HB1499: HB1499 Ad valorem tax; qualified caregiving expenses; increase amount of credit

Georgia law currently allows a tax credit for people who pay qualified caregiving expenses, but caps that credit at $150 per year (O.C.G.A. § 48-7-29.2). This bill would rewrite that cap, raising it to $1,500 or the taxpayer's income tax liability, whichever is smaller. The bill does not change any other part of the caregiving tax credit, including the rule that unused credit cannot be carried forward to future years and cannot be applied against past years' taxes. If signed, the law would take effect as soon as the Governor signs it or it becomes law without his signature, and it would apply to tax years starting on or after January 1, 2026.

• Raises the maximum caregiving expense tax credit under Georgia law (O.C.G.A. § 48-7-29.2) from $150 to $1,500 per taxpayer per year.
• Keeps the existing rule that the credit cannot exceed the taxpayer's actual income tax liability for the year.
• Leaves in place the ban on carrying unused credit forward to future tax years.
• Leaves in place the ban on applying the credit against a taxpayer's prior years' tax liability.
• Sets the change to apply to tax years beginning on or after January 1, 2026.

Georgia taxpayers who claim the state income tax credit for qualified caregiving expenses, typically people paying for care of a dependent or family member, would be able to claim a larger credit against their state income taxes.

Caregivers in Georgia who qualify for this credit could see their maximum tax benefit grow ten-fold, from $150 to $1,500, potentially lowering their state income tax bill by a larger amount starting with the 2026 tax year.

• Section 1 amends subsection (c) of O.C.G.A. § 48-7-29.2 to change the credit cap from $150.00 to $1,500.00.
• Section 1 retains the requirement that the credit cannot exceed the taxpayer's income tax liability for the year.
• Section 1 retains the bar on carrying forward unused credit and on applying the credit to prior years' tax liability.
• Section 2 sets the effective date as upon the Governor's approval or the bill becoming law without approval, applicable to tax years beginning on or after January 1, 2026.
• Section 3 repeals any conflicting laws.

1. 2026-03-06House Second Readers (House)
2. 2026-03-04House First Readers (House)
3. 2026-03-03House Hopper (House)

• Mary Ann Santos (D, HD-117)Primary sponsor
• Spencer Frye (D, HD-122)
• Arlene Beckles (D, HD-096)
• El-Mahdi Holly (D, HD-116)

• tax credits
• caregiving
• income taxes
• family caregivers