- Collection:
- Georgia Government Publications
- Serial:
- Georgia tax expenditure report for ...
- Title:
- Georgia tax expenditure report for 2023
- Contributor to Resource:
- Georgia. Department of Audits and Accounts.
- Publisher:
- [Atlanta, Ga.] : Georgia Dept. of Audits and Accounts
- Date of Original:
- 2021-12-20
- Subject:
- Tax expenditures--Georgia--Periodicals.
Tax revenue estimating--Georgia--Periodicals.
Tax expenditures.--fast--(OCoLC)fst01143776
Tax revenue estimating.--fast--(OCoLC)fst01143852
Georgia.--fast--(OCoLC)fst01204622
Georgia Government Documents--Serial - Location:
- United States, Georgia, 32.75042, -83.50018
- Medium:
- state government records
- Type:
- Text
- Format:
- application/pdf
- Description:
- Description based on: FY 2012; title from PDF image of caption (Georgia Government Publications database, viewed Feb. 24, 2012).
Latest issue consulted: FY 2013 (viewed Feb. 24, 2012). - External Identifiers:
- Metadata URL:
- https://dlg.galileo.usg.edu/id:dlg_ggpd_779847308-2021-12-20
- Digital Object URL:
- https://dlg.galileo.usg.edu/do:dlg_ggpd_779847308-2021-12-20
- Language:
- eng
- Holding Institution:
- University of Georgia. Map and Government Information Library
- Rights:
-
Georgia Tax Expenditure Report for FY 2023
Prepared by the Fiscal Research Center of the Andrew Young School of Policy Studies at Georgia
State University
December 2021
Funding for this project was provided by the Georgia Department of Audits and Accounts. We would like to thank the Georgia Department of Revenue and the Georgia Office of Insurance and Safety Fire Commissioner for their contributions to the preparation of this report. Lastly, we would like to thank the Georgia Department of Audits and Accounts for their comments and recommendations. All estimates presented in this report are the work of the Fiscal Research Center. We are solely responsible for its contents.
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Table of Contents
Introduction................................................................................................................................................... 3 Summary of State Tax Expenditures ............................................................................................................ 9 1. Individual Income Tax ............................................................................................................................ 60
1.1 Federal Exclusions ............................................................................................................................ 62 1.2 Federal Deductions ........................................................................................................................... 71 1.3 Special Federal Conformity Provisions ............................................................................................ 78 1.4 Georgia Exemptions.......................................................................................................................... 81 1.5 Georgia Deductions .......................................................................................................................... 86 1.6 Georgia Credits ................................................................................................................................. 87 2. Corporate Income Tax .......................................................................................................................... 108 2.1 Federal Corporate Exclusions ......................................................................................................... 109 2.2 Federal Corporate Deductions ........................................................................................................ 111 2.3 Special Federal Corporate Conformity Provisions ......................................................................... 116 2.4 Corporate Apportionment ............................................................................................................... 119 2.5 Georgia Deductions ........................................................................................................................ 120 2.6 Georgia Credits ............................................................................................................................... 121 3. Corporate Net Worth Tax ..................................................................................................................... 137 4. Sales and Use Tax ................................................................................................................................. 138 4.0-4.3 Sales and Use Tax Exemptions................................................................................................. 139 4.5 Sales and Use Tax for Services....................................................................................................... 167 4.7 Vendor Compensation .................................................................................................................... 170 4.9 Casual Sales .................................................................................................................................... 171 5. Insurance Premium Tax ........................................................................................................................ 174 6. Motor Fuel Tax ..................................................................................................................................... 178 7. Alcoholic Beverage Tax ....................................................................................................................... 179 8. Tobacco Products Excise Tax ............................................................................................................... 181 9. Financial Institutions Special State Occupation Tax ............................................................................ 182 10. Special Assessment of Forest Land Conservation Use Property ........................................................ 183 11. Alternative Ad Valorem Tax on Motor Vehicles................................................................................ 184 12. Special Excise Tax on Consumer Fireworks ...................................................................................... 190 13. State Hotel-Motel Tax......................................................................................................................... 191 14. For-Hire Ground Transport Excise Tax .............................................................................................. 192 Appendix of Tables................................................................................................................................... 193 Table 1: Summary of Expired Provisions ............................................................................................. 193 Table 2: Sales and Use Tax Expenditures by Type............................................................................... 195 Tables 3-9: Distributional Tables of Selected Provisions ..................................................................... 202
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Introduction
Tax expenditures are provisions in the tax code that allow for special treatment of a source of income or a certain type of expense. Such treatment usually results in a reduction in tax liability for the taxpayer. In principle, these tax benefits could be provided by direct appropriation, thus these provisions are referred to as "expenditures". They represent tax revenues that would have been otherwise generated if not for this preferential treatment in the tax code.
Like direct government expenditures, tax expenditures are an allocation of government revenue that are intended to achieve a particular policy outcome or encourage some activity. The value of a tax expenditure can be thought of as representing the amount of money that would be necessary to provide the same level of financial support in the form of a government grant instead of through the tax code. Tax expenditures are received by businesses and individual taxpayers and are present in all of Georgia's major taxes, including the individual income tax, corporate income tax, and sales tax.
Tax expenditures, also referred to as tax preference items, can take several forms. Many are structured as tax credits and deductions, such as the corporate credit for hiring a new worker or the individual deduction for the mortgage interest paid on a primary residence. Other expenditures are in the form of exclusions of income. For example, at the state level, individuals in Georgia can exclude the value of Social Security benefits from the calculation of Georgia taxable income. Lastly, some tax expenditures may be provided in the form of reduced rates for selected taxable transactions, such as the reduced title ad valorem tax for rental vehicles and certain vehicle title transfers.
Tax Expenditure Report
Preparation of a tax expenditure report is required by the Official Code of Georgia Annotated 45-12-75. The purpose of the report is to list all tax expenditures and their value. In this way, these items can be tracked over time in a fashion analogous to a budget of direct governmental expenditures.
While direct expenditures for such items as education or transportation are reviewed annually with every budget, tax expenditures are often not subject to such periodic review. It is important to monitor the value associated with these provisions as they are a reduction in tax revenue and their presence results in special treatment for some taxpayers relative to others. For example, the state government supports education through direct expenditure programs and through HOPE scholarships but also allows a tax deduction for certain educational expenses borne by the taxpayer or paid by an employer. Both the direct expenditure and the tax expenditure represent an allocation of government resources toward education, but only the direct expenditures are listed in an annual budget.
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Leaving tax expenditures out of the annual budgetary review process creates two types of distortions. First, it under-represents the amount of government resources allocated for a given purpose. Second, it incorrectly represents the distribution of the benefits of government expenditures. The benefits of tax expenditure provisions are usually targeted to higher income taxpayers compared to direct expenditure programs, so that the absence of tax expenditures in the overall analysis may lead to the conclusion that government resources are targeted toward less affluent taxpayers. In addition, not all tax expenditure programs have a direct budgetary counterpart, thus without a tax expenditure report, these provisions and their distributional effects escape notice.
The presence of tax expenditures is not necessarily bad tax policy. However, not recognizing or monitoring the resources allocated through the tax system is not good fiscal policy. Through this report, we hope to provide a consolidated listing of government resources provided through this means. This report does not, however, provide any information on how effective the provision may be in terms of fulfilling its purpose. For instance, while the value of the Research and Development (R&D) credit may be reported annually in the tax expenditure report, there is no accompanying analysis to determine the extent to which more research activities have been undertaken due to the presence of the special provision.
Identifying Tax Expenditures
In most cases, identifying a tax expenditure is straightforward. Tax expenditures are deviations or special exceptions from the generally defined tax base, sometimes referred to as the normal tax base or the reference tax base. However, there may be disagreement as to what constitutes the normal or reference tax base. Even at the federal level, the list of tax expenditure items included by the Administration differs from the list estimated by Congress because each works from a different definition of the standard tax base. The appropriate norm against which tax expenditures are defined is somewhat subjective and may, in some cases, be driven by the intent of the policy underlying the legislation. For example, one would not consider the difference between the current top income tax rate of 5.75 percent and the tax rate of 1 percent a tax expenditure.
Tax credits and deductions for certain types of activities, such as the jobs tax credit or the lowincome housing credit, are always classified as tax expenditures. This is also the case for items that are taxed at a reduced rate. In addition, specific exclusions from the tax base are, in most cases, considered tax expenditures. Because the Georgia individual and corporate tax systems are both tied to the federal individual and corporate bases, exclusions or deductions at the federal level apply to the state tax base as well. In some cases, Georgia chooses not to conform to federal provisions, such as the Section 199 deduction for domestic production activities. In these cases, we do not include the provision as a tax expenditure. It is also important to note that tax expenditures are not computed for revenue that is due but not collected.
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There are instances when it is unclear whether a given tax provision should be listed as a tax expenditure. This is because it is unclear what constitutes the general rule, and therefore, it is sometimes difficult to determine which provisions are exceptions to that rule. Consider the individual income tax exemption. Individuals are allowed to exclude an amount of income for each taxpayer included on the return, but this exemption of income is not considered a tax expenditure by all states. Another example is the provision allowing for the use of a single-factor apportionment formula in allocating income earned by corporations operating in more than one state. Because the general rule of the single-factor apportionment formula has been established at the state level, only deviations from that rule would be listed as a tax expenditure. Alternatively, if one considers the status-quo method of apportionment to be the equally weighted three-factor apportionment formula, any deviation from that rule, such as the double-weighted three-factor or single-factor apportionment formula, would be reported as a tax expenditure. This sort of problematic classification of tax expenditures also applies to the taxation of services under the state sales tax. Because state legislation refers to the purchase of tangible goods, the exclusion of services from the base may not be seen as a deviation from the general rule. On the other hand, if it is really the intent of the general rule to tax all consumption, then the exclusions provided to the consumption of services should be listed as a tax expenditure. In this report we attempt to incorporate as comprehensive a definition as possible.
Defining a tax expenditure in the case of the sales tax requires particular discussion. Because there is no federal sales tax, there is no list of federal sales tax expenditures to use as a starting point. For this report, we use the state tax statute as the basis for identifying sales tax expenditures. Therefore, if an exemption specifically exists in the state statute, it is listed as a sales tax expenditure. This has the advantage of being a very straightforward and non-subjective rule to apply. As a second advantage, this method provides a comprehensive list of all statutory exemptions allowing for comparison between provisions affecting taxpayers and industries.
This rule has the disadvantage of identifying many sales tax provisions as tax expenditures that would not be identified as tax expenditures under the rule of good tax policy. This is particularly true in the case of business inputs. There are several business inputs, such as the exemption for energy used in manufacturing, that are listed in this report as tax expenditures but are not activities that would be included in the tax base if the base were defined using the best economic principles. When business inputs are included in the sales tax base, those inputs are taxed and the tax is included in the price when the input is sold to the next stage of production. The more these inputs are taxed at the intermediate stages of production, the more tax is embedded in the price of the final good. This embedded tax distorts prices and influences economic decisions. Therefore, it is important to understand that while some business exemptions are listed as tax expenditures in this report, policymakers may find it helpful to distinguish the business inputs from tax expenditures that are provided for more societal reasons, such as the tax exemption for public school lunches or for the sale of food for off-premises consumption. To aid policy makers, this
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report identifies in the appendix the sales tax expenditure provisions that are considered business inputs.
Tax Expenditures vs. Revenue Estimates
The estimate associated with a tax expenditure provision does not necessarily represent the revenue that would be gained from the repeal of the enabling legislation. Instead, the cost of the tax expenditure represents the value of the deduction or credit taken via the particular provision by itself, without consideration of potential interactions with other provisions. Although the presence of one provision may interact with the use of another provision, tax expenditures are estimated as independent provisions. For instance, if the federal research and development tax credit were repealed, federal revenues would not increase by the amount of the federal tax expenditure estimate but by a smaller amount. This is because some of the research expenditures claimed through the federal tax credit would be shifted over to another tax deduction or credit so that the savings to the government would be less than the value of the tax expenditure estimate. In addition, tax expenditure estimates do not incorporate behavioral effects that may occur due to the elimination of a provision. For instance, the tax expenditure estimate associated with the deduction for charitable giving is based on a current level of charitable contributions. If the deduction for charitable contributions were proposed to be eliminated, the revenue effect presented in the fiscal note would incorporate both the initial value of charitable contributions from the tax expenditure estimate and a timing effect that would result from people speeding up their level of contributions in response to the future loss of the deduction. Thus, tax expenditure estimates can only act as a preliminary indication of the revenue effect that would occur if the provision were eliminated or modified.
Data Sources and Reliability of Estimates
To the extent possible, data from the Georgia Department of Revenue (DOR) is used to estimate the expenditures included in this report. Unfortunately, the required information is not always collected or available. When it is not, other data sources, such as information from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, or the U.S. Bureau of Labor Statistics, are used. Every effort is made to provide reliable, well supported estimates of the provisions. Because of the time lag in processing income tax returns, the most recent data available from the Georgia DOR was calendar year (CY) 2019. Therefore, even in cases in which the Georgia DOR data is used as the primary data source, the tax expenditure costs presented in this report are estimates.
Two subjective measures of reliability are provided in this report: the estimate reliability and the data reliability. The reliability of both the estimate and data are categorized into three classes: A, B, and C. Class A estimates and data sources are considered the most reliable. Data sources with a Class A status consist of data from the federal statistical agencies or from the Georgia DOR. Estimates with a Class A status are typically those estimates that are based on Class A data that
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is particularly applicable to the expenditure provision. For instance, most of the state business tax credit expenditures are listed as Class A estimates. They are based on tax credit data provided by the Georgia DOR that specifically addresses or measures the tax expenditure provision. On the other hand, most sales tax estimates are given a Class B status. While these provisions may be based on Class A data sources, such as the Economic Census or the Consumer Expenditure Survey from the Bureau of Labor Statistics, the data may only be available at a national level, or the data may refer to more activities than is covered by the tax expenditure provision. In these cases, the data must be adjusted to represent the specific activity associated with the expenditure provision and scaled down to represent the value of the activity within Georgia. Class C estimates are believed to provide reasonable estimates and are based on the best data available. For some items, no reliable information is available. In these cases, no estimate for the expenditure is provided.
Class of Estimate/Class of Data
Class A
Class B Class C
Description of Estimate Reliability
Based on data specifically related to the tax expenditure
provision and to Georgia taxpayers
Based on national data which has been modified to
represent Georgia and the specific tax activity covered
by the expenditure Represents best available
estimate at this time
Examples of Data Sources by Reliability Status
Data from Department of Revenue, Bureau of Labor
Statistics Consumer Expenditure Survey, Bureau of Economic Analysis, U.S.
Census Bureau datasets
Industry surveys and trade magazines, most proprietary
information
Newspaper articles, secondary sources
Local Government Effects
In addition to the state estimates, this report attempts, where possible, to estimate the effects on local government revenues. There are many state exemptions that have local ramifications, such as numerous exemptions from the sales tax base. The local estimates that are provided represent the aggregate value of the exemptions that would accrue to the counties, municipalities, school districts, and special service districts, including tax allocation and community improvement districts.
Consistency with prior estimates
The current report, prepared for FY 2023, presents estimates for FY 2021-FY 2023. The report for FY 2022 provided estimates for FY 2020-FY 2022. In most cases, the estimates between the current and past reports are consistent, with the latest report continuing the same trend in the
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value of the estimates that was established in earlier reports. On the other hand, there are some cases in which estimates presented in the FY 2023 report differ significantly from those presented in the past reports. This usually occurs because new information has become available or because a new forecast of economic activity is relied upon to predict future values. The updated estimates are included in the current report and any major inconsistency with prior reports is noted in the discussion relating to the expenditure.
Outline of the Report
The report continues with a summary table containing a title of each tax expenditure provision, the tax base it is associated with, the type of expenditure, and the estimated values for FY 202123 for all tax expenditures identified in the report. Provisions that are assigned a positive value denote an expenditure that is estimated to reduce state or local revenues. Provisions assigned a value of "(m)" denote a tax expenditure that is estimated to reduce state revenues by less than $1 million. Provisions assigned a negative value denote a positive tax expenditure that is estimated to increase state revenues. Provisions assigned a value of "(-m)" denote a tax expenditure that is estimated to increase state revenues by less than $1 million.
In addition to an identifying title, each expenditure provision is assigned an expenditure number, the first digit of which corresponds to the different sections of this report, such as 1 for the individual income tax and 5 for the insurance premium tax. The remaining portion of the numeric identifier is used to divide the expenditures into different subcategories such as federal and state expenditures, and deductions and credits. Only in the case of the sales tax exemptions does the expenditure number have any relationship to the state tax code section to which the expenditure item is associated. The numeric identifiers for each provision are consistent across tax expenditure reports and can be used to compare expenditure estimates from one report to the next.
Following the summary tables are detailed sections for each of the specific taxes covered in this report. These detailed sections begin with a brief description of the tax, latest figures on revenue collection and any information on recent modifications to the base. These detailed sections also include additional information for each of the expenditure items such as the statute number, the year in which the expenditure provision was enacted and the year in which it became effective, information on the data and estimate reliability and data source, a more detailed description of the tax expenditure provision, and the value of the expenditure provision. The report concludes with an appendix that includes tables listing recently expired provisions, sales and use tax expenditures by type, and distributional analysis for a selected number of income tax provisions.
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Federal Individual Income Tax Provisions1
Exclusion of
Federal
employee meals Individual
1.1.001
and lodging
Income Tax
Exclusion of
housing
Federal
allowances for Individual
1.1.002
ministers
Income Tax
Exclusion of
employer-
Federal
provided child Individual
1.1.003
care
Income Tax
Exclusion of
Federal
employee
Individual
1.1.004
awards
Income Tax
Exclusion of
employer
contributions
and earnings to
pension plans
includes
Keoghs, defined
benefit and
defined
Federal
contribution
Individual
1.1.005
plans
Income Tax
Exclusion of
employer
contributions
for health care,
health insurance
premiums and
long-term care
Federal
insurance
Individual
1.1.006
premiums
Income Tax
Exclusion of
employer-paid
accident and
Federal
disability
Individual
1.1.007
premiums
Income Tax
Exclusion Exclusion Exclusion Exclusion
Exclusion
Exclusion Exclusion
54 6 17 3
2,092
1,252 28
State FY 2022
(in Millions)
52 7 17 3
2,374
1,324 29
State FY 2023
53 7 17 3
2,690
1,390 31
1 These are Internal Revenue Code (IRC) provisions adopted by Georgia as part of its personal and corporate income tax.
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Exclusion of
employer
contributions
for premiums
Federal
on group-term Individual
1.1.008
life insurance Income Tax Exclusion
25
Exclusion of
employer-paid
transportation
benefits and
employer-
provided transit Federal
and vanpool
Individual
1.1.009
benefits
Income Tax Exclusion
36
Exclusion of
employer-
provided
Federal
adoption
Individual
1.1.011
assistance
Income Tax Exclusion
3
Exclusion of
employer-
provided
education
benefits
(including
education
assistance and
tuition
Federal
reduction
Individual
1.1.012
benefits)
Income Tax Exclusion
12
Exclusion of
Federal
miscellaneous Individual
1.1.013
fringe benefits Income Tax Exclusion
56
Exclusion of
foreign earned
income
(including
Federal
housing and
Individual
1.1.014
salary)
Income Tax Exclusion
34
Exclusion of
certain
allowances for
federal
Federal
employees
Individual
1.1.015
abroad
Income Tax Exclusion
9
State FY 2022
(in Millions)
25
37 3
11 58 38 9
State FY 2023
26
38 3
11 60 41 10
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Exclusion of
benefits and
allowances to
armed forces
personnel
(includes
expenditure for
military
Federal
disability
Individual
1.1.016
benefits)
Income Tax Exclusion
78
Exclusion of
medical care
and Tricare
medical
insurance for
military
dependents,
retirees, and
Federal
retiree
Individual
1.1.017
dependents
Income Tax Exclusion
35
Exclusion of
veterans'
benefits
(includes
veterans
disability
compensation,
pensions, and
Federal
readjustment
Individual
1.1.018
benefits)
Income Tax Exclusion
95
Exclusion of
income
attributable to
the discharge of
certain student
loan debt and
National Health
Service Corp
and certain state Federal
educational loan Individual
1.1.019
repayments
Income Tax Exclusion
1
State FY 2022
(in Millions)
82
39
98
1
State FY 2023
87 42 105
1
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Exclusion of
workers'
compensation
benefits
(includes
disability and
survivor
benefits and
medical
benefits, and
exclusion of
damages on
account of
personal
physical injuries Federal
or physical
Individual
1.1.020
sickness)
Income Tax Exclusion
62
Exclusion of
special benefits Federal
for disabled
Individual
1.1.021
coal miners
Income Tax Exclusion
(m)
Exclusion of
untaxed Social
Security and
railroad
Federal
retirement
Individual
1.1.022
benefits
Income Tax Exclusion
238
Exclusion of
Federal
certain foster
Individual
1.1.024
care payments Income Tax Exclusion
2
Exclusion of
scholarship and Federal
fellowship
Individual
1.1.026
income
Income Tax Exclusion
26
Exclusion of
earnings of
Coverdell
education
savings
accounts and
interest on
Federal
educational
Individual
1.1.027
savings bonds Income Tax Exclusion
1
State FY 2022
(in Millions)
67 (m) 251 3 27
1
State FY 2023
64 (m) 232 3 27
1
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Exclusion of
earnings of
qualified tuition
programs
(including
prepaid tuition
programs and
Federal
savings account Individual
1.1.028
programs)
Income Tax Exclusion
8
Exclusion for
certain
agricultural
Federal
cost-sharing
Individual
1.1.029
payments
Income Tax Exclusion
(m)
Exclusion of
cancellation of
indebtedness
Federal
income for
Individual
1.1.030
farmers
Income Tax Exclusion
(m)
Exclusion of
interest on state
and local
government
Federal
private activity Individual
1.1.031
bonds
Income Tax Exclusion
1
Exclusion of
capital gains on
sales of
Federal
principal
Individual
1.1.032
residences
Income Tax Exclusion
287
Exclusion of
Federal
capital gains at Individual
1.1.033
death
Income Tax Exclusion
216
Carryover basis Federal
of capital gains Individual
1.1.034
on gifts
Income Tax Exclusion
15
Permanent
exemption from Federal
imputed interest Individual
1.1.035
rules
Income Tax Exclusion
4
Federal
Exclusion of
Individual
1.1.036
combat pay
Income Tax Exclusion
11
State FY 2022
(in Millions)
9
(m)
(m)
1
309 220 14
4 11
State FY 2023
9 (m) (m)
1 329 228 20 5 10
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Expenditure
1.1.037
1.1.038 1.1.039 1.1.040 1.1.041 1.1.042 1.1.043 1.1.044
Summary of State Tax Expenditures
Summary
Exclusion of energy conservation subsidies provided by public utilities
Tax
Type of
Expenditure
Federal Individual Income Tax
Exclusion
State FY 2021
(m)
State FY 2022
(in Millions)
(m)
State FY 2023
(m)
Exclusion of
income
attributable to
the discharge of
principal
residence
Federal
acquisition
Individual
indebtedness Income Tax Exclusion
1
(m)
0
Exclusion of
gain for certain Federal
small business Individual
stock
Income Tax Exclusion
9
10
9
Exclusion of
interest on
public purpose
state and local
Federal
government
Individual
bonds
Income Tax Exclusion
1
1
1
Exclusion of
income earned
by voluntary
employees'
Federal
beneficiary
Individual
associations
Income Tax Exclusion
7
8
8
Exclusion of
survivor
annuities paid
to families of
public safety
Federal
officers killed in Individual
the line of duty Income Tax Exclusion
(m)
(m)
(m)
Exclusion of
disaster
Federal
mitigation
Individual
payments
Income Tax Exclusion
(m)
(m)
(m)
Deduction for Non-Itemizers of Charitable Contributions
Federal Individual Income Tax
Exclusion
Estimate included in 1.2.021
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Exclusion of
income
attributable to
the discharge of
principal
residence
Federal
acquisition
Individual
1.1.045
indebtedness Income Tax Exclusion
1
Accelerated
Federal
depreciation
Individual
1.2.001
(MACRS)
Income Tax Deduction
38
Deduction for
expenditures on
energy-efficient
commercial
Federal
building
Individual
1.2.002
property
Income Tax Deduction
(m)
Expensing of
exploration and
development
Federal
costs: nonfuel Individual
1.2.003
minerals
Income Tax Deduction
(m)
Amortization of Federal
business start- Individual
1.2.004
up costs
Income Tax Deduction
2
Expensing of
research and
Federal
experimental
Individual
1.2.005
expenses
Income Tax Deduction
(m)
Expensing of
magazine
Federal
circulation
Individual
1.2.006
expenditures Income Tax Deduction
(m)
Deductions of
oil and gas
exploration and Federal
development
Individual
1.2.007
costs
Income Tax Deduction
0
Special
treatment for
expenses related Federal
to timber
Individual
1.2.008
production
Income Tax Deduction
3
State FY 2022
(in Millions)
(m) 36
(m)
(m) 2 (m) (m)
0
3
State FY 2023
0 34
(m) (m) 2 0 (m) 0 3
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Expensing
under IRC
Section 179 of
depreciable
Federal
business
Individual
1.2.009
property
Income Tax Deduction
44
Exceptions for
publicly traded
partnerships
with qualified
income derived
from certain
Federal
energy-related Individual
1.2.010
activities
Income Tax Deduction
2
Treatment of
income from
exploration and
mining of
natural
resources as
qualifying
income under
the publicly
traded
Federal
partnerships
Individual
1.2.011
rules
Income Tax Deduction
(m)
Various
agricultural
Federal
expensing
Individual
1.2.012
provisions
Income Tax Deduction
1
Community and
regional
Federal
development
Individual
1.2.013
incentives
Income Tax Deduction
1
Expensing to
remove
architectural
and
transportation
barriers to the
Federal
handicapped
Individual
1.2.014
and elderly
Income Tax Deduction
(m)
State FY 2022
(in Millions)
42
2
(m) 1 (m)
(m)
State FY 2023
50
3
(m) 1 0
(m)
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Inventory
methods and
valuation,
(including last-
in first-out,
lower of cost or
market, specific
identification
Federal
for homogenous Individual
1.2.015
products)
Income Tax Deduction
7
Federal
Health Savings Individual
1.2.017
Accounts
Income Tax Deduction
82
Deduction of
Federal
property taxes Individual
1.2.018
on real property Income Tax Deduction
177
Deduction of
mortgage
interest on
Federal
owner-occupied Individual
1.2.020
residences
Income Tax Deduction
172
Deduction of
charitable
contributions
(includes
deductions for
health,
education, and
for purposes
other than
Federal
health and
Individual
1.2.021
education)
Income Tax Deduction
615
Deduction of
Federal
casualty and
Individual
1.2.022
theft losses
Income Tax Deduction
2
Deduction of
overnight
expenses for
National Guard Federal
and Reserve
Individual
1.2.023
members
Income Tax Deduction
2
Deduction of
premiums for
qualified
Federal
mortgage
Individual
1.2.024
insurance
Income Tax Deduction
1
State FY 2022
(in Millions)
8 86 187 169
620 2
2 (m)
State FY 2023
8 92 169 176
598 2 2 0
17 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Deduction of
Federal
interest on
Individual
1.2.025
student loans Income Tax Deduction
12
Deduction of
higher
Federal
education
Individual
1.2.026
expenses
Income Tax Deduction
1
Deduction for
teacher
Federal
classroom
Individual
1.2.027
expenses
Income Tax Deduction
2
Deduction of
health insurance
premiums and
long-term care
insurance
premiums by
Federal
the self-
Individual
1.2.028
employed
Income Tax Deduction
41
Deduction of
medical and
dental expenses Federal
and long-term Individual
1.2.029
care expenses Income Tax Deduction
64
Net exclusion
of pension
contributions
and earnings:
Federal
traditional and Individual
1.2.030
Roth IRAs
Income Tax Deduction
210
Federal
Limit on NOL Individual
1.2.031
deduction2
Income Tax Deduction
0
7-year recovery
period for
motorsport
Federal
entertainment Individual
1.2.032
complexes
Income Tax Deduction
(m)
State FY 2022
(in Millions)
14 (m) 2
42
69
226 -1
(m)
State FY 2023
16 0 2
44 69
244 -1 (m)
