Georgia Senate rejects changes to legislation meant to examine state tax credits

(The Center Square) – A bill allowing for the independent analysis of state tax credits while also expanding tax cuts for businesses has failed in Georgia General Assembly.

Senate Bill 6, dubbed the Tax Credit Return on Investment Act of 2021, allowed the chairs of the House Ways and Means Committee and the Senate Finance Committee to each request up to five economic analyses each year of existing or proposed Georgia laws that deal with tax exemptions, credits, deferrals, rebates, abatements or preferential rates.

The House, however, tacked on provisions from three other bills to SB 6 before passing the measure, 152-14, on Thursday. The Senate disagreed with the new version of the bill Thursday evening.

The updated bill would have created two panels to study and make recommendations for the state’s coffers. A provision would have re-established the Special Council on Tax Reform and Fairness for Georgians and create the Special Joint Committee on Georgia Revenue Structure.

Provisions in the bill also allowed or extended sales tax exemptions for manufacturers and businesses that created jobs. It included extensions of sales tax exemptions for regional economic development projects and in specific manufacturing industries. It also exempted sales tax on tickets for fine arts performances from nonprofits and museums.

Language in the new version of the bill eliminated the current 4,500-job cap for the state’s job tax credit and added a supplemental tax credit for jobs created by medical equipment and supplies manufacturers and pharmaceutical companies. It also extended a tax credit to high-impact aerospace defense projects.

SB 6 initially passed the Senate, 51-0, on Feb. 1. Sen. John Albers, R-Roswell, made the motion to disagree Thursday, which passed without opposition.

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