--- title: SB 453. "Rural Incentive Act"; enact collection: bills id: 2025-2026/sb453 cite_as: SB 453, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb453 md_url: https://georgiacommons.org/bills/2025-2026/sb453.md text_url: https://georgiacommons.org/bills/2025-2026/sb453/text source_url: https://www.legis.ga.gov/legislation/72764 date: 2026-02-03 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/sb452.md next: https://georgiacommons.org/bills/2025-2026/sb454.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 95 omitted_url: https://georgiacommons.org/bills/2025-2026/sb453.md?full=1 bill_number: SB 453 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2026-02-02 last_action: Senate Read and Referred sponsors: - Carden Summers - Russ Goodman - Sam Watson - Brian Strickland - Billy Hickman - Jason Anavitarte - Drew Echols - Ricky Williams - Lee Anderson - Mike Hodges - Randy Robertson - Chuck Payne - Steve Gooch text_version: Introduced has_text: true legiscan_url: https://legiscan.com/GA/bill/SB453/2025 upstream_id: 2104322 summaries_model: claude-sonnet-5 topic_tags: - income tax - rural development - tax exemptions - young adults - state revenue --- # SB 453. "Rural Incentive Act"; enact ## Text Senate Bill 453 By: Senators Summers of the 13th, Goodman of the 8th, Watson of the 11th, Strickland of the 42nd, Hickman of the 4th and others A BILL TO BE ENTITLED AN ACT To amend Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of taxable net income, so as to exempt from taxation all income received by certain rural residents; to provide for methods of proving residence; to provide for penalties; to provide for rules and regulations; to provide for related matters; to provide a short title; 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. This Act shall be known and may be cited as the "Rural Incentive Act." SECTION 2. Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of taxable net income, is amended in subsection (a) by striking "and" at the end of paragraph (14), by replacing the period at the end of paragraph (15) with "; and", and by adding a new paragraph to read as follows: "(16)(A) All income received by a resident of a rural county, as such term is defined in Code Section 48-7-40.17, between 16 and 35 years of age. (B) The residence of any taxpayer shall be held to be in that place in which such taxpayer's habitation is fixed, without any present intention of removing therefrom. (C) The department shall require any taxpayer seeking to claim the deduction authorized under subparagraph (A) of this paragraph to submit proof of residence for each taxable year in which the deduction is sought. Such proof shall include one or more of the following items issued during the taxable year in which the deduction is sought: (i) Property documents, including mortgage statements, property tax bills, and lease agreements; (ii) Utility bills, including electricity, water, and gas bills; or (iii) Financial statements, including bank statements and pay stubs. (D) Any taxpayer who files documents required under subparagraph (C) of this paragraph knowing that such documents are false or contain materially false, fictitious, or fraudulent statements or representations shall be subject to the penalties provided in subsection (c) of Code Section 16-10-20.1. (E) The department is authorized to adopt rules and regulations to provide for the administration of the tax credit provided by this paragraph." SECTION 3. This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years beginning on or after January 1, 2027. SECTION 4. 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. A Georgia Senate bill called the Rural Incentive Act would exempt all income earned by young adults ages 16 to 35 who live in rural counties from state income tax, starting with the 2027 tax year. ### Plain-language summary Georgia currently taxes income the same way regardless of whether a resident lives in a rural or urban county. This bill would change that for one group: residents of rural counties (as defined elsewhere in Georgia law, O.C.G.A. § 48-7-40.17) who are between 16 and 35 years old. All income they receive would be exempt from Georgia's state income tax. To claim the exemption, a taxpayer would have to prove residence in a rural county each year by submitting documents such as mortgage statements, property tax bills, lease agreements, utility bills, bank statements, or pay stubs. Anyone who knowingly files false or fraudulent proof would face the criminal penalties already set out in Georgia's false statements law (O.C.G.A. § 16-10-20.1). The Georgia Department of Revenue would be authorized to write rules to administer the exemption. The law would take effect July 1, 2026, and apply to tax years starting on or after January 1, 2027. ### What it does - Exempts all income earned by residents of rural counties aged 16 to 35 from Georgia's state income tax, added as a new exemption in O.C.G.A. § 48-7-27. - Defines residency for this exemption as the place where a person's home is fixed, without any current intention of moving away. - Requires taxpayers claiming the exemption to submit yearly proof of rural residence, such as property records, utility bills, or bank statements. - Applies existing criminal penalties for false statements (O.C.G.A. § 16-10-20.1) to anyone who knowingly submits false or fraudulent residency proof. - Authorizes the Department of Revenue to create rules and regulations for administering the exemption. - Sets an effective date of July 1, 2026, applying to tax years beginning on or after January 1, 2027. ### Who it affects Young adults ages 16 to 35 who live in Georgia's rural counties would be eligible for the tax exemption. The Georgia Department of Revenue would administer the program, and taxpayers who submit false residency documents would face criminal penalties under existing law. ### Why it matters Eligible young residents of rural Georgia counties would owe no state income tax on their earnings, which could change household finances and possibly influence decisions about where to live or work. The documentation and anti-fraud rules mean claiming the exemption would require ongoing paperwork each tax year. ### Key provisions - Section 1 names the bill the 'Rural Incentive Act.' - Section 2 adds a new paragraph (16) to O.C.G.A. § 48-7-27 exempting all income of rural county residents aged 16 to 35 from state taxable income. - Section 2 defines residence based on where a taxpayer's habitation is fixed with no present intent to move. - Section 2 requires annual proof of residence through property, utility, or financial documents and applies false statement penalties (O.C.G.A. § 16-10-20.1) for fraudulent submissions. - Section 2 authorizes the Department of Revenue to adopt administrative rules for the exemption. - Section 3 sets the effective date as July 1, 2026, applicable to taxable years beginning on or after January 1, 2027. ## Status - Status: Introduced (2026-02-02) - Last action: Senate Read and Referred (2026-02-03) - Sponsors: Carden Summers, Russ Goodman, Sam Watson, Brian Strickland, Billy Hickman, Jason Anavitarte, Drew Echols, Ricky Williams, Lee Anderson, Mike Hodges, Randy Robertson, Chuck Payne, Steve Gooch - Official page: https://www.legis.ga.gov/legislation/72764 > The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb453.md?full=1