Georgia CommonsSenate · Engrossed · 2025-2026 Regular Session
SB 465: Income Taxes; business enterprises that hire illegal aliens for large-scale projects from claiming certain tax credits associated with such projects; disqualify
Last action March 10, 2026 · House Second Readers
A Georgia Senate bill would strip a state jobs tax credit from companies caught hiring illegal aliens on large-scale projects, end the practice of applying excess credits to quarterly tax payments, and set a 2031 sunset date for the credit program.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Engrossed version, the latest the General Assembly's website lists.
In plain language
Georgia currently offers a tax credit worth $5,250 per year for five years to businesses that create new full-time jobs on large-scale projects, as long as they offer health insurance to those employees. This bill changes that program in a few ways. First, it removes the option for a business to apply excess credit against its quarterly or monthly withholding tax payments when the credit is bigger than its income tax bill, so any leftover credit amount can no longer be used that way. Second, it adds a new disqualification rule: if a business enterprise is found to have hired an illegal alien (as defined under O.C.G.A. § 16-11-201) and used that hiring as the basis for claiming the credit, it loses the credit entirely. Third, it sets a sunset date of July 1, 2031, after which no new credits can be claimed under this program, though businesses already approved before that date can keep collecting the credit for whatever remains of their original five-year period.
What the bill does
- Disqualifies a business enterprise from the large-scale project jobs tax credit if it is found to have hired an illegal alien and used that hiring to justify the credit claim.
- Removes the existing option for businesses to apply excess tax credit amounts against their quarterly or monthly withholding tax payments under O.C.G.A. § 48-7-103.
- Replaces references to 'employer' with 'business enterprise' throughout the health insurance eligibility requirement for the credit.
- Sets a sunset date of July 1, 2031, after which no business enterprise can newly claim this tax credit.
- Allows businesses whose applications were approved before the 2031 sunset date to keep claiming the credit for the remainder of their original five-year eligibility period.
Who it affects
Businesses that run large-scale projects in Georgia and claim the state's jobs tax credit under O.C.G.A. § 48-7-40.24, the employees whose jobs qualify for the credit, and the Georgia Department of Revenue, which administers and would enforce the disqualification rule.
Why it matters
Companies that rely on this jobs tax credit for large projects would lose it if found to have hired an illegal alien as the basis for a claimed job, and would no longer be able to offset unused credit against withholding tax payments. The program itself would stop accepting new applicants after mid-2031.
Key provisions
- Section 1 amends O.C.G.A. § 48-7-40.24(d) to delete the provision letting businesses apply excess credit against quarterly or monthly withholding payments under O.C.G.A. § 48-7-103.
- Section 1 replaces the term 'employer' with 'business enterprise' in the health insurance requirement needed to qualify for the credit.
- Section 1 adds language disqualifying any business enterprise found to have hired an illegal alien, as defined in O.C.G.A. § 16-11-201, and claimed that hiring as the basis for the credit.
- A new subsection (s) bars any business enterprise from claiming this tax credit on or after July 1, 2031.
- Subsection (s) preserves credit eligibility for businesses already approved before July 1, 2031, letting them finish out their original five-year credit period.
- Section 2 repeals any conflicting laws.
From the bill
“A business enterprise found to have hired an illegal alien, as such term is defined in Code Section 16-11-201, and claimed such hiring as the basis for receiving a tax credit under this Code section shall be disqualified from receiving any such credit.”
“No business enterprise shall be allowed a tax credit under this Code section against taxes imposed under this article on or after July 1, 2031”
Discussed in meetings (10)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
Senate Finance Committee, February 25, 2026
From 0:42:41 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said SB 465 would deny a large-project job tax credit for an employee without lawful immigration status, rather than disqualify the entire business. The sponsor described existing thresholds of 1,800 permanent jobs and $600 million in investment, with a $5,250 annual credit per employee for five years. A member questioned whether lawful noncitizens would remain eligible after the sponsor initially described eligibility in citizenship terms. Legislative counsel explained that the bill's definition covers people federally verified as violating immigration law; members clarified that lawful noncitizens were not excluded. The sponsor said temporary subcontractors do not qualify. Members also questioned the credit's duration and use against employee withholding. Legislative counsel found no sunset provision. A Department of Revenue witness initially said the withholding treatment needed verification, then confirmed credits could offset withholding obligations. The committee unanimously adopted an amendment setting a July 1, 2031 sunset while allowing participating businesses to finish their original credit terms. A second amendment, adopted with one opposed, removed the ability to apply excess credits against withholding payments while retaining carryovers. The committee unanimously approved the amended bill.
