Georgia would exempt up to $35,000 a year in military retirement income from state income tax under a bill passed Monday by the state House.
Representatives voted 161-0 for House Bill 1064, under which the state is projected to forgo an estimated $55 million to $60 million in taxes annually. The measure moves to the Senate for more debate.
Republican Gov. Brian Kemp has been backing the exemption. Supporters say it will make living in the state more attractive for military veterans, who often retire in their 40s and pursue a second career, helping both the veterans and businesses that need workers.
“This bill rewards men and women who have sacrificed the most for this country, but it also addresses the No. 1 need we hear every day back home from our businesses and industry — workforce,” said Jesse Petrea, a Savannah Republican.
Under the measure, a veteran’s first $17,500 in retirement pay would be exempt from Georgia’s state income tax, which has a top rate of 5.75%. Another $17,500 of retirement pay would be exempt, for a total of $35,000, if a veteran earned at least $17,500 from another source.
