Bill boosting income tax credit for Class III railroads clears Georgia Legislature

A bill authored by state Rep. Leesa Hagan to raise and extend Georgia’s income tax credit for Class III railroads has received final passage in both the House and Senate, according to the Georgia State House.

It achieved approval in both chambers as of Tuesday, March 31, with a 139-26 vote in the House and a 44-3 tally in the Senate.

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

Here is a summary, based on the actual bill text, with explanations to clarify the policy.

The legislation raises the available income tax credit for qualified track maintenance by Class III railroads in Georgia from $3,500 to $5,000 per mile for owned or leased track and prolongs the credit’s duration for tax years starting on or after Jan. 1, 2019, through Dec. 30, 2031. It also offers a three-year carryforward for unused credits and lets each credit be transferred once to another state income taxpayer between Jan. 1, 2019, and Jan. 1, 2032. Annual reports on credit utilization continue, and the sunset provision is postponed until Jan. 1, 2032.

Of the House, 47 Democrats joined 92 Republicans in support, while 21 Democrats and five Republicans voted against.

For the Senate, 16 Democrats and 28 Republicans favored the bill; three Republicans opposed it.

Co-sponsors included Rep. Brent Cox (Republican-28th), Rep. Gerald Greene (Republican-154th), Rep. Rick Jasperse (Republican-11th), and two additional representatives.

Hagan earned a BS from the University of Georgia in 1995.

A Republican, Hagan was first elected to represent Georgia’s 156th House District in 2021, succeeding Greg Morris.

Gov. Brian Kemp vetoed the bill on Tuesday, May 12.

The legislative process in Georgia starts when a legislator, working with the Office of Legislative Counsel, drafts a bill—often on behalf of a constituent. Once introduced and filed with the Clerk of the House or Senate Secretary, it receives an initial reading and is referred to committee for in-depth discussion. If it passes committee, the measure moves to a final reading, debate, and a chamber-wide vote. Both chambers must approve identical versions, possibly through a conference committee, before the bill moves to the governor. During session, the governor has six days—or 40 days after adjournment—either to sign, veto, or let the bill become law without action. The General Assembly’s 40-day session begins annually on the second Monday in January.

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