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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)

Became Law

Ways & MeansFinanceGeneral Bill

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Bill Overview

Analyzed Economic Effects

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

Credit caps for law enforcement donations

You can claim a Georgia income tax credit for cash gifts to a certified law enforcement foundation. Single or head of household filers can claim up to $5,000 a year. Married filing jointly can claim up to $10,000. Owners of pass‑through businesses can claim up to $10,000, limited to the portion of income they paid Georgia tax on. Corporations and other entities can claim up to 75% of the contribution, limited by their tax due. Your credit cannot exceed your Georgia tax for the year, and any unused amount carries forward up to three years. You cannot also deduct the same gift on your Georgia return. This credit is available through 2031.

Lower taxes on military retirement pay

Beginning with tax year 2027, Georgia excludes up to $17,500 of military retirement pay from state taxable income. You may also exclude up to another $17,500 if your Georgia earned income included in taxable income is more than $17,500. Total exclusions under this rule cannot push your retirement exclusion above $65,000. For joint filers, each qualifying spouse may claim their own exclusion.

Preapproval and yearly caps for police donations

The state caps these credits at $75 million each year and $3 million per foundation. You must get Georgia Department of Revenue preapproval before you give. The Department decides requests within 30 days on a first‑come basis. You must make the gift within 60 days of approval. Preapprovals from July 1 to December 31 may be limited to 95% of the usual credit. The Department keeps a public web page listing certified foundations, remaining credit, and an online preapproval form. These rules take effect July 1, 2025, and credits are available for tax years 2023 through 2031.

Tighter rules for law enforcement foundations

Foundations must be certified and file IRS Form 990 and detailed annual reports. They must post the affiliated law enforcement unit’s prior‑year budget online or provide it on request. Donors cannot direct gifts to a person or a specific use. Taxpayers tied to entities that contract with a foundation or its law enforcement unit cannot claim the credit. If a foundation breaks the rules, it gets 90 days to fix them. If not fixed, it loses status, must stop spending, and transfer any unspent funds within 30 days. Serious misstatements can lead to a two‑year bar. These rules start July 1, 2025.

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

Senate vote • 4/2/2025

AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE AS AMENDED

Yes: 52 • No: 0

House vote • 3/31/2025

Agree to Senate Sub as Am

Yes: 164 • No: 0

Senate vote • 3/21/2025

PASSAGE BY SUBSTITUTE

Yes: 53 • No: 2

Senate vote • 3/21/2025

MOTION TO ENGROSS: HB 266, HB 426

Yes: 32 • No: 22

House vote • 3/6/2025

PASSAGE

Yes: 171 • No: 0

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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