HB 18 – FY 2023 Amended Budget 

House Bill 18 summarizes the management of more than $61.5 billion in funds, including nearly $32.6 billion in state dollars and $18.6 billion in federal funds and grants.

Georgia’s 2023 fiscal year runs through June 30. The measure now heads to Gov. Brian Kemp, a Republican, for his signature.

Big ticket line items in the budget include more than $19.3 billion for the Department of Community Health, roughly $13.5 billion for the Department of Education, $9.2 billion for the University System of Georgia Board of Regents and nearly $3.9 billion for the Department of Transportation.

Under the spending plan, the Department of Behavioral Health and Developmental Disabilities will see $1.5 billion, and the Georgia Student Finance Commission will receive $1.1 billion. Lawmakers allocated nearly $1.2 billion for the Technical College System of Georgia, more than $1.1 billion for the Department of Revenue and more than $435.5 million for the Department of Community Affairs.

It also includes $950 million for the Homeowner Tax Relief Grant program, allowing a $20,000 exemption on the assessed home value of qualifying homesteads for the tax year that started Jan. 1. 

The state House previously passed House Bill 162, which would send $1 billion in tax refunds to Georgia residents.

Under the plan, the state would send $250 rebates to single taxpayers or married taxpayers filing separately and $500 rebates to married couples filing a joint return. It would also give $375 rebates in cases of heads of households.

HB 454 – Trifecta Tax Bill - Georgia General Assembly - HB 454 (ga.gov)

The first piece of the bill (Section 1) is essentially a second conformity bill. Due to late passage of some federal tax laws, the state was behind the eight ball in terms of getting up to speed on federal law changes Georgia was going to conform to. The first conformity bill (which is on its way to the Governor’s desk for his signature) fully conforms to the feds. The second one discussed in section 1 of this bill has an exception. It excludes Georgia from conforming to any changes made by the feds that relate to section 174 (R&D tax credit).

The second part of this bill (Section 2 – 5) really deals with clean up language resulting from the passage of HB 1437 last session. As you will recall, HB 1437 was a major tax cut piece of legislation – with some unintended consequences. This bill cleans these items up. In a nutshell, it does the following:

• Puts the standard deduction back in place at a higher level (same as the exemption in last years bill) - $12,000 for individuals. 
• Gets rid of the marriage penalty – married filers will enjoy a $24,000 standard deduction. 
• Eliminates the confusion around itemizers being allowed to itemize while claiming a super high exemption.
• Simplifies the language around how the top rate will drop – starting in 2024
• Adds back in language around adding in personal exemption in the amount of $3,000 for dependents – this got lost when they moved the standard deduction to an exemption.

The third and final part, adds a defining event to the definition of “force majeure” – which means “greater force” or force of nature. This area in code gives the state the authority to award tax credits to entities during times of natural disaster – this is not a new area in code, it just adds that “pandemics” would also be a qualifying event. 

HB 412 – Pass Through Entity Tax Bill - Georgia General Assembly -  HB 412 (ga.gov)

A BILL to be entitled an Act to amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, so as to repeal a limitation on the types of partnerships that may elect to pay income taxes at the entity level; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes. 

• Changes definition of eligible partnerships for PTE election
• Allows for an annual election. Once the election is made, it is irrevocable for that tax year.  Each tax year a new election is allowed. 
• Same as HB149 in that partnership income is being taxed at the entity level. 
• No change in this law for S corps, ability for S Corps to make the election remains the same as under HB149. 
• Entity pays tax on income at the entity level at a rate of 5.75%. Partners do not recognize income on their return which was taxed at the entity level.
• Allows all partnerships to make the election. Old bill disallows the election for partnerships with owners who would not quality as S Corp owners (partnerships, C Corp, LLCs, etc.).

HB 95 – Conformity Bill - Georgia General Assembly - HB 95 (ga.gov)

B 95 amends Title 48 of the Official Code of Georgia, relating to revenue and taxation, so as to revise the terms "Internal Revenue Code" and "Internal Revenue Code of 1986" and thereby incorporate certain provisions of the federal law into Georgia law. This year's House Bill impacts the 2022 tax year and fully conforms to any of the changes made federally. The only exceptions to conformity are areas that were excluded in previous years. HB 95 has passed through both the Georgia House and Senate with unanimous approval. Next, HB 95 will head to the Governor's Desk for signing.

SB 157 – Preclearance Process in Licensing of Individuals with Criminal Records - Georgia General Assembly - SB 157 (ga.gov)

A BILL to be entitled an Act to amend Titles 20, 26, 31, 33, and 43 of the O.C.G.A., relating to professions and businesses, respectively, so as to create a preclearance process in the licensing of individuals with criminal records who make an application to or are investigated by certain licensing boards and commissions. There is language in this bill that is specific to the licensing of CPAs here in Georgia.