HB 266 Georgia House · 2025-2026 Regular Session

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

Summary

A BILL to be entitled an Act to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, computation, exemptions, and credits for state income tax, so as to exempt from state income tax income received as personal compensation for full-time duty in the active military service of the United States; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Mar 2025

Signed into Law

May 2025

Introduced Feb 4, 2025 Signed May 13, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

LC 50 1209S/hcs → HB 266/AP* · 5 edits

MODERATE

The bill was revised from a committee substitute to its final passed version, shifting the primary focus from a military retirement income tax exemption to a tax credit for contributions to law enforcement foundations. The original military exemption text was removed and replaced with detailed definitions and rules for a new program that allows taxpayers to deduct contributions to specific local law enforcement foundations. This change expands the bill's scope from a single military benefit to a broader initiative supporting local police departments through expanded eligibility, higher contribution limits, and new spending categories.

Scope change

The bill's scope changed from exclusively addressing military retirement income tax exemptions to establishing a comprehensive tax credit program for contributions to law enforcement foundations.

SCOPE

The provision exempting military retirement income from taxation was removed entirely.

DEFINITION

New definitions were added for 'law enforcement foundation,' 'local law enforcement unit,' 'qualified contributions,' 'qualified expenditures,' and 'qualified law enforcement foundation' to govern the new tax credit program.

FISCAL

The bill now allows for expanded qualified expenditures, including salary supplements, training, equipment, technology updates, community engagement services, and costs for emergency response teams combining law enforcement with behavioral health specialists.

REQUIREMENT

The legislation now requires foundations to be designated as the sole local foundation for a specific unit and certified to qualify for the tax credit.

TIMELINE

The effective date section was updated to align with the new tax credit provisions rather than the original military exemption timeline.

Floor votes · Senate Mar 21, 2025 · House Mar 6, 2025

How they voted

52–2

Passed · 1 other

Total votes 55

Mar 21, 2025

D Democratic22

19 Yea 2 Nay 1

86% Yea

R Republican33

33 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 13, 2025

Signed into law

Act 181

upper

May 13, 2025

Signed into law

House Date Signed by Governor

lower

Apr 4, 2025

Introduced

House Agreed Senate Amend or Sub

lower

Apr 2, 2025

Introduced

Senate Agreed House Amend or Sub As Amended

upper

Mar 31, 2025

Introduced

House Agreed Senate Amend or Sub As Amended

lower

Mar 21, 2025

Upper · Passed

Senate Passed/Adopted By Substitute

upper

Mar 21, 2025

Upper · Passed

Senate Engrossed

upper

Mar 13, 2025

Upper · Passed

Senate Committee Favorably Reported By Substitute

upper

Mar 10, 2025

Committee

Senate Read and Referred

upper

Mar 6, 2025

Lower · Passed

House Passed/Adopted By Substitute

lower

Mar 6, 2025

Lower · Passed

House Committee Favorably Reported By Substitute

lower

Feb 4, 2025

Introduced

House Hopper

lower

6 primary · 0 co-sponsors