2 Negative values denote a tax expenditure that is estimated to increase state revenues.
18 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Limitation on
active
passthrough
losses in excess
of $500,000 and Federal
$250,000 filing Individual
1.2.033
single
Income Tax Deduction
-91
Deferral of gain Federal
on like-kind
Individual
1.3.001
exchanges
Income Tax Deferral
29
Special rules for
magazine,
paperback book, Federal
and record
Individual
1.3.002
returns
Income Tax Special Rule
(m)
Two-year
carryback for
net operating
losses
Federal
attributable to Individual
1.3.003
farming
Income Tax Special Rule
1
Special rules for
mining
Federal
reclamation
Individual
1.3.004
reserves
Income Tax Special Rule
(m)
Cash
accounting, for
Federal
certain
Individual
1.3.005
businesses
Income Tax Special Rule
18
Deferral of gain
on non-dealer
Federal
installment
Individual
1.3.006
sales
Income Tax Special Rule
6
Federal
Completed
Individual
1.3.007
contract rules Income Tax Special Rule
1
Special
treatment of
employee stock
ownership plans
(ESOPs)
(includes
deferral of tax
on certain
Federal
employee stock Individual
1.3.008
plans)
Income Tax Deferral
13
State FY 2022
(in Millions)
-174 30 (m)
1 (m) 16 7 1
14
State FY 2023
-199 31 (m)
1 (m) 16 6 1
15
19 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
1.3.009
Various agricultural expensing provisions
Tax
Type of
State
Expenditure FY 2021
Federal
Individual
Income Tax Special Rule
1
State FY 2022
(in Millions)
1
State FY 2023
1
Qualified
Federal
Opportunity
Individual
1.3.010
Zones
Income Tax Special Rule
3
3
3
Expensing rules Federal
for certain
Individual
1.3.011
productions
Income Tax Special Rule
(m)
(m)
(m)
Georgia Individual Income Tax Provisions
1.4.001
Personal Exemption
State Individual Income Tax
Exemption
1,307
1,320
1,335
1.4.002
Retirement Income
State Individual Income Tax
Exemption
1,270
1,207
1,253
Exclusion of
federally
taxable Social
State
Security
Individual
1.4.003
benefits
Income Tax Exemption
364
375
387
Georgia Higher
Education
State
Savings Plan
Individual
1.4.004
Contributions Income Tax Exemption
14
14
14
State
Interest on U.S. Individual
1.4.005
obligations
Income Tax Exemption
14
15
15
1.4.006
State
Certain military Individual
income
Income Tax
Exemption
Estimate not available at this time
State
Organ donation Individual
1.4.007
expenses
Income Tax Exemption
(m)
(m)
(m)
State
Aged 65/Blind Individual
1.4.008
deduction
Income Tax Exemption
22
22
23
Certain
dependent's
State
unearned
Individual
1.4.009
income
Income Tax Exemption
(m)
(m)
(m)
Premiums for
State
high-deductible Individual
1.4.010
health plans
Income Tax Exemption
10
12
13
20 | P a g e
Expenditure 1.4.011
1.4.012 1.4.013 1.4.014 1.4.015
Summary of State Tax Expenditures
Summary
Exclusion of qualified insurance benefits for firefighters
Tax
Type of
State
State
State
Expenditure FY 2021
FY 2022
FY 2023
(in Millions)
State Individual Income Tax
Exemption
Estimate not available at this time
Individual retirement account, Keogh, SEP and Sub-S plan withdrawals where tax has been paid to Georgia because of the difference between Georgia and Federal law for tax years 1981 through 1986.
State Individual Income Tax
Exemption
Estimate not available at this time
Depreciation because of differences in Georgia and Federal law during tax years 1981 through 1986.
State Individual Income Tax
Exemption
Estimate not available at this time
Income from any fund, program or system which is exempted by federal law or treaty.
State Individual Income Tax
Exemption
Estimate not available at this time
Certain income in which the Sub-S election is not recognized by Georgia or another state in order to avoid double taxation.
State Individual Income Tax
Exemption
Estimate not available at this time
21 | P a g e
Expenditure
1.4.016
1.4.017 1.4.018 1.4.019 1.4.020 1.4.021 1.4.022 1.4.023 1.5.001
Summary of State Tax Expenditures
Summary
Tax
Type of
Expenditure
Adjustment for certain teachers retired from the Teachers Retirement System of Georgia Amount claimed by certain employers in food and beverage establishments Adjustment of certain payments to minority subcontractors
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
Exemption Deduction Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Estimate not available at this time Estimate not available at this time
Adjustments to federal AGI for certain Georgia resident partners
State Individual Income Tax
Exemption
Estimate not available at this time
Exemption for certain disaster relief firms
State Individual Income Tax
Exemption
Estimate not available at this time
Exclusion of
Military
State
Survivor
Individual
Benefits
Income Tax Exclusion
3
3
3
Exclusion from
the income tax
for disability
payments for
State
disabled first
Individual
responders
Income Tax Exclusion
(m)
(m)
(m)
USDA Disaster
State
Relief Payments Individual
Exemption
Income Tax Exclusion
9
8
6
State
Standard
Individual
Deduction
Income Tax Deduction
906
915
925
22 | P a g e
Expenditure
1.5.002 1.6.001 1.6.002 1.6.004 1.6.005
1.6.006 1.6.007 1.6.008 1.6.009 1.6.010 1.6.011 1.6.012 1.6.013
Summary of State Tax Expenditures
Summary
Deduction of qualified insurance premiums for former firefighters
Tax
Type of
Expenditure
State Individual Income Tax
Deduction
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
State
Rural Physician Individual
Credit
Income Tax
Credit
1
1
1
Disabled
person's home
State
purchase or
Individual
retrofit credit Income Tax
Credit
(m)
(m)
(m)
Disaster
State
Assistance
Individual
Credit
Income Tax
Credit
(m)
(m)
(m)
Qualified
State
Caregiving
Individual
Expense Credit Income Tax
Credit
(m)
(m)
(m)
Tax credit for
life insurance
for Georgia
National Guard
State
and Air
Individual
National Guard Income Tax
Credit
(m)
(m)
(m)
Child and
State
Dependent Care Individual
Credit
Income Tax
Credit
44
45
47
Adoption of
State
Foster Child
Individual
Credit
Income Tax
Credit
7
9
10
State
Low-Income
Individual
Credit
Income Tax
Credit
5
7
7
Credit for taxes
State
paid to another Individual
state
Income Tax
Credit
429
411
427
Credit for
Community
State
Based Faculty Individual
Preceptors
Income Tax
Credit
2
2
2
Georgia Job
Total State
Tax Credit
Credit
Credit
160
191
194
Quality Jobs
Total State
Tax Credit
Credit
Credit
96
94
96
23 | P a g e
Expenditure 1.6.014 1.6.015 1.6.016 1.6.017 1.6.018 1.6.019 1.6.020 1.6.021 1.6.022 1.6.023 1.6.026
1.6.027 1.6.028 1.6.029
Summary of State Tax Expenditures
Summary
New Facilities Jobs Credit
Tax
Total State Credit
Type of Expenditure
Credit
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate combined with 1.6.012
New
Manufacturing
Facilities
Total State
Property Credit
Credit
Credit
0
0
0
Manufacturer's
Investment Tax Total State
Credit
Credit
Credit
60
85
72
Optional
Investment Tax Total State
Credit
Credit
Credit
2
2
2
Port Activity
Total State
Tax Credit
Credit
Credit
4
5
5
Alternate Port Activity Tax Credit
Total State Credit
Credit
Estimate combined with 1.6.018
Total State
Film Tax Credit Credit
Credit
760
894
1,002
Research Tax Total State
Credit
Credit
Credit
187
194
201
Seed-Capital
Total State
Fund Credit
Credit
Credit
(m)
(m)
(m)
Qualified
Health
Insurance
Total State
Expense Credit
Credit
Credit
(m)
(m)
(m)
Business
Enterprise
Total State
Vehicle Credit
Credit
Credit
(m)
(m)
(m)
Employer's
credit for
providing or
sponsoring
child care for
employees and
employer's
credit for
purchasing
child care
Total State
property
Credit
Credit
17
18
18
Low-Income
Total State
Housing Credit
Credit
Credit
286
294
306
Historic
Rehabilitation Total State
Credit
Credit
Credit
15
18
19
24 | P a g e
Expenditure
1.6.031 1.6.032 1.6.035 1.6.036 1.6.037 1.6.038
1.6.041 1.6.043 1.6.044
1.6.045 1.6.046
Summary of State Tax Expenditures
Summary
Tax
Low/ZeroEmission Vehicle Charger Credit
Total State Credit
Type of Expenditure
Credit
State FY 2021
(m)
State FY 2022
(in Millions)
(m)
State FY 2023
(m)
Land
Conservation
Total State
Credit
Credit
Credit
4
4
3
Employer's
Credit for
Approved
Employee
Total State
Retraining
Credit
Credit
45
50
50
Qualified
Education
Total State
Expense Credit
Credit
Credit
62
75
83
Qualified
State
Investor Tax
Individual
Credit
Income Tax
Credit
(m)
(m)
(m)
Energy-efficient
or water-
efficient
equipment
Total State
credit
Credit
Credit
0
0
0
Tax credit for existing business enterprises undergoing qualified business expansion
Total State Credit
Credit
Estimate combined with 1.6.013
Bank Tax
Total State
Credit
Credit
Credit
61
64
67
Employer tax
credit for hiring
qualified
Total State
parolees
Credit
Credit
0
(m)
0
Income Tax
Credit for
Contributions to
Rural Health
Care
Total State
Organizations
Credit
Credit
54
61
63
Revitalization Total State
Zone Tax Credit Credit
Credit
(m)
(m)
(m)
25 | P a g e
Expenditure 1.6.047 1.6.048 1.6.049 1.6.050
1.6.051 1.6.052 1.6.053
1.6.054 1.6.055
Summary of State Tax Expenditures
Summary
Georgia Musical Investment Tax Credit
Tax
Total State Credit
Type of Expenditure
Credit
State FY 2021
(m)
State FY 2022
(in Millions)
(m)
State FY 2023
(m)
Public
Education
Innovation
Fund Tax
Total State
Credit
Credit
Credit
(m)
(m)
(m)
Agribusiness
Total State
Tax Credit
Credit
Credit
11
14
14
Railroad Track
Maintenance
Total State
Tax Credit
Credit
Credit
8
7
7
Reforestation
credit for losses
incurred on
commercial
timberland due
to hurricane
Total State
damage
Credit
Credit
16
20
16
Qualified Post-
Production
Expenditures
Total State
Credits
Credit
Credit
5
7
6
Personal protective equipment manufacturer job tax credit
Total State Credit
Credit
Estimate not available at this time
Medical
equipment,
medical
supplies,
pharmaceuticals
, and medicine
manufacturers Total State
job tax credit
Credit
Credit
2
2
2
Teacher
Recruitment
and Retention Total State
Credit
Credit
Credit
0
0
1
26 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Federal Corporate Income Tax Provisions
Permanent
exemption from Federal
imputed interest Corporate
2.1.001
rules
Income Tax Exclusion
(m)
Exclusion of
interest on state
and local
government
Federal
private activity Corporate
2.1.002
bonds
Income Tax Exclusion
(m)
Exclusion of
earnings of
certain
Federal
environmental Corporate
2.1.004
settlement funds Income Tax Exclusion
(m)
Exclusion of
certain
agricultural
Federal
cost-sharing
Corporate
2.1.005
payments
Income Tax Exclusion
(m)
Exclusion of
gain or loss on
sale or
exchange for
Federal
brownfield
Corporate
2.1.006
property
Income Tax Exclusion
(m)
Exclusion of
interest on
public purpose
state and local
Federal
government
Corporate
2.1.009
bonds
Income Tax Exclusion
(m)
State FY 2022
(in Millions)
(m)
(m) (m) (m)
(m)
(m)
State FY 2023
(m) (m) (m) (m) (m) (m)
27 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Various foreign
provisions
including
inventory
property sales
source rule
exception,
interest expense
allocation,
deferral of
active income
of controlled
foreign
corporations,
deferral of
Federal
active financing Corporate
2.1.010
income
Income Tax Exclusion
259
Exclusion of
Federal
employee meals Corporate
2.1.011
and lodging
Income Tax Deduction
-28
Exclusion of
employer-paid
transportation
benefits and
employer-
provided transit Federal
and vanpool
Corporate
2.1.012
benefits
Income Tax Exclusion
-18
Accelerated
Federal
depreciation
Corporate
2.2.001
(MACRS)
Income Tax Deduction
8
Deduction of
expenditures on
energy-efficient
commercial
Federal
building
Corporate
2.2.002
property
Income Tax Deduction
(m)
Expensing of
exploration and
development
Federal
costs: nonfuel Corporate
2.2.003
minerals
Income Tax Deduction
(m)
Amortization of Federal
business start- Corporate
2.2.004
up costs
Income Tax Deduction
1
State FY 2022
(in Millions)
308 -28
-18 8 (m) (m) 1
State FY 2023
348 -29
-15 8 (m) (m) 1
28 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Expensing of
research and
Federal
experimental
Corporate
2.2.005
expenses
Income Tax Deduction
5
Expensing of
magazine
Federal
circulation
Corporate
2.2.006
expenditures Income Tax Deduction
(m)
Deductions of
oil and gas
exploration and Federal
development
Corporate
2.2.007
costs
Income Tax Deduction
0
Special
treatment of
expenses related Federal
to timber
Corporate
2.2.008
production
Income Tax Deduction
3
Deduction of
charitable
contributions
(includes
deductions for
health,
education, and
for purposes
other than
Federal
health and
Corporate
2.2.009
education)
Income Tax Deduction
43
Expensing
under IRC
Section 179 of
depreciable
Federal
business
Corporate
2.2.011
property
Income Tax Deduction
7
Amortization of Federal
air pollution
Corporate
2.2.012
control facilities Income Tax Deduction
2
Various
agricultural
Federal
expensing
Corporate
2.2.014
provisions
Income Tax Deduction
(m)
Community and
regional
Federal
development
Corporate
2.2.015
incentives
Income Tax Deduction
(m)
State FY 2022
(in Millions)
3 (m) 0 3
43
7 2 (m) (m)
State FY 2023
0 (m) 0 3
42
8 3 (m) 0
29 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Expensing to
remove
architectural
and
transportation
barriers to the
Federal
handicapped
Corporate
2.2.016
and elderly
Income Tax Deduction
(m)
Inventory
Federal
methods and
Corporate
2.2.017
valuation
Income Tax Deduction
5
Limits on
deductible
compensation
and
disallowance of
deduction for
excess
Federal
parachute
Corporate
2.2.018
payments
Income Tax Exemption
-11
Deduction for
foreign-derived Federal
intangible
Corporate
2.2.019
income
Income Tax Deduction
45
Limitation on
Federal
deduction of
Corporate
2.2.020
FDIC premium Income Tax Deduction
-10
Federal
Limitation on
Corporate
2.2.021
NOL deduction Income Tax Deduction
-4
7 year recovery
period for
motorsport
Federal
entertainment
Corporate
2.2.022
complexes
Income Tax Deduction
(m)
Deferral of gain Federal
on like-kind
Corporate
2.3.001
exchanges
Income Tax Deferral
11
Special rules for
magazine,
paperback book, Federal
and record
Corporate
2.3.002
returns
Income Tax Special Rule
(m)
State FY 2022
(in Millions)
(m) 6
-11 63 -10 -5
(m) 12
(m)
State FY 2023
(m) 6
-10 81 -10 -6 (m) 12 (m)
30 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Two-year
carryback for
net operating
losses
Federal
attributable to Corporate
2.3.003
farming
Income Tax Special Rule
(m)
Special rules for
mining
Federal
reclamation
Corporate
2.3.004
reserves
Income Tax Special Rule
(m)
Cash
accounting, for
Federal
certain
Corporate
2.3.005
businesses
Income Tax Special Rule
5
Deferral of gain
on non-dealer
Federal
installment
Corporate
2.3.006
sales
Income Tax Special Rule
19
Federal
Completed
Corporate
2.3.007
contract rules Income Tax Special Rule
5
Special
treatment of
employee stock
ownership plans
(ESOPs)
(includes
deferral of tax
on certain
Federal
employee stock Corporate
2.3.008
plans)
Income Tax Deferral
(m)
Deferral of
capital
construction
costs of
Federal
shipping
Corporate
2.3.009
companies
Income Tax Deferral
(m)
Qualified
Federal
Opportunity
Corporate
2.3.010
Zones
Income Tax Special Rule
7
Expensing rules Federal
for certain
Corporate
2.3.011
productions
Income Tax Special Rule
(m)
State FY 2022
(in Millions)
(m) (m) 4 20 5
1
(m) 7 (m)
State FY 2023
(m) (m) 3 21 5
2
(m) 8 (m)
31 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
Type of
Expenditure
Special rules for
interest-charge
domestic
international
sales
Federal
corporations
Corporate
2.3.012
(IC-DISC)
Income Tax
Georgia Corporate Income Tax Provisions
Special Rule
State FY 2021
7
State FY 2022
(in Millions)
8
State FY 2023
10
2.4.001
Single-Factor
Corporate
Apportionment Income Tax Apportionment
Estimate not available at this time
2.4.002
Throwback Rule
Corporate Income Tax Apportionment
Estimate not available at this time
2.4.003
Corporate Receipts Sourcing
Corporate Income Tax Apportionment
Estimate not available at this time
2.5.001
Interest on obligations of United States
Corporate Income Tax
Deduction
Estimate not available at this time
2.5.002
Exception to intangible expenses and related interest cost
Corporate Income Tax
Deduction
Estimate not available at this time
Exclusion of
global
intangible low-
taxed income
Corporate
2.5.003
(GILTI)
Income Tax Exclusion
153
182
212
Georgia Job
Total State
2.6.001
Tax Credit
Credit
Credit
160
191
194
Quality Jobs
Total State
2.6.002
Tax Credit
Credit
Credit
96
94
96
2.6.003
New Facilities Jobs Credit
Total State Credit
Credit
Estimate combined with 2.6.001
New
Manufacturing
Facilities
Total State
2.6.004
Property Credit
Credit
Credit
0
0
0
Manufacturer's
Investment Tax Total State
2.6.005
Credit
Credit
Credit
60
85
72
Optional
Investment Tax Total State
2.6.006
Credit
Credit
Credit
2
2
2
Port Activity
Total State
2.6.007
Tax Credit
Credit
Credit
4
5
5
32 | P a g e
Expenditure
2.6.008 2.6.009 2.6.010 2.6.011 2.6.012 2.6.015
2.6.016 2.6.017 2.6.018 2.6.020 2.6.021
2.6.024
Summary of State Tax Expenditures
Summary
Tax
Alternative Port Activity Tax Credit
Total State Credit
Type of Expenditure
Credit
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate Combined with 2.6.007
Total State
Film Tax Credit Credit
Credit
760
894
1,002
Research Tax Total State
Credit
Credit
Credit
187
194
201
Seed-Capital
Total State
Fund Credit
Credit
Credit
(m)
(m)
(m)
Qualified
Health
Insurance
Total State
Expense Credit
Credit
Credit
(m)
(m)
(m)
Business
Enterprise
Total State
Vehicle Credit
Credit
Credit
(m)
(m)
(m)
Employer's
credit for
providing or
sponsoring
child care for
employees and
employer's
credit for
purchasing
child care
Total State
property
Credit
Credit
17
18
18
Low-Income
Total State
Housing Credit
Credit
Credit
286
294
306
Historic
Rehabilitation Total State
Credit
Credit
Credit
15
18
19
Low- and Zero-
emission
Vehicle and
Total State
Charger Credit
Credit
Credit
(m)
(m)
(m)
Land
Conservation Total State
Credit
Credit
Credit
4
4
3
Employer's
Credit for
Approved
Employee
Total State
Retraining
Credit
Credit
45
50
50
33 | P a g e
Expenditure 2.6.025 2.6.027
2.6.030 2.6.032 2.6.033
2.6.034 2.6.035 2.6.036 2.6.037 2.6.038 2.6.039
Summary of State Tax Expenditures
Summary
Qualified Education Expense Credit
Tax
Total State Credit
Type of Expenditure
Credit
State FY 2021
62
State FY 2022
(in Millions)
75
State FY 2023
83
Energy-
Efficient or
Water-Efficient
Equipment
Total State
Credit
Credit
Credit
0
0
0
Tax credit for existing business enterprises undergoing qualified business expansion
Total State Credit
Credit
Estimate combined with 2.6.002
Bank Tax
Total State
Credit
Credit
Credit
61
64
67
Employer tax
credit for hiring
qualified
Total State
parolees
Credit
Credit
0
(m)
0
Income Tax
Credit for
Contributions to
Rural Health
Care
Total State
Organizations
Credit
Credit
54
61
63
Revitalization Total State
Zone Tax Credit Credit
Credit
(m)
(m)
(m)
Georgia
Musical
Investment Tax Total State
Credit
Credit
Credit
(m)
(m)
(m)
Public
Education
Innovation
Fund Tax
Total State
Credit
Credit
Credit
(m)
(m)
(m)
Agribusiness
Total State
Tax Credit
Credit
Credit
11
14
14
Railroad Track
Maintenance
Total State
Tax Credit
Credit
Credit
8
7
7
34 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
2.6.040 2.6.041
Reforestation credit for losses incurred on commercial timberland due to hurricane damage Qualified PostProduction Expenditures Credits
Tax
Total State Credit
Total State Credit
Type of Expenditure
Credit Credit
State FY 2021
16 5
State FY 2022
(in Millions)
20
7
State FY 2023
16 6
2.6.042
Personal protective equipment manufacturer job tax credit
Total State Credit
Credit
Estimate not available at this time
Corporate Net Worth Tax
3.001 3.002
Exemption for nonprofit corporations Exemption for insurance companies separately taxed
Net Worth Tax
Net Worth Tax
Exemption Exemption
Estimate not available at this time Estimate not available at this time
Exemption for
corporations
with net worth
of $100,000 or Net Worth
3.003
less
Tax
Exemption
5
5
5
Sales and Use Tax
4.00100
Sales to Federal Government, State of Georgia or a county or municipality in Georgia or any agency of such governments
Sales and Use Tax
Exemption
Estimate not available at this time
35 | P a g e
Expenditure
4.00200 4.00300 4.00400 4.00500
Summary of State Tax Expenditures
Summary
Tax
Tangible personal property furnished by the Federal Government or any county or municipality used by a contractor in the installation, repair, or extension of any public water, gas, or sewer system
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Federal retailer's excise tax if separately itemized to the consumer and Georgia motor fuel tax imposed on the sale of motor fuel
Sales and Use Tax
Exemption
Estimate not available at this time
Sales of
transportation
furnished by a
county or
municipal
public transit
system or
public transit
Sales and
authorities
Use Tax
Exemption
7
7
9
Sales of transportation furnished by an approved and authorized urban transit system
Sales and Use Tax
Exemption
Estimate combined with 4.00400
36 | P a g e
Expenditure 4.00600 4.00610
4.00620 4.00630
4.00700
Summary of State Tax Expenditures
Summary
Sales to any Hospital Authority created by Georgia law
Tax
Type of
State
State
State
Expenditure FY 2021
FY 2022
FY 2023
(in Millions)
Sales and Use Tax
Exemption
Estimate combined with 4.00700
Sales to any
Housing
Authority
created by
Sales and
Georgia law
Use Tax
Exemption
5
5
6
Sales to local
government
authorities
created on or
after January 1,
1980 for the
principal
purpose of
constructing,
owning, or
operating a
coliseum and
Sales and
related facilities Use Tax
Exemption
(m)
(m)
(m)
Sales to any
