HB 932: Revenue and taxation; tax credits for business enterprises; provide that certain military zones qualify for designation as less developed areas during a limited period of time

Georgia law lets the state designate certain economically struggling areas as 'less developed areas' so businesses there can claim job tax credits. Existing law already allows a census tract to qualify if it's in a county with a federal military installation housing at least 5,000 personnel and a government-owned industrial park. This bill adds a new, temporary category: for 2025 and 2026 only, any census tract in a county with a federal military installation of at least 5,000 combined federal or military personnel could qualify, even without an industrial park. It amends O.C.G.A. § 48-7-40.1 by inserting this new provision alongside the existing qualifying categories, all of which remain unchanged. The change is limited to those two years and does not remove or replace any other area's existing less-developed-area designation.

• Adds a new temporary category to Georgia's less developed area tax credit law allowing qualification based on a nearby large military installation alone.
• Limits this new qualifying category to the 2025 and 2026 calendar years only.
• Drops the existing requirement that the county also contain a government-owned industrial park for this specific category.
• Leaves all other existing qualifying categories in O.C.G.A. § 48-7-40.1 unchanged, including the industrial-park-based provision.

Businesses located in Georgia counties with a federal military installation housing at least 5,000 federal or military personnel, which could newly claim job tax credits; and the commissioners of community affairs and economic development, who administer these area designations.

Businesses in more counties near large military bases could become eligible for state job tax credits in 2025 and 2026, potentially lowering their state tax bills and encouraging hiring, even in areas that lack the industrial park previously required for this type of designation.

• Section 1 revises subsection (c) of O.C.G.A. § 48-7-40.1 by inserting new paragraph (2.2).
• New paragraph (2.2) designates, for 2025 and 2026 only, any census tract in a county containing a federal military installation with at least 5,000 combined federal or military personnel as eligible for less developed area status.
• This differs from existing paragraph (2.1), which requires both a 5,000-person garrison and a government-owned industrial park, with no time limit.
• Section 2 repeals any conflicting laws, a standard closing provision.

1. 2026-01-13House Second Readers (House)
2. 2026-01-12House First Readers (House)
3. 2025-04-04House Hopper (House)

• Steven Sainz (R, HD-180)Primary sponsor
• Bethany Ballard (R, HD-147)
• Josh Bonner (R, HD-073)
• Mark Newton (R, HD-127)
• Buddy DeLoach (R, HD-167)
• Vance Smith (R, HD-138)

• tax credits
• economic development
• military bases
• business taxes