Kemp threatens special session if ‘regional significance’ tax break fails

Credit: Natrice Miller/AJC

Credit: Natrice Miller/AJC

Gov. Brian Kemp warned Senate lawmakers that he could call a special legislative session if a measure that provides tax credits for major projects fails to clear the General Assembly.

In a late Wednesday address to the chamber, he urged lawmakers to rally behind House Bill 408, which would renew a tax break for projects of “regional significance” that go to large-scale developments with a broad footprint.



“Simply put, this is the most effective tool Georgia has to remain the top state for business as we compete with other states for major economic development projects,” the governor said.

He added: “I look forward to working with you all tonight to pass HB 408 to ensure we do not have to return to the Gold Dome before the current law sunsets on July 1.”

State officials have long used the incentive, which offers a sales tax exemption for construction materials, as they try to recruit mega-projects like auto manufacturers.

The House approved the measure, which would extend the tax break until 2026, by a 169-2 vote earlier this month. But the Senate last week tabled the proposal, which typically passes without controversy.

Kemp’s pressure worked. Shortly before midnight, the Senate voted 43-6 to adopt the measure.

“I appreciate the state Senate’s overwhelming support of HB 408,” Kemp posted on social media after the vote, “which will help us remain the No. 1 state for business as we attract further jobs and opportunity to all parts of our state.”

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