agricultural
commission
created by the
Department of Sales and
Agriculture
Use Tax
Exemption
(m)
(m)
(m)
Sales of
tangible
personal
property and
services to an
approved
nursing home,
inpatient
hospice, general
hospital or
mental hospital
when used
specifically in
the treatment
Sales and
function
Use Tax
Exemption
131
139
147
37 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Sales of
tangible
personal
property to a
non-profit
health center
established and
receiving funds
pursuant to the
U.S. Public
Health Service Sales and
4.00705
Act
Use Tax
Exemption
1
Sales of
tangible
personal
property and
services to a
nonprofit
organization
whose primary
function is to
provide services
to persons with
intellectual
Sales and
4.00710
disabilities
Use Tax
Exemption
1
Sales to
Georgia Society
of the
Daughters of
the American
Sales and
4.00720
Revolution
Use Tax
Exemption
(m)
Sales of
tangible
property and
services to a
nonprofit
volunteer health
clinic primarily
treating patients
with incomes
below 200
percent of the
Sales and
4.00730
poverty level
Use Tax
Exemption
2
State FY 2022
(in Millions)
1
1 (m)
2
State FY 2023
1
1 (m)
2
38 | P a g e
Expenditure 4.00800
4.00900 4.01000
Summary of State Tax Expenditures
Summary
Sales of tangible personal property and services to the University System of Georgia and its educational units
Tax
Type of
Expenditure
Sales and Use Tax
Exemption
State FY 2021
49
State FY 2022
(in Millions)
50
State FY 2023
51
Sale of tangible personal property and services used exclusively in the educational function of an approved private college or university located in Georgia in which the credits are accepted by the University System of Georgia
Sales and Use Tax
Exemption
Estimate combined with 4.00800
Sales of
tangible
personal
property and
services used
exclusively in
the educational
function of an
approved
private
elementary or
secondary
Sales and
school
Use Tax
Exemption
5
5
5
39 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Sale of tangible
personal
property or
services to, and
the purchase of
tangible
personal
property or
services by, any
educational or Sales and
4.01100
cultural institute Use Tax
Exemption
(m)
School lunches
sold and served
to pupils and
employees of
Sales and
4.01200
public schools
Use Tax
Exemption
(m)
School lunches
sold and served
to pupils and
employees of
approved
Sales and
4.01300
private schools Use Tax
Exemption
(m)
Sales of art and
other artifacts
for display or
exhibition to
Sales and
4.01400
museums
Use Tax
Exemption
(m)
Specific
fundraising
sales by any
religious
institution
lasting no more
than 30 days in
a calendar year
and sales of
religious paper
when the paper
is owned and
operated by the
religious
Sales and
4.01500
institution
Use Tax
Exemption
(m)
State FY 2022
(in Millions)
(m) (m) (m) (m)
(m)
State FY 2023
(m) 7 (m) (m)
(m)
40 | P a g e
Expenditure 4.01510 4.01700 4.01800
4.01900 4.02000
Summary of State Tax Expenditures
Summary
Sales of pipe organs or steeple bells to any church qualifying as a nonprofit
Tax
Type of
State
Expenditure FY 2021
Sales and
Use Tax
Exemption
(m)
State FY 2022
(in Millions)
(m)
State FY 2023
(m)
Sales of fuel or consumable supplies used by ships engaged in inter-coastal or foreign commerce Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation All tangible personal property purchased outside this state by a nonresident when the property is brought into Georgia upon the nonresident becoming a resident Water delivered through water mains, lines, or pipes
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax Sales and Use Tax
Exemption Exemption
Exemption Exemption
5
5
5
Estimate not available at this time
Estimate not available at this time
27
28
29
41 | P a g e
Expenditure
4.02100 4.02200 4.02300 4.02400
Summary of State Tax Expenditures
Summary
Tax
Sales, transfers or exchanges of tangible personal property resulting from business reorganization when the owners, partners, or stockholders maintain the same proportionate interest or share in the newly formed business
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Professional, insurance or personal service transactions which involve sales as inconsequential elements for which no separate charge is made
Sales and Use Tax
Exemption
See expenditure estimates for 4.5050
Repair services when a separate charge is made to the customer
Sales and Use Tax
Exemption
See expenditure estimates for 4.5110
Rental of
videotape or
film to persons
charging
admission to
view the tape or Sales and
film
Use Tax
Exemption
2
1
3
42 | P a g e
Expenditure
4.03000 4.03100 4.03200 4.03300
Summary of State Tax Expenditures
Summary
Tax
Vehicles purchased by serviceconnected disabled veterans when the U.S. Dept. of Veterans Affairs supplies a grant to purchase a specially adapted the vehicle Sale of tangible personal property manufactured or assembled in Georgia for export when delivery is taken outside of Georgia Aircraft, watercraft, motor vehicles, and other transportation equipment manufactured or assembled in this State for exclusive use outside Georgia
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Type of Expenditure
Exemption Exemption Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
(m)
(m)
(m)
Estimate not available at this time
Estimate not available at this time
Common or common and contract carriers
Sales and Use Tax
Exemption
Estimate not available at this time
43 | P a g e
Expenditure
4.03410 4.03420 4.03600 4.03610 4.03800
Summary of State Tax Expenditures
Summary
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities
Tax
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Machinery and
equipment used
directly to
remanufacture
certain aircraft
engines or
aircraft engine Sales and
parts
Use Tax
Exemption
(m)
(m)
(m)
Machinery and
equipment used
in a facility for
the primary
purpose of
reducing or
eliminating air
and water
Sales and
pollution
Use Tax
Exemption
(m)
(m)
(m)
Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility. Sale of tangible personal property and fees and charges for services by the Rock Eagle 4-H Center
Sales and Use Tax
Sales and Use Tax
Exemption Exemption
Estimate not available at this time
(m)
(m)
(m)
44 | P a g e
Expenditure 4.03900 4.03910 4.04000 4.04100
Summary of State Tax Expenditures
Summary
Tax
Certain sales by a public or private school of tangible personal property, concessions, and tickets for admission to school functions
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
(m)
State FY 2022
(in Millions)
(m)
State FY 2023
2
Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property
Sales and Use Tax
Exemption
Estimate not available at this time
Sale of major
components or
repair parts
installed in
military aircraft,
vehicles, or
Sales and
missiles
Use Tax
Exemption
28
33
33
Sale of tangible
personal
property and
services to a
nonprofit child-
caring
institution,
child-placing
agency, or
Sales and
maternity home Use Tax
Exemption
1
1
1
45 | P a g e
Expenditure
4.04200 4.04300 4.04400 4.04500
Summary of State Tax Expenditures
Summary
Tax
Use or lease of tangible personal property when the lessor and lessee are under 100 percent common ownership and where the person who furnishes, leases, or rents the property has paid sales or use tax on the property
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Revenues from
coin-operated
amusement
machines for
which
individual
permits are
Sales and
required
Use Tax
Exemption
47
51
55
Sale of motor vehicles to nonresident purchasers when vehicles are immediately removed from Georgia and titled in another state
Sales and Use Tax
Exemption
Estimate not available at this time
The sale or use of paper stock when used to print catalogs for distribution outside Georgia
Sales and Use Tax
Exemption
Estimate not available at this time
46 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Sale of tangible
personal
property or
taxable services
to nonprofit
Sales and
4.04600
blood banks
Use Tax
Exemption
1
Sale of drugs
dispensed by
prescription,
prescription
glasses, contact
lenses, contact
lens samples
and sales or use
of certain
controlled
substances or
Sales and
4.04700
dangerous drugs Use Tax
Exemption
453
Sale of crab bait
to licensed
commercial
Sales and
4.04800
fishermen
Use Tax
Exemption
(m)
Sale of insulin
syringes and
blood glucose
level measuring
strips dispensed
without a
Sales and
4.05000
prescription
Use Tax
Exemption
39
Sale of oxygen
when prescribed
by a licensed
Sales and
4.05100
physician
Use Tax
Exemption
5
Sale or use of
Sales and
4.05200
hearing aids
Use Tax
Exemption
6
Transactions
where food
stamps or WIC
coupons are
used as the
method of
Sales and
4.05300
payment
Use Tax
Exemption
161
State FY 2022
(in Millions)
1
478 (m)
41 1 7
151
State FY 2023
1
508 (m)
43 1 7
142
47 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Sale or use of
any durable
medical
equipment or
prosthetic
device
prescribed by a Sales and
4.05400
physician
Use Tax
Exemption
40
Sale of Georgia Sales and
4.05500
lottery tickets
Use Tax
Exemption
209
Sale by any
qualified
nonprofit parent
teacher
Sales and
4.05600
organization
Use Tax
Exemption
(m)
Food purchased
for off-premises Sales and
4.05700
consumption
Use Tax
Exemption
620
Sales of food
and beverages
to a qualified
Sales and
4.05710
food bank
Use Tax
Exemption
1
Exemption for
prepared food
and food
ingredients that
are donated to a
qualified
nonprofit
agency and used
for hunger relief Sales and
4.05720
purposes
Use Tax
Exemption
(m)
Sale of eligible
food and
beverages by
any Girl or Boy Sales and
4.05900
Scout council
Use Tax
Exemption
2
Sale of certain
machinery and
equipment used
to improve air
quality in a
clean room of
Class 100,000 Sales and
4.06000
or less
Use Tax
Exemption
(m)
State FY 2022
(in Millions)
45 219 (m) 629
1
0 2
(m)
State FY 2023
47 230 (m) 678 1
0 2
(m)
48 | P a g e
Expenditure 4.06100
4.06200
4.06300
4.06500 4.06600 4.06700
Summary of State Tax Expenditures
Summary
Advertising inserts that are used in newspapers for resale
Tax
Type of
Expenditure
Sales and Use Tax
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
Sod grass sold
in the original
state of
production by
the sod
producer,
employee of the
producer, or
family member Sales and
of the producer Use Tax
Exemption
3
3
3
Funeral
merchandise
when paid with
funds from the
Georgia Crime
Victims
Emergency
Sales and
Fund
Use Tax
Exemption
(m)
(m)
(m)
Sale of dyed
diesel fuel used
exclusively for
operations of
vessels or boats
by licensed
commercial
Sales and
fishermen
Use Tax
Exemption
(m)
(m)
(m)
Sale of gold,
silver, or
platinum
Sales and
bullion
Use Tax
Exemption
3
3
3
Sale of coins or Sales and
currency
Use Tax
Exemption
1
1
1
49 | P a g e
Expenditure
4.06800 4.06810
4.06900 4.07000
4.07100 4.07200
Summary of State Tax Expenditures
Summary
Tax
Sale of certain computer equipment when the total qualifying purchases by a high technology company exceed $15 million
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
High-Tech Data Center Equipment Exemption Sales of machinery and equipment and material incorporated and used in a clean room of Class 100 or less Sale of natural gas used directly in the manufacture of electricity
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Exemption
Exemption Exemption
15
12
13
Estimate Combined with 4.06000
83
90
99
Sale to or by an
organization
whose primary
purpose is to
raise funds for
books,
materials, and
programs for
Sales and
public libraries Use Tax
Exemption
(m)
(m)
(m)
Sale of
prescribed
mobility
enhancing
Sales and
equipment
Use Tax
Exemption
(m)
(m)
(m)
50 | P a g e
Expenditure 4.07600 4.08100 4.08300 4.08600 4.09100
Summary of State Tax Expenditures
Summary
Tax
Exemption for personal property used in the renovation or expansion of an aquarium
Sales and Use Tax
Type of Expenditure
Exemption
State FY 2021
1
State FY 2022
(in Millions)
(m)
State FY 2023
0
The purchase of
food and
nonalcoholic
beverages
provided at no
charge aboard a Sales and
qualified airline Use Tax
Exemption
3
6
7
Sale of biomass
materials used
to produce
electricity or
steam intended Sales and
for sale
Use Tax
Exemption
2
2
2
Sales of
engines, parts,
equipment and
other tangible
personal
property used in
the maintenance
or repair of
Sales and
certain aircraft
Use Tax
Exemption
22
22
23
The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave
Sales and Use Tax
Exemption
Estimate not available at this time
51 | P a g e
Expenditure
4.09300
4.09400 4.09700 4.10000 4.10100 4.10200
Summary of State Tax Expenditures
Summary
Tax
Sale of tangible personal property used for and in the construction of a competitive project of regional significance, for the period commencing January 1, 2012, until June 30, 2019 The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale
Sales and Use Tax
Sales and Use Tax
Type of Expenditure
Exemption
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
9
9
9
Estimate Combined with 4.3.2
Sales of
admission to a
nonrecurring
major sporting Sales and
event
Use Tax
Exemption
(m)
(m)
0
Exemption for
sales of tickets
to a qualified
fine arts
performance or Sales and
exhibition
Use Tax
Exemption
(m)
(m)
(m)
The sale of
certain written
material by a
Sales and
nonprofit
Use Tax
Exemption
8
0
0
Partial
exemption for
qualified
manufactured
Sales and
homes
Use Tax
Exemption
4
4
4
52 | P a g e
Expenditure
4.10300 4.10400
4.3.2
4.3.3 4.3.4 4.3.5 4.3.6
Summary of State Tax Expenditures
Summary
Exemption for construction materials used in construction of an automobile museum Exemption for poultry diagnostic and disease monitoring service nonprofit organization
Tax
Type of
Expenditure
Sales and Use Tax
Exemption
Sales and Use Tax
Exemption
State FY 2021
(m)
(m)
State FY 2022
(in Millions)
0
(m)
State FY 2023
0
(m)
Exemption for energy, machinery or equipment, industrial material, and consumable supplies used in manufacturing
Sales and Use Tax
Exemption
3,427
3,657
3,858
Sale and use by
a qualified
agriculture
producer of
agricultural
production
inputs, energy
used in
agriculture, and
agricultural
machinery and Sales and
equipment
Use Tax
Exemption
201
207
213
Exemption for
qualified boat
Sales and
repairs
Use Tax
Exemption
(m)
(m)
(m)
Exemption for
the sale and use Sales and
of jet fuel
Use Tax
Exemption
23
51
41
Exemption for sales within an enterprise zone
Sales and Use Tax
Exemption
Estimate not available at this time
53 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
4.5010 4.5020
4.5030 4.5040 4.5050 4.5060 4.5070
4.5080 4.5090 4.5100 4.5110 4.5120
Construction Services Automotive Services by Motor Vehicle and Parts Dealers Investment and Financial Advisers Real Estate Services Professional, Scientific and Technical Services Administrative and Support Services Waste Management and Remediation Services Educational Services (excluding schools) Health Care and Social Assistance Services Promoters of Events; Agents for Entertainers Repair and Maintenance Services Personal and Laundry Services
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax
Exemption
Exemption Exemption Exemption Exemption Exemption
Exemption Exemption Exemption Exemption Exemption Exemption
1,855
101 405 294 2,289 766
146 49 2,649 7 99 129
State FY 2022
(in Millions)
1,925
106 420 293
2,410 801
149
50
2,673 10 103 135
State FY 2023
1,970
109 436 297
2,483 838
152
52
2,704 17 107 141
54 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
4.70000
Compensation
of dealers for
reporting and
Sales and
paying tax
Use Tax
Exemption
83
4.90000
Sales tax
exemption for
Sales and
casual sales
Use Tax
Exemption
3
Insurance Premium Tax
Credit for
retaliatory taxes Insurance
paid to other
Premium
5.00100
states
Tax
Credit
3
Georgia Job
Total State
5.00200
Tax Credit
Credit
Credit
160
Exemption for
premiums of
Insurance
high-deductible Premium
5.00300
health plans
Tax
Exemption
1
Exemption for
insurance
companies that
only insure
Insurance
places of
Premium
5.00400
worship
Tax
Exemption
(m)
Insurance
Insurance
Premium
Rate
5.00500
abatements
Tax
Reduction
188
Special credits
for life
Insurance
insurance
Premium
5.00600
companies
Tax
Credit
203
Low Income
Total State
5.00700
Housing Credit
Credit
Credit
286
Exemption for
multiple
employer self- Insurance
insured health
Premium
5.00800
plans
Tax
Exemption
2
Agribusiness
Total State
5.00900
Tax Credit
Credit
Credit
11
Motor Fuel Tax
Motor fuel tax
exemption for Motor Fuel
6.00400
aviation fuel
Tax
Exemption
(m)
State FY 2022
(in Millions)
86 3
3 191
1
(m) 187
202 294
2 14
(m)
State FY 2023
89 3
3 194 1
(m) 191 207 306
2 14 (m)
55 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
6.00500
Motor fuel tax vendor compensation
Tax
Type of
Expenditure
Motor Fuel Tax
Exemption
State FY 2021
18
State FY 2022
(in Millions)
20
State FY 2023
20
Alcoholic Beverage Tax
7.00100
Sales to persons outside the state for resale or consumption outside the state
Alcoholic Beverage
Tax
Exemption
Estimate not available at this time
7.00200 7.00300
Sales to stores or canteens in U.S. military reservations 200 gallons annually of homebrew per household
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Exemption Exemption
Estimate not available at this time
(m)
(m)
(m)
Sales to and use
by religious
organizations
Alcoholic
for sacramental Beverage
7.00400
purposes
Tax
Exemption
(m)
(m)
(m)
7.00500 7.00600
Exemption for ethyl alcohol used for certain purposes Malt beverages containing less than one-half of 0.5 percent alcohol by volume
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Exemption Exemption
Estimate not available at this time
(m)
(m)
(m)
Tobacco Products Excise Tax
Exemption for
purchases for
use exclusively
by patients at
the Georgia
War Veterans
Home and the
Georgia War
Cigar and
Veterans
Cigarette
8.00100
Nursing Home Excise Tax Exemption
(m)
(m)
(m)
56 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
8.00200
De minimis amount brought into the state by one person
Tax
Cigar and Cigarette Excise Tax
Type of Expenditure
Exemption
State FY 2021
State FY 2022
(in Millions)
State FY 2023
Estimate not available at this time
8.00300
Cigars and cigarettes stored in a public warehouse
Cigar and Cigarette Excise Tax
Exemption
Estimate not available at this time
8.00400
Certain cigars and cigarettes held by licensed dealers
Cigar and Cigarette Excise Tax
Exemption
Estimate not available at this time
Financial Institutions Special State Occupation Tax
Financial
Institutions
Deduction for
Business
9.00100
interest paid
License Tax Deduction
6
8
10
9.00200
Deductions for income from authorized activities of a domestic international banking facility
Financial Institutions Business License Tax
Deduction
Estimate not available at this time
9.00300
Deduction for income from banking business with persons or entities outside the U.S.
Financial Institutions Business License Tax
Deduction
Estimate not available at this time
Special Assessment of Forest Land Conservation Use Property
Special
assessment of
forest land
conservation
10.00000
use property
State Grant
Credit
39
50
44
Alternative Ad Valorem Tax on Motor Vehicles
Reduced rate
for related
Rate
11.001
family transfers Title Fee
Reduction
11
12
12
Disabled
veteran
11.002
exemption
Title Fee Exemption
(m)
(m)
(m)
57 | P a g e
Expenditure
11.003 11.004 11.005 11.006 11.007 11.008
11.009 11.010 11.012
11.013 11.014
11.015
Summary of State Tax Expenditures
Summary
Reduced rate for rental vehicles
Tax
Type of
State
Expenditure FY 2021
Rate
Title Fee
Reduction
15
State FY 2022
(in Millions)
16
State FY 2023
17
Reduced rate
for vehicles
manufactured in
Rate
years 1963-89
Title Fee
Reduction
(m)
(m)
(m)
Reduced rate
for salvage
Rate
vehicles
Title Fee
Reduction
15
15
16
Dealer loaner
vehicle
exemption
Title Fee
Deferral
3
4
3
Reduced rate
for donated
Rate
vehicles
Title Fee
Reduction
(m)
(m)
(m)
Extended
payment period
for out-of-state
Rate
vehicles
Title Fee
Reduction
18
18
19
Trade-in
exemption
(including
rebates and cash
discounts)
Title Fee
Exemption
151
155
163
Special
assessment for
used vehicles
Title Fee Special Rule
8
8
9
Buy here pay
here
Rate
transactions
Title Fee
Reduction
6
6
7
Exemption for leased vehicles qualifying for Manufacturing Headquarters
Title Fee
Exemption
Estimate not available at this time
Treatment of
Leased Vehicles Title Fee Special Rule
9
9
9
Treatment of
vehicles
involved in
divorce
settlement or
business
Rate
reorganization
Title Fee
Reduction
(m)
(m)
(m)
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2021
Treatment of
11.016
non-IRP Buses Title Fee
Deferral
(m)
Exemption for
vehicles
purchased by
disabled first
11.017
responders
Title Fee
Exemption
(m)
Special Excise Tax on Consumer Fireworks
State Hotel-Motel Tax
For-Hire Ground Transportation Excise Tax
State FY 2022
(in Millions)
(m)
(m)
State FY 2023
(m)
(m)
59 | P a g e
1. Individual Income Tax
The individual income tax was first levied in Georgia in 1929 at a rate equal to one-third the federal rate of income taxation. The rate structure effective January 1, 2019 includes six brackets ranging from 1 percent to 5.75 percent, prior to which the rate structure had a top rate of 6 percent and had remained unchanged since 1955 when the 7 percent rate on taxable incomes over $20,000 was eliminated. The threshold for each bracket depends on the filing status of the taxpayer, i.e. single, head of household, and married filing separate or joint.
