On August 22nd the state Senate held the second hearing directed at analyzing tax exemptions in Georgia. This special committee is analyzing several state income tax credits to determine whether they are utilized in the manner they should be (and whether they should be continued), with an emphasis on various corporate income tax credits. In the process, the committee will also look at how new tax credits are authorized in the future.
The committee has identified six tax incentive programs to be analyzed in 2017, ranging from the film tax credit to motor vehicle credits, with several employer credits and housing credits on the target discussion list for 2018. GCUA will continue to monitor these hearings to ensure that credit unions are not swept into a tax change, as the hearings themselves open side avenues of discussion that include data privacy, the state’s policy on any tax exemption, the idea of placing a collective cap on credits (and forcing programs to fight each other for the chance of continuance), and overall tax reform.
GCUA anticipates these hearings to carry forward into 2018 and beyond, and be a continual effort of Georgia to evaluate tax incentives. This is not an effort unique to Georgia, as several states already have formal evaluation methods in place (or analyze their tax breaks continually) and is promoted as a “best practice” by the Pew Charitable Trust organization. Georgia is at the initial phase of this process, and it remains to be seen which credits will be removed, continued or expanded. However, this work will likely shape the legislative process on tax issues going forward. Stay tuned.
