Georgia Tax Legislation Roundup: Major Bills That Were Signed and Vetoed

Amidst the flurry of activity during the 2024 legislative session, Georgia lawmakers have ushered in a series of tax bills aimed at shaping the state's fiscal landscape. Governor Brian Kemp recently signed several significant bills into law, bringing forth adjustments to income and sales tax regulations. However, not all proposals found favor, as Governor Kemp wielded his veto power on certain contentious bills. This roundup presents an overview of the key legislation affecting both individual and business taxpayers, along with insights into the vetoed bills and their implications.

Income Tax Amendments 
Two prominent bills, House Bill 1015 and House Bill 1023, spearhead the restructuring of Georgia's income tax framework. House Bill 1015 initiates a gradual reduction of the individual income tax rate, starting from 5.49% and eventually descending to 4.99% by January 1, 2025. This measure aims to alleviate the tax burden on individual taxpayers over the coming years. Concurrently, House Bill 1023 synchronizes the corporate income tax rate with the individual tax rate reduction schedule, fostering parity across different taxpayer categories. Moreover, it grants corporate taxpayers a 30 day extended filing window post-federal extension, commencing January 1, 2025, without altering payment deadlines.

Tax Credit Adjustments 
House Bill 1181 introduces revisions to various tax credit carryforward periods, notably shortening periods for several credits from 10 to five years and from five to three years, effective from January 1, 2025. These adjustments aim to streamline credit utilization while ensuring alignment with evolving economic dynamics. However, it's imperative for taxpayers to heed these modifications and plan their tax strategies accordingly to maximize benefits within the revised timelines. 

IRC Conformity Update 
Georgia's adherence to the Internal Revenue Code (IRC) undergoes an update through House Bill 1162, which retroactively defines the term "Internal Revenue Code" as amended and in effect on January 1, 2024. This conformity update, effective for tax years beginning on or after January 1, 2023, maintains consistency with federal tax regulations, providing clarity and coherence for taxpayers navigating state and federal tax obligations.

Sales Tax Provisions 
House Bill 1181 also ushers in changes to sales tax exemptions, notably sunsetting certain exemptions effective December 31, 2029. The repeal of exemptions for sales to specific nonprofit entities and other categories underscores the legislature's intent to streamline the sales tax framework while ensuring equity and efficiency in revenue collection. 

Georgia Tax Court Proposal 
A significant proposal, House Resolution 598, places a referendum on the November 2024 ballot, seeking to establish the Georgia Tax Court as an independent tax tribunal under the judicial branch. This initiative, accompanied by House Bill 1267, outlines the structure and jurisdiction of the proposed court, offering taxpayers a specialized forum for resolving tax-related disputes.

Vetoed Bills 
Governor Kemp exercised his veto power on several bills, citing concerns ranging from financial implications to unintended consequences. House Bill 1192's proposed pause on sales and use tax exemption certificates for high-technology data centers faced a veto due to its potential adverse effects on infrastructure and job development. Similarly, House Bill 1231, aimed at expanding eligibility for education-related programs, was vetoed over fiscal concerns and the need for comprehensive financial analysis. Additionally, Senate Bill 368, seeking to regulate political contributions by foreign nationals, met its end due to unintended registration requirements.

The 2024 legislative session in Georgia witnessed a flurry of tax-related activities, culminating in significant amendments to income and sales tax laws. While the enacted bills aim to stimulate economic growth and streamline tax administration, the vetoed proposals underscore the importance of prudent fiscal management and comprehensive analysis in policymaking. As taxpayers navigate these changes, vigilance and strategic planning will be paramount to leveraging available opportunities while mitigating potential risks.

For more on legislation and representation or to locate your local representatives, visit If you have any questions on this issue, contact Don Cook, vice president, legislative affairs at 404-877-2154 (mobile) or