The initial base of the Georgia individual income tax is the taxpayer's federal adjusted gross income (AGI). Several adjustments are made to this starting point to arrive at the version of AGI adopted by Georgia. After computing the Georgia version of AGI, taxpayers deduct an amount representing either the value of their Georgia itemized deductions or the Georgia standard deduction, the latter of which was increased effective January 1, 2022 from $6,000 to $7,100 for married filers and from $4,600 to $5,400 for single and head of household filers. These standard deduction amounts were $3,000 and $2,300 respectively prior to January 1, 2018. In addition, filers are allowed a personal exemption of $7,400 for joint filers, $3,700 for married filing separately, and $2,700 for other filers as well as $3,000 for each dependent.
The tax is administered by the Georgia DOR. Individual income tax collections equaled $12.4 billion in FY 2020 and accounted for 52.3 percent of Georgia's revenues from taxation. In CY 2020, 5.2 million individual state returns were processed. While predominately paid by individuals, a significant number of business entities are organized so that income associated with these enterprises is reported through the individual income tax. All revenue collected from the individual income tax is deposited in the State General Fund.
It is important to keep in mind that tax expenditure estimates may differ from revenue estimates presented in fiscal notes. Estimates included in fiscal notes incorporate behavioral effects that are not considered when estimating tax expenditure provisions. The purpose of a tax expenditure estimate is to convey the cost that would be necessary if the item were offered as a direct budgetary expenditure instead of a reduction in the tax liability. A second caveat concerns the estimates associated with the state individual income tax credit provisions. Forecasting the value of the revenue loss stemming from the use of these credits is problematic because of the presence of extensive carryforwards in the case of some credits. Because of past credit carryforwards, taxpayers may claim credits on current or future year tax returns that were created in prior years. In some cases, the credit may have expired such that taxpayers are no longer able to create new credits, but the revenue loss to the state continues for several years until all carryforward liabilities have been exhausted. Therefore, the estimates provided in this report should be interpreted as the expected revenue loss stemming from the use of currently created or previously created credits and not an estimate of the value of credits created in a given year.
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The Tax Expenditure Report includes the expenditures associated with both state and federal tax provisions. Because the Georgia individual income tax is based on the federal system, expenditures that are present at the federal level have revenue implications at the state level. For example, changes to itemized deductions by the federal government have repercussions on state tax revenues. The value of the expenditure as it relates to state taxes paid by those filing a Georgia return is presented in section 1.1 on federal exclusions. In some cases, Georgia might not adopt a federal provision. In that case, the expenditure is not listed because there is no loss of revenue to the state. In general, the value of the federal tax expenditure to the state of Georgia is determined by allocating a portion of the federal tax base associated with the expenditure estimate as estimated by the Joint Committee on Taxation for the U.S. Congress. The data and estimate reliability for the conformity provisions are considered class A. In some cases, however, the values of the Georgia estimates are highly sensitive to the assumptions made concerning the appropriate tax rate for a given expenditure provision and the allocation factor that is used to determine the amount of federal activity associated with Georgia. The estimates associated with the federal conformity provisions are based on current law as it existed on January 1, 2021; any changes to provisions that may occur because of federal legislative action after that date are not reflected in the estimates. The explanations of the federal conformity provisions are taken from Tax Expenditures: Compendium of Background Material on Individual Provisions, prepared by the Congressional Research Service for the U.S. Senate Committee on the Budget, December 2020.
61 | P a g e
1.1 Federal Exclusions
1.1.001
Exclusion of employee meals and lodging
Federal Statute IRC section 119 and 132(e)(2)
Description: Employees are allowed to exclude the fair market value of meals and
lodging furnished by employers if provided on the employer's premises for
the convenience of the employer.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
54
52
53
(m) Denotes a value of less than $1 million
1.1.002
Exclusion of housing allowances for ministers
Federal Statute IRC Section 107 and 265
Description: In general, this provision allows ministers to deduct certain housing related
expenditures from their gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
6
7
7
(m) Denotes a value of less than $1 million
1.1.003
Exclusion of employer-provided child care
Federal Statute IRC Section 129
Description: Payments by an employer, under a dependent care assistance program, for
qualified dependent care assistance provided to an employee are excluded
from the employee's income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
17
17
17
(m) Denotes a value of less than $1 million
1.1.004
Exclusion of employee awards
Federal Statute IRC Section 74(c) and 274(j)
Description: This provision provides an exclusion for certain awards of tangible personal
property given to employees for length of service or for safety achievement.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
1.1.005
Exclusion of employer contributions and earnings to pension plans includes Keoghs, defined benefit and defined contribution plans Federal Statute IRC Sections 401-407, 410-418E, and 457 Description: Employer contributions to qualified pension, profit-sharing, stock-bonus,
and annuity plans on behalf of an employee are not taxable to the employee. Furthermore, the employee is generally not taxed on the benefits when they are distributed.
62 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
2,092 2,374 2,690
1.1.006
Exclusion of employer contributions for health care, health insurance premiums and long-
term care insurance premiums
Federal Statute IRC Sections 105,106, and 125
Description: Employees are allowed to exclude contributions by their employers for
healthcare coverage for themselves and their dependents.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1,252 1,324 1,390
(m) Denotes a value of less than $1 million
1.1.007
Exclusion of employer-paid accident and disability premiums
Federal Statute IRC Sections 105 and 106
Description: Premiums paid by employers for employee accident and disability
insurance plans are excluded from the taxable income of employees.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
28
29
31
(m) Denotes a value of less than $1 million
1.1.008
Exclusion of employer contributions for premiums on group-term life insurance
Federal Statute IRC Section 79
Description: Premiums paid by the employer for qualified group-term life insurance
plans for the employee are excluded from employee's taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
25
25
26
(m) Denotes a value of less than $1 million
1.1.009
Exclusion of employer-paid transportation benefits and employer-provided transit and
vanpool benefits
Federal Statute IRC Section 132(f)
Description: Employer provided qualified transportation benefits are excluded from
employee taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
36
37
38
(m) Denotes a value of less than $1 million
1.1.011 Exclusion of employer-provided adoption assistance Federal Statute IRC Section 137
63 | P a g e
Description: Benefits received from a qualified employer-sponsored adoption assistance
program are excludable from taxable income for the employee.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
1.1.012
Exclusion of employer-provided education benefits (including education assistance and
tuition reduction benefits)
Federal Statute IRC Section 117(d) and Section 127
Description: Tuition reductions for employees of educational institutions may be
excluded from taxable income. In addition, an employee may exclude
amounts paid by the employer for qualified educational assistance
programs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
12
11
11
(m) Denotes a value of less than $1 million
1.1.013
Exclusion of miscellaneous fringe benefits
Federal Statute IRC Section 132 and 117(D)
Description: Certain miscellaneous fringe benefits provided by employers, including
services provided at no additional costs, employee discounts, working
condition fringes, de minimis fringes and certain tuition reductions, can be
excluded from the employee's taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
56
58
60
(m) Denotes a value of less than $1 million
1.1.014
Exclusion of foreign earned income (including housing and salary)
Federal Statute IRC Section 911
Description: U.S. taxpayers who live and work abroad are allowed a capped exclusion of
their wage and salary income. In addition, qualified individuals can also
exclude certain excess foreign housing costs. This provision does not apply
to federal employees working abroad.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
34
38
41
(m) Denotes a value of less than $1 million
1.1.015
Exclusion of certain allowances for federal employees abroad
Federal Statute IRC Section 912
Description: U.S. federal civilian employees who work abroad are allowed to exclude
from taxable income certain special allowances they receive that are
generally linked to the cost of living.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
9
9
10
(m) Denotes a value of less than $1 million
64 | P a g e
1.1.016
Exclusion of benefits and allowances to armed forces personnel (includes expenditure for
military disability benefits)
Federal Statute IRC Section 112, 134, 104(a)(4) or (5) and 104(b)
Description: Military personnel are provided with a variety of in-kind benefits (or cash
payments in lieu of such benefits) that are not taxed. In addition, certain
members of the armed forces are eligible for tax exclusion of disability pay.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
78
82
87
(m) Denotes a value of less than $1 million
1.1.017
Exclusion of medical care and Tricare medical insurance for military dependents, retirees,
and retiree dependents
Federal Statute IRC Section 112 and 134
Description: Military personnel are provided with a variety of in-kind benefits (or cash
payments in lieu of such benefits) that are not taxed. In addition, certain
members of the armed forces are eligible for tax exclusion of disability pay.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
35
39
42
(m) Denotes a value of less than $1 million
1.1.018
Exclusion of veterans' benefits (includes veterans disability compensation, pensions, and
readjustment benefits)
Federal Statute 38 U.S.C. Section 5301
Description: All benefits administered by the U.S. Department of Veterans Affairs are
exempt from income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
95
98
105
(m) Denotes a value of less than $1 million
1.1.019
Exclusion of income attributable to the discharge of certain student loan debt and National
Health Service Corp and certain state educational loan repayments
Federal Statute IRC Section 108(f)
Description: This section provides that, in certain instances, student loan cancellation
and student loan repayment assistance may be excluded from gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.1.020
Exclusion of workers' compensation benefits (includes disability and survivor benefits and medical benefits, and exclusion of damages on account of personal physical injuries or physical sickness) Federal Statute IRC Section 104(a)(1)-(5) Description: Employees are not taxed on the value of insurance contributions for
workers' compensation medical benefits made on their behalf by employers, or on the medical benefits or reimbursements they actually receive. Workers' compensation benefits to employees in cases of work-related injury and to survivors in cases of work-related death are not taxable.
65 | P a g e
Damages paid, through either a court award or a settlement, to compensate
for physical injury or sickness, are not included in income of the recipient.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
62
67
64
(m) Denotes a value of less than $1 million
1.1.021
Exclusion of special benefits for disabled coal miners
Federal Statute IRC Section 104(a)(1)
Description: Cash and medical benefits to coal mine workers or their survivors for total
disability or death resulting from coal workers' pneumoconiosis (black lung
disease) paid under the Black Lung Benefits Act generally are not taxable.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.022
Exclusion of untaxed Social Security and railroad retirement benefits
Federal Statute IRC Section 86
Description: In general, Social Security and railroad retirement benefits are not subject
to tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
238
251
232
(m) Denotes a value of less than $1 million
1.1.024
Exclusion of certain foster care payments
Federal Statute IRC Section 131
Description: Qualified payments are excluded from the foster care provider's gross
income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
3
3
(m) Denotes a value of less than $1 million
1.1.026
Exclusion of scholarship and fellowship income
Federal Statute IRC Section 117
Description: Scholarships and fellowships can be excluded from the gross income of
students and their families provided: (1) the students are pursuing degrees
and (2) the amounts are used for tuition and fees required for enrollment or
for books, supplies, and equipment required for courses at a qualified
institution. Amounts used for room, board and incidental expenses are not
excluded from gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
26
27
27
(m) Denotes a value of less than $1 million
1.1.027 Exclusion of earnings of Coverdell education savings accounts and interest on educational savings bonds
Federal Statute IRC Section 530
66 | P a g e
Description: Contributions to a Coverdell Education Savings Account are not deductible
but the earnings grow on a tax deferred basis.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.1.028
Exclusion of earnings of qualified tuition programs (including prepaid tuition programs
and savings account programs)
Federal Statute IRC Section 529
Description: Contributions to qualified tuition programs are not deductible at the federal
level but earnings accumulate on a tax-deferred basis.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
8
9
9
(m) Denotes a value of less than $1 million
1.1.029
Exclusion for certain agricultural cost-sharing payments
Federal Statute IRC Section 126
Description: Grants made for the purpose of conserving soil and water resources or
protecting the environment are excluded from the recipient's taxable
income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.030
Exclusion of cancellation of indebtedness income for farmers
Federal Statute Sections 108 and 1070(b)(4)
Description: The provision allows farmers who are solvent to treat the income arising
from the cancellation of certain indebtedness as if they were insolvent
taxpayers. As such, income that would normally be subject to tax would be
excluded from tax under qualifying conditions.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.031
Exclusion of interest on state and local government private activity bonds
Federal Statute Various
Description: Interest earned on qualified private activity bonds is tax exempt.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.1.032
Exclusion of capital gains on sales of principal residences Federal Statute Federal Statute IRC Section 121 Description: A taxpayer may exclude from federal income tax up to $250,000 of capital
gain ($500,000 in the case of married taxpayers filing joint returns) from the sale or exchange of their principal residence.
67 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
287
309
329
1.1.033
Exclusion of capital gains at death
Federal Statute IRC Sections 1001,1002,1014,1015,1023,1040,1221, and 1222
Description: Capital gains tax is not imposed on the increased value of an asset when
ownership of the property is transferred as a result of the death of the
owner.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
216
220
228
(m) Denotes a value of less than $1 million
1.1.034
Carryover basis of capital gains on gifts
Federal Statute IRC Sections 1001,1014,1015,1023,1040,1221, and 1222
Description: Capital gains tax is not imposed on the increased value of an asset when
ownership of the property is transferred as a gift during the owner's
lifetime.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
15
14
20
(m) Denotes a value of less than $1 million
1.1.035
Permanent exemption from imputed interest rules
Federal Statute IRC Sections 163(e), 483, 1274, and 1274A
Description: Debt instruments for amounts not exceeding an inflation adjusted maximum
that are given in exchange for real property may not have imputed to them
an interest rate greater than 9 percent.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
4
4
5
(m) Denotes a value of less than $1 million
1.1.036
Exclusion of combat pay
Federal Statute IRC Section 112
Description: Compensation received by active members of the armed forces is excluded
from gross income for any month the service member served in a combat
zone or was hospitalized as a result of an injury or illness incurred while
serving in a combat zone.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
11
11
10
(m) Denotes a value of less than $1 million
1.1.037
Exclusion of energy conservation subsidies provided by public utilities Federal Statute IRC Section 136 Description: In general, this provision allows customers to exclude from their gross
income the value of any subsidy provided by a public utility for the
68 | P a g e
purchase or of any energy conservation measure.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.038
Exclusion of income attributable to the discharge of principal residence acquisition
indebtedness
Federal Statute IRC Section 108
Description: Income from discharge of indebtedness on qualified principal residence
debt, up to a $750 thousand limit ($375 thousand for married individuals
filing separately), is excluded from gross income for tax years beginning
Jan. 1, 2021, through Dec. 31, 2025. For tax years beginning before Jan. 1,
2021, the limits were $2 million and $1 million, respectively.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
(m) Denotes a value of less than $1 million
1.1.039
Exclusion of gain for certain small business stock
Federal Statute IRC Sections 1202 and 303
Description: This provision allows non-corporate taxpayers to exclude from gross
income 50 percent of any gain from the sale or exchange of qualified small
business stock issued after August 10, 1993. When a shareholder in a
closely held business dies there is no reported gain or loss on the partial
redemption of stock.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
9
10
9
(m) Denotes a value of less than $1 million
1.1.040
Exclusion of interest on public purpose state and local government bonds
Federal Statute IRC Sections 103, 141 and 146
Description: Interest income of qualifying governmental bonds is excluded from taxable
income (expenditure estimate has been adjusted to reflect GA law that only
interest on GA bonds is excluded from income).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.1.041
Exclusion of income earned by voluntary employees' beneficiary associations
Federal Statute IRC Sections 501(a) and 501(c)(9)
Description: Provided certain requirements are met, the income earned by a voluntary
employee beneficiary association (VEBA) is exempt from federal income
taxes.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
8
8
(m) Denotes a value of less than $1 million
69 | P a g e
1.1.042
Exclusion of survivor annuities paid to families of public safety officers killed in the line
of duty
Federal Statute IRC Section 101(h)
Description: The surviving spouse of a public safety officer killed in the line of duty can
exclude from gross income a survivor annuity payment under a
governmental pension plan.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.043
Exclusion of disaster mitigation payments
Federal Statute IRC Section 139
Description: Payments made for disaster mitigation under the Robert T. Stafford
Disaster Relief and Emergency Insurance Act or the National Flood
Insurance Act is excluded from income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.1.044
Deduction for Non-Itemizers of Charitable Contributions
Federal Statute IRC Section 170
Description: For 2020, individuals who don't itemize deductions can take up to a $300
above-the-line deduction for cash contributions to "qualified charitable
organizations." For 2021, this above-the-line deduction allowed on a joint
return is $600 (it remains at $300 for other taxpayers).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate included in 1.2.021
(m) Denotes a value of less than $1 million
1.1.045
Exclusion of income attributable to the discharge of principal residence acquisition
indebtedness
Federal Statute IRC Section 108
Description: Income from discharge of indebtedness on qualified principal residence
debt, up to a $750 thousand limit ($375 thousand for married individuals
filing separately), is excluded from gross income for tax years beginning
Jan. 1, 2021, through Dec. 31, 2025. For tax years beginning before Jan. 1,
2021, the limits were $2 million and $1 million, respectively.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
(m) Denotes a value of less than $1 million
70 | P a g e
1.2 Federal Deductions
1.2.001
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS) the cost
of tangible depreciation property of certain energy property is allowed a
shorter depreciation period. Taxpayers are allowed to depreciate the costs
of new rental housing and certain other buildings and equipment on an
accelerated schedule.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
38
36
34
(m) Denotes a value of less than $1 million
1.2.002
Deduction of expenditures on energy-efficient commercial building property
Federal Statute IRC Sections 179D
Description: This provision provides a formula-based tax deduction for all or part of the
cost of energy-efficient commercial building property placed in service
after December 31, 2005 and before January 1 2021, .
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.2.003
Expensing of exploration and development costs: nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617,56,1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.2.004
Amortization of business start-up costs
Federal Statute IRC Section 195
Description: This provision allows a business taxpayer to deduct up to $10,000 in
qualified start-up expenditures.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
1.2.005
Expensing of research and experimental expenses Federal Statute IRC Section 174 and 59(e) Description: This provision allows a business taxpayer to deduct certain research
expenditures that are paid or incurred in connection with the taxpayer's trade or business.
71 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021 2022
2023
(m)
(m)
0
1.2.006
Expensing of magazine circulation expenditures
Federal Statute IRC Section 173
Description: In general, current federal tax law allows publishers of newspapers,
magazines, and other periodicals to deduct their expenditures to maintain,
establish, or increase circulation in the year in which they are made.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.2.007
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas or other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible
drilling and development costs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
1.2.008
Special treatment for expenses related to timber production
Federal Statute IRC Sections 194, 263A(c)(5)
Description: This provision allows expensing of production costs of growing timber.
Taxpayers are also allowed different depreciation practices for qualified
reforestation expenses.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
1.2.009
Expensing under IRC Section 179 of depreciable business property
Federal Statute IRC Section 179
Description: Within certain limits, a taxpayer may elect to deduct as a current expense
the cost of qualifying property in the tax year when it is placed in service.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
44
42
50
(m) Denotes a value of less than $1 million
72 | P a g e
1.2.010
Exceptions for publicly traded partnerships with qualified income derived from certain
energy-related activities
Federal Statute IRC Section 7704
Description: This code section allows publicly traded partnerships to be treated as a
corporation for the purposes of the federal income tax under most
situations.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
3
(m) Denotes a value of less than $1 million
1.2.011
Treatment of income from exploration and mining of natural resources as qualifying
income under the publicly traded partnerships rules.
Federal Statute IRC Sections 162, 175, 180, 446, 448, 461, 464
Description: This code section allows publicly traded partnerships to be treated as a
corporation for the purposes of the federal income tax under most
situations.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.2.012
Various agricultural expensing provisions
Federal Statute IRC Sections 162, 175, 180, 446, 448, 461, 464
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning and the costs
associated with raising dairy cattle and breeding cattle.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.2.013
Community and regional development incentives
Federal Statute IRC Sections 38(b), 39(d), 45A, 280C(a), 1391-1397D
Description: Communities designated as empowerment zones and renewable
communities are eligible for special development incentives.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
(m) Denotes a value of less than $1 million
1.2.014
Expensing to remove architectural and transportation barriers to the handicapped and elderly Federal Statute IRC Section 190 Description: This provision allows taxpayers to deduct up to $15,000 of expenses
incurred in a single year for removing physical barriers to handicap or elderly individuals in qualified facilities or public transportation vehicles owned or leased by the taxpayer.
73 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
1.2.015
Inventory methods and valuation, (including last-in first-out, lower of cost or market,
specific identification for homogenous products)
Federal Statute IRC Sections 475, 491-492
Description: This provision allows taxpayers to use alternative inventory systems to
determine cost of goods sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
8
8
(m) Denotes a value of less than $1 million
1.2.017
Health Savings Accounts
Federal Statute IRC Section 223
Description: This provision allows taxpayers to exclude their health savings account
contributions from their gross income in determining their taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
82
86
92
(m) Denotes a value of less than $1 million
1.2.018
Deduction of property taxes on real property
Federal Statute IRC Section 164
Description: Taxpayers may claim an itemized deduction for property taxes paid on
owner-occupied residences. The deduction for property and state income or
sales taxes in total cannot exceed $10,000.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
177
187
169
(m) Denotes a value of less than $1 million
1.2.020
Deduction of mortgage interest on owner-occupied residences
Federal Statute IRC Section 163(h)
Description: A taxpayer may claim an itemized deduction for "qualified residence
interest" which includes interest paid on a mortgage secured by a principal
residence and a second residence.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
172
169
176
(m) Denotes a value of less than $1 million
1.2.021
Deduction of charitable contributions (includes deductions for health, education, and for purposes other than health and education) Federal Statute IRC Sections 170 and 642(c) Description: Subject to certain limitations, charitable contributions may be deducted by
individuals.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
615
620
598
1.2.022
Deduction of casualty and theft losses
Federal Statute IRC Sections 165(c)(3), 165(e), 165(h)-165(k)
Description: An individual may claim an itemized deduction for unreimbursed personal
casualty or theft losses up to a specified limit.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
1.2.023
Deduction of overnight expenses for National Guard and Reserve members
Federal Statute IRC Sections 162(p) and 62(a)(2)(E)
Description: An above-the-line deduction is available for unreimbursed overnight travel,
meals, and lodging expenses of National Guard and Reserve members.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
1.2.024
Deduction of premiums for qualified mortgage insurance
Federal Statute IRC Section 163(h)
Description: Qualified mortgage insurance premiums paid with respect to a qualified
residence can be treated as tax deductible.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
(m) Denotes a value of less than $1 million
1.2.025
Deduction of interest on student loans
Federal Statute IRC Section 221
Description: Taxpayers may deduct interest paid on qualified education loans in
determining their adjusted gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
12
14
16
(m) Denotes a value of less than $1 million
1.2.026
Deduction of higher education expenses
Federal Statute IRC Section 222
Description: Taxpayers may deduct qualified tuition and related expenses for
postsecondary education from their adjusted gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
(m) Denotes a value of less than $1 million
75 | P a g e
1.2.027
Deduction of teacher classroom expenses
Federal Statute IRC Section 62
Description: An eligible employee of a public or private elementary or secondary school
may claim a deduction for certain unreimbursed expenses
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
1.2.028
Deduction of health insurance premiums and long-term care insurance premiums by the
self-employed
Federal Statute IRC Section 162(l)
Description: Generally, a self-employed individual may deduct the entire amount paid
for health insurance or long-term care insurance.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
41
42
44
(m) Denotes a value of less than $1 million
1.2.029
Deduction of medical and dental expenses and long-term care expenses
Federal Statute IRC Section 213
Description: Most medical expenses that are paid by an individual but not reimbursed by
an employer or insurance company may be deducted from taxable income
to the extent they exceed 10 percent of adjusted gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
64
69
69
(m) Denotes a value of less than $1 million
1.2.030
Net exclusion of pension contributions and earnings: traditional and Roth IRAs
Federal Statute Section 219 and 408 and 408A
Description: Individuals participating in a traditional or Roth IRA are allowed to deduct
contributions in the case of traditional IRAs and distributions in the case of
Roth IRAs. Both exemptions are phased out for higher-income individuals.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
210
226
244
(m) Denotes a value of less than $1 million
1.2.031
Limit on NOL deduction
Federal Statute Pub. L. No. 115-63
Description: The deduction for net operating losses is limited to 80 percent of taxable
income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
0
-1
-1
(m) Denotes a value of less than $1 million
1.2.032 7-year recovery period for motorsports entertainment complexes Federal Statute IRC Sections 167 and 168
76 | P a g e
Description: Taxpayers are allowed to deduct the cost of certain deppreciable assets
from motorsports complexes over 7 years.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.2.033
Limitation on active pass through losses in excess of $500,000 and $250,000 filing single
Federal Statute IRC Section 461(l)
Description: Deductions for excess business losses are limited to $500,000 and to
$250,000 if filing single.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-91
-174
-199
(m) Denotes a value of less than $1 million
77 | P a g e
1.3 Special Federal Conformity Provisions
1.3.001
Deferral of gain on like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like-
kind, no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
29
30
31
(m) Denotes a value of less than $1 million
1.3.002
Special rules for magazine, paperback book, and record returns
Federal Statute IRC Section 458
Description: Publishers and distributors of magazines, paperbacks, and records may elect
to exclude from gross income for a tax year, the income from the sale of
goods that are returned after the close of the tax year.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.3.003
Two-year carryback for net operating losses attributable to farming
Federal Statute IRC Section 172
Description: Current law provides a two-year carryback period for losses related to
farming.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.3.004
Special rules for mining reclamation reserves
Federal Statute IRC Section 468 and 1274
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.3.005
Cash accounting, for certain businesses Federal Statute IRC Sections 446 and 448 Description: The cash method of accounting may be used by any business taxpayer that
is not a tax shelter and falls into at least one of three specified categories. These are farming businesses, qualified personal service corporations, and entities that meet a gross receipts test.
