Augusta, GA ~ Augusta, GA - Governor Brian P. Kemp, along with First Lady Marty Kemp and other state and local leaders, gathered in Augusta today for a ceremony to sign HB 1015 into law. This new legislation will accelerate the largest state income tax cut in Georgia's 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, this bill builds upon HB 1437 which was passed earlier this year. HB 1437 provided for a gradual decrease of 10 basis points in the income tax rate starting in 2025.

However, with the passing of HB 1015, the reduction will now take effect sooner. The income tax rate for Tax Year 2024 will be lowered to 5.39 percent instead of the previously planned 5.49 percent. This marks a significant cut of 36 basis points from the current rate of 5.75 percent for Tax Year 2023.

According to estimates from the Office of Planning and Budget, this acceleration of the tax cut will result in approximately $1.1 billion in savings for Georgia taxpayers in calendar year 2024 alone. Over the next decade, it is projected that taxpayers will save approximately $3 billion as a result of both HB 1015 and HB 1437.

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Governor Kemp expressed his commitment to keeping Georgia's economy strong and providing opportunities for its citizens rather than increasing taxes like politicians in Washington D.C. are currently proposing.

"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 Kemp.

In addition to signing HB 1015 into law, Governor Kemp also signed four other bills - HB 581, HB 1021, HB 1023, and SB 496.

HB 1023, sponsored by Chairman Bruce Williamson and carried in the Senate by Chairman Chuck Hufstetler, lowers the corporate income tax rate from 5.75 percent to 5.39 percent for Tax Year 2024. This change aligns the corporate income tax rate with the individual income tax rate for that year, furthering Georgia's commitment to maintaining a business-friendly environment that creates jobs for its citizens.

HB 581, sponsored by Chairman Shaw Blackmon and carried in the Senate by Chairman Chuck Hufstetler, enables a constitutional amendment (HR 1022) to be decided upon which would allow counties to provide a statewide homestead valuation freeze. This would limit the appreciation of property values to the inflation rate and also provides for a special local option sales tax for counties and municipalities to provide property tax relief.

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HB 1021, sponsored by Representative Lauren Daniel and carried in the Senate by Chairman Russ Goodman, increases the state's income tax dependent exemption by 33%. This means that each taxpayer will now be allowed to deduct $4,000 per dependent instead of the current $3,000 per dependent.

Lastly, SB 496 expands the criteria for a home to be certified as historic and extends the sunsets for tax credits for rehabilitation of historic homes and structures until December 31, 2029. It also extends tax credits for rural zone revitalization until December 31, 2032. Governor Kemp expressed his gratitude towards all those who worked diligently on these bills that he was able to sign into law today.

Governor Kemp's commitment to conservative budgeting and creating a pro-growth business environment has resulted in billions of dollars being kept in the pockets of hardworking Georgians rather than being used for government bureaucracy and red tape. With these new laws in place, Georgia is poised to continue its economic growth and provide opportunities for its citizens.

Filed Under: Government, State

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