Georgia state tax credits set for scrutiny
ATLANTA — Gov. Brian Kemp and legislative leaders announced a plan Thursday, March 2, to review all of Georgia’s tax credits later this year.
The goal is to make sure the various tax credits on the books in Georgia aimed at supporting economic development and job creation are giving taxpayers a good return on that investment.
“As the No. 1 state for business, we’re proud to welcome jobs and opportunity from a wide range of industries, and we’re grateful for policies that directly benefit hardworking Georgians,” Kemp said in a prepared statement.
“As we work with our legislative partners to review the current impact of our various tax credits, we remain committed to keeping Georgia a welcoming state for opportunity while also being good stewards of taxpayer trust.”
Lt. Gov. Burt Jones, who presides over the state Senate, and House Speaker Jon Burns joined the governor in announcing the upcoming review.
.”It is incumbent on us to ensure our tax credits continue to provide good value while keeping the tax burden on all Georgians as low as possible,” Burns said. “We will be very deliberate in this examination, and the House is committed to working with the Senate and Governor Kemp’s administration to keep Georgia the state that businesses and families want to call home.”
Jones said the state income tax cut the General Assembly passed last year was the impetus behind reviewing the tax credits.
“This effort is a key step in ensuring that all tax credit programs provide a sound return on investment while giving Georgians a new opportunity to consider reductions of the state income tax,” Jones said.
Georgia’s highly popular film tax credit is by far the most expensive in terms of tax revenue the state forgoes each year in an effort to lure film and TV productions to the Peach State. With Georgia now a leader in the industry, audits of the tax credit have consistently shown it is more than paying for itself.
The review will take place between this year’s legislative session and the 2024 session so that the General Assembly can take up any proposed changes that arise from the review next year.
The House and Senate will work with the Governor’s Office of Planning & Budget, the state Department of Economic Development, and the Georgia Department of Revenue as well as industry stakeholders during the review.