration of such tax; to provide for related matters; 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:

PART I

SECTION 1-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Chapter 7, relating to income taxes, by adding a new Code section to read as follows:

"48-7-29.27.

(a) On and after January 1, 2026, a taxpayer shall be allowed a tax credit against the tax imposed by Code Section 48-7-20 to offset the costs incurred by such taxpayer for groceries, transportation, and utilities in an amount equal to the sum of: (1)(A) In the case of a single taxpayer, a married taxpayer filing a separate return, or a head of household, $1,000.00; or

(B) In the case of a married couple filing a joint return, $2,000.00; and

(2) For each dependent, as such term is defined in Section 152 of the Internal Revenue Code of 1986, of such taxpayer, $1,000.00.

(b) If the total amount of the tax credit provided for in this Code section exceeds the taxpayer's income tax liability for a taxable year, such excess funds shall be refunded to the taxpayer.

(c) No refund or credit provided for in this Code section shall constitute taxable income for Georgia individual income tax purposes.

(d) Refunds due under this Code section to a taxpayer shall be either electronically transmitted or sent by check to such taxpayer, based on the taxpayer's refund instructions, if any, as indicated on the taxpayer's income tax return, provided that such refund shall first be credited against any outstanding liability existing at the time the refund provided for in this Code section is to be issued.

(e) In no event shall the amount of a refund or credit provided for in this Code section accrue interest for the benefit of the taxpayer or be paid or credited to the taxpayer with interest.

(f) Any amount due to be refunded or credited to a taxpayer pursuant to this Code section shall be subject to the setoff debt collection provisions of Article 7 of this chapter.

(g) The commissioner shall promulgate rules and regulations necessary to implement and administer the provisions of this Code section."

PART II

SECTION 2-1.

Said title is further amended in said chapter by adding a new Code section to read as follows:

"48-7-29.28.

(a) As used in this Code section, the term 'workforce training expenses' means expenses paid as tuition or fees to participate in a workforce training program approved for the taxpayer's local workforce development area by the State Workforce Development Board pursuant to Code Section 34-14-4.

(b)(1) On and after January 1, 2026, a taxpayer shall be allowed a tax credit against the tax imposed by Code Section 48-7-20 for workforce training expenses in an amount not to exceed $1,000.00.

(2) No taxpayer shall be eligible to receive the credit provided by this subsection more than once.

(c) If the tax credit provided for in this Code section exceeds the taxpayer's income tax liability for a taxable year, such excess funds shall be refunded to the taxpayer.

(d) No refund or credit provided for in this Code section shall constitute taxable income for Georgia individual income tax purposes.

(e) Refunds due under this Code section to a taxpayer shall be either electronically transmitted or sent by check to such taxpayer based on the taxpayer's refund instructions, if any, as indicated on the taxpayer's income tax return, provided that such refund shall first be credited against any outstanding liability existing at the time the refund provided for in this Code section is to be issued.

(f) In no event shall the amount of a refund or credit provided for in this Code section accrue interest for the benefit of the taxpayer or be paid or credited to the taxpayer with interest.

(g) Any amount due to be refunded or credited to a taxpayer pursuant to this Code section shall be subject to the setoff debt collection provisions of Article 7 of this chapter.

(h) The commissioner shall promulgate rules and regulations necessary to implement and administer the provisions of this Code section."

SECTION 2-2.

Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations, is amended in Chapter 14, relating to the State Workforce Development Board, by adding a new Code section to read as follows:

"34-14-4.

(a) The State Workforce Development Board shall publish a High-Demand Workforce Training List identifying training programs most critical to the state's current and future workforce needs, as provided in this Code section.

(b) The State Workforce Development Board, in consultation with the Office of Workforce Development, shall assess current labor market information and other employment data sources and determine which training programs merit inclusion on such list for the entire state and for each local workforce development area of the state and shall implement a data-driven process to assess present and future growing and declining industries, occupations, skills, and credentials.

(c) The High-Demand Workforce Training List required by this Code section shall:

(1) State which training programs are approved for the entire state and for each local workforce development area of the state; and

(2) Be published annually on or before December 31 on the State Workforce Development Board's public website."

PART III

SECTION 3-1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Chapter 7, relating to income taxes, by adding a new Code section to read as follows:

"48-7-29.29.

