The state Legislature ended at the close of March, but the hearings have continued throughout the year. One of the series of off-session hearings monitored closely is a special task force in the Senate examining tax breaks and incentives in Georgia. On September 29th, the state Senate held its third hearing dedicated to this analysis of tax credit/exemption programs, this time in Savannah. The committee has earmarked a wide number of tax credit programs for research not just in 2017, but for the next several years.
While the committee focused solely on income tax breaks, it has begun to pivot to other areas of the tax code, wrapping up the review of income tax exemptions slated for this year and moving on to sales tax exemptions/credits. GCUA was able to obtain a copy of what the committee slated for its analysis over the next seven years, and credit unions are not referenced. However, these hearings will need to continue to be monitored closely to protect credit unions, and to be aware of the direction of the committee, as that can change.
What is anticipated:
- Two to three more hearings before the end of the year where tax credits and exemptions will continue to be discussed,
- A formal process instituted where the Senate will have a standard for reviewing the business case for any new tax credit/exemption bill going forward, and
- The Senate to likely start holding all tax bills for one year, thereby slowing down the number of tax bills that pass, creating more tension between the House and Senate (and likely creating more “amendments” onto existing tax bills).
