HB 1199: 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 defines 'Internal Revenue Code' by referencing federal tax law as it existed on a specific date. This bill updates that reference date from January 1, 2025 to January 1, 2026, so Georgia's tax rules incorporate a year's worth of federal tax changes, including new federal provisions on tips, overtime pay, and certain other deductions. It also removes some older exceptions and adds new ones to the list of federal provisions Georgia treats differently. The bill caps the total amount of state tax credits available each year for low-income housing developments at $100 million for 2026 through 2028. It also suspends collection of Georgia's motor fuel excise tax for 60 days starting when the bill takes effect. The law takes effect when the Governor signs it, with the tax code definition change applying to tax years starting on or after January 1, 2025, and the rest applying to tax years starting on or after January 1, 2026.

• Updates the definition of 'Internal Revenue Code' in Georgia law (O.C.G.A. § 48-1-2) to reference federal tax law as of January 1, 2026, instead of January 1, 2025.
• Adjusts the list of federal tax code sections that Georgia treats as not in effect, removing some older exclusions and adding new ones tied to recent federal law changes.
• Caps the total amount of tax credits for qualified low-income housing buildings at $100 million per year for tax years 2026 through 2028 (O.C.G.A. § 48-7-29.6).
• Suspends collection of the state's motor fuel excise tax for 60 days starting on the bill's effective date (O.C.G.A. § 48-9-3).
• Sets the definition change to apply to tax years starting on or after January 1, 2025, while the other changes apply starting January 1, 2026.

Georgia taxpayers filing state income taxes, including workers whose federal tax treatment of tips and overtime pay changed under recent federal law; developers and investors in low-income housing projects that rely on state tax credits; and drivers and fuel retailers affected by the temporary suspension of the motor fuel tax.

By updating which version of federal tax law Georgia follows, the bill determines whether new federal tax breaks, such as those for tips and overtime, also reduce state taxes. The housing credit cap limits how much low-income housing development the state tax credit can support, and the 60-day fuel tax suspension would lower gas prices at the pump for that period.

• Section 1 revises O.C.G.A. § 48-1-2 to move Georgia's reference date for federal tax law from January 1, 2025 to January 1, 2026, and updates the list of federal code sections excluded from Georgia tax law.
• Section 1 adds new exceptions for Section 63(b)(7), Section 163(h)(4), Section 174A, Section 224, and Section 225 of the federal tax code and removes prior exceptions including Section 168(b)(3)(I) and several Section 1400N provisions.
• Section 2 adds a $100 million annual cap on tax credits for qualified low-income buildings for tax years 2026, 2027, and 2028.
• Section 3 suspends collection of the state's motor fuel excise tax for 60 days beginning on the bill's effective date.
• Section 4 makes the Act effective upon the Governor's signature, applying Section 1 to tax years starting on or after January 1, 2025, and the rest of the Act to tax years starting on or after January 1, 2026.

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

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

1. AprobadaVotación: Cámara de Representantes20 de febrero de 2026

   106 a favor, 54 en contra (8 sin votar, 9 ausentes)

   Passage: House Vote #539

2. AprobadaVotación: Senado12 de marzo de 2026

   27 a favor, 18 en contra (5 sin votar, 5 ausentes)

   Motion To Engross: Senate Vote #707

3. AprobadaVotación: Senado12 de marzo de 2026

   29 a favor, 18 en contra (3 sin votar, 5 ausentes)

   Motion To Engross: Senate Vote #708

4. AprobadaVotación: Senado12 de marzo de 2026

   31 a favor, 18 en contra (2 sin votar, 4 ausentes)

   Passage By Substitute: Senate Vote #714

5. AprobadaVotación: Cámara de Representantes18 de marzo de 2026

   163 a favor, 4 en contra (2 sin votar, 7 ausentes)

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

6. AprobadaVotación: Senado19 de marzo de 2026

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

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

• state taxes
• tax code conformity
• low-income housing tax credits
• motor fuel tax
• overtime and tips taxation