HB 1499: Ad valorem tax; qualified caregiving expenses; increase amount of credit

Georgia currently allows a small income tax credit for people who pay qualified caregiving expenses, but the law caps that credit at $150 or the taxpayer's tax liability, whichever is lower. This bill would rewrite that cap in Georgia's tax code (O.C.G.A. § 48-7-29.2) to raise the maximum credit to $1,500. The rest of the existing rules stay the same: the credit still cannot exceed whatever income tax the taxpayer actually owes, any unused portion of the credit cannot be carried forward to future years, and it cannot be applied against taxes owed in prior years. If enacted, the change would take effect once the Governor signs it or it becomes law without a signature, and it would apply to tax years starting on or after January 1, 2026.

• Raises the maximum state income tax credit for qualified caregiving expenses from $150 to $1,500 per taxpayer.
• Keeps the existing rule that the credit cannot exceed the taxpayer's actual income tax liability for the year.
• Keeps the existing rule that unused credit amounts cannot be carried forward to future tax years.
• Keeps the existing rule barring the credit from being applied against a taxpayer's tax liability from prior years.
• Sets the change to apply to tax years beginning on or after January 1, 2026.

Georgia taxpayers who claim the existing state income tax credit for qualified caregiving expenses, such as people paying for care of family members, would be able to claim a much larger credit against their state income tax bill starting in 2026.

Caregivers who currently get at most $150 knocked off their state income tax bill could see that maximum jump tenfold to $1,500, meaningfully reducing the tax owed by people who pay for caregiving costs, though the credit still cannot exceed what they actually owe.

• Section 1 amends subsection (c) of O.C.G.A. § 48-7-29.2 to change the tax credit cap from $150.00 to $1,500.00.
• Section 1 retains the existing limits: the credit cannot exceed the taxpayer's income tax liability, cannot be carried forward, and cannot apply to prior years' taxes.
• Section 2 sets the effective date as the date of the Governor's approval or the date the bill becomes 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 (Cámara de Representantes)
2. 2026-03-04House First Readers (Cámara de Representantes)
3. 2026-03-03House Hopper (Cámara de Representantes)

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

• tax credits
• caregiving
• property and income taxes
• family caregivers