HB 234: Income tax; commercial pilot, aircraft mechanic, or an aircraft technician; exempt taxable net income as a sign-on bonus or retention bonus

Under current Georgia law, bonuses paid to workers are generally counted as taxable income. This bill changes that for one group of workers: commercial pilots, aircraft mechanics, and aircraft service technicians who work in Georgia. The bill adds a new exemption to Georgia's income tax code (O.C.G.A. § 48-7-27) so that sign-on bonuses and retention bonuses paid to these workers for service in Georgia would not count as taxable net income. The exemption applies only to tax years beginning on or after January 1, 2026, and ending on or before December 31, 2030, meaning it is temporary and would expire after five years unless extended. The law would take effect as soon as the Governor signs it, or otherwise becomes law without a signature, and would apply starting with the 2026 tax year.

• Adds a new exemption to Georgia's income tax law excluding certain bonus income from taxable net income.
• Limits the exemption to sign-on bonuses and retention bonuses paid to commercial pilots, aircraft mechanics, or aircraft service technicians.
• Requires that the bonus be tied to service as one of those roles performed in Georgia.
• Sets the exemption to apply only for tax years from January 1, 2026 through December 31, 2030, making it temporary.
• Takes effect immediately upon the Governor's signature or becoming law without signature, applying to tax years starting in 2026.

Commercial pilots, aircraft mechanics, and aircraft service technicians working in Georgia who receive sign-on or retention bonuses, along with the airlines, aviation maintenance companies, and other employers who pay such bonuses to attract or keep these workers.

Workers in these aviation roles who receive sign-on or retention bonuses between 2026 and 2030 would keep more of that money because it would not be subject to Georgia income tax, which could make such bonuses more attractive as a recruitment or retention tool for aviation employers in the state.

• Section 1 adds paragraph (11.3) to subsection (a) of O.C.G.A. § 48-7-27, listing new categories of income excluded from Georgia taxable net income.
• The exemption covers sign-on bonuses and retention bonuses paid specifically for service as a commercial pilot, aircraft mechanic, or aircraft service technician in Georgia.
• The exemption is time-limited, applying only to tax years beginning on or after January 1, 2026 and ending on or before December 31, 2030.
• Section 2 sets the effective date as upon the Governor's approval or becoming law without approval, applicable to tax years beginning on or after January 1, 2026.
• Section 3 repeals any conflicting laws.

1. 2025-02-06House Second Readers (Cámara de Representantes)
2. 2025-02-05House First Readers (Cámara de Representantes)
3. 2025-02-04House Hopper (Cámara de Representantes)

• Rick Townsend (R, HD-179)Patrocinador principal
• John LaHood (R, HD-175)
• Mike Cheokas (R, HD-151)
• Clint Crowe (R, HD-118)
• Leesa Hagan (R, HD-156)
• Spencer Frye (D, HD-122)

• income tax exemption
• aviation industry
• commercial pilots
• aircraft mechanics
• tax incentives