This browser does not support the Video element.
Tax credit cuts proposed to fund $3B income tax gap
Senate Bill 476, the "Income Tax Reduction Act of 2026," is a sweeping legislative effort to eliminate state income taxes for approximately two-thirds of Georgians. The bill passed the Georgia Senate, largely along party lines.
ATLANTA - The Georgia Senate passed a sweeping Republican-backed measure Thursday that would eliminate state income taxes for two-thirds of Georgians, sending the bill to the House following a day of heated floor debate.
SB 476 passes Georgia Senate
What we know:
Senate Bill 476 passed primarily along party lines, though one Democrat crossed over to vote with the Republican majority. Under the proposed legislation, state income taxes would be completely eliminated in the first year for individuals earning $50,000 or less and families making $100,000 or less. Families earning above those thresholds would see an estimated $5,200 in annual savings.
Sen. Jason Anavitarte (R-Dallas) advocates for the passage of SB 476 to help hardworking Georgians afford gas and groceries at the State Capitol on Feb. 12, 2026. (FOX 5 Atlanta)
To offset the loss in state revenue, Republicans plan to roll back 29 corporate and COVID-era tax credits and exemptions.
‘Senate Bill 476 provides direct and actual relief for Georgia families’
What Republicans are Saying:
The bill’s sponsor, Sen. Blake Tillery, R-Vidalia, argued the measure is a necessary response to rising costs of living.
"Senate Bill 476 provides direct and actual relief for Georgia families," Tillery said. "Let's use the fact that we've been the most attractive state, use that as an ability to reduce the income tax rate for those Georgians, hardworking Georgians who are filling those jobs. They're calling on us. They're telling us that they're having a hard time paying for gas, groceries, and child care. And if we don't listen to them, why are we here?"
Sen. Blake Tillery (R-Vidalia) holds a press conference to explain how SB 476 provides direct relief to Georgia families at the State Capitol on Feb. 12, 2026. (FOX 5 Atlanta)
‘This bill wipes out nearly every tax credit’
What Democrats are Saying:
Democrats warned the plan would "blow a hole" in the state budget, potentially triggering future tax hikes and job losses.
This browser does not support the Video element.
Georgia Senate debates plan to eliminate income tax for families under $100K
A Fulton County jury has found Randy King guilty on all counts for the 2023 shooting death of Harrison Olvey. The verdict, delivered Thursday morning following brief deliberations, holds King responsible for the murder of the 25-year-old valet outside a Buckhead nightclub. Prosecutors proved that Olvey was gunned down while heroically attempting to stop King and others from breaking into a vehicle. King, who was turned in by his own family after the incident, is scheduled to be sentenced at 1:30 p.m. Thursday.
Critics of the bill argued that the removal of those credits would dismantle essential incentives for the state's infrastructure and workforce.
"This bill wipes out nearly every tax credit that keeps Georgia's economy running," one lawmaker argued during the debate. "Affordable housing credits gutted. Rural hospital credits gutted. Child care credits gone. Veterans and law enforcement credits gone."
Sen. Nikki Merritt (D-Grayson) debates against the tax measure because she believes it is a plan working families will ultimately pay for at the State Capitol on Feb. 12, 2026. (FOX 5 Atlanta)
Sen. Nikki Merritt, D-Grayson, echoed those concerns, suggesting the long-term costs would fall on the very people the bill claims to help.
"It will devastate our economy. It's not a plan for working families. It's a plan working families will pay for," Merritt said.
The Georgia State Capitol on Feb. 12, 2026. (FOX 5 Atlanta)
Affordability push in Georgia House
What's next:
The legislation now moves to the House for consideration. It enters a chamber where House Republicans are already prioritizing their own tax relief measures, including a separate bill focused on property tax relief.
The Source: