February 27, 2026 – Issue 07

The march to Crossover Day continues as the General Assembly worked through three packed days of floor debate, committee meetings and check-ins with visitors to the Gold Dome. After the Governor revised the revenue estimate for the Amended FY 2026 budget, the House and Senate agreed to the conference committee report, funding top priorities for the Governor, House and Senate leadership alike. Next week, there are two committee workdays and two session days leading up to a Friday Crossover Day on Fri., March 6. Keep reading to see what made our radar this week and make sure you read all the way to the bottom to share in some exciting government relations news!

Last Call for Feedback

This is our last attempt at collecting industry feedback about your concerns or support surrounding the elimination of the tax credits as written in SB 476, please click here share your feedback related to the potential elimination of the tax credits through this form. As a reminder, SB 476 – “Income Tax Reduction Act of 2026” would do the following if passed:

• Substantially increases the standard deduction.
• Decouples personal and corporate income tax rates, reduces rates to 4.99%.
• Eliminates several tax credits and exemptions, including certain data center and technology sales tax exemptions. All remaining incentives would sunset by 2032 and would require new legislative action for reauthorization.
  
  

SB 476: Impact on Tax Incentives
The following incentives are proposed for termination this year:

• Low Income Housing Tax Incentive
• PPE Manufacturing Tax Incentive
• Tax incentive for manufacturers of medical equipment and pharmaceuticals
• Headquarters Credit
• Investment Tax Credit
• Port Tax Incentive
• Cigarette Manufacturing Credit
• Computer Sales and Use Tax Exemption
• High Tech Data Center Sales and Use Tax Exemption
• Yacht Tax Incentive
• Tax incentives for teleworking
• Tax incentives for financial institutions
• Tax incentives for insurance premiums
• Alternative fuel vehicle tax incentive
• Sales and use tax exemption for natural gas used directly in the manufacture of electricity
  
  

2026 Cobb Chamber GAC Day at the Capitol

On Tuesday, Feb. 24th, the Cobb Chamber Government Affairs Committee (GAC) descended to the Capitol for our second annual GAC Day at the State Capitol. Led by GAC Chair Ashley Jenkins, 30 members of the GAC met under the Gold Dome and had the opportunity to interact with multiple members of the General Assembly including Rep. Devan Seabaugh, Governor Kemp’s Floor Leader; Rep. David Wilkerson, Cobb Legislative Delegation Chair; Rep. John Carson, House Retirement Committee Chairman; and Rep. Lisa Campbell. Additionally, Scott Johnson, GAC member and chair of the Governor’s Council on Literacy, gave an update on HB 1193, Speaker Burns’ legislation addressing literacy rates in Georgia, which passed the House during our visit.

In addition to hearing from our lawmakers, the Cobb Chamber GAC was honored with a Morning Order in the House Chamber by Rep. Devan Seabaugh, and a point of personal privilege in the Senate by Chairwoman of the Senate Children and Families Committee, Kay Kirkpatrick. Both of those orders can be viewed at the following links: House Morning Order – Senate Point of Personal Privilege.

Thank you to our lawmakers for taking the time out of their busy schedules to spend time with our group and thank you to the Cobb Chamber GAC members for their participation and representation of the Cobb County business community.

One Down, One to Go – Budget on the Move

Wednesday, the House and Senate agreed to the conference committee report for the Amended FY 2026 Budget. The Governor dipped into the state’s reserves by adding almost $1.4 billion to help support the House addition of the Homeowner Tax Relief Grant Program; the Senate addition of the design and construction of Georgia Regional Hospital Atlanta, which is a new 300-bed forensic mental health facility.

The governor’s revised revenue estimate for the Amended FY 2026 budget includes $4.5 billion in unrestricted surplus funds and $145 million in lottery surplus for a total infusion of $5.9 billion, or an increase of 15.6% over the original FY 2026 budget.
The conference committee returned to the Governor’s position of $50 million for homelessness by directing $45 million to the State Housing Trust Fund to address homelessness through matching funds to location governments and $5 million to the Department of Veterans Service to specifically address homeless veterans.

The Amended FY 2026 budget includes $366 million to provide a $2,000 pay supplement for all K-12 teachers, administrative staff, custodians, nutrition workers, school nurses, and bus drivers. House Bill 973 also includes $17.2 million to the Department of Early Care and Learning (DECAL) to provide a $2,000 pay supplement to all teachers and assistant teachers. It also includes $325 million at the Georgia Student Finance Commission (GSFC) to provide state-matching funds for an endowment to support the needs-based DREAMS Scholarship program and to initiate scholarships.

To address future workforce needs, $17.8 million was added to the Georgia Board of Health Care Workforce for graduate medical education (GME) expansion programs in South Georgia, which supports over 103 new residency slots. Also on the workforce front, $5.6 million to design the new UGA School of Nursing and $88 million for the design and construction for the new School of Aerospace Engineering at Georgia Tech was included.

There is good news for our Cobb County Sheriff as $243,750 in additional funding was allocated for the jail-based restoration program at the Cobb County Jail, which has served 132 patients from over 30 counties since its opening in January 2023.

