Georgia 2025 Legislative Update: Key Tax Measures for CPAs
The 2025 session of the Georgia General Assembly brought a range of tax-related legislative developments that CPAs should note, from income tax rate reductions to procedural reforms in state tax adjudication. With the session concluding on April 4, 2025, legislation passed by both chambers awaits executive action. Governor Kemp has until May 14, 2025, to sign or veto these bills, after which they will automatically become law if left unsigned.
The General Assembly operates on a biennial schedule, meaning any bills introduced in 2025 but not yet passed remain active for consideration in 2026. Below is a detailed summary of key legislation of interest to the accounting profession.
Legislation Passed by Both Chambers
HB 111 – Accelerated Reduction of the State Income Tax Rate
This legislation advances Georgia's scheduled income tax rate reduction by dropping the rate from 5.39 percent to 5.19 percent effective for tax year 2025. The reduction applies uniformly to individual and corporate taxpayers. Under prior law, the state had already committed to annual 0.10 percent decreases until reaching a floor of 4.99 percent. HB 111 accelerates that process, signaling Georgia's continued move toward a flatter and more competitive tax structure.
HB 112 – One-Time Income Tax Credit for Individuals
This bill authorizes a one-time tax credit for Georgia residents who filed and paid state income taxes in 2023 and 2024. The rebate amounts are:
- $250 for single filers
- $375 for heads of household
- $500 for married filers
This measure resembles prior one-time rebates issued during budget surpluses and is meant to return excess revenues to taxpayers.
Takeaway: Confirm client eligibility and ensure the rebate is reflected in TY 2025 filings or planning estimates. While not taxable at the federal level, clients may inquire about timing and application.
HB 290 – Annual Internal Revenue Code (IRC) Conformity
Georgia maintains a static conformity model for IRC alignment, meaning the General Assembly must update the reference date for conformity annually. HB 290 updates Georgia's conformity date to January 1, 2024, and notably, the bill does not decouple from any federal tax changes enacted in 2023.
Takeaway: This update ensures continued alignment with recent federal legislation such as provisions of the Inflation Reduction Act and SECURE 2.0, making tax compliance and planning more straightforward. Review any federal-to-state adjustment processes used in 2023 to determine whether they are still necessary.
HB 223 – Exclusion of Certain Disaster Relief Grants from Georgia Taxable Income
This legislation exempts any payments received between 2025 and 2029 from federal disaster relief programs and the U.S. Department of Agriculture related to Hurricane Helene from Georgia income tax. This includes both individual and business recipients of relief grants.
Takeaway: Ensure proper tax treatment of disaster recovery funds for clients, especially those in agriculture, forestry, or other impacted sectors. This exclusion may reduce taxable income and affect other tax credits or deductions.
Tax Court and Procedural Legislation
SB 141 – Extended Protest and Appeal Periods for Taxpayers
SB 141 extends the statutory deadline for taxpayers to:
Protest proposed assessments or refund denials from 30 to 45 days
- Appeal final assessments to the Georgia Tax Tribunal or superior court from 30 to 45 days
- This applies to most assessments but does not affect timelines for centrally assessed property or intangible recording tax, which remain at 30 days.
Takeaway: This extra time gives taxpayers and practitioners more room to prepare thorough protests or appeals. CPAs should update internal processes and client communication timelines accordingly, particularly for clients undergoing audits or disputes.
HB 392 – Procedural Clean-Up for the Georgia Tax Court Launching in 2026
Following a constitutional amendment approved by voters in November 2024, Georgia will establish an independent Georgia Tax Court, effective July 1, 2026. HB 392 advances the petitioning start date from August 1 to July 1, 2026, and provides for automatic transfer of cases pending in the Tax Tribunal as of June 30, 2026.
The Tax Court will have full jurisdiction, including constitutional issues, and will be a judicial—not administrative—body. This is expected to enhance independence and improve appellate efficiency.
Takeaway: CPAs who support clients in tax controversy matters should familiarize themselves with the new court's procedures and jurisdiction. The automatic case transfer is helpful, but you should be prepared to advise clients on the strategic considerations of transitioning to a new forum mid-case.
Bills to Watch in 2026
HB 141 – CPA Affidavits in Lieu of Tax Returns for Local Business Tax
This bill would allow businesses to submit CPA-signed affidavits attesting to gross receipts, in lieu of providing full tax returns or financial statements when calculating municipal occupation taxes under O.C.G.A. § 48-13-14.
Takeaway: If passed, this bill would reduce administrative burdens and enhance client confidentiality when dealing with local governments. CPAs may see increased demand for affidavit services, so stay current on format and engagement requirements.
HB 559 – Data Center Sales Tax Exemption Repeal (Stalled)
HB 559 sought to sunset the state sales tax exemption for high-tech data centers at the end of 2026. A similar bill was vetoed by Governor Kemp in 2024, and this version did not receive a committee hearing.
Takeaway: While the exemption remains in place, continued legislative interest in reviewing or eliminating this benefit means clients in the tech, infrastructure, or data industries should monitor developments closely. Long-term capital investments may be affected by future changes.
Stay Informed
Lastly, for more on legislation and representation or to locate your local representatives, visit www.gscpa.org. If there are any questions on the above information, contact Don Cook, vice president, legislative affairs at 404-504-2935 or dcook@gscpa.org.