Senate Rules Committee, March 3, 2026
From 0:22:37 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: With the sponsor absent during the presentation, a committee member said SB 465 would cause businesses to lose relevant tax credits if the jobs receiving those credits went to people not legally in the country. The member also said they believed a committee amendment had added an expiration date for the credits. The member did not give that date. Members later selected the bill for the calendar as part of the approved slate.
Senate floor session, March 4, 2026 (legislative day 27)
From 1:56:36 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)
Summary by Georgia Commons: The majority leader included SB 465 in a four-measure motion to prevent floor amendments. The clerk described the bill as disqualifying businesses that hire people unlawfully in the country for large-scale projects from claiming certain related income-tax credits. An objection prompted a vote, and the combined motion passed 31-22. The Senate did not vote on passage of the bill.
Senate Rules Committee, March 5, 2026
From 1:21:45 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair listed SB 465 among bills carried over from the previous day for return to the floor calendar. Its provisions were not discussed. The committee unanimously approved the calendar package.
Senate floor session, March 6, 2026 (legislative day 28, part 1)
From 7:35:53 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Tabled)
Summary by Georgia Commons: The sponsor said SB 465 would require businesses seeking specified large-project job tax credits to employ people legally authorized to work in the United States. The sponsor described the existing program as generally requiring 1,800 full-time jobs, employee health insurance and a $600 million investment, with credits of up to $5,250 per job. The sponsor said committee changes added a five-year expiration and removed the ability to carry unused credits forward. No substantive questions or opposing speeches followed. The Senate adopted the committee substitute and passed the bill, 49 to 0.
- Read aloud: Senate floor session, February 6, 2026 (legislative day 14), 0:36:01
- Read aloud: Senate floor session, February 26, 2026 (legislative day 25), 0:26:59
- Read aloud: Senate floor session, March 3, 2026 (legislative day 26), 0:37:53
- Read aloud: House floor session, March 9, 2026 (legislative day 29), 0:53:52
- Read aloud: House floor session, March 10, 2026 (legislative day 30), 0:43:20
Status timeline
- House Second Readers (House)
- House First Readers (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Taken from Table (Senate)
- Senate Tabled (Senate)
- Senate Engrossed (Senate)
- Senate Read Second Time (Senate)
Show full history (11 actions)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Steve Gooch (R, SD-51)
- Drew Echols (R, SD-49)
- Frank Ginn (R, SD-47)
- Randy Robertson (R, SD-29)
- Russ Goodman (R, SD-8)
- Billy Hickman (R, SD-4)
- Carden Summers (R, SD-13)
- Rick Williams (R, SD-25)
- Marty Harbin (R, SD-16)
- Matt Brass (R, SD-6)
- Jason T. Dickerson (R, SD-21)
- Timothy Bearden (R, SD-30)
- Bill Cowsert (R, SD-46)
- Max Burns (R, SD-23)
- Bo Hatchett (R, SD-50)
- Greg Dolezal (R, SD-27)
- Shawn Still (R, SD-48)
- Blake Tillery (R, SD-19)
- Ben Watson (R, SD-1)
- Lee Anderson (R, SD-24)
- Jason Anavitarte (R, SD-31)
Votes
- Senate voteMarch 4, 2026
31 yea, 22 nay (1 not voting, 1 excused)
- Senate voteMarch 6, 2026
49 yea, 0 nay (3 not voting, 3 excused)
Topics
- income tax credits
- illegal immigration enforcement
- economic development incentives
- business tax policy