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GeorgiaHB 2662025-2026 Regular SessionHouseWALLET

Income tax; exempt income received as personal compensation for full-time duty in the active military service of the United States

Sponsored By: Bethany Ballard (Republican), Josh Bonner (Republican), David Clark (Republican), Karen Mathiak (Republican), Jesse Petrea (Republican), Steven Sainz (Republican)

Signed by Governor

Ways & MeansFinanceGeneral Bill

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Military retirees under 65 get tax relief

For tax years beginning January 1, 2027, Georgia raises the military retirement exclusion’s age cutoff from 62 to 65. Eligible people under 65 can exclude up to $65,000 in retirement benefits from U.S. armed forces or reserve service. Each eligible spouse filing jointly can claim a separate exclusion of up to $65,000. This exclusion can be combined with other allowed income adjustments, but not the exclusion under Georgia Code Section 48-7-27(a)(5).

Tax credits for police donations face limits

The law creates a Georgia income tax credit for qualified donations to qualified law enforcement foundations. The program takes effect July 1, 2025, and applies to tax years beginning on or after January 1, 2026. Your annual credit cannot exceed your income tax owed; unused credits cannot cover past taxes or carry into later years. Donation amounts used as income tax deductions or exemptions cannot also earn this credit. No one can claim that a donation gives the taxpayer a direct or particular benefit in return. Foundations must spend donations only on qualified expenses and keep accurate, current spending records available to the tax commissioner. The commissioner can issue rules to run the program. Before revoking a foundation’s status, the department must send notice by certified mail and allow 90 days to fix problems. Unfixed problems require removal from the qualified list and rejection of credit preapproval applications submitted after removal. A removed foundation must stop spending program funds immediately and transfer unspent funds to a properly operating qualified foundation within 30 calendar days. Revocation can also bar renewed qualified status for at least two years.

Sponsors & Cosponsors

Sponsors

  • Bethany Ballard

    Republican • House

  • Josh Bonner

    Republican • House

  • David Clark

    Republican • House

  • Karen Mathiak

    Republican • House

  • Jesse Petrea

    Republican • House

  • Steven Sainz

    Republican • House

Cosponsors

  • Greg Dolezal

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 639 • No: 24

House vote • 4/4/2025

Agree to Senate Amend to HAm to SSub

Yes: 167 • No: 0 • Other: 3

Senate vote • 4/2/2025

AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE AS AMENDED

Yes: 52 • No: 0 • Other: 4

House vote • 3/31/2025

Agree to Senate Sub as Am

Yes: 164 • No: 0 • Other: 5

Senate vote • 3/21/2025

MOTION TO ENGROSS: HB 266, HB 426

Yes: 32 • No: 22 • Other: 1

Senate vote • 3/21/2025

PASSAGE BY SUBSTITUTE

Yes: 53 • No: 2

House vote • 3/6/2025

PASSAGE

Yes: 171 • No: 0 • Other: 2

Actions Timeline

  1. Effective Date

    7/1/2025

  2. House Date Signed by Governor

    5/13/2025House

  3. Act 181

    5/13/2025

  4. House Sent to Governor

    4/10/2025House

  5. House Agreed Senate Amend or Sub

    4/4/2025House

  6. Senate Agreed House Amend or Sub As Amended

    4/2/2025Senate

  7. House Agreed Senate Amend or Sub As Amended

    3/31/2025House

  8. Senate Engrossed

    3/21/2025Senate

  9. Senate Third Read

    3/21/2025Senate

  10. Senate Passed/Adopted By Substitute

    3/21/2025Senate

  11. Senate Read Second Time

    3/18/2025Senate

  12. Senate Committee Favorably Reported By Substitute

    3/13/2025Senate

  13. Senate Read and Referred

    3/10/2025Senate

  14. House Committee Favorably Reported By Substitute

    3/6/2025House

  15. House Third Readers

    3/6/2025House

  16. House Passed/Adopted By Substitute

    3/6/2025House

  17. House Second Readers

    2/6/2025House

  18. House First Readers

    2/5/2025House

  19. House Hopper

    2/4/2025House

Bill Text

  • HB 266/AP* (v13)

    PDF

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