The 2023 legislative session is in full swing as it barrels toward Crossover Day next Monday, but Gov. Brian Kemp and other state officials made a big announcement Thursday that sets the stage for after Sine Die.
Kemp was joined by Speaker Jon Burns, R-Newington and Lt. Gov. Burt Jones to announce that later this year the state plans to perform a thorough audit of all of its many tax credits, including the film tax credit, to ensure that the state is getting a good return on its investment.
Industry professionals receiving said tax credits like to push out numbers that show a fantastic return on investment for the incentives, pointing to thousands of jobs created and billions of dollars invested. But critics, as well as the findings of some recent audits, say that some of the tax credits are no longer necessary or that said investment would have come in even without the incentives. Getting rid of some or most of the state’s tax credits would free up money to continue to lower the state income tax, a popular aim for many Republican legislators.
Burns said that the reviews will clear some of those questions up, “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. 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,” he said Thursday.
Jones echoed those sentiments, saying “This process was initiated by last year’s income tax reform bill, which I supported as a Senator. The work of this group is critical and I look forward to the report that will be issued by the end of the year. 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.”
The news may have been most welcomed by Georgia lobbyists, as every industry receiving a piece of the tax incentives pie has a major incentive of their own to prove to auditors that their particular tax breaks are important, useful and productive.
The House and Senate will work with the Governor’s Office of Planning & Budget, the Georgia Department of Economic Development, and the Georgia Department of Revenue as well as industry stakeholders to conduct the reviews, which will take place ahead of the 2024 session later this year.