78 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
18
16
16
1.3.006
Deferral of gain on non-dealer installment sales
Federal Statute IRC Sections 453 and 453A(b)
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
6
7
6
(m) Denotes a value of less than $1 million
1.3.007
Completed contract rules
Federal Statute IRC Section 460
Description: Some taxpayers with construction or manufacturing contracts extending for
more than one tax year are allowed to report some or all of the profit on the
contracts under special accounting rules rather than the normal rules of tax
accounting.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.3.008
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax on
certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6), 512(e), 1042,
4975(d)(3), 4978, 4979A
Description: Employer contributions may be deducted as a business expense. In addition,
some contributions are subject to less restrictive limits than contributions to
other employee benefit plans. Tax on qualified employee stock purchase
plans are not taxed when granted or excised. Tax is deferred until stock is
sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
13
14
15
(m) Denotes a value of less than $1 million
1.3.009
Various agricultural expensing provisions
Federal Statute IRC Section 1301
Description: Beginning with tax years after 1997, taxpayers have the option to calculate
their current year income tax by averaging over a prior three-year period,
all or a portion of their income from farming and/or fishing.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
79 | P a g e
1.3.010
Qualified Opportunity Zones
Federal Statute PL 115-97; IRS 1400Z-1
Description: The inclusion in gross income of capital gains reinvested in a qualified
opportunity fund may be temporarily deferred and 15 percent of capital
gains reinvested may be excluded if the investment is held for seven years.
Capital gains from the sale or exchange of an investment in the qualified
opportunity fund held for at least 10 years are excluded from gross income.
A qualified opportunity fund is an investment vehicle organized as a
corporation or a partnership for the purpose of investing in qualified
opportunity zone property that holds at least 90 percent of its assets in
qualified opportunity zone property. Qualified opportunity zone property
includes any qualified opportunity zone stock, any qualified opportunity
zone partnership interest, and any qualified opportunity zone business
property. Certain low-income community population census tracts may be
designated as qualified opportunity zones by the chief executive officer of
the State (which includes the District of Columbia).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
1.3.011
Expensing rules for certain productions
Federal Statute IRC Section 181
Description: A taxpayer may elect to treat the cost, up to a maximum of $15 million ($20
million in some areas) for any production, of any qualified film, television,
or live theatrical production commencing production prior to Jan. 1, 2026,
as an expense which is not chargeable to capital account. Any cost so
treated shall be allowed as a deduction.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
80 | P a g e
1.4 Georgia Exemptions
1.4.001
Personal Exemption
Statute
48-7-26
Year Enacted
1987
Year Effective
1987
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis, see Table 3 in Appendix.
Description: For tax years 2012 and after, the personal exemption is $7,400 for married
filing joint, $3,700 for married filing separately, and $2,700 for all other
filers. In addition, $3,000 is excluded from income for each dependent
claimed on the tax return.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1,307 1,320 1,335
(m) Denotes a value of less than $1 million
1.4.002
Retirement Income
Statute
48-7-27(a)(5)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
The definition of retirement income was modified, effective
tax year 2018, to include Dept. of Defense survivor benefit
payments regardless of age of beneficiary. For distributional
analysis of this provision, see Table 4 in Appendix.
Description: For tax years beginning in 2012, individuals age 62 and above may exclude
a maximum of $35,000 and age 65 and above may exclude a maximum of
$65,000 of retirement income. This income exclusion may include a
maximum of $4,000 of earned income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1,270 1,207 1,253
(m) Denotes a value of less than $1 million
1.4.003
Exclusion of federally taxable Social Security benefits
Statute
48-7-27(a)(7)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Social Security and tier 1 railroad retirement benefits are excluded from
state taxable income.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
364
375
387
1.4.004
Georgia Higher Education Savings Plan Contributions
Statute
48-7-27(a)(11) and (11.1)
Year Enacted
NA
Year Effective
Taxable years beginning on or after January 1, 2002
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
The contribution limits were increased from $2,000 to $4,000
effective January 1, 2016 and again in 2019 from $4,000 to
$8,000, effective January 1, 2020. For distributional analysis,
see Table 5 in Appendix.
Description: An exemption from income is allowed for contributions to a qualified
higher education savings plan. The exemption is limited to $8,000 per
qualified plan beneficiary starting in 2020.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
14
14
14
(m) Denotes a value of less than $1 million
1.4.005
Interest on U.S. obligations
Statute
48-7-27(b)(2)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 6 in Appendix
Description: Interest earned on U.S. government bonds and other obligations are not
included as taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
14
15
15
(m) Denotes a value of less than $1 million
1.4.007
Organ donation expenses
Statute
48-7-27(a)(13)
Year Enacted
1981
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
U.S. Dept. of Health and Human Services, Organ Procurement
and Transplantation Network
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Certain unreimbursed expenses associated with the donation of organs in
accordance with the National Organ Procurement Act are deductible from
82 | P a g e
federal adjusted gross income up to a maximum value of $10,000.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.4.008
Aged 65/Blind deduction
Statute
48-7-27(a)(1)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 7 in Appendix
Description: Taxpayers aged 65 or older are allowed an annual deduction from income
of $1,300 per taxpayer. Taxpayers who are blind are allowed an annual
deduction from income of $1,300 per taxpayer.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
22
22
23
(m) Denotes a value of less than $1 million
1.4.009
Certain dependent's unearned income
Statute
48-7-27(a)(8)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Taxpayers can exclude unearned income of dependents that was included in
the federal AGI of a parent's return.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.4.010
Premiums for high-deductible health plans
Statute
48-7-27(a)(13.1)
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Taxpayers are allowed to exclude 100 percent of premiums paid for certain
high-deductible health plans.
83 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
10
12
13
1.4.021
Exclusion of Military Survivor Benefits
Statute
48-7-27(a)(5)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal note for HB 749 (2018) and DoD Statistical Report of
the Military Retirement System
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Income received by a surviving family member based on the service record
of a deceased service member is exempt from state income tax
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
1.4.022
Exclusion from the income tax for disability payments for disabled first responders
Statute
48-7-27(a)(12.4)
Year Enacted
2019
Year Effective
2019
Data Source
Fiscal note SB 138 LC 43 1258 (2019)
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: An income tax exclusion is allowed for first responders equal to 100
percent of the payments made to and received by a that disabled first
responder pursuant to O.C.G.A 45-9-85. This exclusion requires that such
amounts are included in the taxpayer's federal adjusted gross income and
are not otherwise exempt from the tax imposed by this article under any
other provision of law.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.4.023
USDA Disaster Relief Payments Exemption
Statute
48-7-27(a)(11.2)
Year Enacted
2020
Year Effective
Taxable years beginning on or after January 1, 2019, and
ending on or before December 31, 2023
Data Source
Fiscal Note for HB 105 LC 43 1601S (2020)
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Income received as payments from a federal disaster relief or assistance
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grant program administered by this state or its instrumentalities or the
United States Department of Agriculture to address agricultural losses
suffered due to Hurricane Michael, to the extent such income is included in
federal adjusted gross income or federal taxable income, is exempt from
state income tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
9
8
6
(m) Denotes a value of less than $1 million
Georgia individual income tax expenditures for which an estimate is not currently available
Expenditure Statute
1.4.006
48-7-27(a)(12)
Summary Certain military income of members of the National Guard and Reserves
1.4.011
1.4.012 1.4.013 1.4.014
1.4.015 1.4.016 1.4.017
48-7-27(a)(12.2)
48-7-27 48-7-27 48-7-27(a)(4)(A)
48-7-27(d) 48-7-27(a)(9) 48-7-28.2
Exclusion of qualified insurance benefits for firefighters Individual retirement account, Keogh, SEP and Sub-S plan withdrawals where tax has been paid to Georgia because of the difference between Georgia and Federal law for tax years 1981 through 1986 Depreciation because of differences in Georgia and Federal law during tax years 1981 through 1986 Income from any fund, program or system which is exempted by federal law or treaty Certain income in which the Sub-S election is not recognized by Georgia or another state in order to avoid double taxation Adjustment for certain teachers retired from the Teachers Retirement System of Georgia Amount of employer social security credit claimed by certain food and beverage establishments
1.4.018 1.4.019
48-7-27 48-7-27
Adjustment of certain payments to minority subcontractors Adjustments to federal AGI for certain Georgia resident partners
1.4.020
48-2-100
Exemption for certain disaster relief firms
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1.5 Georgia Deductions
1.5.001
Standard Deduction
Statute
48-7-27(a)(1)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for TY 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 8 in Appendix. The
allowable standard deduction amounts were increased
effective January 1, 2022.
Description: Taxpayers who do not itemize expenses on their federal return are allowed
a standard deduction of $5,400 for single and head of household filers,
$7,100 for married joint filers, and $3,550 for married separate filers.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
906
915
925
(m) Denotes a value of less than $1 million
Georgia individual income tax expenditures for which an estimate is not
currently available
Expenditure Statute
1.5.002
48-7-27
Summary Deduction of qualified insurance premiums for former firefighters
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1.6 Georgia Credits
1.6.001
Rural Physician Credit
Statute
48-7-29
Year Enacted
1995
Year Effective
Taxable years beginning on or after January 1, 1996
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is for certain physicians practicing in rural counties. The value
of the credit is equal to the lessor of $5,000 or the taxpayer's income tax
liability and may be claimed for five years.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.6.002
Disabled person's home purchase or retrofit credit
Statute
48-7-29.1
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1999
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit provides a $500 credit for the purchase of a new single-family
home containing accessibility features or for the retrofit of an existing
home.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.004
Disaster Assistance Credit
Statute
48-7-29.4
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2000
Data Source
DOR data as of TY 2020 and FEMA disasters database
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is for individuals receiving disaster relief payments from the
Georgia Emergency Management Agency or from the Federal Emergency
Management Agency. The credit amount is the actual amount of the
disaster relief assistance or $500, whichever is less.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
1.6.005
Qualified Caregiving Expense Credit
Statute
48-7-29.2
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1999
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is for taxpayers with expenses related to the care of a qualifying
family member. The value of the credit is equal to no more than 10 percent
of the total amount expended for qualifying caregiving expenses. In no
event shall the credit exceed $150 or the taxpayer's income tax liability,
whichever is less.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.006
Tax credit for life insurance for Georgia National Guard and Air National Guard
Statute
48-7-29.9
Year Enacted
2005
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is available for active duty members of the Georgia National
Guard and Air National Guard on active duty for more than 90 consecutive
days and who purchase qualified life insurance through the Services' Group
Life Insurance program administered by the U.S. Department of Veterans
Affairs. The credit amount is equal to the cost of the premiums of the life
insurance policy.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.007
Child and Dependent Care Credit
Statute
48-7-29.10
Year Enacted
2006
Year Effective
Taxable years beginning on or after January 1, 2006
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
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Description: This credit is equal to 30 percent of the federal credit claimed for qualified
expenses related to the care of children and dependents.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
44
45
47
(m) Denotes a value of less than $1 million
1.6.008
Adoption of Foster Child Credit
Statute
48-7-29.15
Year Enacted
2008
Year Effective
Tax years beginning on or after January 1, 2008
Data Source
DOR data for TY 2020 and fiscal note for HB 114 LC 43
1943S (2021)
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit provides an annual tax credit for taxpayers adopting qualified
foster children. The value of the credit is $2,000 per child annually until the
child attains the age of 18 and applies to adoptions occurring in taxable
years beginning on or after January 1, 2008. For adoptions beginning
January 1, 2021, the credit for the first five years is increased to $6,000 and
credits not utilized for the year of adoption may not be carried forward.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
9
10
(m) Denotes a value of less than $1 million
1.6.009
Low-Income Credit
Statute
48-7A-3
Year Enacted
1991
Year Effective
Taxable years beginning on or after January 1, 1992
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit provides a tax credit to low-income individuals. The credit is
based on the taxpayer's AGI. The maximum value of the credit is $26 per
dependent. For tax years beginning on January 1, 2010 and after, the credit
is nonrefundable.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
7
7
(m) Denotes a value of less than $1 million
1.6.010
Credit for taxes paid to another state
Statute
48-7-28
Year Enacted
1931
Year Effective
1931
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
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Data Reliability
Class A
Note
Description: A resident individual with income taxed by another state is allowed a credit
for such tax. The maximum value of this credit is equal to the amount that
would be due if the income were taxed by Georgia.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
429
411
427
(m) Denotes a value of less than $1 million
1.6.011
Credit for Community-Based Faculty Preceptors
Statute
48-7-29.22
Year Enacted
2019
Year Effective
2019
Data Source
DOR data for TY 2019 and fiscal note for HB 287 LC 43
1215 (2019)
Estimate Reliability
Class A
Data Reliability
Class A
Note
Effective for tax years beginning on or after January 1, 2019,
the deduction under O.C.G.A. 48-7-27 was replaced by a tax
credit and definition of the physician that qualifies changed
from community based faculty physicians to community based
faculty preceptors.
Description: Tax credits are earned by community-based faculty preceptors that
are physicians, as defined by O.C.G.A.43-34-21, in the amount of $500
for their first, second, and third preceptor rotations and $1,000 for each of
their fourth through tenth preceptorship rotations. Tax credits for
community-based faculty preceptors that are advanced practice registered
nurses or physician assistants, as defined by O.C.G.A.43-34-21, are $375
for their first through third preceptor rotations and $750 for their fourth
through tenth preceptor rotations. This credit expires December 31, 2023.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
1.6.012
Georgia Job Tax Credit Statute Year Enacted Year Effective
Data Source
Estimate Reliability Data Reliability Note
48-7-40 and 48-7-40.1 48-7-40: 1989; 48-7-40.1: 1993 48-7-40: Taxable years beginning on or after January 1, 1990; 48-7-40.1: Taxable years beginning on or after January 1, 1994 DOR data for TY 2020 and Office of Insurance and Safety Fire Commissioner Class A Class A The same estimate is provided in the corporate income tax and insurance premium tax sections, see 2.6.001 and 5.00200. In 2018, the qualifying areas were expanded to include counties with military bases and industrial parks that are owned and operated by a government entity.
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Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must be
greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees. It also provides a tax credit for businesses enterprises
designated as operating in less-developed areas. These include areas with
ten or more contiguous census tracts with higher than 15 percent poverty
and counties with both a military base and a government owned and
operated industrial park.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
23
27
28
Corporate Income Tax Expenditure
131
157
160
Insurance Premium Tax Expenditure
7
7
7
State Tax Expenditure
160
191
194
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.013
Quality Jobs Tax Credit
Statute
48-7-40.17
Year Enacted
2009
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
This provision was modified to allow consideration of jobs in
disregarded entities for purposes of qualifying for the credit.
This statute was modified in 2017 allowing taxpayers to
establish subsequent job creation periods for a qualified
project. The same estimate is provided in the corporate
income tax section, see 2.6.002.
Description: This credit is for employers creating new high-wage jobs or relocating
high-wage jobs into the state. A quality job or high-wage job has 30 hours
a week of regular work; is not already located in Georgia; and pays at or
above 110 percent of the average wage of the county in which it is located.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
94
92
94
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
96
94
96
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.014
New Facilities Jobs Credit Statute Year Enacted Year Effective
48-7-40.24 2003 Latest modifications are effective for taxable years beginning on or after July 1, 2021
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Data Source
Fiscal note for HB 587 LC 43 1970S for 2021
Estimate Reliability
NA
Data Reliability
NA
Note
The same estimate is provided in the corporate income tax
section, see 2.6.003.
Description: This provision provides for a credit of $5,250 per year per qualified new job
for up to five years, subject to recapture based on job and payroll
maintenance requirements, and until July 1, 2021, limited to 4,500 such
new jobs for any one qualified project. For business enterprises that first
qualify in a taxable year beginning on or after January 1, 2009, the business
enterprise must meet the job creation requirement of 1,800 eligible new
full-time employees and either the qualified investment requirement of
$450 million in qualified investment property, or the payroll requirement of
$150 million in total annual Georgia W-2 reported payroll within the six-
year period, subject to extension under certain conditions.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 1.6.012
(m) Denotes a value of less than $1 million.
1.6.015
New Manufacturing Facilities Property Credit
Statute
48-7-40.25
Year Enacted
2003
Year Effective
Latest modifications are effective for taxable years beginning
on or after July 1, 2021
Data Source
Fiscal note for HB 587 LC 43 1970S for 2021
Estimate Reliability
NA
Data Reliability
NA
Note
Utilization of this credit resulting from known or anticipated
projects is expected to be material, but not within the time
horizon of this report; see fiscal note.
The same estimate is provided in the corporate income tax
section, see 2.6.004.
Description: This is an incentive for a manufacturer who has operated a manufacturing
facility in this state for at least 3 years and who spends $800 million on a
new manufacturing facility in this state, subject to a job requirement of
1,800 full-time employees. The credit equal to 6 percent of the cost of all
qualified investment property purchased or acquired, up to $50 million with
respect to any one project. For qualified high-impact aerospace defense
projects certified on or after July 1, 2021, the maximum credit for any one
project is increased to $100 million and the taxpayer may begin claiming
credits once investment and job threshholds of $500 million and 1,000,
respectively, are reached.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million.
1.6.016 Manufacturer's Investment Tax Credit
Statute
48-7-40.2, 48-7-40.3, and 48-7-40.4
Year Enacted
1994
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Year Effective
Taxable years beginning on or after January 1, 1994
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.005.
Description: For tax years beginning on or after January 1, 2020, the taxpayer must
invest a minimum of $100,000 per project per location during the tax year
to receive credit, up from a $50,000 minimum ir prior years. Eligible
taxpayers must be in operation for the immediately preceding three
years. Property lease for a period of five years or longer is eligible for the
credit.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
11
16
14
Corporate Income Tax Expenditure
49
69
58
State Tax Expenditure
60
85
72
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.017
Optional Investment Tax Credit
Statute
48-7-40.7, 48-7-40.8, and 48-7-40.9
Year Enacted
1995
Year Effective
Taxable years beginning on or after January 1, 1996.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.006.
Description: An alternative investment tax credit is available for taxpayers based on their
investments in manufacturing or telecommunications facilities or support
facilities where these facilities have been operating for the three
immediately preceding years. The credit is available for investments in
excess of $5 million and placed in service no earlier than January 1, 1996,
for tier 1 counties. The investment threshold is $10 million for tier 2
counties and is $20 million for tier 3 and 4 counties.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
1
1
1
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.018
Port Activity Tax Credit Statute Year Enacted Year Effective
Data Source Estimate Reliability Data Reliability
48-7-40.15 1998 Latest modifications apply to taxable years beginning on or after January 1, 2010 DOR data as of TY 2020 Class A Class A
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Note
Estimate combined with 1.6.019. The same estimate is
provided in the corporate income tax section, see 2.6.007.
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more than
10 percent over 75 net tons, five containers or 10 20-foot equivalent units
(TEU's) during the previous 12-month period are qualified for increased
job tax credits or investment tax credits. For taxable years beginning on or
after January 1, 2010, the increase is based on a comparison of the previous
12-month period to the second preceding 12-month period.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
4
5
5
State Tax Expenditure
4
5
5
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.019
Alternate Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 1.6.018. The same estimate is
provided in the corporate income tax section, see 2.6.008.
Description: Credit is allowed to any business enterprise located in a tier 2 or 3 county or
in a less developed area and which qualifies and receives the Jobs Tax
Credit and which:
1. Consists of a distribution facility of greater than 650,000 square feet in
operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or its
subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 1.6.018
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.020
Film Tax Credit Statute Year Enacted Year Effective Data Source Estimate Reliability Data Reliability Note
48-7-40.26 2005 Taxable years beginning on or after January 1, 2005 DOR data for TY 2020 Class B Class A The same estimate is provided in the corporate income tax
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section, see 2.6.009. Tax credit provisions applicable to
qualified interactive entertainment production companies were
modified in 2015.
Description: Production companies which have at least $500,000 of qualified
expenditures in a state-certified production may claim this credit.
Certification must be approved through the Georgia Department of
Economic Development. There are special provisions relating to the tax
credits awarded to interactive entertainment companies. Under the 2017
modifications to this statute, the 2019 sunset for the qualified interactive
entertainment production company tax credit has been eliminated.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
462
543
609
Corporate Income Tax Expenditure
298
350
393
State Tax Expenditure
760
894
1,002
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.021
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.010.
Description: This credit is for expenses resulting from research conducted in Georgia by
businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
17
17
18
Corporate Income Tax Expenditure
170
177
183
State Tax Expenditure
187
194
201
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.022
Seed-Capital Fund Credit
Statute
48-7-40.27 & 40.28
Year Enacted
2008
Year Effective
Applicable to investments made on or after July 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.011.
Description: This provides a tax credit for certain qualified investments made on or after
July 1, 2008, in a research fund, the purpose of which is to provide early-
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stage financing for businesses formed as a result of research conducted in
Georgia's research universities.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.023
Qualified Health Insurance Expense Credit
Statute
48-7-29.13
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.012.
Description: Employers earn a tax credit based on the premiums paid for a high-
deductible health plan. Employers must employ 50 or fewer persons for
whom the employer provides high-deductible health plans as defined by
Section 223 of the Internal Revenue Code and in which such employees are
enrolled. The qualified health insurance must be made available to all
employees and compensated individuals of the employer pursuant to the
applicable provisions of Section 125 of the Internal Revenue Code. The
qualified health insurance premium expense must equal at least $250
annually.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.026
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.015.
Description: This is a credit given to a business enterprise for the purchase of a motor
vehicle that is used exclusively to provide transportation for its employees.
To qualify, a business enterprise must certify that each vehicle carries an
average daily ridership of not less than four employees for an entire taxable
year.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.027
Employer's credit for providing or sponsoring child care for employees, and employer's
credit for purchasing child-care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994. Credit for cost of qualified child-care
property: taxable years beginning on or after January 1, 2000.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.016.
Description: This credit is provided to employers based on their expenses related to
providing or sponsoring child care for their employees' children and for the
purchase of qualified child-care property.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
6
6
6
Corporate Income Tax Expenditure
11
12
12
State Tax Expenditure
17
18
18
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.028
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income and
insurance premium tax section, see 2.6.017 and 5.00700.
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal low-income housing tax credit and
that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
92
95
99
Corporate Income Tax Expenditure
31
32
33
Insurance Premium Tax Expenditure
163
167
174
State Tax Expenditure
286
294
306
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
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1.6.029
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data as of TY 2020 and Fiscal Note for HB 469 LC 43
2035S (2021)
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section, see 2.6.018. This provision expires December 31,
2022.
Description: A credit is provided based on expenses related to the certified rehabilitation
of a certified structure or historic home. Standards set by the Georgia
Department of Natural Resources must be met. A $25 million per calendar
year aggregate cap applies to projects earning more than $300,000 in
credits. The credit was modified in 2015 to allow unused credits to be
assigned or sold to other taxpayers. Further modifications in 2021 applied a
$5 million per calendar year cap on smaller projects and added a sunset date
for the credit of December 31, 2022.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
11
14
14
Corporate Income Tax Expenditure
4
4
4
State Tax Expenditure
15
18
19
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.031
Low/Zero-Emission Vehicle Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax, see
2.6.020.
Description: This credit applies to the purchase or lease of an electric vehicle charger
and to the conversion of a standard vehicle to a low- or zero-emission
vehicle. The credit for the purchase or lease of a new low- or zero-emission
vehicle was eliminated effective July 1, 2015.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.032
Land Conservation Credit Statute Year Enacted Year Effective
48-7-29.12 2006 Taxable years beginning on or after January 1, 2006
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Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.021.
