From the Press Release:
Deal signs pro-business, pro-family tax reform plan
Gov. Nathan Deal today signed into law the Georgia Jobs and Family Tax Reform Plan, which delivers on the recommendations of the Georgia Competiveness Initiative and fulfills Deal’s campaign promise to reduce the state marriage penalty tax. The pro-jobs, pro-family reform cuts taxes for all Georgians and increases the state’s competitiveness. The signing took place during the Governor’s Awards Luncheon for the 2012 Manufacturers of the Year.
“This tax reform package makes Georgia a better place to run and grow a business, and makes it an even better place to raise a family,” said Deal. “These reforms could not have been made without the leadership of the General Assembly, and these significant changes will serve Georgians well.”
In addition to the reduction of the state marriage penalty tax, HB 386 will eliminate the state sales tax on energy used in manufacturing – an initiative that will help the state attract more companies.
“The elimination of the marriage penalty in our income tax code will cut costs for Georgia families, totaling an estimated $140 million a year,” Deal said. “Furthermore, the removal of state sales tax on energy used in manufacturing is key to competiveness and to reaching our goal to make Georgia the No. 1 state in which to do business.”
“Just this morning, our state secured another huge manufacturing project, Baxter Pharmaceuticals, that will invest over $1 billion and create 1,800 highly skilled jobs. I want business owners and entrepreneurs to continue to look at what we’re doing in Georgia and want to come here. With this new plan, I believe they will.”
Key components of HB 386 include:
● Eliminates the state sales tax on energy used in manufacturing
● Reduces the marriage penalty in our income tax code by cutting income taxes for married couples.
● Eliminates the “birthday tax” on motor vehicles
● Reinstates for sales tax holidays for back-to-school and green energy purchases
● Revises sales tax exemptions on agriculture to ensure fairness and consistency
● E-Fairness: Broadens the tax base and increases fairness by making online retailers play by the same rules as everyone else
● Curtails abuse in our conservation easement income tax credit program for donation of conservation easements while maintaining this credit program
● Caps retirement income exclusion for seniors at current level of $65,000 ($130,000 per couple).
● Eliminates sales tax exemption for film productions
● Creates a one percent sales tax exemption on commercial aviation fuel to make our fuel rates more competitive with other major airports.
For more information on Georgia Jobs and Family Tax Reform Plan, HB 386, please find the text of the bill here.