Summary: Two new Georgia laws—HB 1000 and HB 1199—are set to deliver a surplus refund, update the state’s IRC conformity, and temporarily suspend motor fuel excise tax.
Georgia Wraps Up 2026 Tax Session
Georgia’s 2026 legislative session is scheduled to end on April 2, 2026 (the 40th day in session). Ahead of the session closing, Governor Kemp signed two pieces of tax legislation, House Bill 1000 and House Bill 1199, that are set to immediately impact both individual and business taxpayers.
House Bill 1000: Surplus Tax Refund
What is does: Provides an automatic additional tax refund for qualifying taxpayers.
Who qualifies: Taxpayers who timely filed Georgia income tax returns in 2024 and 2025.
How often: This is the fourth surplus refund the state has issued in the last several years (following refunds in 2022, 2023, and 2025).
Refund amount (resident taxpayers): Qualifying resident taxpayers will receive the lesser of their 2024 Georgia income tax liability or one of the following amounts below based on the taxpayer’s 2024 filing status:
- $250 for single filers
- $375 for those filing as head of household
- $500 for married and filing jointly
How is it paid: The refund will be processed automatically after the state receives a timely filed 2025 tax return. For qualifying nonresidents and part-year residents, the refunds will be prorated.
House Bill 1199: IRC Conformity and Gas Tax Suspension
IRC conformity: Georgia updated its annual Internal Revenue Code (IRC) conformity date to January 1, 2026, for tax years beginning on or after January 1, 2025. This is an important update as it follows the enactment of the One Big Beautiful Bill (OBBB), but Georgia has decoupled from several of the OBBB provisions.
Key OBBB provisions Georgia has not adopted:
- IRC §§ 63(b)(7) and 163(h)(4): Deduction for interest related to qualified passenger vehicle loans
- IRC § 168(n): 100% bonus depreciation for qualified production property
- IRC § 170(p): Reinstating, increasing, and making permanent the charitable contribution deduction for individuals who elect to itemize
- IRC § 174A: Restores the immediate deduction for domestic research or experimental (R&E) expenses, reversing the previous five-year amortization requirement engaged by the Tax Cuts and Jobs Act (TCJA). Georgia already allows an immediate deduction of R&E expenses, both domestic and foreign, due to prior state decoupling from the Tax Cuts and Jobs Act (TCJA) IRC § 174 amortization rules.[1]
- IRC § 179(e): Election to expense qualified real property
- IRC § 224: Deduction for qualified tips
- IRC § 225: Deduction for qualified overtime compensation
Two other nonconformity items to keep in mind:
- Business interest limitation (IRC § 163(j)): Georgia previously decoupled from the TCJA changes and continues to conform to pre-TCJA to IRC § 163(j). As a result, the OBBB updates to IRC § 163(j) do not apply for Georgia income tax purposes.
- SALT deduction cap (IRC § 164): Georgia’s House Bill 1437 introduced a $10,000 limit (or $5,000 for married filing separately) on the deduction for state taxes, which took effect for tax years beginning on or after January 1, 2024.[2] Therefore, Georgia does not conform to the OBBB provision that increases the federal SALT cap deduction to $40,000 (subject to phaseout) under IRC § 164.
Other changes in HB 1199:
- Moter fuel excise tax: The collection of motor fuels excise tax imposed under O.C.G.A. § 48-9-3 has been suspended for 60 days, through 11:59 p.m. on May 19, 2026. For more information, see 2026 Suspension of Georgia Motor Fuel Taxes – FAQs.
- Low-income housing tax credit cap: For tax years 2026 to 2028, the low-income housing tax credit (LIHTC) under O.C.G.A. § 48-7-29.6 is subject to an aggregate annual cap of $100 million.
Final Thoughts: Take Action Before Filing
With Georgia’s 2026 tax legislative session nearing a close, House Bill 1000 and House Bill 1199 underscore how quickly the state tax landscape can shift, sometimes creating opportunities and added complexity. Taking a fresh look at your tax filings now can help you avoid surprises and position your 2025-2026 filings for the best outcome. In particular, taxpayers that have already filed their 2025 tax returns should review those to ensure that they are in compliance with the state’s new IRC conformity legislation or whether an amended return may be necessary.
[1] See our article entitled – Georgia’s 2023 Regular Legislative Session Ends with Several Notable Tax Bills
[2] See O.C.G.A. § 48-7-27(b)(3).
