GAM Files Comments with Georgia Department of Audits and Accounts

The Georgia General Assembly in recent years has engaged in the process of reviewing tax credits and exemptions to consider whether such credits and exemptions are serving their intended purposes and benefitting the state.  This trend has also included review of exclusions – that is, items that are not taxed at all under the Georgia Code. 

 

As part of this process, for the last two years, the Georgia Department of Audits and Accounts (“DOAA”) has reviewed credits and exemptions in the legislative offseason to provide analytical support and data to legislators to help guide recommendations.  Although not in the form of proposed legislation, the DOAA analyses are important and GAM engages in the review process to advocate on behalf of our members’ interest. 

 

This year, DOAA is again reviewing a list of several tax credits, exemptions and exclusions.  GAM, with the support of the GAM Tax Council and GAM Tax Counsel Jonathan Feldman, reviewed this list and submitted comments on items that were relevant to the interests of manufacturers.   

 

For a detailed review click here to read the letter filed by GAM. 

 

In summary, GAM commented on the following items: 

•  Supporting the employer credit for providing or sponsoring childcare for employees or purchasing childcare property under O.C.G.A. § 48-7-40.6.  GAM knows of members utilizing or considering this credit to help encourage childcare options, which are helpful for attracting and retaining workers. 

 

• Opposing sales taxes on waste management and remediation services.  Taxing waste collection services would encourage investment to shift to other states that do not tax such services.  GAM also argued that if Georgia determined these services to be taxable that a corresponding exemption should be included under the integrated plant exemption. 

 

• Opposing sales taxes on administrative and support services.  Taxing such services would disincentivize companies from establishing headquarters in Georgia and be contradictory to other existing incentives under Georgia law. 

 

• Supporting maintaining and potentially expanding the manufacturer’s investment tax credit under O.C.G.A. § 48-7-40.2, 40.3, & 40.4.  Encouraging manufacturing investment, particularly in less developed parts of Georgia, is a worthy goal.  The scope and effectiveness of this credit has been slowly narrowed since its inception in 1994.  If any adjustments are made to the credit, it should be to expand it in order to encourage more manufacturing investment. 

 

• Supporting the high-tech data center equipment sales tax exemption under O.C.G.A. § 48-8-3(68.1).  Manufacturers benefit from this exemption when they build their own qualifying single-tenant data centers or place their equipment within qualifying multi-tenant data centers.   

 

GAM will continue to monitor these issues and work with our Tax Council and Legislative & Public Policy Council to defend and support the above positions as we head into the 2026 Session of the General Assembly.  Thank you for your support!