Georgians can expect massive tax relief going forward now that Gov. Brian Kemp has signed into law a series of tax bills to reduce the burden on taxpayers. The tax relief from Georgia includes bills reducing income tax rates (individual and corporate), raising the child tax credit and more. The tax relief bills that the governor signed into law are for both individuals and businesses.
Massive tax relief from Georgia
On Thursday, Gov. Kemp signed into law a total of five bills that aim to offer tax relief to residents. All five bills received overwhelming support from Republicans and the majority of Democrats, reflecting the importance of providing tax relief from Georgia.
“That is thanks to our responsible conservative approach to budgeting that we’ll be able to sign this legislation knowing that Georgia will still be financially sound no matter what the economic forces are ahead of us in the state,” Gov. Kemp said before signing the bills on Thursday.
Among all the bills the governor signed into law, the most popular is House Bill 1015, which accelerates the largest state income tax cut in Georgia history. The rate for Tax Year 2024 will now be 5.39%, instead of 5.49% set by HB 1437. Now, the rate for Tax Year 2024 will be 36 basis points less than the Tax Year 2023 rate of 5.75%.
Also, the governor proposed reducing the rate by 0.1% each year to bring it down to 5% in the near future if state revenues hold up. The tax cut acceleration is estimated to result in savings for taxpayers of about $1.1 billion in the calendar year 2024 and about $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,” Gov. Kemp said in a press release.
Other tax relief bills signed into law
Other bills that are part of tax relief from Georgia are:
House Bill 1021
This bill increases the Georgia child tax credit to $4,000 from $3,000 for each dependent. Basically, HB1021 raises the state’s income tax dependent exemption by 33%, which results in more credit per dependent.
House Bill 1023
HB1023 reduces the corporate income tax rate to 5.39% from 5.75% for Tax Year 2024. The bill matches the corporate and individual income tax rates, furthering the state’s commitment to maintaining a business-friendly environment.
House Bill 581
HB581 allows each Georgia county to decide on providing a statewide homestead valuation freeze. The freeze puts a cap on the appreciation of property value relative to the inflation rate. Also, the bill offers a special local option sales tax for each county with regard to property tax relief.
Senate Bill 496
SB496 was the only Senate-led tax-related bill to make it to the governor’s desk. The bill extends the expiration dates of two state tax credits that work toward promoting the rehabilitation of historic homes.
