Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law
If enacted, HB 1163 will align Georgia's tax code more closely with the federal tax framework for taxable years beginning on or after January 1, 2023. This alignment may result in changes to how certain tax benefits are calculated and applied within the state, which could impact tax revenue and compliance for both individuals and businesses. Additionally, any changes in federal law post-adoption will require careful consideration by state lawmakers to determine relevance and impact on Georgia citizens and businesses.
House Bill 1163 seeks to amend Title 48 of the Official Code of Georgia Annotated by refining the definitions of the 'Internal Revenue Code' and 'Internal Revenue Code of 1986'. This amendment aims to integrate certain provisions of existing federal law into Georgia law, setting a clearer framework for how Georgia residents and businesses will be taxed in relation to changes made at the federal level. The bill explicitly lists provisions that are either incorporated or excluded from being applied in Georgia, providing specificity in its implementation.
One of the notable points of contention surrounding HB 1163 pertains to its selective incorporation of specific provisions of federal law. Some stakeholders may argue that by excluding certain sections of the federal code, the bill could limit tax benefits available to Georgia residents and businesses that would otherwise be entitled to under federal regulations. Additionally, there could be concerns regarding consistency in tax treatment, which may lead to a divergence from federal standards depending on future developments in federal tax legislation.