Description: This provides for an income tax credit for the qualified donation of real
property that qualifies as conservation land pursuant to Chapter 22 of
O.C.G.A. Title 36. This credit was modified in 2015 such that the aggregate
value of credits awarded under this provision cannot exceed $30 million per
year and no new credit applications will be accepted after December 31,
2021.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
4
4
3
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
4
4
3
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.035
Employer's Credit for Approved Employee Retraining
Statute
48-7-40.5
Year Enacted
1994
Year Effective
Latest modifications are effective for taxable years beginning
on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.024.
Description: The tax credit reimburses employers for the cost of providing retraining
services to their employees. As of January 1, 2009, retraining programs
shall not include any retraining on commercially, mass produced software
packages for word processing, database management, presentations,
spreadsheets, e-mail, personal information management, or computer
operating systems except a retraining tax credit shall be allowable for those
providing support or training on such software.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
16
17
18
Corporate Income Tax Expenditure
29
32
33
State Tax Expenditure
45
50
50
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.036
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
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section, see 2.6.025.
Description: This provides a tax credit for donations made by taxpayers to a student
scholarship organization which are used for tuition and fees for a qualified
school or program. Annual cap increased to $100 million effective
January1, 2019.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
45
55
60
Corporate Income Tax Expenditure
17
21
23
State Tax Expenditure
62
75
83
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.037
Qualified Investor Tax Credit
Statute
48-7-40.30
Year Enacted
2010
Year Effective
2011; legislation modified in 2013 and 2015
Data Source
DOR data for TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit provides a 35 percent tax credit for amounts invested in certain
Georgia-headquartered small businesses. The credit was extended in 2015
and is now available for qualified investments made in years 2011-
2018. Credits may be taken in the second year following the investment
year and carried forward up to three years. The aggregate value of credits
awarded under this provision cannot exceed $5 million per year. No new
credits can be approved after 2020.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.038
Energy-efficient or water-efficient equipment credit
Statute
48-7-40.29
Year Enacted
2010
Year Effective
January 1 of the year following the year in which federal
funds for this program are made available and received by the
state
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.027.
Description: This tax credit applies to taxpayers who purchase energy-efficient and
water conservation equipment. The value of the credit is equal to 25 percent
of the cost of the qualified equipment or $2,500, whichever is less. The
credit is only available for those tax years in which federal funds are made
available to the state for this purpose. Given no federal funding, the state
revenue effect is zero.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
0
0
0
Corporate Income Tax Expenditure
0
0
0
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.041
Tax credit for existing business enterprises undergoing qualified business expansion
Statute
48-7-40.21
Year Enacted
2001
Year Effective
Latest modifications are applicable to tax years beginning on
or after January 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.030.
Description: This credit applies to businesses that create at least 500 new full-time jobs
within a taxable year.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 1.6.013
(m) Denotes a value of less than $1 million.
1.6.043
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data as of TY 2020 and IBISWorld industry forecasts
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.032.
Description: Depository financial institutions are allowed a credit against their state
income tax liability equal to the sum of the amount of their business license
taxes paid to local governments and any special state occupation taxes paid
to the state.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
4
4
4
Corporate Income Tax Expenditure
57
60
63
State Tax Expenditure
61
64
67
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.044
Employer tax credit for hiring qualified parolees
Statute
48-7-40.31
Year Enacted
2016
Year Effective
2016
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
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Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.033. This credit expired January 1, 2020;
remaining carryforwards expire if unused by January 1, 2022.
Description: For the period beginning on or after January 1, 2017, and before January 1,
2020, an employer that employs a qualified parolee in a full-time job for at
least 40 weeks during a 12-month period shall be eligible for an income tax
credit in the amount of $2,500 per year for each qualified parolee.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
0
(m)
0
Corporate Income Tax Expenditure
0
(m)
0
State Tax Expenditure
0
(m)
0
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.045
Income Tax Credit for Contributions to Rural Health Care Organizations
Statute
48-7-29.20
Year Enacted
2016
Year Effective
2017
Data Source
DOR data for 2021
Estimate Reliability
Class A
Data Reliability
Class A
Note
This statute was modified in 2017 and 2018 to increase
taxpayer limitations and the credit rate, modify the aggregate
state cap, and extend the expiration. This statute was modified
again in 2019 to extend the expiration. The same estimate is
provided in the corporate income tax section, see 2.6.034.
Description: An individual taxpayer shall be allowed an income tax credit equal to a
maximum of $5,000 for an individual filing a single return or $10,000 for
joint returns. A corporation or other entity shall be allowed an income tax
credit equal to a maximum of 75 percent of the corporation's income tax
liability. The aggregate amount of credits cannot exceed $60 million in any
year. The provision expires December 31, 2024.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
49
55
56
Corporate Income Tax Expenditure
5
6
6
State Tax Expenditure
54
61
63
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.046
Revitalization Zone Tax Credit
Statute
48-7-40.32
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.035.
Description: An income tax credit to promote the revitalization of vacant rural Georgia
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downtowns. The statute includes three credits. The first allows certified
entities to claim an annual tax credit for five consecutive years of $2,000
per qualified employee but not to exceed $40,000 per taxable year for any
taxpayer. The second provides for a credit equal to 25 percent of the
purchase price of qualified property up to an amount equal to $125,000 per
project. The third provides for a tax credit of 30 percent of qualified
rehabilitation expenses but not to exceed $150,000 per project.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.047
Georgia Musical Investment Tax Credit
Statute
48-7-40.33
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.036.
Description: This income tax credit is equal to 15 percent of qualified production
expenditures of a musical or theatrical performance, or a recorded musical
performance incorporated into or synchronized with a movie, television, or
interactive entertainment production. An additional credit equal to 5 percent
may be allowed for certain expenditures in tier 1 or tier 2 counties.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
1.6.048
Public Education Innovation Fund Tax Credit
Statute
48-7-29.21
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data as of TY 2020 and Fiscal Note for HB 237 LC 33
7049S (2017)
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the corporate income
section, see 2.6.037.
Description: This income tax credit is equal to contributions to a qualified Public
Education Innovation fund. The value of the credit varies by personal
income filing type from $1,000 to $10,000. Corporate filers are allowed a
credit equal to 75 percent of their current income tax liability. The
aggregate amount of credits awarded each year may not exceed $5 million.
This credit expires December 31, 2023.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.049
Agribusiness Tax Credit
Statute
33-1-25
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data as of TY 2020 and Office of Insurance and Safety
Fire Commissioner
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income and
insurance premium tax sections, see 2.6.038 and 5.00900.
Description: This income tax credit establishes qualified low-income community rural
investment funds and tax credits. The credit amount is 15 percent of the
eligible investment per year beginning in the third year after the investment
is made and continuing through the sixth year, for a total credit equal to 60
percent of the eligible investment. The credit is nonrefundable and may not
be sold, but may be carried forward indefinitely. The amount of credits
available is subject to a cumulative cap of $100 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
2
4
4
Corporate Income Tax Expenditure
1
1
1
Insurance Premium Tax Expenditure
8
9
9
State Tax Expenditure
11
14
14
(m) Denotes a value of less than $1 million
1.6.050
Railroad Track Maintenance Tax Credit
Statute
48-7-40.34
Year Enacted
2018
Year Effective
2019
Data Source
Fiscal Note for LC 39 2856 (2021)
Estimate Reliability
Class C
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section, see 2.6.039.
Description: This income tax credit is based on maintenance expenditures related to
railroad track owned or leased by Class III railroads. The credit equals
50 percent of railroad track maintenance expenditures, subject to a
maximum credit of $3,500 per track mile per year. In addition to Class III
railroads, persons transporting property using a Class III railroad's facilities
or persons furnishing railroad-related property or services to a Class III
railroad are eligible for the credit with respect to maintenance of their
assigned track miles. This credit expires December 31, 2026.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
8
7
7
1.6.051
Reforestation credit for losses incurred on commercial timberland due to hurricane
Statute
48-7-40.36
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for HB4EX LC 43 1048S (2018 Special Session)
and DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax, see
section 2.6.040.
Description: Provides for a credit for casualty losses incurred on commercial timberland
due to damage attributed to Hurricane Michael in the fall of 2018, subject to
replanting requirements as described below. The amount of the credit is
equal to 100 percent of the casualty loss deduction reported on the
taxpayer's federal return, provided that the credit amount does not exceed
$400 per acre. Taxpayers must seek preapproval for the credit on or before
December 31, 2019. Taxpayers are eligible to claim the credit in the taxable
year in which the taxpayer replants 90 percent of the timber lost in the
hurricane. All tax credits must be claimed by December 31, 2024. Credits
can be sold once prior to January 1, 2024. Credits claimed are
nonrefundable, but can be carried forward for up to 10 years. The total
amount of credits preapproved may not exceed $200 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
10
12
10
Corporate Income Tax Expenditure
7
8
7
State Tax Expenditure
16
20
16
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.052
Qualified Post-Production Expenditures Credits
Statute
48-7-40.26A
Year Enacted
2017
Year Effective
2018
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax, see
section 2.6.041.
Description: Postproduction companies with at least $500,000 in qualified
postproduction expenditures per year will be eligible for a credit equal to 20
percent of the qualified postproduction expenditures. An additional 10
percent credit is allowed if the qualified production expenditures were
incurred in the state. An additional 5 percent credit is allowed if the
qualified production expenditures were incurred in a tier 1 or tier 2 county.
The value of credits awarded is limited to a maximum of $10 million for
105 | P a g e
2018 through 2022. If in any year the aggregate amount of credits allowable
is not awarded, the remaining credits will be rolled in the allowable credits
for the following year. Postproduction companies with expenditures
between $100,000 and $500,000 per year are eligible for a separate credit
equal to 20 percent of the qualified postproduction expenditures. Aggregate
annual claims on this credit are limited to $1 million. The $1 million small
company credit limit does not count against the credit limit for the large
company credit discussed above. No credits shall be earned in years after
2022.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
5
6
6
Corporate Income Tax Expenditure
1
1
1
State Tax Expenditure
5
7
6
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.054
Medical equipment, medical supplies, pharmaceuticals, and medicine manufacturers job
tax credit
Statute
48-7-40.1B
Year Enacted
2021
Year Effective
Taxable years beginning on or after January 1, 2021
Data Source
Fiscal Note for HB 587 LC 43 2010S (2021)
Estimate Reliability
Class A
Data Reliability
NA
Note
The same estimate is provided in the corporate income tax, see
section 2.6.043.
Description: Medical equipment and supply manufacutrers, and pharmaceutical and
medicine manufacturers that qualify for the Georgia job tax credit (see
1.6.012/2.6.001/5.00200) may earn $1,250 per for each qualifying new job
in addition to the amounts earned under the existing job credit.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
1
2
2
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
1.6.055
Teacher Recruitment and Retention Credit
Statute
48-7-29.23 and 20-2-251
Year Enacted
2021
Year Effective
Taxable years beginning on or after January 1, 2022
Data Source
Fiscal note for HB 32 LC 43 2019S (2021)
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is for teachers who agree to teach in certain rural schools or
certain low-performing schools in high-need subject areas. The credit
amount equals $3,000 per year for up to five consecutive years for teachers
who remain employed in qualifying schools. No new applications for the
program shall be accepted after December 31, 2026.
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State Tax Expenditure
(m) Denotes a value of less than $1 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
0
0
1
Georgia individual income tax credit expenditures for which an estimate is not currently available
Expenditure Statute
Summary
1.6.053
48-7-40.1A Personal protective equipment manufacturer job tax credit
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2. Corporate Income Tax
The corporate income tax was first levied in Georgia in 1929. While originally levied at a rate equal to one-third of the federal corporate tax rate, the rate was changed to 4 percent in 1931. The tax has gone through several rate changes since its introduction, including in 1949 when it was temporarily increased to 7.5 percent. The rate was 6 percent from 1969 through 2018, but was reduced to 5.75 percent effective for tax years beginning on or after January 1, 2019. The Georgia corporate income tax is a flat rate tax, with a single rate applying to all Georgia taxable income of the corporation.
The starting point for the construction of the tax base is federal taxable income of a corporation. Several adjustments are made in order to determine Georgia business income. For example, although corporations are allowed certain special depreciation deductions at the federal level, some of these deductions are not allowed at the state level. Firms taking these deductions on their federal return must add these deductions back to their tax base when determining their state taxable income. In addition, firms operating in multiple states must apportion their corporate income to each of the states in which they have a legal obligation to pay the tax. Since 2008, firms with multistate income determine the portion of their total income associated with Georgia by computing their total Georgia receipts relative to their total receipts. Prior to 2008, Georgia firms were required to use a three-factor apportionment formula.
It is important to keep in mind that tax expenditure estimates may differ from revenue estimates presented in fiscal notes. Estimates included in fiscal notes incorporate behavioral effects that are not considered when estimating tax expenditure provisions. The purpose of a tax expenditure estimate is to convey the cost that would be necessary if the item were offered as a direct budgetary expenditure instead of a reduction in the tax liability. A second caveat concerns the estimates associated with the state corporate credit provisions. Forecasting the value of the revenue loss stemming from the use of these credits is problematic due to the presence of extensive carry forwards in the case of some credits. Because of past credit carry forwards, firms may claim credits on current or future year tax returns that were created in prior years. In some cases, the credit may have expired such that taxpayers are no longer able to create new credits, but the revenue loss to the state continues for several years until all carryforward liabilities have been exhausted. Therefore, the estimates provided in this report should be interpreted as the expected revenue loss stemming from the use of currently created or previously created credits and not an estimate of the value of credits created in a given year.
The tax is administered by the Georgia DOR. Corporate tax collections for FY 2020 were $1.2 billion or 4.9 percent of total state tax revenues. Approximately 344 thousand corporate returns were processed in CY 2020. All revenue collected from this tax is deposited into the State General Fund.
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2.1 Federal Corporate Exclusions
2.1.001
Permanent exemption from imputed interest rules
Federal Statute IRC Sections 163(e), 483, 1274, and 1274(A)
Description: Debt instruments for amounts not exceeding an inflation adjusted
maximum, given in exchange for real property, may not have imputed to
them an interest rate greater than 9 percent.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.1.002
Exclusion of interest on state and local government private activity bonds
Federal Statute IRC Section 103,141,142 and 146
Description: Interest earned on qualified private activity bonds is tax exempt.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.1.004
Exclusion of earnings of certain environmental settlement funds
Federal Statute IRC Section 468B
Description: Under certain conditions environmental settlement funds are exempt from
tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.1.005
Exclusion of certain agricultural cost-sharing payments
Federal Statute IRC Section 126
Description: Grants made for the purpose of conserving soil and water resources or
protecting the environment are excluded from the recipient's gross income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.1.006
Exclusion of gain or loss on sale or exchange for brownfield property
Federal Statute IRC Section 512 and 514
Description: Qualifying brownfield property that is acquired from an unrelated party,
subject to remediation, and sold to another unrelated party is exempt from
unrelated business income tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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2.1.009
Exclusion of interest on public purpose state and local government bonds
Federal Statute IRC Sections 103, 141 and 146
Description: Interest income of qualifying governmental bonds is excluded from taxable
income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.1.010
Various foreign provisions including inventory property sales source rule exception,
interest expense allocation, deferral of active income of controlled foreign corporations,
deferral of active financing income
Federal Statute IRC Sections 861-863, 865, 953-954, 864
Description: These provisions provide certain exceptions to the general treatment of
foreign sourced income
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
259
308
348
(m) Denotes a value of less than $1 million
2.1.011
Exclusion of employee meals and lodging
Federal Statute IRC Section 119 and 132(e)(2)
Description: Only 50 percent of expenses for meals provided on or near business
premises for the convenience of the employer or as a de minimis fringe is
allowed as deduction.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-28
-28
-29
(m) Denotes a value of less than $1 million
2.1.012
Exclusion of employer-paid transportation benefits and employer-provided transit and
vanpool benefits.
Federal Statute IRC Section 132(f)
Description: Employer provided qualified transportation benefits are excluded from
employee taxable income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-18
-18
-15
(m) Denotes a value of less than $1 million
110 | P a g e
2.2 Federal Corporate Deductions
2.2.001
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS), the cost
of tangible depreciation property of certain energy property is allowed a
shorter depreciation period. Taxpayers are allowed to depreciate the costs
of new rental housing and certain other buildings and equipment on an
accelerated schedule
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
8
8
8
(m) Denotes a value of less than $1 million
2.2.002
Deduction of expenditures on energy-efficient commercial building property
Federal Statute IRC Section 179D
Description: This provision provides a formula-based tax deduction for all or part of the
cost of energy-efficient commercial building property placed in service
after December 31, 2005 and before January 1, 2014.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.2.003
Expensing of exploration and development costs: nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617, 56, 1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.2.004
Amortization of business start-up costs
Federal Statute IRC Section 195
Description: This provision allows a business taxpayer to deduct up to $5,000 in
qualified start-up expenditures.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
2.2.005 Expensing of research and experimental expenses Federal Statute IRC Section 174 and 59e Description: This provision allows a business taxpayer to deduct certain research
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expenditures that are paid or incurred in connection with the taxpayer's
trade or business.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
3
0
(m) Denotes a value of less than $1 million
2.2.006
Expensing of magazine circulation expenditures
Federal Statute IRC Section 173
Description: In general, current federal tax law allows publishers of newspapers,
magazines, and other periodicals to deduct their expenditures to maintain,
establish, or increase circulation in the year in which they are made.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.2.007
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas or, other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible
drilling and development costs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
2.2.008
Special treatment of expenses related to timber production
Federal Statute IRC Sections 194, 263A(c)(5)
Description: This provision allows expensing of production costs of growing timber.
Taxpayers are also allowed different depreciation practices for qualified
reforestation expenses.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
2.2.009
Deduction of charitable contributions (includes deductions for health, education, and for
purposes other than health and education)
Federal Statute IRC Sections 170 and 642(c)
Description: Subject to certain limitations, charitable contributions may be deducted by
taxpayers.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
43
43
42
(m) Denotes a value of less than $1 million
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2.2.011
Expensing under IRC Section 179 of depreciable business property
Federal Statute IRC Section 179
Description: Within certain limits, a taxpayer may elect to deduct, as a current expense,
the cost of qualifying property in the tax year when it is placed in service
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
7
8
(m) Denotes a value of less than $1 million
2.2.012
Amortization of air pollution control facilities
Federal Statute IRC Section 169(d)(5)
Description: This provision allows plants placed in service after January 1, 1976 the
option of amortizing investments in pollution control equipment for coal-
fired electric generation plants.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
3
(m) Denotes a value of less than $1 million
2.2.014
Various agricultural expensing provisions
Federal Statute IRC Section 162, 175, 180, 446, 448, 461, 464
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning and the costs
associated with raising dairy cattle and breeding cattle.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.2.015
Community and regional development incentives
Federal Statute IRC Sections 38(b), 39(d), 45A, 280C(a), 1391-1397D and 1400F,H,I
and J
Description: Communities designated as empowerment zones and renewable
communities are eligible for special development incentives.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
0
(m) Denotes a value of less than $1 million
2.2.016
Expensing to remove architectural and transportation barriers to the handicapped and elderly Federal Statute IRC Section 190 Description: This provision allows taxpayers to deduct up to $15,000 of expenses
incurred in a single year for removing physical barriers to handicap or elderly individuals in qualified facilities or public transportation vehicles owned or leased by the taxpayer.
113 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
2.2.017
Inventory methods and valuation
Federal Statute IRC Section 475, 491-492
Description: This provision allows taxpayers to use alternative inventory systems to
determine the cost of goods sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
6
6
(m) Denotes a value of less than $1 million
2.2.018
Limits on deductible compensation and disallowance of deduction for excess parachute
payments
Federal Statute IRC Sections 280G, 4999, and 162(m)
Description: Excess parachute payments are not allowable deductions against the
corporate income tax. In the case of publicly held corporations only
executive compensation of $1 million or less is deductible against the
corporate income tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-11
-11
-10
(m) Denotes a value of less than $1 million
2.2.019
Deduction for foreign-derived intangible income
Federal Statute P.L. 115-97, Sec. 250(a)
Description: A domestic corporation is allowed a deduction equal to 50 percent of
foreign-derived intangible income until 2025 and 37.5 percent thereafter.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
45
63
81
(m) Denotes a value of less than $1 million
2.2.020
Limitation on deduction of FDIC premium
Federal Statute Pub. L. No. 115-97
Description: The deduction for the applicable percentage of any Federal Deposit
Insurance Corporation ("FDIC") premium paid or incurred by the taxpayer
is disallowed. For taxpayers with total consolidated assets of $50 billion or
more, the applicable percentage is 100 percent. Otherwise, the applicable
percentage is the ratio of the excess of total consolidated assets (as of the
close of the taxable year) over $10 billion to $40 billion. The provision does
not apply to taxpayers with total consolidated assets (as of the close of the
taxable year) that do not exceed $10 billion.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-10
-10
-10
(m) Denotes a value of less than $1 million
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2.2.021
Limitation on NOL deduction
Federal Statute Pub. L. No. 115-63
Description: The deduction for net operating losses is limited to 80 percent of taxable
income.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
-4
-5
-6
(m) Denotes a value of less than $1 million
2.2.022
7-year recovery period for motorsports entertainment complexes
Federal Statute IRC Sections 167 and 168
Description: Taxpayers are allowed to deduct the cost of certain depreciable assets from
motorsports complexes over 7 years.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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2.3 Special Federal Corporate Conformity Provisions
2.3.001
Deferral of gain on like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like
kind no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
11
12
12
(m) Denotes a value of less than $1 million
2.3.002
Special rules for magazine, paperback book, and record returns
Federal Statute IRC Section 458
Description: Publishers and distributors of magazines, paperbacks, and records may elect
to exclude from gross income for a tax year, the income from the sale of
goods that are returned after the close of the tax year.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.3.003
Two-year carryback for net operating losses attributable to farming
Federal Statute IRC Section 172
Description: Current law provides a two-year carryback period for losses related to
farming. The normal carryback period for losses is two years.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.3.004
Special rules for mining reclamation reserves
Federal Statute IRC Section 468 and 1274
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.3.005
Cash accounting, for certain businesses Federal Statute IRC Sections 446 and 448 Description: The cash method of accounting may be used by any business taxpayer that
is not a tax shelter and falls into at least one of three specified categories. These are farming businesses, qualified personal service corporations, and entities that meet a gross receipts test.
116 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
5
4
3
2.3.006
Deferral of gain on non-dealer installment sales
Federal Statute IRC Sections 453 and 453A(b)
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
19
20
21
(m) Denotes a value of less than $1 million
2.3.007
Completed contract rules
Federal Statute IRC Section 460
Description: Some taxpayers with construction or manufacturing contracts extending for
more than one tax year are allowed to report some or all of the profit on the
contracts under special accounting rules rather than the normal rules of tax
accounting.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
2.3.008
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax on
certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6), 512(e), 1042,
497(e)(7), 4975(d)(3), 4978, 4979A
Description: ESOPs are provided special tax treatment. Employer contributions may be
deducted as a business expense. In addition, some contributions are subject
to less restrictive limits than contributions to other employee benefit plans.
Tax on qualified employee stock purchase plans are not taxed when granted
or excised. Tax is deferred until stock is sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
1
2
(m) Denotes a value of less than $1 million
2.3.009
Deferral of capital construction costs of shipping companies
Federal Statute IRC Section 7518
Description: U.S. operators of vessels in foreign, or domestic commerce of the U.S., or
in U.S. fisheries, may establish a capital construction fund into which they
may make certain tax deductible deposits. In addition, the earnings on the
deposits are tax deferred.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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2.3.010
Qualified Opportunity Zones
Federal Statute PL 115-97; IRS 1400Z-1
Description: A qualified opportunity fund is an investment vehicle organized as a
corporation or a partnership for the purpose of investing in qualified
opportunity zone property that holds at least 90 percent of its assets in
qualified opportunity zone property. Qualified opportunity zone property
includes any qualified opportunity zone stock, any qualified opportunity
zone partnership interest, and any qualified opportunity zone business
property. Certain low-income community population census tracts may be
designated as qualified opportunity zones by the chief executive officer of
the State (which includes the District of Columbia).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
7
8
(m) Denotes a value of less than $1 million
2.3.011
Expensing rules for certain productions
Federal Statute IRC Section 181
Description: A taxpayer may elect to treat the cost, up to a maximum of $15 million ($20
million in some areas) for any production, of any qualified film, television,
or live theatrical production commencing production prior to Jan. 1, 2026,
as an expense which is not chargeable to capital account. Any cost so
treated shall be allowed as a deduction.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
2.3.012
Special rules for interest-charge domestic international sales corporations (IC-DISC)
Federal Statute IRC Sections 991-997
Description: Shareholders of Interest-Charge Domestic International Sales Corporation
are taxed only once. IC-DISC shareholders may defer up to $10 million
annually that is attributable to qualified export sales. An interest charge is
imposed on shareholders based on the distribution that would have occurred
had deferral not been elected.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
8
10
(m) Denotes a value of less than $1 million
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2.4 Corporate Apportionment
Discussed below are three issues relating to corporate apportionment that can be considered tax expenditures because they are deviations from the traditional formula of corporate apportionment and result in a benefit to some taxpayers. No estimate of the value of these expenditures is available at this time.
