SB 476: "Income Tax Reduction Act of 2026"; enact

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Discussed in meetings (8)

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.

1. Senate Finance Committee, February 9, 2026

   From 0:18:02 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said SB 476 would raise standard deductions to $50,000 for individuals and $100,000 for married couples filing jointly beginning in 2027, eliminating income taxes for an estimated 64% of Georgians. The sponsor also described a rate reduction from 5.19% to 4.99%, retroactive to January 2026, and said the proposal would help families afford necessities and keep Georgia competitive. To fund the higher deductions, the sponsor proposed eliminating or limiting numerous tax breaks, including those for banks, insurers, data centers, research and affordable housing. Credits without expiration dates would expire at the end of 2031 unless renewed. Members requested written financial estimates and questioned differing agency figures. The chair said a requested fiscal note was not yet available; the sponsor maintained that the credit changes would cover the higher deductions. One member calculated additional individual savings at about $1,900 after accounting for the existing deduction, and the sponsor acknowledged that calculation. Other members questioned benefits for wealthy taxpayers, business competitiveness and housing effects. The sponsor clarified that the affordable-housing credit would fall to half the federal credit; the chair cited a study finding no additional housing from the larger credit. Members also questioned Senate origination. The committee approved the bill 9-3.

2. Senate Rules Committee, February 11, 2026

   From 0:08:47 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The chair asked whether SB 476 provided an incremental income tax reduction or contained tax credits. The committee chair who had handled the bill initially said they would need to check, but thought the credits were in SB 477. The chair then described SB 476 as an incremental income tax decrease, and the other committee chair confirmed the description. Later, that committee chair confirmed that HB 134 was its duplicate. The committee unanimously approved placing all four bills on the next day's floor calendar.

3. Senate floor session, February 12, 2026 (legislative day 18)

   From 1:04:55 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

   Summary by Georgia Commons: The sponsor said the bill would lower the income-tax rate to 4.99% and raise deductions to $50,000 for individuals and $100,000 for married couples filing jointly, eliminating income taxes for about 64% of Georgians. The sponsor described roughly $2.9 billion in fiscal-year costs, offset by about $2.8 billion from reducing or eliminating 29 credits and exemptions, including incentives for data centers, insurers, banks and yacht repairs. The sponsor said the affordable-housing credit would fall to half the federal credit, film credits were unchanged, and all income-tax credits would expire by 2032 unless renewed. Supporting senators cited studies questioning incentives' benefits and said families needed relief from rising costs. Opponents disputed the savings estimates, said full-year deduction costs would reach $6 billion, and warned about housing production, jobs, services and future sales-tax increases. One opponent questioned the claimed $5,000 family benefit because existing deductions already reduce taxes. Members objected to proceeding without a written fiscal analysis. The Finance chair said an analysis had been ordered; the presiding chair allowed debate to continue. Minority members also objected to blocking floor amendments and limiting public input. The Senate voted 31 to 21 to block floor amendments to this bill and SB 477. After extended debate and a minority report opposing passage, the bill passed 32 to 18.

• Read aloud: Senate floor session, February 9, 2026 (legislative day 15), 0:23:53
• Read aloud: Senate floor session, February 10, 2026 (legislative day 16), 0:24:37
• Read aloud: Senate floor session, February 11, 2026 (legislative day 17), 0:28:57
• Read aloud: House floor session, February 17, 2026 (legislative day 19), 0:55:29
• Read aloud: House floor session, February 18, 2026 (legislative day 20), 0:37:08

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