The House pushed through a series of tax breaks Monday to help luxury jet owners, back-to-school shoppers and video game developers.
The measures, which could cost the state and local governments more than $150 million in lost tax revenue next fiscal year, won easy approval on the last day for most bills to pass at least one chamber.
The House was scheduled to vote on about a dozen tax bills by the end of Monday. Those measures then move to the Senate for consideration over the final 10 days of the session.
Gov. Nathan Deal urged lawmakers to be more judicious about granting special-interest tax breaks after years of approving 10 or 15 such breaks most sessions over the past decade.
Some tax breaks approved Monday merely extended exemptions that either ended last year or were due to end.
One, House Bill 933, makes permanent a tax exemption on parts and equipment used to repair and maintain aircraft registered outside of Georgia. Luxury jet-maker Gulfstream and other companies that do such repairs pushed to make the exemption permanent. Gulfstream contributed $15,000 to the House Republican Caucus' leadership fund Jan. 22, about two weeks before the bill was filed.
The bill will save customers of the companies $29 million to $40 million a year, according to state estimates. House Majority Leader Larry O'Neal, R-Bonaire, said it would keep important jet maintenance business in Georgia. That work could go to other states without the tax break, he said.
“We are often accused when we do these kind of exemption bills of extending corporate welfare,” O’Neal added. “This is actually not an accommodation to a corporation, it is a great deal for the state of Georgia.”
Rep. Ben Watson, R-Savannah, said Gulfstream employs about 9,500 in his city.
The chamber also backed House Bill 958, which grants and extends several tax breaks. It would provide $25 million worth of income tax credits over two years to video game production companies in hopes of spurring the business in Georgia.
The measure also extends the popular sales tax holiday for back-to-school shoppers Aug. 1-2 and for energy and water-efficient appliances Oct. 3-5. It would temporarily exempt from sales taxes any food purchased by food banks. And it extends the sales tax exemption for materials used in construction designated by the state as a “project of regional significance.”
A state analysis estimated the bill would cost the state and local governments about $121 million next year.
The chamber also approved House Bill 823 to exempt materials used in construction of wood-pellet fuel production and processing plants from sales taxes. The measure would save the companies and cost state and local governments $2.8 million over two years, said Rep. Jay Powell, R-Camilla, the bill's sponsor. But Powell said it would help create hundreds of badly needed jobs in rural Georgia. "This is a jobs bill," he told colleagues.
Over some Democratic opposition, the House backed a bill giving companies like UPS tax credits for buying alternative-fuel vehicles. The tax credits would be worth up to $5 million over two years.
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