Bill
HB 316
House Bill 316 offers a state income tax credit of 20% of the federal earned income tax credit, aiding low- to moderate-income families in Georgia.
Bill Number: HB 316
Title: Income tax; credit equal to 20 percent of the federal earned income tax credit; provide
Status: House Second Readers
Introduced: February 06, 2025
House Bill 316 aims to amend Georgia's income tax code by introducing a new tax credit for eligible taxpayers. The primary intent of the bill is to provide financial relief to low- to moderate-income individuals and families by allowing them to receive a state income tax credit that is equivalent to 20% of the federal earned income tax credit (EITC).
Tax Credit Amount:
Taxpayers will be allowed a credit against their state income tax equal to 20% of the federal EITC they qualify for under Section 32 of the Internal Revenue Code.
Eligibility Requirements:
To qualify for this state credit, taxpayers must have received the federal EITC. The calculation for eligibility will consider any carryforward of a net operating loss that was deducted when determining eligibility for the federal credit.
Non-Refundable Credit:
If the amount of the state tax credit exceeds the taxpayer's income tax liability for the year, the excess credit will not be refunded to the taxpayer, nor can it be applied to any previous or future tax liabilities.
Regulatory Authority:
The Georgia Department of Revenue will have the authority to create rules and regulations necessary for the implementation and administration of this tax credit.
Affected Individuals:
This bill is expected to benefit low- to moderate-income taxpayers who qualify for the federal EITC, providing them with additional financial support through a state-level tax credit.
Fiscal Implications:
While the bill does not specify the total fiscal impact, it is designed to enhance the financial situation of eligible taxpayers, potentially increasing disposable income for those who qualify.
Effective Date:
The provisions of this bill will become effective on July 1, 2025, and will apply to all taxable years beginning on or after January 1, 2025.
Legislative Timeline:
House Bill 316 represents a significant step towards providing additional financial support to eligible Georgia taxpayers through a state income tax credit linked to the federal earned income tax credit. By establishing this credit, the bill aims to alleviate some of the financial burdens faced by low- to moderate-income families in Georgia.
Compiled from official sources — confirm details with the bill’s official record.
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