(a) As used in this Code section, the term:

(1) 'Rural attorney' means an attorney licensed to practice law in this state who practices in wills and estates or landlord-tenant law in a rural county and resides in a rural county or a county contiguous to the rural county in which such lawyer practices.

(2) 'Rural county' means a county in this state that has a population of less than 50,000 according to the United States decennial census of 2020 or any future such census; provided, however, that, for counties which contain a military base or installation, the military personnel and their dependents living in such county shall be excluded from the total population of such county for purposes of this definition. (b)(1) A person qualifying as a rural attorney after July 1, 2026, shall be allowed a credit against the tax imposed by Code Section 48-7-20 in an amount not to exceed $5,000.00 for each 12 month period of employment as a rural attorney; provided, however, that such amount shall be prorated on a monthly basis for the first year during which a person qualifies as a rural attorney. Such tax credit may be claimed each year for up to five years, provided that the person continues to qualify as a rural attorney.

(2) In no event shall the amount of the tax credit exceed the taxpayer's income tax liability, nor shall any unused tax credit be allowed to be carried forward or applied to any of the taxpayer's succeeding years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.

(3) No attorney who, on July 1, 2026, is currently practicing in a rural county shall be eligible for a tax credit under this Code section. No attorney who, prior to July 1, 2026, practiced in a rural county shall be eligible for a tax credit under this Code section unless, after July 1, 2026, such attorney returns to practice in a rural county after having practiced in a county other than a rural county for at least three years.

(c) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section.

(d) This Code section shall stand repealed and reserved on December 31, 2029."

PART IV

SECTION 4-1.

Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in Code Section 33-1-18, relating to housing tax credit for qualified projects and rules and regulations, by revising paragraph (1) of subsection (b) as follows: "(b)(1) A tax credit against the taxes imposed under Code Sections 33-5-31, 33-8-4, and 33-40-5, to be termed the Georgia housing tax credit, shall be allowed with respect to each qualified Georgia project placed in service after January 1, 2001. The amount of such credit shall, when combined with the total amount of credit authorized under Code Section 48-7-29.6, in no event exceed an amount equal to the federal housing tax credit allowed with respect to such qualified Georgia project.; provided, however, that such tax credit shall be allowed in an amount equal to 100 percent of the federal housing tax credit with respect to any qualified Georgia project that does not receive the federal housing tax credit but would have received the federal housing tax credit if the state had received 125 percent of its annual allocation of such tax credits."

SECTION 4-2.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended in Code Section 48-7-29.6, relating to income tax credits for qualified low-income buildings, by revising paragraph (1) of subsection (b) as follows: "(b)(1) A state tax credit against the tax imposed by this article, to be termed the Georgia housing tax credit, shall be allowed with respect to each qualified Georgia project placed in service after January 1, 2001. The amount of such credit shall, when combined with the total amount of credits authorized under Code Section 33-1-18, in no event exceed an amount equal to the federal housing tax credit allowed with respect to such qualified Georgia project.; provided, however, that such credit shall be allowed in an amount equal to 100 percent of the federal housing tax credit with respect to any qualified Georgia project that does not receive the federal housing tax credit but would have received the federal housing tax credit if the state had received 125 percent of its annual allocation of such tax credits."

PART V

SECTION 5-1.

Said title is further amended in Chapter 13, relating to specific, business, and occupation taxes, by adding a new article to read as follows:

"ARTICLE 9

48-13-150.

(a) In addition to all other taxes of every kind imposed by law, there is imposed an excise tax of 0.20 percent of the retail sales price on any tangible personal property sold or delivered into this state which is:

(1) Facilitated by a marketplace facilitator, as such term is defined in Code Section 48-8-2; and

(2) Subject to taxation under Article 1 of Chapter 8 of this title.

(b) The excise tax imposed by this article shall be paid by the seller and due and payable in the same manner as required for a retail sale under Article 1 of Chapter 8 of this title.

(c) The commissioner shall promulgate any rules and regulations necessary to implement and administer the provisions of this article."

PART VI

SECTION 6-1.

(a) This Act shall become effective on July 1, 2026, and, except as provided in subsection

(b) of this section, shall be applicable on and after such date.

(b) Parts I through IV of this Act shall be applicable to all taxable years beginning on or after January 1, 2026.

SECTION 6-2.

All laws and parts of laws in conflict with this Act are repealed.