On Mar. 11, GA LEG passed bill on certain income tax credits.
GA LEG passed bill HB 1181 on income tax, limiting and reducing the carry-forward periods of certain income tax credits and providing expirations for certain credits.
Including keeping exemption of insurers of places of worship from taxes to Dec. 2029.
Bill Provisions
Provides an exemption from taxation, allocation and disbursement of proceeds collected by tag agents, fair market value of vehicle appealable, and report.
Relative to alternative ad valorem tax on motor vehicles, state sales and use tax exemptions, and excise tax imposed, rates for tobacco and vaping products.
Any unused tax credit shall be allowed taxpayer against up to 3 years' tax liability.
Excess or unused tax credit amount shall be carried forward to apply to the taxpayer's no more than three succeeding years' tax liability, cannot be applied against prior year.
Legislative History
On Feb. 7, 2024, bill was introduced in House; on Feb. 27, 2024, bill passed House.
On Feb. 29, 2024, bill was introduced in Senate; on Mar. 11, 2024, bill passed Senate.
Effectiveness
Act becomes effective on Jan. 1, 2025; part I is applicable only to unused tax credits generated during the taxable years beginning on or after Jan. 1, 2025.
May 2024 GA LEG Reported Signed
On May 6, 2024, GA LEG reported the governor signed HB 1181 as Act 598.
Based on governor's approval, Act 598 is effective Jan. 1, 2025, with Part I only applicable to unused tax credits generated during tax years beginning Jan. 1, 2025.
