HB361: HB361 Income tax; exempt all retirement income received as retirement benefits in the armed forces of the United States or the reserve components

25 LC 50 1038 House Bill 361 By: Representatives Ballard of the 147th, Bonner of the 73rd, Clark of the 100th, Rice of the 139th, Reese of the 140th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1 income taxes, so as to exempt from taxation all income received as retirement benefits2 derived from service in the armed forces of the United States o r the reserve components3 thereof; to provide for related matters; to provide for an effective date and applicability; to4 repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,8 is amended in Code Section 48-7-27, relating to computation of taxable net income, by9 revising paragraph (5.1) of subsection (a) as follows:10 "(5.1)(A) Up to $17,500.00 of All income received by an individual who is less than11 62 years of age paid to such paid to an individual as retirement benefits from military12 service in the armed forces of the United States or the reserve components thereof and13 an additional amount of up to $17,500.00 of such income, provided that he or she has14 Georgia earned income otherwise included in his or her Georgia taxable net income in15 an amount that exceeds $17,500.00.16 H. B. 361 - 1 - 25 LC 50 1038 (B) In the case of a married couple filing jointly, each spous e who is otherwise17 qualified for an exclusion allowed by this paragraph shall be i ndividually entitled to18 exclude retirement income received by that spouse up to the exclusion amount.19 (C) The exclusions exclusion provided for in this paragraph shall not apply to or affect20 and shall be in addition to those adjustments to net income provided for under any other21 paragraph of this subsection;"22 SECTION 2.23 This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years24 beginning on or after January 1, 2026.25 SECTION 3.26 All laws and parts of laws in conflict with this Act are repealed.27 H. B. 361 - 2 -