2.4.001
Single-Factor Apportionment
Corporate income earned in Georgia is apportioned using a single-factor apportionment formula.
With single-factor apportionment, firms determine state tax liability based solely on the ratio of
Georgia receipts to total receipts. The traditional apportionment formula involves the use of three
Georgia-total ratios: property, payroll, and receipts. With the three-factor formula, the firm
applies a weight of 33.33 percent to each ratio. The single-factor formula benefits firms that have
manufacturing presence in one state but significant sales outside of the state. Firms that are
located and operate in a single state are not affected by the apportionment formula.
2.4.002
Throwback Rule
Under a throwback rule, out-of-state sales from a corporation are taxed by the state of origin if
the corporation has no nexus in the destination state. At least 25 states have a throwback rule.
Georgia, North Carolina, Florida, Tennessee, South Carolina, and Virginia do not, but Alabama
does. An alternative rule is the "throw-out rule," which eliminates sales to non-nexus states from
both the numerator and denominator of the apportionment formula of a corporation. Georgia
does not have a throw-out rule.
2.4.003
Corporate Receipts Sourcing
Georgia is among 16 states that apportions multistate corporate income based only on gross
receipts, (i.e. a 100-percent sales factor). This creates a destination-based corporate income tax
system. Under this approach, corporations pay taxes based on the state in which their products
are sold, not where production takes place. This rule applies to the sale of tangible property.
When considering apportionment for services provided across state lines, Georgia employs a
market-based sourcing rule. At the present, there is no consensus between the states on how to
define a "market" for the purpose of implementing this rule but, in general, it means that services
will be taxed based on the state in which the customer receives the benefit. The rule is meant to
apply a consistent destination-based treatment to services when compared to tangible goods.
Corporate apportionment expenditures for which an estimate is not
currently available
Expenditure Statute Summary
2.4.001
N/A
Single-factor Apportionment
2.4.002
N/A
Throwback Rule
2.4.003
N/A
Corporate Receipts Sourcing
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2.5 Georgia Deductions
2.5.003
Exclusion of global intangible low-taxed income (GILTI)
Statute
48-7-21
Year Enacted
2018
Year Effective
2018
Data Source
Estimate Reliability
Data Reliability
Note
Description: Global intangible low-taxed income is defined for the purpose of Federal
taxation in Section 951A of the Internal Revenue Code of 1986 as excess
returns realized by U.S. shareholders from controlled foreign corporations
in low-tax areas outside of the United States. GILTI is includable in federal
taxable income net of a 50 percent deduction in tax years 2018-25 and a
37.5 percent deduction thereafter. Georgia does not tax any portion of
GILTI.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
153
182
212
(m) Denotes a value of less than $1 million
Corporate deduction expenditures for which an estimate is not currently available
Expenditure Statute Summary
2.5.001
48-7-21 Interest on obligations of United States
2.5.002
48-7-21 Exception to intangible expenses and related interest cost
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2.6 Georgia Credits
2.6.001
Georgia Job Tax Credit
Statute
48-7-40 and 48-7-40.1
Year Enacted
48-7-40: 1989; 48-7-40.1: 1993
Year Effective
48-7-40: Taxable years beginning on or after January 1,
1990; 48-7-40.1: Taxable years beginning on or after
January 1, 1994.
Data Source
DOR data as of 2020 and Office of Insurance and Safety Fire
Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax and
insurance premium tax sections, see 1.6.012 and 5.00200. In
2018, the qualifying areas were expanded to include counties
with military bases and industrial parks that are owned and
operated by a government entity.
Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must be
greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees. It also provides a tax credit for business enterprises
designated as operating in less-developed areas. These include areas with
ten or more contiguous census tracts with higher than 15 percent poverty
and counties with both a military base and a government owned and
operated industrial park.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
23
27
28
Corporate Income Tax Expenditure
131
157
160
Insurance Premium Tax Expenditure
7
7
7
State Tax Expenditure
160
191
194
2.6.002
Quality Jobs Tax Credit
Statute
48-7-40.17
Year Enacted
2009
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
This statute was modified in 2017 allowing taxpayers to
establish subsequent job creation periods for a qualified
project. The same estimate is provided in the personal income
tax section, see 1.6.013. Estimate of this provision is higher
than in previous reports because new data are available.
Description: This credit is for employers creating new high-wage jobs or relocating
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high-wage jobs into the state. A quality job or high-wage job has 30 hours a
week of regular work; a job that is not already located in Georgia; and pays
at or above 110 percent of the average wage of the county in which it is
located.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
94
92
94
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
96
94
96
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.003
New Facilities Jobs Credit
Statute
48-7-40.24
Year Enacted
2003
Year Effective
Latest modifications are effective for taxable years beginning
on or after July 1, 2021
Data Source
Fiscal note for HB 587 LC 43 1970S for 2021
Estimate Reliability
NA
Data Reliability
NA
Note
The same estimate is provided in the personal income tax
section, see 1.6.014.
Description: This provision provides for a credit of $5,250 per year per qualified new job
for up to five years, subject to recapture based on job and payroll
maintenance requirements, and until July 1, 2021, limited to 4,500 such
new jobs for any one qualified project. For business enterprises that first
qualify in a taxable year beginning on or after January 1, 2009, the business
enterprise must meet the job creation requirement of 1,800 eligible new
full-time employees and either the qualified investment requirement of
$450 million in qualified investment property, or the payroll requirement of
$150 million in total annual Georgia W-2 reported payroll within the six-
year period, subject to extension under certain conditions.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 2.6.001
(m) Denotes a value of less than $1 million.
2.6.004
New Manufacturing Facilities Property Credit
Statute
48-7-40.25
Year Enacted
2003
Year Effective
Latest modifications are effective for taxable years beginning
on or after July 1, 2021
Data Source
Fiscal note for HB 587 LC 43 1970S for 2021
Estimate Reliability
NA
Data Reliability
NA
Note
Utilization of this credit resulting from known or anticipated
projects is expected to be material, but not within the time
horizon of this report; see fiscal note.
The same estimate is provided in the personal income tax
section, see 1.6.015.
Description: This is an incentive for a manufacturer who has operated a manufacturing
122 | P a g e
facility in this state for at least 3 years and who spends $800 million on a
new manufacturing facility in this state, subject to a job requirement of
1,800 full-time employees. The credit equal to 6 percent of the cost of all
qualified investment property purchased or acquired, up to $50 million with
respect to any one project. For qualified high-impact aerospace defense
projects certified on or after July 1, 2021, the maximum credit for any one
project is increased to $100 million and the taxpayer may begin claiming
credits once investment and job threshholds of $500 million and 1,000,
respectively, are reached.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million.
2.6.005
Manufacturer's Investment Tax Credit
Statute
48-7-40.2, 48-7-40.3, and 48-7-40.4
Year Enacted
1994
Year Effective
Taxable years beginning on or after January 1, 1994
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.016.
Description: For tax years beginning on or after January 1, 2020, the taxpayer must
invest a minimum of $100,000 per project per location during the tax year
to receive credit, up from a $50,000 minimum ir prior years. Eligible
taxpayers must be in operation for the immediately preceding three
years. Property for a period of five years or longer is eligible for the credit.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
11
16
14
Corporate Income Tax Expenditure
49
69
58
State Tax Expenditure
60
85
72
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.006
Optional Investment Tax Credit
Statute
48-7-40.7, 48-7-40.8, and 48-7-40.9
Year Enacted
1995
Year Effective
Taxable years beginning on or after January 1, 1996.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see1.6.017.
Description: An alternative investment tax credit available for investments in
manufacturing or telecommunications facilities or support facilities that
have been operating for the three immediately preceding years. The credit is
available for investments in excess of $5 million and placed in service no
earlier than January 1, 1996, for tier 1 counties. The investment threshold is
$10 million for tier 2 counties and is $20 million for tier 3 and 4 counties.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
1
1
1
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.007
Port Activity Tax Credit
Statute
48-7-40.15
Year Enacted
1998
Year Effective
Latest modifications apply to taxable years beginning on or
after January 1, 2010
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.008. The same estimate is
provided in the personal income tax section, see 1.6.018.
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more than
10 percent over 75 net tons, five containers or 10 20-foot equivalent units
(TEU's) during the previous 12-month period are qualified for increased
job tax credits or investment tax credits. For taxable years beginning on or
after January 1, 2010, the increase is based on a comparison of the previous
12-month period to the second preceding 12-month period.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
4
5
5
State Tax Expenditure
4
5
5
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.008
Alternative Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.007. The same estimate is
provided in the personal income tax section, see 1.6.019.
Description: Credit is allowed to any business enterprise located in a tier 2 or 3 county or
in a less developed area and which qualifies and receives the Jobs Tax
Credit and which;
1. Consists of a distribution facility of greater than 650,000 square feet in
operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or its
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subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 2.6.007
(m) Denotes a value of less than $1 million.
2.6.009
Film Tax Credit
Statute
48-7-40.26
Year Enacted
2005
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.020. Tax credit provisions applicable to
qualified interactive entertainment production companies were
modified in 2015.
Description: Production companies which have at least $500,000 of qualified
expenditures in a state-certified production may claim this credit.
Certification must be approved through the Georgia Department of
Economic Development. There are special provisions relating to the tax
credits awarded to interactive entertainment companies. Under the 2017
modifications to this statute, the 2019 sunset for the qualified interactive
entertainment production company tax credit has been eliminated.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
462
543
609
Corporate Income Tax Expenditure
298
350
393
State Tax Expenditure
760
894
1,002
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.010
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.021.
Description: This credit is for expenses resulting from research conducted in Georgia by
businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
17
17
18
Corporate Income Tax Expenditure
170
177
183
State Tax Expenditure
187
194
201
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.011
Seed-Capital Fund Credit
Statute
48-7-40.27 & 40.28
Year Enacted
2008
Year Effective
Applicable to investments made on or after July 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.022.
Description: This provides a tax credit for certain qualified investments made on or after
July 1, 2008, in a research fund, the purpose of which is to provide early-
stage financing for businesses formed as a result of research conducted in
Georgia's research universities.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.012
Qualified Health Insurance Expense Credit
Statute
48-7-29.13
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.023.
Description: Employer credit for the premiums paid for a high-deductible health plan.
Employers must employ 50 or fewer persons for whom the employer
provides high-deductible health plans as defined by Section 223 of the
Internal Revenue Code and in which such employees are enrolled. The
qualified health insurance must be made available to all employees and
compensated individuals of the employer pursuant to the applicable
provisions of Section 125 of the Internal Revenue Code. The qualified
health insurance premium expense must equal at least $250 annually.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
126 | P a g e
2.6.015
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.026.
Description: This is a credit given to a business enterprise for the purchase of a motor
vehicle that is used exclusively to provide transportation for its employees.
To qualify, a business enterprise must certify that each vehicle carries an
average daily ridership of not less than four employees for an entire taxable
year.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.016
Employer's credit for providing or sponsoring child care for employees, and employer's
credit for purchasing child-care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994. Credit for cost of qualified child-care
property: taxable years beginning on or after January 1, 2000.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.027.
Description: This credit is provided to employers based on their expenses related to
providing or sponsoring child care for their employees' children and for the
purchase of qualified child-care property.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
6
6
6
Corporate Income Tax Expenditure
11
12
12
State Tax Expenditure
17
18
18
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.017
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
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Data Reliability
Class A
Note
The same estimate is provided in the personal income tax and
insurance premium tax sections, see 1.6.028 and 5.00700.
Description: This is a credit against Georgia income and insurance premium taxes for
owners of rental housing qualifying for the federal low-income housing tax
credit and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
92
95
99
Corporate Income Tax Expenditure
31
32
33
Insurance Premium Tax Expenditure
163
167
174
State Tax Expenditure
286
294
306
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.018
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data as of TY 2020 and Fiscal Note for HB 469 LC 43
2035S (2021)
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the personal income tax
section, see 1.6.029. This provision expires December 31,
2022.
Description: A credit is provided based on expenses related to the certified rehabilitation
of a certified structure or historic home. Standards set by the Georgia
Department of Natural Resources must be met. A $25 million per calendar
year aggregate cap applies to projects earning more than $300,000 in
credits. The credit was modified in 2015 to allow unused credits to be
assigned or sold to other taxpayers. Further modifications in 2021 applied a
$5 million per calendar year cap on smaller projects and added a sunset date
for the credit of December 31, 2022.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
11
14
14
Corporate Income Tax Expenditure
4
4
4
State Tax Expenditure
15
18
19
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.020
Low- and Zero-emission Vehicle and Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax, see
1.6.031.
Description: This credit applies to the purchase or lease of an electric vehicle charger
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and to the conversion of a standard vehicle to a low- or zero-emission
vehicle. The credit for the purchase or lease of a new low- or zero-emission
vehicle was eliminated effective July 1, 2015.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.021
Land Conservation Credit
Statute
48-7-29.12
Year Enacted
2006
Year Effective
Taxable years beginning on or after January 1, 2006
Data Source
DOR data as of TY 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.032.
Description: This provides for an income tax credit for the qualified donation of real
property that qualifies as conservation land pursuant to Chapter 22 of
O.C.G.A. Title 36. This credit was modified in 2015 such that the aggregate
value of credits awarded under this provision cannot exceed $30 million per
year and no new credit applications will be accepted after December 31,
2021.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
4
4
3
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
4
4
3
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.024
Employer's Credit for Approved Employee Retraining
Statute
48-7-40.5
Year Enacted
1994
Year Effective
Latest modifications are effective for taxable years beginning
on or after January 1, 2009
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.035.
Description: The tax credit reimburses employers for the cost of providing retraining
services to their employees. As of January 1, 2009, retraining programs
shall not include any retraining on commercially mass-produced software
packages for word processing, data base management, presentations,
spreadsheets, e-mail, personal information management, or computer
operating systems except a retraining tax credit shall be allowable for those
providing support or training on such software.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
16
17
18
Corporate Income Tax Expenditure
29
32
33
State Tax Expenditure
45
50
50
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.025
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.036.
Description: This provides a tax credit for donations made by taxpayers to a student
scholarship organization which are used for tuition and fees for a qualified
school or program. Annual cap increased to $100 million effective
January1, 2019.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
45
55
60
Corporate Income Tax Expenditure
17
21
23
State Tax Expenditure
62
75
83
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.027
Energy-Efficient or Water-Efficient Equipment Credit
Statute
48-7-40.29
Year Enacted
2010
Year Effective
January 1 of the year following the year in which federal
funds for this program are made available and received by the
state
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.038.
Description: This tax credit applies to taxpayers who purchase energy-efficient and
water-conservation equipment. The value of the credit is equal to 25 percent
of the cost of the qualified equipment or $2,500, whichever is less. The
credit is only available for those tax years in which federal funds are made
available to the state for this purpose. Given no federal funding, the state
revenue effect is zero.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
0
0
0
Corporate Income Tax Expenditure
0
0
0
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
130 | P a g e
2.6.030
Tax credit for existing business enterprises undergoing qualified business expansion
Statute
48-7-40.21
Year Enacted
2001
Year Effective
Latest modifications are applicable to tax years beginning on
or after January 1, 2008
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.041.
Description: This credit applies to businesses that create at least 500 new full-time jobs
within a taxable year.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 2.6.002
(m) Denotes a value of less than $1 million.
2.6.032
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data as of TY 2020 and IBISWorld industry forecasts
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.043.
Description: Depository financial institutions are allowed a credit against their state
income tax liability equal to the sum of the amount of business license taxes
paid to local governments and any special state occupation taxes paid to the
state.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
4
4
4
Corporate Income Tax Expenditure
57
60
63
State Tax Expenditure
61
64
67
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.033
Employer tax credit for hiring qualified parolees
Statute
48-7-40.31
Year Enacted
2016
Year Effective
2016
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.044. This credit expired January 1, 2020;
remaining carryforwards expire if unused by January 1, 2022.
Description: For the period beginning on or after January 1, 2017, and before January 1,
2020, an employer that employs a qualified parolee in a full-time job for at
least 40 weeks during a 12-month period shall be eligible for an income tax
131 | P a g e
credit in the amount of $2,500 per year for each qualified parolee.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
0
(m)
0
Corporate Income Tax Expenditure
0
(m)
0
State Tax Expenditure
0
(m)
0
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.034
Income Tax Credit for Contributions to Rural Health Care Organizations
Statute
48-7-29.20
Year Enacted
2016
Year Effective
2017
Data Source
DOR data for 2021
Estimate Reliability
Class A
Data Reliability
Class A
Note
This statute was modified in 2017 and 2018 to increase
taxpayer limitations and the credit rate, modify the aggregate
state cap, and extend the expiration. This statute was modified
again in 2019 to extend the expiration. The same estimate is
provided in the corporate income tax section, see 2.6.034.
Description: An individual taxpayer shall be allowed an income tax credit equal to a
maximum of $5,000 for an individual filing a single return or $10,000 for
joint returns. A corporation or other entity shall be allowed an income tax
credit equal to a maximum of 75 percent of the corporation's income tax
liability. The aggregate amount of credits cannot exceed $60 million in any
year. The provision expires December 31, 2024.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
49
55
56
Corporate Income Tax Expenditure
5
6
6
State Tax Expenditure
54
61
63
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.035
Revitalization Zone Tax Credit
Statute
48-7-40.32
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data for 2020
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the personal income section,
see 1.6.046.
Description: This income tax credit is to promote the revitalization of vacant rural
Georgia downtowns. The statute includes three credits. The first allows
certified entities to claim an annual tax credit for five consecutive years of
$2,000 per qualified employee but not to exceed $40,000 per taxable year
for any taxpayer. The second provides for a credit equal to 25 percent of the
purchase price of qualified property up to an amount equal to $125,000 per
project. The third provides for a tax credit of 30 percent of qualified
rehabilitation expenses but not to exceed $150,000 per project.
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State Tax Expenditure
(m) Denotes a value of less than $1 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
2.6.036
Georgia Musical Investment Tax Credit
Statute
48-7-40.33
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018
Data Source
DOR data as of TY 2020
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section, see 1.6.047.
Description: This income tax credit is equal to 15 percent of qualified production
expenditures of a musical or theatrical performance, or a recorded musical
performance incorporated into or synchronized with a movie, television, or
interactive entertainment production. An additional credit equal to 5 percent
may be allowed for certain expenditures in tier 1 or tier 2 counties.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million.
2.6.037
Public Education Innovation Fund Tax Credit
Statute
48-7-29.21
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018.
Data Source
DOR data as of TY 2020 and Fiscal Note for HB 237 LC 33
7049S (2017)
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the personal income section,
see 1.6.048.
Description: This income tax credit is equal to contributions to a qualified Public
Education Innovation fund. The value of the credit varies by personal
income filing type from $1,000 to $10,000. Corporate filers are allowed a
credit equal to 75 percent of their current income tax liability. The
aggregate amount of credits awarded each year may not exceed $5 million.
This credit expires December 31, 2023.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.038 Agribusiness Tax Credit Statute Year Enacted
33-1-25 2017
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Year Effective
Taxable years beginning on or after January 1, 2018
Data Source
DOR data as of TY 2020 and Office of Insurance and Safety
Fire Commissioner
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the personal income and
insurance premium tax sections, see 1.6.049 and 5.00900.
Description: This income tax credit is to establish qualified low-income community rural
investment funds and tax credits. The credit amount is 15 percent of the
eligible investment per year beginning in the third year after the investment
is made and continuing through the sixth year, for a total credit equal to 60
percent of the eligible investment. The credit is nonrefundable and may not
be sold, but may be carried forward indefinitely. The amount of credits
available is subject to a cumulative cap of $100 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
2
4
4
Corporate Income Tax Expenditure
1
1
1
Insurance Premium Tax Expenditure
8
9
9
State Tax Expenditure
11
14
14
(m) Denotes a value of less than $1 million.
2.6.039
Railroad Track Maintenance Tax Credit
Statute
48-7-40.34
Year Enacted
2018
Year Effective
2019
Data Source
Fiscal Note for LC 39 2856 (2021)
Estimate Reliability
Class C
Data Reliability
Class B
Note
The same estimate is provided in the personal income tax
section, see 1.6.050.
Description: This income tax credit is based on maintenance expenditures related to
railroad track owned or leased by Class III railroads. The credit equals
50 percent of railroad track maintenance expenditures, subject to a
maximum credit of $3,500 per track mile per year. In addition to Class III
railroads, persons transporting property using a Class III railroad's facilities
or persons furnishing railroad-related property or services to a Class III
railroad are eligible for the credit with respect to maintenance of their
assigned track miles. This credit expires December 31, 2026.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
8
7
7
(m) Denotes a value of less than $1 million
2.6.040
Reforestation credit for losses incurred on commercial timberland due to hurricane damage
Statute
48-7-40.36
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for HB4EX LC 43 1048S (2018 Special Session)
and DOR data as of TY 2020
Estimate Reliability
Class B
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Data Reliability
Class A
Note
The same estimate is provided in the personal income tax, see
section 1.6.051.
Description: Provides for a credit for casualty losses incurred on commercial timberland
due to damage attributed to Hurricane Michael in the fall of 2018, subject to
replanting requirements as described below. The amount of the credit is
equal to 100 percent of the casualty loss deduction reported on the
taxpayer's federal return, provided that the credit amount does not exceed
$400 per acre. Taxpayers must seek preapproval for the credit on or before
December 31, 2019. Taxpayers are eligible to claim the credit in the taxable
year in which the taxpayer replants 90 percent of the timber lost in the
hurricane. All tax credits must be claimed by December 31, 2024. Credits
can be sold once prior to January 1, 2024. Credits claimed are
nonrefundable, but can be carried forward for up to 10 years. The total
amount of credits preapproved may not exceed $200 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
10
12
10
Corporate Income Tax Expenditure
7
8
7
State Tax Expenditure
16
20
16
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.041
Qualified Post-Production Expenditures Credits
Statute
48-7-40.26A
Year Enacted
2017
Year Effective
2018
Data Source
DOR data as of TY 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax, see
section 1.6.052.
Description: Postproduction companies with at least $500,000 in qualified
postproduction expenditures per year will be eligible for a credit equal to 20
percent of the qualified postproduction expenditures. An additional 10
percent credit is allowed if the qualified production expenditures were
incurred in the state. An additional 5 percent credit is allowed if the
qualified production expenditures were incurred in a tier 1 or tier 2 county.
The value of credits awarded is limited to a maximum of $10 million for
2018 through 2022. If in any year the aggregate amount of credits allowable
is not awarded, the remaining credits will be rolled in the allowable credits
for the following year. Postproduction companies with expenditures
between $100,000 and $500,000 per year are eligible for a separate credit
equal to 20 percent of the qualified postproduction expenditures. Aggregate
annual claims on this credit are limited to $1 million. The $1 million small
company credit limit does not count against the credit limit for the large
company credit discussed above. No credits shall be earned in years after
2022.
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State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
5
6
6
Corporate Income Tax Expenditure
1
1
1
State Tax Expenditure
5
7
6
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
2.6.043
Medical equipment, medical supplies, pharmaceuticals, and medicine manufacturers job
tax credit
Statute
48-7-40.1B
Year Enacted
2021
Year Effective
Taxable years beginning on or after January 1, 2021
Data Source
Fiscal Note for HB 587 LC 43 2010S (2021)
Estimate Reliability
Class A
Data Reliability
NA
Note
The same estimate is provided in the personal income tax, see
section 1.6.054.
Description: Medical equipment and supply manufacutrers, and pharmaceutical and
medicine manufacturers that qualify for the Georgia job tax credit (see
1.6.012/2.6.001/5.00200) may earn $1,250 per for each qualifying new job
in addition to the amounts earned under the existing job credit.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
1
2
2
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million. Numbers may not sum due to rounding
Georgia corporate tax credit expenditures for which an estimate is not currently available
Expenditure Statute
2.6.042
48-7-40.1A
Summary Personal protective equipment manufacturer job tax credit
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3. Corporate Net Worth Tax
Georgia imposes a tax on the net worth of corporations doing business or owning property in the state. The net worth of foreign corporations subject to the Georgia tax is based upon the ratio of assets in Georgia and gross receipts in Georgia to total assets and gross receipts. The tax is graduated based upon the taxable net worth of the corporation.
