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

26 HB 1199/AP House Bill 1199 (AS PASSED HOUSE AND SENATE) By: Representatives Carson of the 46 th, Blackmon of the 146 th, Kelley of the 16 th, and Williamson of the 112th A BILL TO BE ENTITLED AN ACT To amend Title 48 of the Official Code of Georgia Annotated, re lating to revenue and1 taxation, so as to revise the definition of the terms "Internal Revenue Code" and "Internal2 Revenue Code of 1986" to incorporate certain provisions of the federal law into Georgia law;3 to provide for exemption of income taxes on overtime and tips; to provide for a sunset of4 such exemption; to provide for a cap on tax credits for qualified low-income buildings; to5 temporarily suspend collection of taxes on motor fuels; to prov ide for related matters; to6 provide for an effective date and applicability; to repeal conf licting laws; and for other7 purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is11 amended in Code Section 48-1-2, relating to definitions, by rev ising paragraph (14) as12 follows:13 "(14) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' means for taxable years14 beginning on or after January 1, 2024 2025, the provisions of the United States Internal15 Revenue Code of 1986, as amended, provided for in federal law e nacted on or before16 H. B. 1199 - 1 - 26 HB 1199/AP January 1, 2025 2026, except that Section 63(b)(7), Section 108(i), Section 163(e)(5)(F),17 Section 163(h)(4), Section 168(b)(3)(I), Section 168(e)(3)(B)(vii),18 Section 168(e)(3)(E)(ix), Section 168(e)(8), Section 168(k), Section 168(m),19 Section 168(n), Section 174A, Section 179(d)(1)(B)(ii), Section 179(f) Section 179(e),20 Section 199, Section 224, Section 225 Section 381(c)(20), and Section 382(d)(3),21 Section 810(b)(4), Section 1400L, Section 1400N(d)(1), Section 1400N(f),22 Section 1400N(j), Section 1400N(k), and Section 1400N(o) of the Internal Revenue Code23 of 1986, as amended, shall be treated as if they were not in effect, and except that Section24 170(p) of the Internal Revenue Code of 1986, as amended, shall be treated as they were25 in effect before the 2025 enactment of federal Public Law 119-21, and except that Section26 168(e)(7), Section 172(b)(1)(F), and Section 172(i)(1) of the Internal Revenue Code of27 1986, as amended, shall be treated as they were in effect befor e the 2008 enactment of28 federal Public Law 110-343, and except that Section 163(i)(1) o f the Internal Revenue29 Code of 1986, as amended, shall be treated as it was in effect before the 2009 enactment30 of federal Public Law 111-5, and except that Section 13(e)(4) of 2009 federal Public Law31 111-92 shall be treated as if it was not in effect, and except that Section 118, Section32 163(j), Section 382(k)(1), and Section 174 of the Internal Reve nue Code of 1986, as33 amended, shall be treated as they were in effect before the 201 7 enactment of federal34 Public Law 115-97; provided, however, that all provisions in federal Public Law 117-5835 (Infrastructure Investment and Jobs Act) that change or affect in any manner Section 11836 shall be treated as if they were in effect, and except that all provisions in federal Public37 Law 116-136 (CARES Act) that change or affect in any manner Section 172 and Section38 461(l) shall be treated as if they were not in effect, and exce pt that all provisions in39 federal Public Law 117-2 (American Rescue Plan Act of 2021) that change or affect in40 any manner Section 461(l) shall be treated as if they were not in effect, and except that41 the limitations provided in Section 179(b)(1) shall be $250,000.00 for tax years beginning42 in 2010, shall be $250,000.00 for tax years beginning in 2011, shall be $250,000.00 for43 H. B. 1199 - 2 - 26 HB 1199/AP tax years beginning in 2012, shall be $250,000.00 for tax years beginning in 2013, and44 shall be $500,000.00 for tax years beginning in 2014, and excep t that the limitations45 provided in Section 179(b)(2) shall be $800,000.00 for tax years beginning in 2010, shall46 be $800,000.00 for tax years beginning in 2011, shall be $800,0 00.00 for tax years47 beginning in 2012, shall be $800,000.00 for tax years beginning in 2013, and shall be $248 million for tax years beginning in 2014, and provided that Section 1106 of federal Public49 Law 112-95 as amended by federal Public Law 113-243 shall be tr eated as if it is in50 effect, except the phrase 'Code Section 48-2-35 (or, if later, November 15, 2015)' shall51 be substituted for the phrase 'section 6511(a) of such Code (or, if later, April 15, 2015),'52 and notwithstanding any other provision in this title, no interest shall be refunded with53 respect to any claim for refund filed pursuant to Section 1106 of federal Public Law54 112-95, and provided that subsection (b) of Section 3 of federal Public Law 114-292 shall55 be treated as if it is in effect, except the phrase 'Code Section 48-2-35' shall be substituted56 for the phrase 'section 6511(a) of the Internal Revenue Code of 1986' and the phrase 'such57 section' shall be substituted for the phrase 'such subsection.' In the event a reference is58 made in this title to the Internal Revenue Code or the Internal Revenue Code of 1954 as59 it existed on a specific date prior to January 1, 2025 2026, the term means the provisions60 of the Internal Revenue Code or the Internal Revenue Code of 1954 as it existed on the61 prior date. Unless otherwise provided in this title, any term used in this title shall have62 the same meaning as when used in a comparable provision or cont ext in the Internal63 Revenue Code of 1986, as amended. For taxable years beginning on or after January 1,64 2024 2025, provisions of the Internal Revenue Code of 1986, as amended, which were65 as of January 1, 2025 2026, enacted into law but not yet effective shall become effective66 for purposes of Georgia taxation on the same dates upon which they become effective for67 federal tax purposes."68 H. B. 1199 - 3 - 26 HB 1199/AP SECTION 2.69 Said title is further amended in Code Section 48-7-29.6, relating to tax credits for qualified70 low-income buildings, by adding a new paragraph to subsection (b) to read as follows:71 "(5) The aggregate annual amount of tax credits allowed pursuant to this Code section72 shall not exceed $100 million for taxable years 2026 through 2028."73 SECTION 3.74 Said title is further amended in Code Section 48-9-3, relating to levy of excise tax, rates,75 exemptions, and prohibition on tax by political subdivisions, by adding a new paragraph to76 subsection (a) to read as follows:77 "(1.2) The collection of the excise taxes provided for by paragraph (1) of this subsection78 shall be suspended for 60 days beginning on the effective date of this Act."79 SECTION 4.80 (a) This Act shall become effective upon its approval by the Governor or upon its becoming81 law without such approval and, except as otherwise provided in subsection (b) of this section,82 this Act shall be applicable to all taxable years beginning on or after January 1, 2026.83 (b) Section 1 of this Act shall be applicable to all taxable y ears beginning on or after84 January 1, 2025.85 SECTION 5.86 All laws and parts of laws in conflict with this Act are repealed.87 H. B. 1199 - 4 -