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Subcommittee hears IRC-conformity bill to exclude some tips and overtime from Georgia income tax for 2027–28
Summary
House Bill 1370 would conform Georgia law to portions of the federal Internal Revenue Code by excluding certain tip income and overtime wages from Georgia taxable income for tax years 2027 and 2028; sponsors estimate a revenue loss of roughly $40–50 million per year under the thresholds discussed.
Chairman John Carson presented House Bill 1370 to a subcommittee as a follow‑up measure to earlier IRC conformity work. He said the bill would not be retroactive and would apply to tax years 2027 and 2028.
"This bill ... is kind of a second phase of the IRC conformity," Chairman John Carson said, outlining that the measure would provide an overtime exclusion of up to $2,500 for a full‑time employee and an exclusion for cash tips of up to $5,000 for Georgia income‑tax purposes. He noted that the federal thresholds used for prior conformity work were $25,000 for tips and $12,500 for overtime, and that this bill uses different Georgia thresholds for relief.
Carpenter (Chairman Carpenter) raised concerns that tip earners often make more than workers who log excessive overtime and suggested changing the relative benefits to favor overtime workers. Carson said fiscal estimates—based on extrapolations from earlier fiscal research—indicate a revenue loss in the range of $40 million to $50 million per year for 2027 and 2028 under the proposed thresholds.
A committee member asked whether gig workers who receive tips (for example, rideshare drivers) would be included; the presenter confirmed that the language covers tipped gig workers as well as restaurant employees. Several members urged careful review; Chairman Shaw Blackman and others recommended coordinating with Department of Revenue legal staff on precise bill language. The subcommittee did not adopt final action on HB 1370 at this hearing and left possible amendments for future consideration.
