Income tax; term "small business"; revise definition

2025-2026 Regular Session Introduced by Marvin Lim

HB 1472 changes the definition of “small business” for Georgia income tax to align eligibility for small-business tax benefits with current program requirements.

House Second Readers

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Summary of HB 1472 (Georgia, 2025-26)

Purpose and intent

HB 1472 proposes revisions to the definition of “small business” as it relates to Georgia income tax. The bill’s primary aim is to adjust how small businesses are defined for tax purposes, which can influence eligibility for tax benefits, credits, or favorable tax treatment that apply to small businesses under Georgia law.

Key provisions and changes

Revised definition of “small business”: The central change is to modify the statutory definition of “small business” used in the state income tax context. While the exact statutory language is not provided here, the bill alters criteria that determine whether a business qualifies for small-business tax provisions.

Scope of applicability: The redefinition affects taxpayers who operate or file taxes as small businesses under Georgia income tax rules. This may include certain thresholds or qualifiers such as revenue, number of employees, or other criteria specified in the bill.

Consistency with existing provisions: The revision is designed to align the small-business definition with current tax incentives or exclusions that Georgia offers to qualifying small businesses, ensuring that the definition used in determining eligibility matches program requirements.

Who is affected

Taxpayers operating as small businesses in Georgia who rely on the income tax definition to qualify for associated benefits.

Businesses near eligibility thresholds: Entities on the margin of qualification could experience a change in status (qualify or lose qualification) depending on how the new definition compares to the prior one.

State tax administration: Georgia Department of Revenue will apply the revised definition in tax filings, compliance guidance, and administration of any related incentives or credits.

Procedural and timeline aspects

Introduced and read in house: The action history shows:

February 26, 2026: Hopper (first-stage consideration in the House)
March 3, 2026: House first readers
March 4, 2026: House second readers

Sponsor information: Co-sponsored by Marvin Lim, indicating some bi-partisan or party-supported support within the House.

Next steps: If advanced, the bill would move to subsequent committee review, potential amendments, and eventually votes in the House, then passed to the Senate for its consideration, subject to the legislative calendar.

Potential impact and considerations

Tax planning and compliance: Businesses eligible under the revised definition may experience changes in eligible tax benefits, potentially altering tax liabilities.

Administrative clarity: A precise, clear definition helps reduce ambiguity for taxpayers and the Georgia Department of Revenue in applying tax incentives.

Economic effects: Depending on the net effect on tax burdens for qualifying small businesses, the bill could influence business decisions, investment, and hiring if incentives are expanded or restricted.

Note: The summary reflects available bill title, purpose, and action history. For a complete understanding, the full text of HB 1472 and any fiscal notes or fiscal impact statements should be consulted.