Income tax; credit equal to 10 percent of the federal child tax credit; provide
Impact
If passed, HB 98 will have a significant impact on state tax law by providing taxpayers a financial incentive that directly correlates with the federal child tax credit. This change is expected to increase the disposable income of families eligible for the federal credit, promoting economic activity as families may potentially spend additional funds on necessities or savings. The bill's applicability begins on January 1, 2025, and is set to be effective by July 1, 2025, illustrating a forward-looking approach in tax policy during that period.
Summary
House Bill 98 proposes an amendment to Chapter 7 of Title 48 of the Official Code of Georgia Annotated, which relates to income taxes. The bill introduces a state income tax credit equivalent to 10 percent of the federal child tax credit available to taxpayers. This provision aims to alleviate the financial burden on families by allowing them to benefit from both federal and state tax credits. The introduction of such a state-level credit highlights Georgia's commitment to supporting families and boosting overall economic welfare within the state.
Contention
Notable points of contention surrounding HB 98 may arise regarding the fiscal implications of implementing this tax credit on state revenue. Critics may argue that while tax credits can benefit families, they also reduce the overall tax base, which could lead to budgetary constraints for state services. Conversely, proponents argue that the projected increase in family spending may stimulate local economies and generate additional tax revenue to offset the credits offered. The discussions surrounding this bill reflect ongoing debates about the balance between tax relief for families and the state's fiscal responsibilities.