Governor signs tax cut legislation into law

AUGUSTA – Gov. Brian Kemp, accompanied by First Lady Marty Kemp, members of the General Assembly, and local and state leaders, signed HB 1015, which accelerates the largest state income tax cut in Georgia history, into law at a ceremony in Augusta.

Sponsored by Rep. Lauren McDonald and co-sponsored by Speaker Pro Tempore Jan Jones, Chairman Shaw Blackmon, Reps. Soo Hong, Will Wade and Matthew Gambill and carried in the Senate by Sen. Bo Hatchett, the legislation builds upon HB 1437, which provided for a step down of 10 basis points in the income tax rate, starting in 2025.

By accelerating the reduction, the rate for Tax Year 2024 will be 5.39%, rather than the 5.49% set by HB 1437. This will mark a cut of 36 basis points from the Tax Year 2023 rate of 5.75%.

The Office of Planning and Budget estimates savings for Georgia taxpayers of approximately $1.1 billion in calendar year 2024 as a result of the tax cut acceleration and the 26 basis-points reduction provided in HB 1437, and approximately $3 billion over the next 10 years.

“As a result of conservative budgeting and our pro-growth, business friendly environment, billions of more dollars will now be kept in the pockets of hard-working Georgians rather than being devoted to creating more government bureaucracy and red tape,” Kemp said at the signing ceremony.

In addition to HB 1015, Kemp also signed HB 581, HB 1021, HB 1023, and SB 496.

HB 1023, sponsored by Chairman Bruce Williamson, signed by Blackmon, Rep. Clint Crowe, Chairwoman Deborah Silcox, Rep. Scott Hilton, Rep. David Wilkerson, and carried in the Senate by Chairman Chuck Hufstetler, lowers the corporate income tax rate from 5.75% for Tax Year 2024 to 5.39% by matching the corporate income tax rate to the individual income tax rate for the corresponding year.

HB 581, sponsored by Blackmon, Chairman Noel Williams, Chairwoman Beth Camp, signed by Crowe and carried in the Senate by Hufstetler, enables a constitutional amendment (HR 1022) to be decided to allow counties to provide a statewide homestead valuation freeze, which limits the appreciation of property values to the inflation rate. HB 581 also provides for a special local-option sales tax for counties and municipalities to provide for property tax relief.

HB 1021, sponsored by Rep. Lauren Daniel, signed by Burns, Blackmon, Williamson, Silcox and Hilton, and carried in the Senate by Chairman Russ Goodman, increases the state’s income tax dependent exemption by 33%, so that each taxpayer would be allowed to deduct $4,000 per dependent rather than the current $3,000 per dependent.

SB 496, sponsored by Chairman Max Burns, signed by Hufstetler, Chairman Frank Ginn, Chairman Chuck Payne, Chairman Rick Williams, Sen. Harold Jones II, and carried in the House by Rep. Debbie Buckner, expands the criteria for a home to be certified as historic and extends the sunsets for the tax credits for rehabilitation of historic homes and structures to Dec. 31, 2029, and for the tax credits for rural zone revitalization to Dec. 31, 2032. Both Rep. Ron Stephens and Rep. Penny Houston were also instrumental in SB 496.

Special Photo; Governor’s Office