Several items that the Cobb Chamber has advocated for in the Georgia Department of Transportation budget were approved, including the Capital Construction program receiving almost $37 million for increased project capacity; the Local Maintenance and Improvement Grant (LMIG) program increased by $7.2 million; the Routine Maintenance program receives $21.9 million for increased maintenance costs; and the Traffic Management and Control program receives $6.8 million for increased contract and traffic signal equipment costs. In addition to the mid-year adjustment to match actual expenditures of the LMIG, the Amended FY 2026 budget includes an infusion of $250 million in the Local Road Assistance Administration program, which does not require a local match. 

For a complete look at the final decisions made by the House and Senate Conference Committee on HB 973, click here.

LEGISLATION ON THE MOVE

Governor Brian Kemp’s Income Tax Reduction Passed in the House

As a part of the Governor’s commitment to putting more money in the pockets of Georgia residents, HB 1001 carried by Rep. Will Wade, one of Governor Kemp’s floor leaders, reduces the state personal income tax rate from 5.19 percent to 4.99 percent.  The bill passed the House on Wednesday, Feb. 25 by a vote of 106-66. HB 1001 now moves to the Senate Finance Committee for consideration.

Speaker Burns’ Literacy Legislation Passes the House

One of the top priorities of House Speaker Jon Burns, championed by his wife, Dayle, to improve literacy rates in the state, passed the House this week. HB 1193, by Rep. Chris Erwin and known as the Georgia Early Literacy Act of 2026, would require all children to attend kindergarten before entering first grade; establish Quality Based Education (QBE) funding for school-based literacy coaches in K-3 public schools; and implement first-grade readiness assessments. It would also create the Georgia Literacy Task Force to provide recommendations to the State Board of Education and enhance funding for literacy coaching. Finally, it creates the Georgia Literacy Coordinating Committee to oversee statewide literacy programs.

HB 1193 passed by a vote of 170-2 and is under consideration by the Senate Education and Youth Committee, chaired by Sen. Bill Hickman who has introduced a companion bill, SB 459, also called the Georgia Early Literacy Act of 2026.

Hellos and Goodbyes Continue…

After yet another special election, the Senate’s 55th member was sworn into office this week. Senator Steven McNeel, who has strong ties to Cobb County, won the special election runoff to fill the Senate District 18 seat of John Kennedy, who resigned in December to focus on his run for higher office. Just around the corner, the special election to fill the northwest Georgia Senate seat vacated by Colton Moore will be held March 10. 

After 30 years serving in the state House, Rep. Lynn Smith announced she would not be seeking reelection. Last week Speaker Pro Tempore Jan Jones (R-Milton) announced she would not be seeking reelection. Additional legislator retirements could be announced during next week’s qualifying period which runs Monday, March 2 – Friday, March 6.

Speaker Burns’ Insurance Reform Package

At a press conference last week, the Speaker, joined by Insurance & Fire Safety Commissioner John King, Rep. Matt Reeves, and other members of the House, announced major insurance reform bills including HB 1344 and HB 1274 by Rep. Matt Reeves, and HB 1262 and HB 1263 by Rep. Eddie Lumsden. All four pieces of legislation are a result of the Speaker’s Blue Ribbon Study Committee on Insurance Rates, which met during the interim in 2025.

Each of the following pieces of legislation saw movement this week in the House with each measure passing with an overwhelming majority and now await Senate action.

HB 1344 by Rep. Matt Reeves
Legislation known as the Georgia Insurance Affordability and Claims Integrity Act, aims to enhance consumer protection and streamline insurance regulations in Georgia by strengthening the authority of the Commissioner of Insurance and clarifying various insurance-related laws.
PASSED out of the House (166-3)

HB 1274 by Rep. Matt Reeves
Legislation known as the "Auto Insurance Excess Profits Act," establishes a mechanism for the Department of Insurance to regulate profits made by insurers selling private passenger automobile insurance in Georgia.
PASSED out of the House (169-1)

HB 1262 by Rep. Eddie Lumsden
Legislation which increases the maximum monetary penalties that the Commissioner of Insurance can impose for certain violations of Georgia's insurance laws.
PASSED out of the House (170-1)

HB 1263 by Rep. Eddie Lumsden
Legislation which amends existing Georgia law concerning insurance fees and taxes, specifically by adding a provision that allows insurance companies to claim a refund for any fees or taxes mistakenly or illegally paid to the Commissioner within three years of the payment date.
PASSED out of the House (169-0)

New Legislation of Interest

The following pieces of legislation dropped this past week that are of interest to the Chamber in relation to our State Legislative Agenda. As always, please feel free to view the legislation we are tracking each week at the Gold Dome by visiting our Relevant Legislation Tracker page on our website.

