Senate · Introduced · 2025-2026 Regular Session

SB 187: State Income Tax; amount of tax credits available for qualified caregiving expenses; increase

Last action February 19, 2025 · Senate Read and Referred

A Georgia Senate bill would raise the state income tax credit for caregiving expenses from $150 to $500, starting with the 2025 tax year.

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In plain language

Georgia currently allows a state income tax credit for qualified caregiving expenses, but the credit is capped at $150 or the taxpayer's tax liability, whichever is less. This bill would raise that cap to $500. The credit still cannot exceed a taxpayer's actual income tax liability for the year, unused amounts still cannot be carried forward to future years, and the credit still cannot be applied against past years' taxes. The change is made by amending O.C.G.A. § 48-7-29.2, part of Georgia's income tax law. If enacted, the higher cap would take effect July 1, 2025, and would apply to tax years beginning on or after January 1, 2025, meaning it could apply when Georgians file their 2025 state income taxes.

What the bill does

Raises the maximum state income tax credit for qualified caregiving expenses from $150 to $500 per taxpayer.
Keeps the existing rule that the credit cannot exceed the taxpayer's actual income tax liability for the year.
Keeps the existing rule that unused portions of the credit cannot be carried forward to future tax years.
Keeps the existing rule that the credit cannot be applied against a taxpayer's tax liability from prior years.
Sets the change to take effect July 1, 2025, applying to tax years starting on or after January 1, 2025.

Who it affects

Georgia taxpayers who claim the existing state income tax credit for qualified caregiving expenses, such as people paying for care for an elderly or disabled family member, would be eligible for a larger credit under this bill.

Why it matters

Caregivers who already qualify for this tax credit could see their maximum benefit more than triple, from $150 to $500, lowering their state income tax bill by a larger amount starting with taxes filed for 2025, though the credit still cannot exceed what they owe.

Key provisions

Section 1 amends O.C.G.A. § 48-7-29.2(c)(1), raising the caregiving expense tax credit cap from $150.00 to $500.00.
Section 1 leaves in place the rule that the credit cannot exceed the taxpayer's income tax liability, whichever is less.
Section 1 leaves in place the bar on carrying forward unused credit to future years or applying it to prior years' taxes.
Section 2 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2025.
Section 3 repeals conflicting laws, a standard technical provision.

Status timeline

2025-02-19Senate Read and Referred (Senate)
2025-02-18Senate Hopper (Senate)

Topics

income tax credits
caregiving
family caregivers
state tax law

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