Georgia's Tax Conformity Bill Heads to Governor's Desk: What CPAs Need to Know

On March 25, 2025, the Georgia Senate passed House Bill 290, a much anticipated tax conformity bill, sending it to Governor Brian Kemp’s desk for final approval. This legislation updates Georgia’s tax code to align with federal tax provisions as of January 1, 2025, ensuring consistency between state and federal tax filings for the 2024 tax year.

Why HB 290 Matters to CPAs and Their Clients 

Tax conformity bills like HB 290 are vital for Certified Public Accountants (CPAs) and taxpayers because they determine whether Georgia will adopt recent changes to the Internal Revenue Code (IRC). The bill: 

  • Simplifies Tax Preparation – CPAs can use federal tax return calculations as a baseline, reducing the need for complex state-specific adjustments. 
  • Avoids Conflicting Tax Treatments – Aligning Georgia’s tax code with federal law prevents discrepancies that could cause confusion or increase audit risks. 
  • Ensures Business and Individual Tax Compliance – Taxpayers benefit from streamlined compliance when state and federal rules match, minimizing unexpected liabilities. 

Key Provisions of HB 290 

  • Updates the definitions of “Internal Revenue Code” and “Internal Revenue Code of 1986” to incorporate changes made in federal law through January 1, 2025. 
  • Applies to taxable years beginning on or after January 1, 2024, ensuring the updates impact current tax filings. 
  • Maintains Georgia-specific exceptions, meaning that while most federal tax provisions are adopted, certain federal deductions and credits will not apply at the state level. 

Impact on 2024 Tax Filings 

CPAs working on 2024 tax returns need to consider the following: 

  • Timing for Tax Returns – Once signed into law, HB 290’s changes apply retroactively to January 1, 2024.  
  • Deduction and Credit Adjustments – While the bill aligns with most federal tax laws, CPAs must review Georgia-specific exclusions to ensure clients do not mistakenly apply disallowed deductions. 
  • Business Tax Planning – Businesses that took advantage of new federal tax incentives in 2024 must verify whether those benefits extend to their Georgia state taxes. 

Next Steps 

Once signed by the Governor, HB 290 will take immediate effect. CPAs should stay informed on implementation guidance from the Georgia Department of Revenue and be prepared to adjust tax strategies accordingly. 

For CPAs in Georgia, HB 290 is a major win—providing clarity, reducing compliance burdens, and helping clients navigate the 2024 tax season with confidence. 

Thank you to Chairman John Carson the House bill sponsor of HB 290, and Chairman John Albers who was the Senate sponsor of this piece of legislation. 

For more on legislation and representation or to locate your local representatives, visit www.gscpa.org. If you have any questions on this issue, contact Don Cook, vice president, legislative affairs at 404-877-2154 (mobile) or dcook@gscpa.org.