Landmark Legislation Helps Georgians Get Back to Work
ATLANTA— Today the Georgia House of Representatives overwhelmingly passed the conference committee’s version of House Bill 481, the Jobs, Opportunity, and Business Success Act of 2009 (JOBS Act). If agreed to by the Senate the measure will move to the Governor for consideration.
House Bills 481 and 482 were introduced by Rep. Tom Graves (R-Ranger) and House Leadership earlier this year as a package of legislation to create, expand and attract jobs for Georgians.
“During challenging days such as today, we owe it to all Georgians to do what we can to remove barriers and create incentives that create jobs for Georgians,” said Rep. Graves. “The path to true economic recovery is the creation of sustainable jobs through an expanded private sector, not through temporary government work programs.”
The JOBS Act is comprised of House Bills 481 and 482. These are made up of a series of tax cuts, fee suspensions and incentives to hire unemployed Georgians. Both chambers agreed to the same version of House Bill 482 which eliminated the state inventory tax on businesses. However, after passing different versions of House Bill 481, that bill was sent to conference committee to create a version of the bill that both chambers could agree to.
The final version of House Bill 481 will:
• Create a quarterly tax credit towards the unemployment insurance tax for each eligible employee hired. This credit would be applied towards the employer’s future unemployment insurance contributions for the hiring of someone who is receiving state unemployment benefits.
• Create a $2,400 income tax credit for each eligible employee hired. This credit will be available to those who hire an employee that has been unemployed for at least 4 weeks and remains employed for at least 24 weeks. To receive the credit, the employee’s initial hire must be prior to July 2010.
• Start a “New Business Tax Holiday.” Under this legislation, the $100 fee will be waived for all new businesses formed over the next year. This component would create a 1 year “holiday” on new filings for LLC’s, Limited Partnerships, and For Profit Companies.
• Phase out of the Sales Tax Deposit. This section of the Act phases out an outdated tax on Georgia business capital. This is a fee charged to all Georgia businesses which have $5,000 or more in sales tax collections each month. Taking the average sales tax collection amount each month, the DOR requires the business to forward fund a deposit of working capital. This deposit is held for perpetuity or until the business fails, whichever comes first. Phasing out this deposit will put much needed capitol back into Georgia’s businesses.
• Abolish the Net Worth Tax. This tax was originated in 1931 and charged to all businesses based on their net worth. It’s a deterrent to savings and investment in assets. Currently, even businesses that have a negative net worth are taxed.
• Cut the Capital Gains Tax in half. This tax is charged to all individuals and businesses that save and invest in assets, whether its stocks, certificate of deposits, savings accounts, collectibles or real estate. This provision would provide a deduction of 50% of all Long Term Capital Gains from an individual’s taxable income.
“The Georgia General Assembly has made it clear that they believe it’s the hard working people of Georgia and their drive to succeed that will advance our economy and bring faster recovery,” said Rep. Graves. “What we are proposing is harnessing the greatness of Georgia, the intellectual capital, the entrepreneurial spirit, and the industrial grit of everyday Georgians. As a result, Georgia will emerge as the jewel of the nation.”
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Representative Tom Graves represents the citizens of District 12, which includes portions of Bartow, Gordon, and Pickens counties. He was elected into the House of Representatives in 2002, and currently serves as the Vice-Chairman of the Motor Vehicles Committee. He also serves on the Health & Human Services, Transportation, and Ways & Means committees.