The latest JOBS Act is a continuation of Graves’ efforts in the Georgia General Assembly to advance conservative, free-market solutions that empower the private sector and drive Georgia’s economic recovery. Support for Graves’ legislation was noted by the large presence of both House and Senate members at today’s announcement.
“Our goal should be nothing less than making Georgia the most job friendly and investor friendly state in America,” said Senate Majority Leader Chip Rogers (R-Woodstock). “This legislation should be like a bright neon sign, telling the world Georgia is open for business and open for investment. These difficult economic times call for bold action. Giving Georgia entrepreneurs the freedom they need to do business will be the key to a prosperous Georgia with good high paying jobs.”
Graves’ JOBS Act of 2010 contains eight initiatives that are designed to spur job creation in Georgia and recognize the private sector, not government, as the driving economic force to recovery.
The act is comprised of two pieces of legislation, House Bill 1023 and House Bill 1024.
House Bill 1023 contains:
Creation of the “Year for Georgia Entrepreneurs”: Allowing Georgians the opportunity to start a new business with no state fees could remove the only hurdle many entrepreneurs need to begin.
“Angel Investor” Tax Credit: An income tax credit of up to 50% of an investment made in small or start up Georgia businesses with 20 or fewer employees. The income tax credits would be available after 2 years of investment. The total “Angel Investor” tax credit pool would be limited to $10 Million per year (adjusted for inflation).
Quarterly Credit Towards Unemployment Insurance Tax: For each eligible employee hired who is receiving State Unemployment benefits, a company will receive a quarterly credit towards their unemployment tax.
$2,400 Tax Credit for the Hiring of the Most Difficult to Employ: Any Georgia company which hires a person who is difficult to employ and is currently receiving unemployment benefits and has been unemployed for at least four weeks, shall receive a tax credit of $2,400 after 24 months of consecutive employment.
Elimination of the Net Worth Tax: The net worth or intangible tax is a hold over from a 1930’s law that taxes wealth accumulation. The Tax Foundation advocates the elimination of this tax as we are only 1 of a handful of states that still retain it.
A Triggered 50 Percent Reduction of the Capital Gains Tax for all Georgia Taxpayers: Georgia currently has the 15th highest Capital Gains tax in the country and the 2nd highest in the Southeast, with two of our neighboring states at 0%.
House Bill 1024 contains:
· Gradual Phase out of the Sales Tax Deposit on Small Businesses:
Phases out an outdated tax deposit that is required for Georgia Businesses. Once implemented, this will return nearly $200 million of working capital to Georgia’s small business that is held on deposit with the state.