State Agency Seeks Feedback on Targeted Georgia Tax Incentives

As the Georgia General Assembly works to assess the cost and effectiveness of the state's tax credits and exemptions, Georgia taxpayers have an opportunity this summer to make a case for tax incentives that they enjoy. 

Pursuant to Senate Bill 366 passed earlier this year, the Georgia Department of Audits and Accounts is in the process of conducting evaluations of certain tax credits, deductions, exemptions, and other tax incentives specifically identified by legislative leaders. This year, the department is analyzing eight specific incentives:

• Insurance abatements (O.C.G.A. § 33-8-5)
• Exclusion of global intangible low-taxed income (O.C.G.A. § 48-7-21)
• Bank Tax Credit (O.C.G.A. § 48-7-29.7)
• Sales tax exemption – jet fuel (O.C.G.A. § 48-8-3.5)
• Sales tax exemption – natural gas used in manufacture of electricity (O.C.G.A. § 48-8-3[70])
• Sales tax exemption – professional, scientific, and technical services (including O.C.G.A. § 48-8-3[22])
• Sales tax exemption – construction services
• Sales tax exemption – revenue from coin-operated amusement machines (O.C.G.A. § 48-8-3[43]

State law allows intended beneficiaries of the identified incentives to submit information that may be useful to the researchers conducting the analyses. Comments may be submitted directly to the department by July 12, 2024. Note that information provided to the Department of Audits and Accounts is subject to release under the provisions of the Open Records Act. 

Because these incentives were specifically identified by the chairs of the House Ways & Means Committee and Senate Finance Committee, we expect the evaluations conducted by the department will be topics of discussion (and potentially legislation) during the 2025 Legislative Session.

If you have any questions about the tax incentive evaluation process or would like to discuss how you might submit public comment or otherwise engage on any of the targeted incentives, please reach out to us at GeorgiaGovernmentRelations@nelsonmullins.com.