Governor signs five tax bills into law

Georgians can expect major tax cuts in the future after Gov. Brian Kemp signed a series of tax bills to ease the burden on taxpayers. Georgia’s tax relief includes legislation to lower income tax rates (individual and corporate) and increase the child tax credit. The tax relief bill the Governor signed into law is for both individuals and businesses.

Georgia’s Big Tax Cut

On Thursday, Governor Kemp signed a total of five bills aimed at providing tax relief to residents. All five bills received overwhelming support from both Republican and Democratic majorities, reflecting the importance of providing tax relief to Georgia.

“It is because of our responsible, conservative approach to budgeting that I can sign this bill knowing that no matter what happens to the state’s economy, the state will still be fiscally sound,” Governor Kemp said before signing. Bill on Thursday.

Of all the bills the governor has signed into law, the most popular is House Bill 1015, which would accelerate the largest state income tax cut in Georgia history. The tax rate for tax year 2024 will now be 5.39% instead of the 5.49% set by HB 1437. The tax rate for tax year 2024 is now 36 basis points lower than the rate for tax year 2023 of 5.75%.

The governor also proposed lowering the tax rate by 0.1 percent each year, to 5 percent in the near future, if state revenues are maintained. It is estimated that accelerating tax cuts will save taxpayers about $1.1 billion in 2024 and about $3 billion over the next 10 years.

“Washington DC politicians are currently working to raise taxes on hard-working Americans, but here in Georgia, we are keeping our promise to grow the economy and opportunity for the people of our state, not the government,” Governor Kemp said in a press release. .

Other tax relief bills signed into law

Other bills that are part of Georgia tax cuts include:

House Bill 1021

The bill increases the Georgia child tax credit from $3,000 to $4,000 for each dependent. Essentially, HB1021 increases the state’s income tax dependent exemption by 33%, providing more deductions per dependent.

House Bill 1023

HB1023 reduces the corporate income tax rate from 5.75% to 5.39% for tax year 2024. This bill furthers the state’s efforts to maintain a business-friendly environment by aligning corporate and personal income tax rates.

House Bill 581

HB581 would allow each Georgia county to decide whether to provide a statewide farm assessment freeze. The freeze places a cap on property valuations relative to the rate of inflation. The bill also provides a special local option sales tax to each county for property tax relief.

Senate Bill 496

SB496 was the only Senate-led tax-related bill to reach the governor’s desk. The bill extends the expiration date of two state tax credits that work to promote rehabilitation of historic homes.