ECONOMIC DEVELOPMENT & TAXATION
The technology industry has over a $113 billion economic impact on the state of Georgia, which accounts for nearly 17% of the state’s economy. It is vital that we sustain and cultivate this maturing industry to ensure Georgia’s economic success in the years ahead.
- TAG supports utilizing technology to bolster statewide economic development.
- TAG supports the study of emerging technologies such as Artificial Intelligence and Machine Learning and recognizes the impact the technology industry can have on Georgia's economic development.
- TAG supports business-friendly policies and tax incentives that promote the growth and development of technology companies and infrastructure throughout Georgia.
- TAG supports legislation that will encourage the development, growth, recruitment and retention of technology companies.
- TAG supports a tax system that is fair and equitable across all functions of business and services.
- TAG supports the continuation of R&D tax credits.
STATEWIDE 911 AUTHORITY
WHAT TAG SUPPORTS:
- TAG supports the Governor’s efforts in reforming Georgia 911 by creating a Statewide 911 Authority that will allow easier coordination for the public-safety answering points and to centralize the collection and audit of the 911.
- Certainty and clarity for assessments applied to multi-line subscriber accounts (typically businesses) to ensure predictability and transparency for the providers, consumers and the 911 Authority.
FILM & POST-PRODUCTION TAX INCENTIVES
WHAT TAG SUPPORTS:
- The continuation of the film and post-production tax incentives to maintain Georgia’s leadership and competitiveness in the film, television, and post production industry.
DATA CENTER TAX INCENTIVES
The data center industry is one of the fastest growing property types in the United States. As the world’s economy continues its affinity for, and its reliance upon, information and data through traditional, as well as “cloud” computing, the need for facilities to store and transmit the ever expanding universe of data will continue to grow.
It is vital for Georgia’s economy to revisit the incentives for data center companies to expand or locate to Georgia, as they provide highly skilled individuals and infrastructure needed for other companies to build upon. Nearly all Fortune 1000 companies utilize data centers for their operations. In addition, all levels of government are increasingly reliant upon speeding data, information, and communications to meet their mission.
Since 2005, 23 states have passed legislation to provide customized tax incentive programs for data centers. These states provide full or partial exemption of sales tax for various investment types. The exemptions include construction, mechanical and electrical equipment, cooling systems, power infrastructure, electricity, and backup fuel and are covered to varying degrees.
KEY POINTS TO KNOW:
- Data centers can be a significant source of new revenue.
- Data center development represents the most robust and economically resilient sector of the Information Age economy. They invest huge sums of money in initial investment and then, due to the fail-safe nature of their operations, they invest millions in “refreshing” their systems and servers on a 3-5 year cycle.
- Data centers tend to group together in clusters, and it is likely that once a certain geography attracts big name users, others will follow.
WHAT TAG SUPPORTS:
- Expanding the data center exemption by eliminating Georgia state sales tax on equipment purchased and the energy consumed for data center operations, except local taxes paid for educational purposes. These costs to the state could be offset by the large investments in real and personal property and the high-wage jobs they bring.