SB 187: State Income Tax; amount of tax credits available for qualified caregiving expenses; increase

Georgia currently allows a state income tax credit for qualified caregiving expenses, but the credit is capped at $150 or the taxpayer's tax liability, whichever is less. This bill would raise that cap to $500. The credit still cannot exceed a taxpayer's actual income tax liability for the year, unused amounts still cannot be carried forward to future years, and the credit still cannot be applied against past years' taxes. The change is made by amending O.C.G.A. § 48-7-29.2, part of Georgia's income tax law. If enacted, the higher cap would take effect July 1, 2025, and would apply to tax years beginning on or after January 1, 2025, meaning it could apply when Georgians file their 2025 state income taxes.

• Raises the maximum state income tax credit for qualified caregiving expenses from $150 to $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 portions of the credit cannot be carried forward to future tax years.
• Keeps the existing rule that the credit cannot be applied against a taxpayer's tax liability from prior years.
• Sets the change to take effect July 1, 2025, applying to tax years starting on or after January 1, 2025.

Georgia taxpayers who claim the existing state income tax credit for qualified caregiving expenses, such as people paying for care for an elderly or disabled family member, would be eligible for a larger credit under this bill.

Caregivers who already qualify for this tax credit could see their maximum benefit more than triple, from $150 to $500, lowering their state income tax bill by a larger amount starting with taxes filed for 2025, though the credit still cannot exceed what they owe.

• Section 1 amends O.C.G.A. § 48-7-29.2(c)(1), raising the caregiving expense tax credit cap from $150.00 to $500.00.
• Section 1 leaves in place the rule that the credit cannot exceed the taxpayer's income tax liability, whichever is less.
• Section 1 leaves in place the bar on carrying forward unused credit to future years or applying it to prior years' taxes.
• Section 2 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2025.
• Section 3 repeals conflicting laws, a standard technical provision.

1. 2025-02-19Senate Read and Referred (Senado)
2. 2025-02-18Senate Hopper (Senado)

• Jason Esteves (D, SD-035)Patrocinador principal
• Harold Jones (D, SD-022)
• Kim Jackson (D, SD-041)
• Elena Parent (D, SD-044)
• Nabilah Islam Parkes (D, SD-007)
• RaShaun Kemp (D, SD-038)
• Kenya Wicks (D, SD-034)
• Donzella James (D, SD-028)
• Gail Davenport (D, SD-017)
• Sally Harrell (D, SD-040)
• Nan Orrock (D, SD-036)
• Nikki Merritt (D, SD-009)
• Tonya Anderson (D, SD-043)
• Michael Rhett (D, SD-033)
• Ed Harbison (D, SD-015)
• Josh McLaurin (D, SD-014)

• income tax credits
• caregiving
• family caregivers
• state tax law