Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law

2025-2026 Regular Session Introduced by Shaw Blackmon and 4 co-sponsors

House Bill 290 updates Georgia's tax code to align with federal law, impacting taxpayers and tax professionals by revising definitions and excluding specific provisions.

Effective Date

Purpose and Intent

House Bill 290 aims to amend the revenue and taxation laws in Georgia by revising the definitions of the "Internal Revenue Code" and the "Internal Revenue Code of 1986." The bill seeks to incorporate certain provisions of federal tax law into Georgia law, ensuring that state tax regulations align with federal standards while excluding specific sections of the federal code.

Key Provisions

Definition Revision: The bill modifies the definition of the "Internal Revenue Code" to include provisions enacted by federal law up to January 1, 2024, for taxable years beginning on or after January 1, 2024.

Exclusions: Several sections of the Internal Revenue Code are explicitly excluded from Georgia law, including:

Sections 108(i), 163(e)(5)(F), 168(b)(3)(I), among others.
Specific provisions from federal laws such as the CARES Act and the American Rescue Plan Act are also excluded.

Tax Year Limitations: The bill sets specific dollar limits for Section 179 deductions for various tax years, such as:

$250,000 for tax years 2010-2013.
$500,000 for tax years beginning in 2014.
$800,000 for certain tax years, with a maximum of $2 million for tax years beginning in 2014.

Effective Date: The bill will take effect upon approval by the Governor or if it becomes law without such approval, and it will apply to all taxable years starting on or after January 1, 2024.

Affected Parties

Taxpayers: Individuals and businesses in Georgia will be impacted as the bill alters how certain federal tax provisions are applied at the state level.

Tax Professionals: Accountants and tax advisors will need to adjust their practices to comply with the new definitions and exclusions in Georgia tax law.

Procedural Timeline

Introduced: February 5, 2025

House Actions:

Passed/Adopted on March 3, 2025
Favorably reported by the House Committee on February 26, 2025

Senate Actions:

Passed/Adopted on March 25, 2025
Favorably reported by the Senate Committee on March 11, 2025

Governor's Approval: Signed into law on May 14, 2025, and designated as Act 370.

Conclusion

House Bill 290 represents a significant update to Georgia's tax code, aligning it more closely with federal tax law while maintaining specific exclusions. This legislation is designed to simplify tax compliance for Georgia taxpayers and ensure that state tax regulations reflect current federal standards.

Bill