Georgia House bill by Rep. Hagan increasing income tax credit for Class III railroads passes House and Senate

Newly passed bill authored by State Rep. Leesa Hagan aims to increase and extend Georgia’s income tax credit for Class III railroads, following approval in both the House and Senate, according to the Georgia State House.

It passed both chambers as of Tuesday, March 31, clearing the House by a vote of 139-26 and the Senate by a vote of 44-3.

The bill, introduced as HB1070 on Wednesday, Jan. 28 during the 2026 regular session of the 158th General Assembly, was formally described as: ’Income tax; increase and extend a credit for expenditures on maintenance of railroad track owned or leased by Class III railroads’.

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

In essence, this bill increases Georgia’s income tax credit for Class III railroads’ qualified track maintenance from $3,500 to $5,000 per mile of track owned or leased in the state and extends the credit for tax years beginning on or after Jan. 1, 2019, through Dec. 30, 2031. It allows unused credits to be carried forward for up to three years and permits each credit to be assigned once to another state income taxpayer between Jan. 1, 2019, and Jan. 1, 2032. The bill continues annual reporting on use of the credit and delays the automatic repeal of the program to Jan. 1, 2032.

In the House, 47 Democrats and 92 Republicans voted in favor of the bill, while 21 Democrats and five Republicans opposed it.

Meanwhile, in the Senate, 16 Democrats and 28 Republicans voted in favor, while three Republicans voted against it.

The bill was co-sponsored by Rep. Brent Cox (Republican-28th), Rep. Gerald Greene (Republican-154th), and Rep. Rick Jasperse (Republican-11th), along with two other co-sponsors.

Hagan graduated from the University of Georgia in 1995 with a BS.

Hagan, a Republican, was elected to the Georgia State House in 2021 to represent the state’s 156th House District, replacing previous state representative Greg Morris.

The bill was vetoed by Gov. Brian Kemp on Tuesday, May 12.

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.