Legislative Priorities

On April 2, the Senate gave final passage to HB 224 by a vote of 49-3, after also passing the House on the same day by a vote of 158-5. HB 224 amends the Investment Tax Credit (ITC), Quality Jobs Tax Credit (QJTC), and the Historic Rehabilitation Tax Credit.

Georgia provides ITC’s for a portion of qualified investments in manufacturing facilities with the credit amount increasing based on the county tier, with more rural counties receiving higher credits. Currently, ITC’s are restricted to application of 50% of the income taxes within Georgia, which is highly restrictive because many manufacturing companies are large exporters of their goods leaving them with credits that are earned but unable to be used. By allowing a portion of ITC’s to be used against payroll withholding liability, we will strengthen the incentive for Georgia investment in the state’s most rural areas. HB 224 also revises the job creation threshold for the QJTC in tier 1 and tier 2 counties with a population of less then 50,000.

The Chamber supports legislation that encourages both existing and potential Georgia companies to invest in rural areas. By expanding the use of ITC’s to apply to payroll withholdings and modifying the threshold to earn QJTC’s in rural areas, HB 224 is another tool to improve Georgia’s rural economies.