Bill > HB266

This bill makes two primary changes to Georgia state tax law. First, it modifies the income tax exemption for military retirement benefits by increasing the age threshold from 62 to 65 years old and raising the maximum tax-exempt amount from $17,500 to $65,000. For married couples filing jointly, each spouse can individually claim this exemption. The bill also clarifies that individuals cannot claim this military retirement income exemption in addition to another existing income exclusion. Second, the bill expands the tax credit for contributions to law enforcement foundations by broadening the definition of qualifying foundations to include those supporting law enforcement statewide, increasing the annual aggregate tax credit limit from $75 million to $75 million (unchanged), extending the sunset date from 2027 to 2031, and expanding the types of qualified expenditures that can be funded through these contributions. The bill introduces more flexibility for how these foundations can use contributions, including funding for technology updates, community engagement, and emergency response team costs. The changes to the military retirement income exemption will take effect on January 1, 2027, while most other provisions will become effective on July 1, 2025.

Budget and Finance

https://www.legis.ga.gov/legislation/69926