Georgia 2025-2026 Regular Session

Georgia Senate Bill SB89 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		25 LC 50 1009
2	2		Senate Bill 89
3	3		By: Senators Strickland of the 42nd, Hatchett of the 50th, Brass of the 6th, Beach of the 21st,
4	4		Rhett of the 33rd and others
5		-	AS PASSED SENATE
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
9	8		1
10	9		income taxes, so as to increase the amount of a tax credit based on the federal tax credit for2
11	10		certain child and dependent care expenses to 40 percent of such federal tax credit; to provide3
12	11		for a child income tax credit; to provide for definitions; to provide for limitations and4
13	12		proration; to provide for rules and regulations; to revise a tax credit for employers providing5
14	13		child care; to decrease the number of children who use the facility that are required to be6
15	14		children of employees to qualify for such credit; to increase the amount of the credit; to7
16	15		provide for related matters; to provide for an effective date and applicability; to repeal8
17	16		conflicting laws; and for other purposes.9
18	17		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
19	18		SECTION 1.11
20	19		Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,12
21	20		is amended by revising Code Section 48-7-29.10, relating to tax credits for qualified child13
22	21		and dependent care expenses, as follows:14
23	22		S. B. 89
24	23		- 1 - 25 LC 50 1009
25	24		"48-7-29.10.
26	25		15
27	26		(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-2016
28	27		for qualified child and dependent care expenses. Such credit shall be determined by
29	28		17
30	29		applying a percentage to The amount of such credit shall be equal to 40 percent of the18
31	30		amount of the credit provided for in Section 21 of the Internal Revenue Code which is19
32	31		claimed and allowed pursuant to the Internal Revenue Code. Such percentage shall be:20
33	32		(1) Ten percent for all taxable years beginning on or after January 1, 2006, and prior to21
34	33		January 1, 2007;22
35	34		(2) Twenty percent for all taxable years beginning on or after January 1, 2007, and prior23
36	35		to January 1, 2008; and24
37	36		(3) Thirty percent for all taxable years beginning on or after January 1, 2008.25
38	37		(b) In no event shall the total amount of the tax credit under this Code section for a taxable26
39	38		year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed27
40	39		to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax28
41	40		credit shall be allowed the taxpayer against prior years' tax liability.29
42	41		(c) The commissioner shall be authorized to promulgate any rules and regulations30
43	42		necessary to implement and administer this Code section."31
44	43		SECTION 2.32
45	44		Said chapter is further amended by adding a new Code section to read as follows:33
46	45		"48-7-29.27.34
47	46		(a) As used in this Code section, the term 'qualifying child' shall have the same meaning35
48	47		as set forth in Section 24(c) of the Internal Revenue Code, provided that such child has not36
49	48		yet attained age seven.37
50	49		(b) For taxable years beginning on or after January 1, 2025, a taxpayer shall be allowed38
51	50		a credit against the tax imposed by Code Section 48-7-20 in an amount equal to $250.0039
52	51		for each qualifying child of the taxpayer.40
53	52		S. B. 89
54	53		- 2 - 25 LC 50 1009
55	54		(c) In no event shall more than one taxpayer be allowed the tax credit granted under this41
56	55		Code section for the same qualifying child. In the case of parents or legal guardians who42
57	56		do not file income taxes jointly for any reason, the child shall be the qualifying child for43
58	57		only one parent or legal guardian, which shall be the parent or legal guardian who had44
59	58		custody of the qualifying child for more than one-half of the tax year in question; provided,45
60	59		however, that the noncustodial parent or legal guardian may claim the credit if:46
61	60		(1) A court of competent jurisdiction has unconditionally awarded, in writing, the47
62	61		noncustodial parent or legal guardian the tax credit authorized under this Code section,48
63	62		and such parent or legal guardian attaches a copy of the court order with his or her tax49
64	63		return; or50
65	64		(2) The noncustodial parent or legal guardian attaches a copy of a written declaration51
66	65		made by the custodial parent or legal guardian of a qualifying child that he or she assigns52
67	66		the credit to the noncustodial parent or legal guardian and will not claim the credit53
68	67		allowed under this Code section with respect to such child for such tax year.54
69	68		(d) Notwithstanding the provisions of subsection (b) of this Code section, in the case of55
70	69		any taxable nonresident or part-year resident whose tax was prorated as provided by Code56
71	70		Section 48-7-85, the amount of the credit determined pursuant to such subsection shall be57
72	71		prorated based on the ratio of income taxable to this state as properly reported on Schedule58
73	72		3, Line 9 of the Georgia Form 500 for the taxable year.59
74	73		(e) In no event shall the total amount of the tax credit under this Code section for a taxable60
75	74		year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed61
76	75		to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax62
77	76		credit shall be allowed the taxpayer against prior years' tax liability.63
78	77		(f) The commissioner shall be authorized to promulgate rules and regulations necessary64
79	78		to implement and administer the provisions of this Code section."65
80	79		S. B. 89
81	80		- 3 - 25 LC 50 1009
82	81		SECTION 3.
