Georgia’s new tax policy honors service and supports a stronger economy.
At the Metro Atlanta Chamber (MAC), we collaborate with employers across Georgia’s diverse communities and industries, giving us a clear understanding of the challenges involved in identifying and securing qualified talent to support a thriving economy. Military retirees often have specialized skills and character traits that most businesses find incredibly valuable. Upon leaving the armed forces, many veterans seek second careers in education, healthcare, or business.
But Georgia’s partial exemption of income taxes on military retirees kept these qualified individuals from wanting to live in our state – this was a serious competitive disadvantage. In fact, 38 states do not tax military retirement income, including all of Georgia’s neighbors. This means recruiting or retaining retired service members is significantly more challenging for Georgia businesses.
The year, the Georgia General Assembly took a major step in support of veteran workforce by passing House Bill 266.
MAC led a coalition of business associations and chambers of commerce across the state in support of the legislation. Interest in addressing the issue originated from a 2023 trip to Fort Benning in Columbus, Georgia.
Two years ago, MAC staff took a group of business executives to Ft. Benning to learn about the Transition Assistance Program. While there, they learned that the Columbus community loses retiring servicemembers to Alabama because of their 100% income tax exclusion for military retirees.
Georgia is home to some of the nation’s top employers of veterans, including Delta Air Lines, The Home Depot, Coca-Cola, Southern Company and more. For business leaders looking to grow talent pipelines, supporting and tapping into military retirees is a natural fit.
Georgia implemented a partial exclusion beginning in January 2022 but quickly fell behind other states. A 100% exclusion would best position Georgia to compete with other states, but given a number of economic uncertainties, the state legislature took a measured and fiscally cautious approach this year.
When considered broadly as a part of Georgia’s effective tax rate (factoring in sales, property, and other tax burdens), Georgia will be equally, if not more, competitive with other states for veteran talent.
In addition to supplying high demand talent for Georgia’s employers, the economic benefits of keeping or attracting veterans and their families in Georgia is substantial as they settle and invest in their communities, contributing to overall economic growth. As Georgia continues lowering our overall income tax rate, this more immediate step will assist employers in finding and retaining much-needed skilled workers.
Passage of this legislation honors the service of our military veterans, bolsters Georgia’s reputation as a destination for retired service members, and supports a competitive economy and workforce.
