---
title: HB 95. Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
collection: bills
id: 2025-2026/hb95
cite_as: HB 95, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb95
md_url: https://georgiacommons.org/bills/2025-2026/hb95.md
text_url: https://georgiacommons.org/bills/2025-2026/hb95/text
source_url: https://www.legis.ga.gov/legislation/69448
date: 2025-01-28
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb94.md
next: https://georgiacommons.org/bills/2025-2026/hb96.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb95.md?full=1
bill_number: HB 95
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-17
last_action: House Second Readers
sponsors:
- Samuel Park
- Mack Jackson
- Floyd Griffin
- Tangie Herring
- Jasmine Clark
- Mary Williams
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB95/2025
upstream_id: 1929157
summaries_model: claude-sonnet-5
topic_tags:
- income tax credit
- earned income tax credit
- tax refunds
- low-income tax relief
---
# HB 95. Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
## Text
House Bill 95
By: Representatives Park of the 107th, Jackson of the 128th, Griffin of the 149th, Herring of
the 145th, Clark of the 108th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to provide for an income tax credit equal to 20 percent of the federal
earned income tax credit; to provide for rules and regulations; 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:
SECTION 1.
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,
is amended by adding a new Code section to read as follows:
"48-7-29.28.
(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20
in an amount equal to 20 percent of the federal credit that such taxpayer is allowed under
Section 32 of the Internal Revenue Code. Such credit shall be allowed only if the
individual would have received the federal credit allowed under Section 32 of the Internal
Revenue Code after adding any carryforward of a net operating loss that was deducted
pursuant to such section in determining eligibility for the federal credit.
(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) The commissioner shall be authorized to promulgate rules and regulations necessary
to implement and administer the provisions of this Code section."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years
beginning on or after January 1, 2025.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 95 would create a new Georgia state income tax credit worth 20 percent of the federal earned income tax credit, with any excess refunded to the taxpayer.
### Plain-language summary
Georgia currently does not have a state-level earned income tax credit, a benefit that reduces taxes for low- and moderate-income workers based on their earnings. This bill would add one by inserting a new section into Georgia's income tax code (O.C.G.A. Title 48, Chapter 7).
Under the bill, a taxpayer who qualifies for the federal earned income tax credit could also claim a Georgia credit equal to 20 percent of that federal amount. The credit is refundable, meaning if it is larger than what the taxpayer owes in state income tax, the state would pay out the difference rather than just zeroing out the tax bill. The state tax commissioner would be allowed to write rules for administering the credit. The change would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2025.
### What it does
- Creates a new Georgia income tax credit equal to 20 percent of whatever federal earned income tax credit a taxpayer qualifies for under federal law.
- Makes the credit refundable, so taxpayers get the excess amount paid to them if the credit is larger than their state income tax bill.
- Ties eligibility to the federal credit calculation, including any net operating loss carryforward adjustments used to determine federal eligibility.
- Gives the state tax commissioner authority to create rules and regulations to administer the new credit.
- Sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.
### Who it affects
Georgia taxpayers who qualify for the federal earned income tax credit, typically low- to moderate-income workers and families, would be able to claim the new state credit. The Georgia Department of Revenue would also be responsible for administering the credit and writing implementing rules.
### Why it matters
Eligible Georgia workers would receive an additional refund or tax reduction worth 20 percent of their federal earned income tax credit, which could mean extra money in hand for lower-income households, particularly because the credit is refundable rather than capped at reducing tax owed to zero.
### Key provisions
- Section 1 adds new Code Section 48-7-29.28, creating a state credit equal to 20 percent of the taxpayer's federal earned income tax credit under Section 32 of the Internal Revenue Code.
- Subsection (a) ties eligibility to whether the taxpayer would have received the federal credit after accounting for net operating loss carryforwards.
- Subsection (b) makes the credit refundable, requiring the state to refund any amount exceeding the taxpayer's income tax liability.
- Subsection (c) authorizes the commissioner to issue rules and regulations to implement the credit.
- Section 2 sets the effective date of July 1, 2025, applicable to taxable years beginning on or after January 1, 2025.
## Status
- Status: Introduced (2025-01-17)
- Last action: House Second Readers (2025-01-28)
- Sponsors: Samuel Park, Mack Jackson, Floyd Griffin, Tangie Herring, Jasmine Clark, Mary Williams
- Official page: https://www.legis.ga.gov/legislation/69448
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb95.md?full=1