---
title: SB 67. Income Taxes; income tax credit equal to 20 percent of the federal earned income tax credit; provide
collection: bills
id: 2025-2026/sb67
cite_as: SB 67, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb67
md_url: https://georgiacommons.org/bills/2025-2026/sb67.md
text_url: https://georgiacommons.org/bills/2025-2026/sb67/text
source_url: https://www.legis.ga.gov/legislation/69755
date: 2025-02-03
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/sb66.md
next: https://georgiacommons.org/bills/2025-2026/sb68.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb67.md?full=1
bill_number: SB 67
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-01-30
last_action: Senate Read and Referred
sponsors:
- Elena Parent
- Jason Esteves
- Kim Jackson
- Harold Jones
- Nan Orrock
- Sonya Halpern
- Nikki Merritt
- Freddie Sims
- Michael Rhett
- Kenya Wicks
- Gail Davenport
- David Lucas
- Nabilah Islam Parkes
- Ed Harbison
- Tonya Anderson
- Josh McLaurin
- Derek Mallow
- RaShaun Kemp
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB67/2025
upstream_id: 1949640
summaries_model: claude-sonnet-5
topic_tags:
- income taxes
- earned income tax credit
- tax credits
- low-income workers
- state budget
---
# SB 67. Income Taxes; income tax credit equal to 20 percent of the federal earned income tax credit; provide
## Text
Senate Bill 67
By: Senators Parent of the 44th, Esteves of the 35th, Jackson of the 41st, Jones II of the 22nd,
Orrock of the 36th and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to provide for an income tax credit equal to 20 percent of the federal
earned income tax credit; to provide for rules and regulations; to provide for related matters;
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.
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,
is amended by adding a new Code section to read as follows:
"48-7-29.28.
(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20
in an amount equal to 20 percent of the federal credit that such taxpayer is allowed under
Section 32 of the Internal Revenue Code. Such credit shall be allowed only if the
individual would have received the federal credit allowed under Section 32 of the Internal
Revenue Code after adding any carryforward of a net operating loss that was deducted
pursuant to such section in determining eligibility for the federal credit.
(b) If the total amount of the tax credit provided for in this Code section exceeds the
taxpayer's income tax liability for a taxable year, such excess funds shall be refunded to the
taxpayer.
(c) The commissioner shall be authorized to promulgate rules and regulations necessary
to implement and administer the provisions of this Code section."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years
beginning on or after January 1, 2025.
SECTION 3.
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 would create a new state income tax credit equal to 20 percent of the federal earned income tax credit, with any excess amount refunded to the taxpayer.
### Plain-language summary
Georgia currently has no state-level match of the federal earned income tax credit (EITC), a tax break aimed at low- and moderate-income workers. 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 worth 20 percent of whatever federal EITC amount a taxpayer qualifies for under federal tax law (Section 32 of the Internal Revenue Code).
Taxpayers could only claim the credit if they would have qualified for the federal credit after accounting for certain net operating loss carryforwards. If the credit is larger than what a taxpayer owes in state income tax, the state would refund the difference rather than just reducing the tax bill to zero. The Georgia Department of Revenue would be authorized 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.
### What it does
- Creates a new Georgia income tax credit equal to 20 percent of a taxpayer's federal earned income tax credit under Section 32 of the Internal Revenue Code.
- Limits eligibility to taxpayers who would have qualified for the federal credit even after certain net operating loss carryforwards are added back in.
- Makes the credit refundable, meaning taxpayers get the excess amount paid to them if the credit exceeds their state income tax owed.
- Authorizes the state revenue commissioner to create rules and regulations to implement the new credit.
- Sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.
### Who it affects
Georgia taxpayers who qualify for the federal earned income tax credit, generally low- to moderate-income working individuals and families, would be able to claim the new state credit. The Georgia Department of Revenue would also be affected, since it must administer and issue refunds under the new provision.
### Why it matters
Eligible low- and moderate-income workers in Georgia could receive extra money back at tax time, since the credit is refundable even if it exceeds what they owe in state income tax. This could provide additional take-home income for working families who already qualify for the federal credit.
### Key provisions
- Section 1 adds new Code Section 48-7-29.28, setting the state credit at 20 percent of the taxpayer's federal earned income tax credit amount.
- Subsection (a) ties eligibility to whether the taxpayer would have received the federal credit after adding back certain net operating loss carryforwards.
- Subsection (b) makes the credit refundable, requiring the state to refund any amount exceeding the taxpayer's income tax liability.
- Subsection (c) gives the commissioner authority to issue rules and regulations to implement the credit.
- Section 2 sets the effective date of July 1, 2025, applying to tax years beginning on or after January 1, 2025.
## Status
- Status: Introduced (2025-01-30)
- Last action: Senate Read and Referred (2025-02-03)
- Sponsors: Elena Parent, Jason Esteves, Kim Jackson, Harold Jones, Nan Orrock, Sonya Halpern, Nikki Merritt, Freddie Sims, Michael Rhett, Kenya Wicks, Gail Davenport, David Lucas, Nabilah Islam Parkes, Ed Harbison, Tonya Anderson, Josh McLaurin, Derek Mallow, RaShaun Kemp
- Official page: https://www.legis.ga.gov/legislation/69755
> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb67.md?full=1