HB1159: HB1159 Income tax; all income received by individuals, corporations, and partnerships under the Farmer Bridge Assistance Program; exempt from taxation

Some Georgia farmers received payments in 2025 from two federal programs run by the U.S. Department of Agriculture: the Farmer Bridge Assistance Program and the Assistance for Specialty Crop Farmers Program. Under current Georgia law, that income would normally count toward state taxable income if it is included in federal adjusted gross income or federal taxable income. This bill amends Georgia's income tax code (O.C.G.A. § 48-7-21, § 48-7-23, and § 48-7-27) to let individuals, corporations, S corporations, and partnerships subtract these federal farm payments from their Georgia taxable income, for tax years beginning on or after January 1, 2025. The exemption applies only to payments tied to 2025 acreage reported to the USDA by December 19, 2025 for the Bridge Assistance Program, or by March 13, 2026 for the Specialty Crop Farmers Program. The law would take effect as soon as the Governor signs it or it otherwise becomes law.

• Lets individuals subtract Farmer Bridge Assistance Program and Specialty Crop Farmers Program payments from their Georgia taxable income for 2025 tax years and later.
• Gives the same state income tax subtraction to corporations, including electing S corporations, that received these USDA payments.
• Extends the same tax subtraction to partnerships, including electing partnerships, that received these USDA payments.
• Limits the exemption to payments tied to 2025 acres reported to the USDA by set deadlines: December 19, 2025 for Bridge Assistance and March 13, 2026 for Specialty Crop Farmers.
• Sets the law to take effect immediately upon the Governor's signature or upon becoming law without his signature.

Georgia farmers, including individual farm owners, farm corporations, S corporations, and farming partnerships, who received payments in 2025 under the USDA's Farmer Bridge Assistance Program or Assistance for Specialty Crop Farmers Program.

Farmers who received these federal relief payments would owe less in Georgia state income tax on that money, since it would no longer count toward their state taxable income even though it remains part of their federal taxable income.

• Section 1 amends O.C.G.A. § 48-7-21 (corporate income tax) to subtract qualifying USDA farm payments from taxable income for electing S corporations and corporations generally.
• Section 2 amends O.C.G.A. § 48-7-23 (partnership taxation) to allow the same subtraction for electing partnerships and partnerships generally.
• Section 3 amends O.C.G.A. § 48-7-27 (computation of taxable net income) to exclude these USDA payments from individual taxable income.
• All three sections apply to tax years beginning on or after January 1, 2025 and require that qualifying 2025 acreage be reported to the USDA by December 19, 2025 (Bridge Assistance) or March 13, 2026 (Specialty Crop Farmers).
• Section 4 makes the Act effective immediately upon the Governor's approval or upon becoming law without his signature.
• Section 5 repeals any conflicting laws.

1. 2026-05-06Effective Date 2026-05-06
2. 2026-05-06Act 424
3. 2026-05-06House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-18Senate Passed/Adopted (Senate)
6. 2026-03-18Senate Third Read (Senate)
7. 2026-03-18Senate Engrossed (Senate)
8. 2026-03-16Senate Read Second Time (Senate)

• Matthew Gambill (R, HD-015)Primary sponsor
• Devan Seabaugh (R, HD-034)
• Will Wade (R, HD-009)
• Shaw Blackmon (R, HD-146)
• Bruce Williamson (R, HD-112)
• Robert Dickey (R, HD-134)
• Bo Hatchett (R, SD-050)

1. PassedHouse voteMarch 4, 2026

   170 yea, 2 nay (2 not voting, 3 absent)

   Passage: House Vote #615

2. PassedSenate voteMarch 18, 2026

   30 yea, 20 nay (3 not voting, 1 absent)

   Motion To Engross: Hb 376, Hb 1159: Senate Vote #729

3. PassedSenate voteMarch 18, 2026

   51 yea, 0 nay (2 not voting, 1 absent)

   Passage: Senate Vote #733

• income tax
• farmers
• agriculture
• tax exemption
• USDA farm payments