Georgia House bill by Rep. Carson updating state’s Internal Revenue Code definition passes House and Senate

Newly passed bill authored by State Rep. John Carson aims to update Georgia’s Internal Revenue Code definition and address how federal tax law changes apply to state tax purposes, according to the Georgia State House.

It passed both chambers as of Thursday, March 19, clearing the House by a vote of 163-4 and the Senate by a vote of 51-0.

The bill, introduced as HB1199 on Thursday, Feb. 5 during the 2026 regular session of the 158th General Assembly, was formally described as: ’Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill updates Georgia’s definition of “Internal Revenue Code” to adopt the federal tax code as amended through Jan. 1, 2026, for taxable years beginning on or after Jan. 1, 2026, while maintaining numerous specific exceptions and modifications to federal provisions. It preserves prior Georgia decoupling from certain federal sections, including treatment of business deductions, net operating losses, and limitations on interest and other expenses, and it specifies how selected federal public laws are to apply or be disregarded for state tax purposes. The bill takes effect upon approval and applies to tax years beginning on or after Jan. 1, 2025.

In the House, 65 Democrats and 98 Republicans voted in favor of the bill, while four Democrats opposed it.

Meanwhile, in the Senate, 20 Democrats and 31 Republicans voted in favor, with no opposing votes.

The bill was co-sponsored by Rep. Shaw Blackmon (Republican-146th) and Rep. Trey Kelley (Republican-16th), along with two other co-sponsors.

Carson graduated from Georgia State University in 1994 with a BBA.

Carson, a Republican, was first elected to the Georgia State House in 2011 to represent the state’s 46th House District.

The bill was signed into law by Gov. Brian Kemp on Friday, March 20.

In Georgia, the legislative process begins when a lawmaker, often at a constituent’s request, works with the Office of Legislative Counsel to draft a bill. After filing with the Clerk of the House or Secretary of the Senate, the bill receives its first reading and is sent to a committee, where most of the debate and fact-finding takes place. If approved, it advances to the floor for a third reading, debate, and a vote. To become law, the bill must pass both chambers, sometimes through a conference committee if versions differ, before being sent to the governor. The governor then has six days during session—or 40 days after adjournment (Sine Die)—to sign, veto, or allow the bill to become law without a signature. The Georgia General Assembly meets annually for a 40-day session beginning the second Monday in January.

Information in this article was obtained from the Georgia State House. The source data can be found here.