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Rep. Ramsey Introduces Job Tax Credit Bill to Spur Economic Development for Local Georgia Businesses
During this legislative session, Representative Matt Ramsey (R-Peachtree City) introduced House Bill 186, Income Tax Credit for Businesses that create jobs. H.B. 186 is an economic development job tax credit bill that will increase job tax credits available to new and existing businesses when they hire additional workers. Additionally, it will lower the threshold on the number of jobs created in order to qualify for the Quality Jobs Tax Credit.
“The bill will make Georgia more competitive with other states as a location for new jobs and investment,” said Representative Ramsey. “It encourages the location of jobs to counties like Fayette, who currently compete not with rural or urban Georgia, but with similar suburban corporate areas outside of places like Charlotte and Nashville.”
“Under the current law, companies in Fayette would have to create 25 jobs a year in order to qualify for the program. Most of the companies in Fayette are too small to manage this kind of growth. Lowering the threshold will encourage more job creation by making the program more accessible. “Additionally, the change to the Quality Jobs Tax credit encourages the creation of jobs paying above 120 percent of the county average wage, thereby raising the overall incomes in Fayette County,” said Matt Forshee, President/CEO of the Fayette County Development Authority.
This bill is tied to new job creation, either from new companies or existing companies. As Georgia works to offer one of the best economic incentive packages available in the Country, this bill only strengthens that toolbox. This legislation was carried by the Governor’s Floor Leaders last session and had wide support from the House, Senate and Georgia Economic Development Office but ultimately did not pass because of budget constraints.
Ramsey would like to pick up the torch and continue the legislation forward.
Specifically the bill would:
- Increase the business tax credit from $750 per job to $2000 per job created
- Lower the job creation threshold from 25 jobs to 10 jobs for Tier IV Counties (such as Fayette)
- Create a $250 bonus credit for existing company expansion
- Lower the job creation threshold for the Quality Job Tax Credit from 50 to 15 jobs
The bill will be moved into Ways & Means, which Rep. Ramsey sits on, and will have committee hearings in the upcoming weeks.
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