HB 1416 by Rep. Mitchell Horner
Legislation which amends Georgia's income tax laws to exclude tips from state taxation. Employers will be required to report the total amount of tips received by their employees to the state's Department of Revenue, with specific reporting deadlines and formats outlined, starting with annual reporting for the 2026 tax year and transitioning to monthly or quarterly reporting thereafter.
Assigned to the House Ways and Means Committee

HB 1442 by Rep. Dale Washburn
Legislation which clarifies that local governments in Georgia cannot apply temporary bans, known as moratoria, on issuing permits or making zoning decisions to properties if the local government itself, or an official with the authority to represent it, has already given written approval or support for a specific development on that property, or if the local government has already issued permits for that property's development that are unrelated to the issues covered by the moratorium.
Assigned to the House Governmental Affairs Committee

HB 1448 by Rep. Victor Anderson
Legislation which establishes the Georgia Local Government Finance Authority (GLGFA) to assist local governments finance necessary assets like vehicles and equipment at potentially lower costs. The GLGFA will be a public body, separate from state government, governed by five members appointed by the Governor, the President of the Senate, and the Speaker of the House, all of whom must be elected local government officials. The Authority has broad powers to enter into contracts, issue bonds (which are forms of debt like revenue bonds, notes, and certificates), and manage the financing and leasing of assets for participating local governments.
Assigned to the House Governmental Affairs Committee

SB 553 by Sen. Bo Hatchett
Legislation which establishes the State Construction Industry Licensing Board, which will oversee five specialized divisions: Electrical Contractors, Master Plumbers and Journeyman Plumbers, Conditioned Air Contractors, Low Voltage Contractors, and Utility Contractors. Each division will be responsible for setting licensing or certification requirements, including experience, education, and examinations, for professionals in their respective fields.
Assigned to the Senate Regulated Industries and Utilities Committee

SB 554 by Sen. Chuck Payne
Legislation which establishes the Georgia Child Care Facilities Program, a grant program administered by the Department of Early Care and Learning (DECAL) to expand access to licensed child care learning centers and family child care learning homes, particularly in rural areas. The program aims to provide capital for repairs, renovations, and expansion of these facilities, thereby improving economic and social conditions.
Assigned to the Senate Education and Youth Committee

SB 571 by Sen. Shawn Still
Legislation which requires commercial entities that host or operate websites containing a substantial portion of online gambling content, which includes sports betting, prediction market trading, and casino-style games like slot machines and card games, to implement reasonable age verification methods to ensure individuals accessing this content are at least 18 years old.
Assigned to the Senate Children and Families Committee

SB 573 by Sen. Ed Setzler
Legislation which amends Georgia law to establish nonpartisan elections for certain county officers and district attorneys in specific counties, meaning candidates will not run under a political party affiliation. Specifically, it designates counties where the governing authority appoints a medical examiner instead of electing a coroner as "medical examiner counties," and mandates that most elected county officials in these areas, as well as district attorneys for judicial circuits composed solely of such counties, will be elected in nonpartisan elections.
Assigned to the Senate Ethics Committee

SB 579 by Sen. Marty Harbin
Legislation titled the "Government Serves the People Act” aims to improve how state government agencies deliver services to the public. It establishes a new position, the State of Georgia Government Service Delivery Lead, within the Georgia Technology Authority, who will be responsible for coordinating efforts across all state agencies to enhance service delivery by developing government-wide standards and policies for services, focusing on understanding citizen needs, gathering feedback, assessing processes for ease and efficiency, and encouraging the use of technology to improve customer satisfaction.
Assigned to the Senate Government Oversight Committee

Next Week at the Capitol

Mon., Mar. 2 – Legislative Committee Workday
Tues., Mar. 3 – Legislative Day 26
Wed., Mar. 4 – Legislative Day 27
Thurs., Mar. 5 – Legislative Committee Workday
Fri., Mar. 6 – Legislative Day 28 (Crossover Day!)

Federal Update

The partial government shutdown continues as negotiations remain stalled with U.S. Senate Democrats. No resolution is imminent, and predictions suggest the shutdown could last into late March or beyond. As a reminder, this only affects the Department of Homeland Security; all other federal agencies and departments are fully funded and operating normally. However, the department and its major components continue to operate because they are deemed essential for national security, public safety, or are funded by fees and other sources. Essential employees often work without immediate pay with retroactive pay expected once resolved, while some non-essential activities are curtailed or suspended. It includes:

• U.S. Customs and Border Protection (CBP)
• U.S. Immigration and Customs Enforcement (ICE)
• Transportation Security Administration (TSA)
• Federal Emergency Management Agency (FEMA)
• U.S. Secret Service
• U.S. Coast Guard
• Cybersecurity and Infrastructure Security Agency (CISA)
  
  

Point of Personal Privilege

We are excited to share more baby news in the government relations world! On Saturday, Feb. 21, Kennesaw State University Vice President of Government Relations Casey Tanner and her husband welcomed Callan James to the Cobb Chamber GAC Family! Everyone is at home and doing well. We cannot wait to meet him, Casey!

If you have any questions about the Cobb Chamber Government Affairs Committee, the Cobb Chamber legislative priorities or advocacy in general, please reach out to Amanda Seals, Executive Vice President of Advocacy and Government Relations, or Coleman Loftin, Senior Manager, Government Affairs and Advocacy.