HB 98: Income tax; credit equal to 10 percent of the federal child tax credit; provide

Georgia currently has no state-level match to the federal child tax credit. This bill would add a new section to Georgia's income tax law (O.C.G.A. Chapter 7 of Title 48) creating a state credit equal to 10 percent of whatever federal child tax credit a taxpayer qualifies for under Section 24 of the federal tax code. Taxpayers could only claim the state credit if they would have gotten the federal credit, counting back in any net operating loss carryforward used to figure federal eligibility. If the state credit is worth more than what a taxpayer owes in state income tax, the difference would be paid out as a refund rather than lost. The Georgia Department of Revenue commissioner would be allowed to write rules to administer the credit. The law would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2025.

• Creates a new Georgia income tax credit equal to 10 percent of the federal child tax credit a taxpayer receives under Section 24 of the Internal Revenue Code.
• Limits eligibility to taxpayers who would have qualified for the federal credit, including after adding back certain net operating loss carryforwards used in that federal calculation.
• Makes the credit refundable, meaning any amount exceeding a taxpayer's state income tax liability is paid back to them rather than forfeited.
• Authorizes the state revenue commissioner to create rules and regulations to implement and administer the credit.
• Sets the law to take effect July 1, 2025, applying to tax years beginning on or after January 1, 2025.

Georgia taxpayers who claim the federal child tax credit, particularly parents and guardians of qualifying children. The Georgia Department of Revenue would also be affected, since its commissioner would need to write rules to administer the new credit.

Families who already qualify for the federal child tax credit would get an extra state tax benefit worth 10 percent of that amount, and because it is refundable, families owing little or no state tax could still receive money back rather than losing the credit's value.

• Section 1 adds new Code Section 48-7-29.27, setting the state credit at 10 percent of the taxpayer's federal child tax credit under Internal Revenue Code Section 24.
• Section 1(a) ties eligibility to whether the taxpayer would have received the federal credit, factoring back in certain net operating loss carryforwards.
• Section 1(b) makes the credit refundable, so any amount above a taxpayer's tax liability is refunded rather than capped at zero.
• Section 1(c) gives the state revenue commissioner authority to issue rules and regulations to implement the credit.
• Section 2 sets the effective date as July 1, 2025, applying to taxable years beginning on or after January 1, 2025.

1. 2025-01-28House Second Readers (House)
2. 2025-01-27House First Readers (House)
3. 2025-01-17House Hopper (House)

• Carolyn Hugley (D, HD-141)Primary sponsor
• Tangie Herring (D, HD-145)
• Jasmine Clark (D, HD-108)
• Floyd Griffin (D, HD-149)
• Mack Jackson (D, HD-128)
• Mary Williams (D, HD-037)

• income tax credit
• child tax credit
• tax refunds
• family tax benefits
• Georgia tax law