HB1291: HB1291 Income tax; certain costs in providing a transportation benefit to certain employees; provide credit

This bill adds a new section to Georgia's income tax code allowing corporations to claim a tax credit for money they spend providing commuter benefits, such as transit passes, vanpool rides, or parking, to employees. Only employees who telework less than half their workdays qualify, and the benefits must match federal rules for qualified transportation fringe benefits under the federal tax code. The credit equals 35 percent of what an employer spends on these benefits, capped at $1,500 per qualifying employee per year. The credit cannot exceed the employer's total state income tax bill for that year, and any unused amount cannot be carried forward or applied to past years. The bill also directs the Georgia Department of Revenue to run a public awareness campaign about these benefits and to write rules for administering the credit.

• Creates a new state income tax credit (O.C.G.A. § 48-7-29.29) for corporations that pay for employee transportation benefits like transit passes, vanpools, or parking.
• Sets the credit at 35 percent of qualifying costs, capped at $1,500 per eligible employee per year.
• Limits eligibility to employees who telework less than 50 percent of their workdays, excluding fully remote workers from qualifying.
• Bars employers from carrying unused credit forward to future years or applying it to past tax liability.
• Requires the Department of Revenue to launch a public awareness campaign about these transportation benefits.
• Directs the department to create rules and regulations to administer the new credit.

Corporations that pay Georgia income tax and offer commuter benefits, employees who mostly work in person rather than remotely, and the Georgia Department of Revenue, which must run outreach and write implementing rules.

Employers could lower their state tax bill by helping cover employees' transit, vanpool, or parking costs, which may make commuting benefits more common. Because the credit excludes employees who mostly telework, it is aimed at encouraging or supporting in-person commuting rather than remote work.

• Section 1 adds new Code Section 48-7-29.29 defining 'covered employer,' 'qualified employee,' 'qualified transportation fringe benefit,' and 'telework.'
• Subsection (b) sets the credit at 35 percent of qualifying transportation benefit costs, capped at $1,500 per qualified employee per taxable year.
• Subsection (c) caps the credit at the employer's total income tax liability for the year and disallows carryforward or retroactive use.
• Subsection (d) requires the Department of Revenue to conduct a public awareness campaign about qualified transportation fringe benefits.
• Subsection (e) directs the department to issue rules and regulations to implement the credit.
• Section 2 repeals any conflicting laws.

1. 2026-02-17House Second Readers (House)
2. 2026-02-12House First Readers (House)
3. 2026-02-11House Hopper (House)

• Eric Gisler (D, HD-121)Primary sponsor
• Samuel Park (D, HD-107)
• Demetrius Douglas (D, HD-078)
• Gabe Okoye (D, HD-102)

• income tax credit
• commuter benefits
• transportation
• telework policy
• business taxes