2026 Legislative Days 15-18

On February 12, the Senate passed several measures aimed at restructuring Georgia’s income tax system.  SB 476 cuts the income tax rate to 4.99%, dramatically increases the standard deduction, and eliminates nearly all tax credits no later than 2032.  The legislation eliminates the following bank-related incentives: 

• Dollar-for-dollar income tax credit for depository financial institutions, 

• Credits tied to local business license taxes on banks, 

• Credits tied to special state occupation taxes on banks. 

Of particular concern for banks is the proposed repeal of the dollar-for-dollar state income tax credit for financial institutions, which could significantly affect how banks are taxed.  Georgia taxes banks differently than most businesses.  In addition to the state income tax, banks pay special state and local taxes on gross receipts known as the bank tax.  The bank tax credit exists to prevent double taxation by ensuring banks are not required to pay both.  They currently pay the greater of the bank tax or income tax.  If SB 476 passes both the House and Senate in its current form, Georgia banks could be looking at a $55 million annual increase in taxes owed to the state and local governments.  Click here to read the whitepaper, The Necessity of the Georgia Income Tax Credit for Depository Financial Institutions.  The bill now moved to the House where there will likely be differing views on how best to deliver tax relief to Georgians. 

SB 477 takes a more modest approach, reducing the income tax rate to 3.99% by 2028 and slightly increasing the standard deduction.  It does not call for the wholesale elimination of tax incentives.  Income tax reform is a priority of the Senate, and many of its members who are seeking higher office.  These measures are expected to receive less fanfare in the House, where leaders have prioritized property tax reform. 

Department of Banking Housekeeping (HB 945) Rep. Bruce Williamson, R-Monroe
Assigned to the Senate Banking and Financial Institutions Cmte on Feb-9 

This year’s legislative housekeeping package is one of the most consequential in recent memory.  The bill establishes a process to allow financial institutions to place temporary holds on transactions when they reasonably suspect financial exploitation of elderly (65+) or disabled adults.  The initial hold may last up to fifteen business days, with one additional fifteen-day extension permitted.  The financial institution must provide notice of the hold to both the account holder and any trusted contacts.  Institutions acting in good faith receive civil, criminal, and administrative immunity. 

The legislation also regulates cryptocurrency ATMs, with mandatory consumer disclosures, fee caps, and daily transaction limits.  It expands the Department’s authority over litigation financiers to increase transparency and accountability; this was part of last year’s legal reform package. 

SB 441 requires certain pooled investments to be approved by the State Depository Board. 

Stablecoin (HB 1272) Rep. Todd Jones, R-Cumming
Assigned to the House Banks and Banking Cmte on Feb-11 

This bill creates a state-level regulatory framework for payment stablecoin issuers, aligning state law with the federal GENIUS Act.  The bill requires licensure and regulation by the Department of Banking and Finance.  

These other banking measures are also active:

• Allows 9th and 10th grade students to take the financial literacy course (HB 1114)
• Modifies how the max contribution limit for higher education savings plans is set (HB 962)
• Provide for gold and silver specie as legal tender (SB 424) 

Active Measures: Taxation

Disposition of Unclaimed Property (SB 403) Sen. Kay Kirkpatrick, R—Marietta
Assigned to the House Judiciary Cmte on Feb-9 

SB 403 updates Georgia’s Unclaimed Property Act, including provisions addressing the treatment of virtual currency.  The bill makes other administrative changes, including clarifying when property is presumed abandoned, expanding holder notice requirements, adjusting publication standards, and modernizing claims processing and payment methods. 

Reduce the Income Tax Rate (HB 1001) Rep. Will Wade, R-Dawsonville
Favorably reported from the House Ways and Means Cmte on Feb-11 

HB 1001 accelerates a reduction in the state income tax rate to 4.99% effective for tax year beginning January 1, 2026.  This is one of Governor Kemp’s legislative priorities. 

Tax Credit for Individuals (HB 1000) Rep. Matthew Gambill, R-Cartersville
Considered by a House Ways and Means Subcmte on Feb-9 

HB 1000 provides a one-time tax credit for individual taxpayers who filed income tax returns for the 2024 and 2025 taxable years.  This is a key component of Governor Kemp’s final legislative package. 

Municipal Election Schedule (SB 422) Sen. Tim Bearden, R-Carrollton
Pending in the Senate Ethics Cmte 

SB 422 requires most municipal elections to occur in even-numbered years.  It provides a one-year extension to the terms of office of most municipal officers for the transition of municipalities into even-numbered year election cycles.