Deal will decide fate of nearly $483 million in tax breaks

[private]By the time Georgia lawmakers adjourned for the year, they had passed 10 bills granting various forms of tax breaks and exemptions that totaled nearly half a billion dollars: $483 million to be exact.

Gov. Nathan Deal will decide the fate of these tax breaks by either signing or vetoing the bills over the next four weeks.

The tax bills range from a sales tax exemption on repairs to mega-yachts that amounts to $5.9 million over the next five years to a reduction in the title tax on leased vehicles that could cost the state nearly $227 million.

Here’s the list of the tax bills and their financial impact, as compiled by the Georgia Budget and Policy Institute from fiscal notes prepared by state auditors.

HB 73: an income tax credit for business investments or real estate development in areas designated by the Department of Community Affairs. Financial impact on state revenues: $12.3 million over five years.

HB 125: sales tax exemption on yacht repair or retrofit projects that total at least $500,000. Financial impact: $5.9 million.

SB 133: Includes a minor change to Georgia’s corporate net worth tax and a tax break for out-of-state financial companies that participate in subsidized lending programs that are intended to create new jobs. Deal vetoed a similar bill in 2015. Financial impact: $60 million.

HB 155: Provides an income tax credit for large musical productions. Financial impact: $50.3 million.

SB 180: Modifies the existing tax credit for contributions to eligible rural hospitals and converts an income tax deduction for volunteer medical personnel into a credit. Financial impact: $14.2 million.

HB 199: Expands an income tax credit for film and gaming companies. Financial impact: $82.5 million.

HB 237: Provides an income tax credit for donations to public schools. Financial impact: $15 million.

HB 247: Adds concrete-mixing companies to the list of manufacturers eligible for sales tax exemption: Financial impact: $3.6 million.

HB 265: Expands the Quality Jobs income tax credit and provides a sales tax exemption for the Woodruff Arts Center. Financial impact: $8.5 million.

HB 340: Reduces the title tax on leased vehicles. Financial impact: $226.9 million.

© 2017 by The Georgia Report


Tags: Nathan Deal , tax breaks