The bill sponsored by Rep. Matt Ramsey, a Peachtree City Republican, passed by a vote of 113-56.
Ramsey said the most important section of the bill is one that requires employers to use a federal database called E-Verify to check the immigration status of new hires.
Lawmakers who spoke in support of the bill said it is necessary because the federal government has failed to enforce the nation's immigration bill.
Many who spoke against it argued that immigration should be left to the federal government and raised concerns that the bill could harm the state's economy and reputation.
The legislation now moves on to the Senate, where a similar bill passed out of committee Wednesday.