HB 112: Income tax; one-time tax credit for taxpayers who filed returns for both 2023 and 2024 taxable years; provide

House Bill 112 adds a new section to Georgia's income tax law (O.C.G.A. § 48-7-20.3) creating a one-time tax refund for individuals who filed income tax returns for both the 2023 and 2024 tax years by the applicable deadline, including extensions. It excludes nonresident aliens, estates and trusts, and most people claimed as someone else's dependent in 2023, though a dependent with earned income in 2023 can still qualify. Once a qualifying taxpayer files their 2024 return, the Georgia Department of Revenue automatically credits them with the lesser of their actual 2023 tax liability or a set amount based on filing status: $250 for single filers or married people filing separately, $375 for heads of household, and $500 for married couples filing jointly. Nonresidents and part-year residents get a prorated amount. The refund does not count as taxable income, does not earn interest, and is first applied against any debt the taxpayer owes. The law takes effect immediately once the Governor signs it.

• Creates a new one-time state income tax refund for individuals who filed returns for both the 2023 and 2024 tax years.
• Sets refund caps by filing status: $250 for single or married filing separately, $375 for head of household, and $500 for married filing jointly.
• Caps each refund at the taxpayer's actual 2023 tax liability, so no one gets more than they originally owed that year.
• Excludes nonresident aliens, estates, trusts, and most dependents, but allows dependents with 2023 earned income to still qualify.
• Requires the refund to be applied first against any outstanding debt the taxpayer owes before being paid out.
• States the refund does not count as taxable income and will not earn interest for the taxpayer.

Individual Georgia taxpayers who filed income tax returns for both the 2023 and 2024 tax years, including single filers, heads of household, and married couples. It also affects nonresidents and part-year residents with prorated amounts, and it excludes nonresident aliens, estates, trusts, and most dependents.

Eligible Georgians would receive an automatic refund of up to $500 without needing to apply, simply by filing their 2024 tax return. The size of the payment depends on filing status and 2023 tax liability, and it would be reduced if the taxpayer owes other debts to the state.

• Adds new Code Section 48-7-20.3 to Georgia's income tax law defining a 'qualified taxpayer' as someone who filed both 2023 and 2024 returns by the applicable deadline.
• Excludes nonresident aliens, estates, trusts, and most 2023 dependents, but allows dependents with 2023 earned income to qualify.
• Sets refund amounts as the lesser of the taxpayer's actual 2023 tax liability or a flat amount: $250, $375, or $500 depending on filing status.
• Requires proration of the refund for nonresidents and part-year residents based on the share of income taxed in Georgia.
• Specifies refunds are issued electronically or by check based on the taxpayer's 2024 return instructions, after first offsetting any outstanding debt.
• States the refund is not taxable income and will not accrue interest.
• Makes the refund subject to Georgia's setoff debt collection rules under Article 7 of Chapter 7.
• Sets the effective date as immediate upon the Governor's approval or the bill becoming law without signature.

1. 2025-04-15Effective Date 2025-04-15
2. 2025-04-15Act 8
3. 2025-04-15House Date Signed by Governor (Cámara de Representantes)
4. 2025-04-07House Sent to Governor (Cámara de Representantes)
5. 2025-03-20Senate Passed/Adopted (Senado)
6. 2025-03-20Senate Third Read (Senado)
7. 2025-03-20Senate Engrossed (Senado)
8. 2025-03-18Senate Read Second Time (Senado)

• Lauren McDonald (R, HD-026)Patrocinador principal
• Soo Hong (R, HD-103)
• Matthew Gambill (R, HD-015)
• Will Wade (R, HD-009)
• Alan Powell (R, HD-033)
• Shaw Blackmon (R, HD-146)
• Drew Echols (R, SD-049)

1. AprobadaVotación: Cámara de Representantes6 de marzo de 2025

   175 a favor, 0 en contra (1 sin votar, 4 ausentes)

   Passage: House Vote #197

2. AprobadaVotación: Senado20 de marzo de 2025

   32 a favor, 20 en contra (4 sin votar, 0 ausentes)

   Motion To Engross: Hb 112, Hr 42: Senate Vote #253

3. AprobadaVotación: Senado20 de marzo de 2025

   52 a favor, 0 en contra (1 sin votar, 3 ausentes)

   Passage: Senate Vote #257

• income tax refund
• Georgia tax credit
• tax filing
• state budget
• personal finance