Governor Brian P. Kemp, accompanied by First Lady Marty Kemp, Members of the General Assembly, and local and state leaders, signed HB 1015 into law this week at a ceremony in Augusta - accelerating the largest state income tax cut in Georgia history.
Sponsored by Representative Lauren McDonald and co-sponsored by Speaker Pro Tempore Jan Jones, Chairman Shaw Blackmon, Representatives Soo Hong, Will Wade and Matthew Gambill and carried in the Senate by Senator Bo Hatchett, 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 percent, rather than the 5.49 percent set by HB 1437. This will mark a cut of 36 basis points from the Tax Year 2023 rate of 5.75 percent.
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.
"Washington D.C. politicians are currently working to raise taxes on hardworking Americans, but here in Georgia we are keeping to our commitment to grow our economy and opportunity for the people of our state, not government,” said Governor Brian Kemp. “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 hardworking Georgians rather than being devoted to creating more government bureaucracy and red tape."
In addition to HB 1015, Governor Kemp also signed HB 581, HB 1021, HB 1023, and SB 496.
HB 1023, sponsored by Chairman Bruce Williamson, signed by Chairman Shaw 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 percent for Tax Year 2024 to 5.39 percent by matching the corporate income tax rate to the individual income tax rate for the corresponding year - furthering our state's commitment to maintaining a business friendly environment that creates good paying jobs throughout the state for hardworking Georgians.
HB 581, sponsored by Chairman Shaw Blackmon, Chairman Noel Williams, Chairwoman Beth Camp, signed by Rep. Clint Crowe and carried in the Senate by Chairman Chuck 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 Speaker Jon Burns, Chairman Shaw Blackmon, Chairman Bruce Williamson, Chairwoman Deborah Silcox, Rep. Scott 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 Chairman Chuck 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 December 31, 2029, and for the tax credits for rural zone revitalization to December 31, 2032. Both Rep. Ron Stephens and Rep. Penny Houston were also instrumental in SB 496.
Governor Kemp extends his appreciation to all of those whose diligent work and efforts led to him being able to sign these bills today.