Georgia updates conformity following CARES Act

Jul 02, 2020
Income & franchise tax State & local tax

On June 30, 2020, Georgia Gov. Brian Kemp signed House Bill 846, addressing conformity to the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation amends the state’s conformity to the IRC for taxable years beginning on or after Jan. 1, 2019 to March 27, 2020, the day the CARES Act was signed. However, the revised conformity excludes the CARES Act provisions related to section 172, net operating losses, and section 461(l), excess business losses.

Miscellaneous amendments

House Bill 846 also makes the following changes to the Georgia tax code:

  • Creates a $1,250 job tax credit for personal protective equipment manufacturers when qualified to claim a Georgia job tax credit
  • Allows certain businesses calculating jobs tax credits for 2020 and 2021 tax years an option to utilize the number of new full-time employee jobs claimed in 2019
  • Provides changes to how refunds are paid to taxpayers making overpayments of local sales and use taxes pursuant to a direct pay permit
  • Makes other changes to the sales and use tax direct pay permit program, including allowing interest to paid on refunds to direct pay permit holders


Georgia taxpayers should note that the updated conformity to the CARES Act applies beginning with 2019 tax years. Georgia joins a number of other states selectively conforming to the CARES Act while trying to balance budget shortfalls for fiscal year 2021. New York and Wisconsin have already provided some legislative guidance in response to COVID-19 and the CARES Act.

Businesses in every industry should consider State tax planning in response to economic distress. For more information on the coronavirus, please see RSM’s Coronavirus Resource Center which includes related and frequently updated developments.

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