83	82		66
84	83		Said chapter is further amended by revising paragraph (6) of subsection (a) and subsections67
85	84		(b) and (c) of Code Section 48-7-40.6, relating to tax credits for employers providing child68
86	85		care, as follows:69
87	86		"(6)(A)
88	87		'Qualified child care property' means all real property and tangible personal70
89	88		property purchased or acquired on or after July 1, 1999, or which property is first71
90	89		placed in service on or after July 1, 1999, for use exclusively in the construction,72
91	90		expansion, improvement, or operation of an employer provided child care facility, but73
92	91		only if:74
93	92		(A)(i) The facility is licensed or commissioned by the Department of Early Care and75
94	93		Learning pursuant to Chapter 1A of Title 20;76
95	94		(B)(i) At least 95 75 percent of the children who use the facility are children of77
96	95		employees of:78
97	96		(i)(I) The taxpayer and other employers in the event that the child care property is79
98	97		owned jointly or severally by the taxpayer and one or more employers; or80
99	98		(ii)(II) A corporation that is a member of the taxpayer's 'affiliated group' within the81
100	99		meaning of Section 1504(a) of the Internal Revenue Code; and82
101	100		(C)(iii) The taxpayer has not previously claimed any tax credit for the cost of83
102	101		operation for such qualified child care property placed in service prior to taxable years84
103	102		beginning on or after January 1, 2000.85
104	103		(B) Such term Qualified child care property includes, but is not limited to, amounts86
105	104		expended on land acquisition, improvements, buildings, and building improvements87
106	105		and furniture, fixtures, and equipment."88
107	106		"(b) A tax credit against the tax imposed under this article shall be granted to an employer89
108	107		who provides or sponsors child care for employees. The amount of the tax credit shall be90
109	108		equal to 75 90 percent of the cost of operation to the employer less any amounts paid for91
110	109		by employees during a taxable year.92
111	110		S. B. 89
112	111		- 4 - 25 LC 50 1009
113	112		(c) The tax credit allowed under subsection (b) of this Code section shall be subject to the
114	113		93
115	114		following conditions and limitations:94
116	115		(1) Such credit shall not exceed 50
117	116		75 percent of the amount of the taxpayer's income tax95
118	117		liability for the taxable year as computed without regard to any other credits;96
119	118		(2) Any such credit claimed but not used in any taxable year may be carried forward for97
120	119		five years from the close of the taxable year in which the cost of operation was incurred;98
121	120		and99
122	121		(3) The employer shall certify to the department the names of the employees, the name100
123	122		of the child care provider, and such other information as may be required by the101
124	123		department to ensure that credits are granted only to employers who provide or sponsor102
125	124		approved child care pursuant to this Code section."103
126	125		SECTION 4.104
127	126		This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years105
128	127		beginning on or after January 1, 2025.106
129	128		SECTION 5.107
130	129		All laws and parts of laws in conflict with this Act are repealed.108
131	130		S. B. 89
132	131		- 5 -