HB1199: HB1199 Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law

Georgia's tax code automatically follows the federal Internal Revenue Code, but the legislature must update the reference date each year so state and federal tax rules line up. This bill moves that reference date from January 1, 2025 to January 1, 2026, so Georgia tax law incorporates the federal tax changes enacted during that year, while continuing to exclude specific federal provisions the state has long opted out of, such as certain depreciation and net operating loss rules. The bill also caps the total tax credits available each year for building qualified low-income housing at $100 million for tax years 2026 through 2028. Separately, it suspends collection of Georgia's excise tax on motor fuels for 60 days starting when the bill takes effect. The law takes effect when signed by the Governor, applies to tax years beginning on or after January 1, 2026, except the Internal Revenue Code update itself, which applies retroactively to tax years beginning on or after January 1, 2025.

• Updates the definition of 'Internal Revenue Code' in Georgia law (O.C.G.A. § 48-1-2) to match federal tax law as enacted through January 1, 2026, instead of January 1, 2025.
• Keeps a long list of specific federal tax provisions, such as certain depreciation, loss carryback, and business interest deduction rules, treated as not in effect for Georgia tax purposes.
• Caps the total tax credits allowed each year for financing qualified low-income housing buildings (O.C.G.A. § 48-7-29.6) at $100 million for tax years 2026 through 2028.
• Suspends collection of Georgia's excise tax on motor fuels for 60 days starting on the date the bill takes effect.
• Sets the Internal Revenue Code update to apply retroactively to tax years beginning on or after January 1, 2025, while the rest of the bill applies to tax years starting in 2026.

Georgia individual and business taxpayers whose state tax liability depends on federal tax rules, developers and investors who use the low-income housing tax credit, and anyone who buys gasoline or other motor fuels in Georgia during the temporary tax suspension.

Without this annual update, Georgia's tax code would be out of sync with federal tax law, creating confusion for filers and preparers. The low-income housing credit cap limits how much financing support new affordable housing projects can receive, and the temporary fuel tax suspension would briefly lower the price of gas and diesel at the pump.

• Section 1 revises O.C.G.A. § 48-1-2 to update Georgia's Internal Revenue Code conformity date to federal law enacted on or before January 1, 2026.
• Section 1 continues to exclude specific federal provisions (including parts of Sections 168, 179, 382, and others) from Georgia tax law, keeping longstanding state decoupling from certain federal rules.
• Section 2 adds a new cap to O.C.G.A. § 48-7-29.6 limiting qualified low-income building tax credits to $100 million total per year for 2026 through 2028.
• Section 3 amends O.C.G.A. § 48-9-3 to suspend collection of the motor fuel excise tax for 60 days beginning on the bill's effective date.
• Section 4 sets the effective date as the date of the Governor's approval, with the Internal Revenue Code update applying retroactively to tax years starting January 1, 2025, and the rest of the Act applying to tax years starting January 1, 2026.

1. 2026-03-20Effective Date 2026-03-20
2. 2026-03-20Act 375
3. 2026-03-20House Date Signed by Governor (House)
4. 2026-03-20House Sent to Governor (House)
5. 2026-03-19Senate Transmitted House (Senate)
6. 2026-03-19Senate Agreed House Amend or Sub (Senate)
7. 2026-03-18House Immediately Transmitted to Senate (House)
8. 2026-03-18House Agreed Senate Amend or Sub As Amended (House)

• John Carson (R, HD-046)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Trey Kelley (R, HD-016)
• Bruce Williamson (R, HD-112)
• Chuck Hufstetler (R, SD-052)

1. PassedHouse voteFebruary 20, 2026

   106 yea, 54 nay (8 not voting, 9 absent)

   Passage: House Vote #539

2. PassedSenate voteMarch 12, 2026

   27 yea, 18 nay (5 not voting, 5 absent)

   Motion To Engross: Senate Vote #707

3. PassedSenate voteMarch 12, 2026

   29 yea, 18 nay (3 not voting, 5 absent)

   Motion To Engross: Senate Vote #708

4. PassedSenate voteMarch 12, 2026

   31 yea, 18 nay (2 not voting, 4 absent)

   Passage By Substitute: Senate Vote #714

5. PassedHouse voteMarch 18, 2026

   163 yea, 4 nay (2 not voting, 7 absent)

   Agree To Senate Sub As House Amend: House Vote #721

6. PassedSenate voteMarch 19, 2026

   51 yea, 0 nay (0 not voting, 3 absent)

   Agree To House Amendment To Senate Substitute: Senate Vote #757

• state tax law
• income tax conformity
• motor fuel taxes
• low-income housing tax credits