ATLANTA— Today, the House Committee on Small Business Development and Job Creation unanimously passed House Bill 1023, the Jobs, Opportunity, and Business Success Act of 2010 (JOBS Act of 2010). The legislation, authored by State Representative Tom Graves (R-Ranger), is designed to stimulate the state’s economy by providing tax credits, cuts and incentives to create, expand and attract new businesses in Georgia.
“There is only one way to promote sustainable job creation and that’s through the expansion of the private sector,” said Representative Graves. “The various components of the JOBS Act of 2010 do just that by removing the regulation and taxation barriers that stand in the way of aspiring small businesses and economic expansion. With today’s committee vote, Georgia is one step closer to putting these challenging economic times behind us through new jobs and opportunities for our communities.”
The JOBS Act of 2010, as passed by the committee, contains six initiatives that are designed to spur job creation in Georgia and to recognize the private sector, not government, as the driving economic force to recovery. These initiatives include:
- 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 percent of an investment made in small or start up Georgia businesses with 20 or fewer employees. The income tax credits would be available after two 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 who create a “net new hire” while hiring a person who is currently receiving unemployment benefits and has been unemployed for at least 13 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 for the elimination of this tax as we are only one 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 32nd highest capital gains tax in the country and the second highest in the southeast, with two of our neighboring states at zero percent. Georgia’s capital gains tax will be reduced by 50 percent over a two year period once the state reaches $500 million in the Revenue Shortfall Reserve fund.
“This piece of legislation is one of the most vital issues this legislative body can pass this year,” said Representative Sean Jerguson, who motioned the bill “do pass” in today’s committee meeting. “It is important that Georgians start working again.”
HB 1023 now moves to the Rules Committee for consideration. More information about the legislation can be found by clicking here.
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Representative Tom Graves represents the citizens of House District 12, which includes portions of Bartow, Gordon, and Pickens Counties. He was elected into the House of Representatives in 2002, and is currently the Chairman of the 9th District Caucus. He serves as the Vice-Chairman of the Motor Vehicles Committee and is also a member of the Health & Human Services, Transportation, and Ways & Means Committees.