The tax is administered by the Georgia DOR. Revenues from this tax totaled $52.6 million in FY 2020. All revenues from this tax are deposited into the State General Fund.
3.003
Exemption for corporations with net worth of $100,000 or less
Statute
48-13-71
Year Enacted
2017
Year Effective
Tax years beginning on or after January 1, 2018
Data Source
Fiscal Note SB 133/LC 40 1296 for 2017
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: The statute increases the threshold net worth value with regards to the Net
Worth tax. Corporations with net worth equal to $100,000 or less are
exempted from the net worth tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
Corporate net worth tax expenditures for which an estimate is not currently
available
Expenditure Statute Summary
3.001
48-13-72 Exemption for nonprofit corporations
3.002
48-13-72 Exemption for insurance companies separately taxed
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4. Sales and Use Tax
The sales and use tax was first enacted in Georgia in 1951 at a rate of 3 percent. The rate was increased to its current rate of 4 percent in 1989. The sales tax base consists of retail sales, leases, rentals, use or consumption of tangible personal property. In addition to the state sales tax, local governments are authorized to impose an assortment of local option sales taxes. In most counties, the local sales taxes imposed consist of a combination of a Local Option Sales Tax (LOST), Special Purpose Local Option Sales Tax (SPLOST) and/or an Educational Special Purpose Local Option Sales Tax (E-SPLOST) with tax rates of 1 percent for each. A total of 96 counties plus the city of Atlanta have also implemented a sales tax dedicated to transportation purposes (T-SPLOST) as of October 2020, with tax rates of 1 percent except for Atlanta and Fulton County outside of Atlanta where the T-SPLOST rates are 1.4 and 0.75 percent respectively. In addition, Atlanta levies another 1 percent sales tax to cover expenses related to sewer repairs, two counties levy a 1 percent Homestead Option Sales Tax (HOST), and three counties and the city of Atlanta levy sales taxes dedicated to funding the Metropolitan Atlanta Rapid Transit Authority (MARTA), with rates of 1 percent except in Atlanta where the rate is 1.5 percent.
In general, the local tax base is consistent with the state sales tax base, which is defined to include mainly tangible personal property. The major exception is food for home consumption, which is included in the local sales tax base, but is exempted from the state tax. Services, with a few exceptions, are generally excluded from both the state and the local tax base. This report provides estimates of some services that are implicitly exempt from the sales tax by virtue of not being tangible personal property. Lastly, this report categorizes each sales tax expenditure by type to allow the reader to distinguish between tax expenditures, such as those for business inputs, that are provided for reasons of reducing economic distortions from those provided on the basis of more societal reasons.
The tax is administered by the Georgia DOR. The sales tax is remitted to the Georgia DOR by the retailer and the use tax is remitted by the consumer in cases where the retailer does not collect and remit sales tax. In FY 2020, the state sales and use tax generated $6.2 billion in state revenues and accounted for approximately 26.0 percent of total state tax revenues. All proceeds from the state sales and use tax, net of vendor compensation, are deposited into the State General Fund.
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4.0-4.3 Sales and Use Tax Exemptions
4.00400
Sales of transportation furnished by a county or municipal public transit system or public
transit authorities
Statute
48-8-3(4)
Year Enacted
1968
Year Effective
1968
Data Source
National Transit Database
Estimate Reliability
Class B
Data Reliability
Class A
Note
Estimate combined with 4.00500
Description: Sales by counties and municipalities arising out of their operation of any
public transit facility and sales by public transit authorities or charges by
counties, municipalities, or public transit authorities for the transportation
of passengers upon their conveyances.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
7
9
Local Tax Expenditure
5
5
7
(m) Denotes a value of less than $1 million
4.00500
Sales of transportation furnished by an approved and authorized urban transit system
Statute
48-8-3(5)
Year Enacted
1970
Year Effective
1970
Data Source
National Transit Database
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Fares and charges, except charges for charter or sightseeing service,
collected by an urban transit system for the transportation of passengers.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 4.00400
(m) Denotes a value of less than $1 million
4.00600
Sales to any Hospital Authority created by Georgia law
Statute
48-8-3(6)
Year Enacted
1976
Year Effective
1976
Data Source
Georgia Office of Planning and Budget and Centers for
Medicaid and Medicare Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Estimate combined with 4.00700
Description: Sales to any hospital authority created by Article 4 of Chapter 7 of
O.C.G.A. Title 31.
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4.00610
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
Estimate combined with 4.00700
Sales to any Housing Authority created by Georgia law
Statute
48-8-3(6.1)
Year Enacted
1999
Year Effective
1999
Data Source
Georgia Department of Community Affairs and the American
Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sales to any housing authority created by Article 1 of Chapter 3 of
O.C.G.A. Title 8.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
5
6
Local Tax Expenditure
(m) Denotes a value of less than $1 million
4
4
5
4.00620
Sales to local government authorities created on or after January 1, 1980 for the principal
purpose of constructing, owning, or operating a coliseum and related facilities
Statute
48-8-3(6.2)
Year Enacted
2002
Year Effective
2002
Data Source
Georgia Department of Community Affairs
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales to local government authorities created on or after January 1, 1980 for
the principal purpose of constructing, owning, or operating a coliseum and
related facilities.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00630
Sales to any agricultural commission created by the Department of Agriculture
Statute
48-8-3(6.3)
Year Enacted
2002
Year Effective
2002
Data Source
Georgia Department of Agriculture and the Georgia Office of
Planning and Budget
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales to any agricultural commission created by the Department of
Agriculture
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State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
(m)
(m)
(m)
4.00700
Sales of tangible personal property and services to an approved nursing home, inpatient
hospice, general hospital or mental hospital when used specifically in the treatment
function
Statute
48-8-3(7)
Year Enacted
1971
Year Effective
1971
Data Source
Georgia Office of Planning and Budget and Centers for
Medicaid and Medicare Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Estimate combined with 4.00600
Description: Sales of tangible personal property and services to an approved non-profit
nursing home, inpatient hospice, general hospital or mental hospital when
used specifically in the treatment function and used exclusively by the
facility.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
131
139
147
Local Tax Expenditure
98
104
110
(m) Denotes a value of less than $1 million
4.00705
Sales of tangible personal property to a non-profit health center established and receiving
funds pursuant to the U.S. Public Health Service Act
Statute
48-8-3(7.05)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426 LC 34 4527 for 2015
Estimate Reliability
Class C
Data Reliability
Class B
Note
This exemption was eliminated in 2010 and reinstated in
2015. In 2019, this provision was extended until June 30,
2024.
Description: Sales of tangible personal property to a non-profit health center Established
and receiving funds pursuant to the U.S. Public Health Service Act.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.00710
Sales of tangible personal property and services to a nonprofit organization whose primary
function is to provide services to persons with intellectual disabilities
Statute
48-8-3(7.1)
Year Enacted
2001
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Year Effective
2002
Data Source
U.S. Economic Census and American Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sales of tangible personal property and services to a nonprofit organization,
the primary function of which is the provision of services to persons with
intellectual disabilities, when such organization is a tax exempt
organization under the Internal Revenue Code and obtains an exemption
determination letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.00720
Sales to Georgia Society of the Daughters of the American Revolution
Statute
48-8-3(7.2)
Year Enacted
2002
Year Effective
2002
Data Source
IRS 990 Form Data
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property or services to any chapter of the Georgia
State Society of the Daughters of the American Revolution which is tax
exempt under IRS Code Section 501(c)(3) and obtains an exemption
determination letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00730
Sales of tangible property and services to a nonprofit volunteer health clinic primarily
treating patients with incomes below 200 percent of the poverty level
Statute
48-8-3(7.3)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426 LC 34 4527 for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
This exemption was eliminated in 2010 and reinstated in
2015.
Description: Sales of tangible personal property and services to a nonprofit volunteer
health clinic primarily treating patients with incomes below 200 percent of
the poverty level and when the item sold is used exclusively for general
treatment function.
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State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
2
2
2
2
2
2
4.00800
Sales of tangible personal property and services to the University System of Georgia and
its educational units
Statute
48-8-3(8)
Year Enacted
1963
Year Effective
1963
Data Source
University System of Georgia Annual Financial Report
Estimate Reliability
Class B
Data Reliability
Class A
Note
Estimate combined with 4.00900
Description: Sales of tangible personal property and services to the University System of
Georgia and its educational units.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
49
50
51
Local Tax Expenditure
40
41
42
(m) Denotes a value of less than $1 million
4.00900
Sale of tangible personal property and services used exclusively in the educational function
of an approved private college or university located in Georgia in which the credits are
accepted by the University System of Georgia
Statute
48-8-3(9)
Year Enacted
1966
Year Effective
1966
Data Source
University System of Georgia Annual Financial Report
Estimate Reliability
Class C
Data Reliability
Class C
Note
Estimate combined with 4.00800
Description: Sales of tangible personal property and services used exclusively in the
educational function of an approved private college or university located in
Georgia whose credits are accepted by the University System of Georgia.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate combined with 4.00800
(m) Denotes a value of less than $1 million
4.01000
Sales of tangible personal property and services used exclusively in the educational
function of an approved private elementary or secondary school
Statute
48-8-3(10)
Year Enacted
1968
Year Effective
1968
Data Source
The National Center for Education Statistics and the Georgia
Department of Education
Estimate Reliability
Class C
Data Reliability
Class C
143 | P a g e
Note
Description: Sales of tangible personal property and services used exclusively in the
educational function of an approved private elementary or secondary school
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
5
5
Local Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
4.01100
Sale of tangible personal property or services to, and the purchase of tangible personal
property or services by, any educational or cultural institute
Statute
48-8-3(11)
Year Enacted
1968
Year Effective
1968
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sales of tangible personal property or services to, and the purchase of
tangible personal property or services by, any educational or cultural
institute which: (A) Is tax exempt under Section 501(c)(3) of the Internal
Revenue Code; (B) Furnishes at least 50 percent of its programs through
universities and other institutions of higher education in support of their
educational programs; (C) Is paid for by government funds of a foreign
country; and (D) Is an instrumentality, agency, department, or branch of a
foreign government operating through a permanent location in this state.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01200
School lunches sold and served to pupils and employees of public schools
Statute
48-8-3(12)
Year Enacted
1953
Year Effective
1953
Data Source
Georgia School Nutrition Association and the Georgia
Department of Education
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Food, food ingredients, and prepared food sold and served to pupils and
employees of public schools.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
7
Local Tax Expenditure
(m)
(m)
5
(m) Denotes a value of less than $1 million
144 | P a g e
4.01300
School lunches sold and served to pupils and employees of approved private schools
Statute
48-8-3(13)
Year Enacted
1967
Year Effective
1967
Data Source
Georgia School Nutrition Association and the National Center
of Education Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Food, food ingredients, and prepared food sold and served to pupils and
employees of approved private elementary and secondary schools
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01400
Sales of art and other artifacts for display or exhibition to museums
Statute
48-8-3(14)
Year Enacted
1973
Year Effective
1973
Data Source
U.S. Economic Census and IRS Form 990 data
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sales of art and anthropological, archeological, geological, horticultural, or
zoological objects or artifacts and other similar tangible personal property
to or for the use by any museum or organization which is tax exempt under
Section 501(c)(3) of the Internal Revenue Code of such tangible personal
property for display or exhibition in a museum within this state
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01500
Specific fundraising sales by any religious institution lasting no more than 30 days in a
calendar year and sales of religious paper when the paper is owned and operated by the
religious institution
Statute
48-8-3(15B)
Year Enacted
1953
Year Effective
1953
Data Source
National Center for Charitable Statistics
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sales of any religious paper in this state when the paper is owned and
operated by religious institutions or denominations and no part of the net
profit from the operation of the institution or denomination inures to the
benefit of any private person. Exempt sales must occur during a fundraising
145 | P a g e
activity with a duration that does not exceed 30 days in any calendar year.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01510
Sales of pipe organs or steeple bells to any church qualifying as a nonprofit
Statute
48-8-3(15.1)
Year Enacted
2001
Year Effective
2001
Data Source
The Atlanta Chapter for The American Guild of Organists
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of pipe organs or steeple bells to any church qualifying as a nonprofit.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01700
Sales of fuel or consumable supplies used by ships engaged in inter-coastal or foreign
commerce
Statute
48-8-3(17)
Year Enacted
1951
Year Effective
1951
Data Source
U.S. Energy Information Administration and the U.S.
Department of Energy
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sales of fuel or consumable supplies used by ships engaged in inter-coastal
or foreign commerce.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
5
5
Local Tax Expenditure
4
4
4
(m) Denotes a value of less than $1 million
4.02000
Water delivered through water mains, lines, or pipes
Statute
48-8-3(20)
Year Enacted
1966
Year Effective
1966
Data Source
U.S. Census and the Consumer Expenditure Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale of water delivered to consumers through water mains, lines, or
pipes.
146 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
27
28
29
22
23
24
4.02200
Professional, insurance or personal service transactions which involve sales as
inconsequential elements for which no separate charge is made
Statute
48-8-3(22)
Year Enacted
1951
Year Effective
1951
Data Source
NA
Estimate Reliability
NA
Data Reliability
Class A
Note
Class A
Description: Professional, insurance or personal service transactions which involve sales
as inconsequential elements for which no separate charge is made.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
See expenditure estimate for
4.5050
Local Tax Expenditure
See expenditure estimate for
4.5050
(m) Denotes a value of less than $1 million
4.02300
Repair services when a separate charge is made to the customer
Statute
48-8-3(23)
Year Enacted
1951
Year Effective
1951
Data Source
NA
Estimate Reliability
NA
Data Reliability
Class A
Note
Class A
Description: Repair services when a separate charge is made to the customer.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
See expenditure estimate for
4.5110
Local Tax Expenditure
See expenditure estimate for
4.5110
(m) Denotes a value of less than $1 million
4.02400
Rental of videotape or film to persons charging admission to view the tape or film
Statute
48-8-3(24)
Year Enacted
1989
Year Effective
1989
Data Source
US Economic Census and Nash Information Services Box
Office Data
Estimate Reliability
Class C
Data Reliability
Class C
147 | P a g e
Note
Description: Rental of videotape or film to persons charging admission to view the tape
or film.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
1
3
Local Tax Expenditure
1
1
3
(m) Denotes a value of less than $1 million
4.03000
Vehicles purchased by service-connected disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase a specially adapted the vehicle
Statute
48-8-3(30)
Year Enacted
1972
Year Effective
1972
Data Source
The Department of Veteran Affairs
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: The sale of a vehicle to a service-connected disabled veteran when the
veteran received a grant from the United States Department of Veterans
Affairs to purchase and specially adapt the vehicle to the veteran's
disability.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03420
Machinery and equipment used directly to remanufacture certain aircraft engines or aircraft
engine parts
Statute
48-8-3(34.2)
Year Enacted
1996
Year Effective
1996
Data Source
Fiscal Note for HB 933 LC 40 0540 for 2014
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Machinery and equipment used directly to remanufacture certain aircraft
engines or aircraft engine parts or components in a remanufacturing facility.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03600
Machinery and equipment used in a facility for the primary purpose of reducing or
eliminating air and water pollution
Statute
48-8-3(36)
Year Enacted
1972
Year Effective
1972
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Data Source
Fiscal Note for HB 445 LC 40 4571S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Machinery and equipment or any repair or replacement component used in
a facility for the primary purpose of reducing or eliminating air and water
pollution
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03800
Sale of tangible personal property and fees and charges for services by the Rock Eagle 4-H
Center
Statute
48-8-3(38)
Year Enacted
1976
Year Effective
1976
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sale of tangible personal property and fees and charges for services by the
Rock Eagle 4-H center.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03900
Certain sales by a public or private school of tangible personal property, concessions, and
tickets for admission to school functions
Statute
48-8-3(39)
Year Enacted
1994
Year Effective
1994
Data Source
Georgia Department of Education, IRS Form 990 data, and the
National High School Athletic Association
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales by any public or private school containing any combination of grades
kindergarten through 12 of tangible property, concessions, or tickets for
admission to a school event or function, provided that the net proceeds from
such sales are used solely for the benefit of such school or its students
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
2
Local Tax Expenditure
(m)
(m)
2
(m) Denotes a value of less than $1 million
149 | P a g e
4.04000
Sale of major components or repair parts installed in military aircraft, vehicles, or missiles
Statute
48-8-3(40)
Year Enacted
1965
Year Effective
1965
Data Source
USASpending.gov and the U.S. Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of major components or repair parts installed in military aircraft,
vehicles, or missiles.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
28
33
33
Local Tax Expenditure
23
28
27
(m) Denotes a value of less than $1 million
4.04100
Sale of tangible personal property and services to a nonprofit child-caring institution,
child-placing agency, or maternity home
Statute
48-8-3(41)
Year Enacted
2004
Year Effective
2004
Data Source
U.S. Economic Census
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales of tangible personal property and services to a child-caring institution
as defined in paragraph (1) of O.C.G.A 49-5-3; a child-placing agency as
defined in paragraph (2) of O.C.G.A. 49-5-3, or maternity home as defined
in paragraph (14) of O.C.G.A. 49-5-3, when such institution, agency, or
home is engaged primarily in providing child services and is a non-profit,
tax-exempt organization under Section 501(c)(3) of the IRS revenue code.
Also includes sales from certain Fundraising activities (limited to 30 days
per year).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.04300
Revenues from coin-operated amusement machines for which individual permits are
required
Statute
48-8-3(43)
Year Enacted
1992
Year Effective
1993
Data Source
Georgia Lottery Commission Annual Report
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Gross revenue generated from all bona fide coin-operated amusement
machines which vend or dispense music or are operated for skill,
150 | P a g e
amusement, entertainment, or pleasure.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
47
51
55
Local Tax Expenditure
39
42
46
(m) Denotes a value of less than $1 million
4.04600
Sale of tangible personal property or taxable services to nonprofit blood banks
Statute
48-8-3(46)
Year Enacted
1980
Year Effective
1980
Data Source
U.S. Economic Census and IRS 990 Form Data
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sale to certain blood banks having a nonprofit status according to Section
501(c)(3) of the IRS revenue code.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.04700
Sale of drugs dispensed by prescription, prescription glasses, contact lenses, contact lens
samples and sales or use of certain controlled substances or dangerous drugs
Statute
48-8-3(47)
Year Enacted
1984
Year Effective
1985
Data Source
State Health Expenditures from the Centers for Medicare and
Medicaid Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sale or use of drugs that are lawfully dispensable only by prescription for
the treatment of natural persons; prescription eyeglasses and contact lenses;
prescription contact lens samples; drugs dispensable by prescription for the
treatment of natural persons without charge to physicians, hospitals, etc. by
pharmaceutical manufacturers or distributors; drugs and durable medical
equipment dispensed or distributed without charge solely for the purposes
of a clinical trial approved by the FDA or an institutional review board.
Note: This exemption does not include over-the-counter drugs, drugs sold
for animal use, or non-prescription eyeglasses.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
453
478
508
Local Tax Expenditure
377
398
423
(m) Denotes a value of less than $1 million
4.04800 Sale of crab bait to licensed commercial fishermen
Statute
48-8-3(48)
151 | P a g e
Year Enacted
1985
Year Effective
1985
Data Source
Georgia Department of Natural Resources and the U.S.
Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of crab bait to licensed commercial fisherman.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05000
Sale of insulin syringes and blood glucose level measuring strips dispensed without a
prescription
Statute
48-8-3(50)
Year Enacted
1986
Year Effective
1986
Data Source
The Centers for Disease Control and Prevention and the
Medical Expenditures Panel Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of blood measuring devices, monitoring equipment, or insulin delivery
systems used exclusively by diabetics; insulin, insulin syringes and blood
glucose monitoring strips; when dispensed without a prescription.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
39
41
43
Local Tax Expenditure
32
34
36
(m) Denotes a value of less than $1 million
4.05100
Sale of oxygen when prescribed by a licensed physician
Statute
48-8-3(51)
Year Enacted
1986
Year Effective
1986
Data Source
The Medical Expenditure Panel Survey and The Department
of Health and Human Services
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sale of oxygen when prescribed by a licensed physician.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
5
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
152 | P a g e
4.05200
Sale or use of hearing aids
Statute
48-8-3(52)
Year Enacted
1986
Year Effective
1986
Data Source
Medical Expenditure Panel Survey and Healthy Hearing
Review
Estimate Reliability
Class A
Data Reliability
Class B
Note
Description: Exempts the sale or use of approved hearing aids from sales and use tax.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
6
7
7
Local Tax Expenditure
5
6
6
(m) Denotes a value of less than $1 million
4.05300
Transactions where food stamps or WIC coupons are used as the method of payment
Statute
48-8-3(53)
Year Enacted
1986
Year Effective
1987
Data Source
U.S. Food and Nutrition Service and the U.S. Department of
Agriculture
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sales tax is not applied on items purchased using food stamps or WIC
coupons.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
161
151
142
Local Tax Expenditure
134
126
118
(m) Denotes a value of less than $1 million
4.05400
Sale or use of any durable medical equipment or prosthetic device prescribed by a
physician
Statute
48-8-3(54)
Year Enacted
1992
Year Effective
1993
Data Source
U.S. Census of National Health Expenditures and the Medical
Expenditure Panel Survey
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale or use of any durable medical equipment or prosthetic device
prescribed by a physician.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
40
45
47
Local Tax Expenditure
33
37
39
(m) Denotes a value of less than $1 million
153 | P a g e
4.05500
Sale of Georgia lottery tickets
Statute
48-8-3(55)
Year Enacted
1992
Year Effective
1992
Data Source
Georgia Lottery Commission Annual Report
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sale of lottery tickets authorized by O.C.G.A. Chapter 27 of Title 50.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
209
219
230
Local Tax Expenditure
172
181
190
(m) Denotes a value of less than $1 million
4.05600
Sale by any qualified nonprofit parent teacher organization
Statute
48-8-3(56)
Year Enacted
1995
Year Effective
1995
Data Source
Georgia Parent Teacher Association and IRS Form 990 data
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sale by any qualified nonprofit parent teacher organization.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05700
Food purchased for off-premises consumption
Statute
48-8-3(57)
Year Enacted
1996
Year Effective
1998
Data Source
U.S. Consumer Expenditure Survey and the US Census Retail
Market Report
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Exemption applies to food and food ingredients, which means substances,
whether in liquid, concentrated, solid, frozen, dried, or dehydrated form,
that are sold for ingestion or chewing by humans and are consumed for
their taste or nutritional value. It does not apply to alcoholic beverages,
tobacco, immediate consumption items, vitamins, and minerals. It does not
apply to the local option sales taxes or items used primarily for medical or
hygiene purposes (cough drops, breath strips, over the counter medication,
etc.).
154 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
620
629
678
0
0
0
4.05710
Sales of food and beverages to a qualified food bank
Statute
48-8-3(57.1)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for LC 43 1447 for 2021
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sales of food and beverages to a qualified food bank
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05720
Exemption for prepared food and food ingredients that are donated to a qualified nonprofit
agency and used for hunger relief purposes
Statute
48-8-3(57.2)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for LC 43 1447 for 2020
Estimate Reliability
Class A
Data Reliability
Class A
Note
This exemption was eliminated in 2011 and reinstated in
2015. This provision is scheduled to expire on June 30, 2021.
Description: The use of food and food ingredients that are donated to a qualified
nonprofit agency and that are used for hunger relief purposes. "Qualified
nonprofit agency" means any entity that is tax exempt under section
501(c)(3) of the Internal Revenue Code and that provides hunger relief.
Does not include drugs or over-the-counter drugs.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
0
0
Local Tax Expenditure
(m)
0
0
(m) Denotes a value of less than $1 million
4.05900
Sale of eligible food and beverages by any Girl or Boy Scout council
Statute
48-8-3(59)
Year Enacted
1996
Year Effective
1996
Data Source
The American Community Survey, IRS Form 990 data, and
Girl Scouts of America annual report
Estimate Reliability
Class B
Data Reliability
Class B
155 | P a g e
Note
Description: Sales of food or food ingredients to and by member councils of the Girl
Scouts or Boy Scouts of America in connection with fundraising activities.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06000
Sale of certain machinery and equipment used to improve air quality in a clean room of
Class 100,000 or less
Statute
48-8-3(60)
Year Enacted
2000
Year Effective
2001
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
Estimate includes 4.06900.
Description: Sales of certain machinery and equipment used to improve air quality in a
clean room of Class 100,000 or less when incorporated into
telecommunications manufacturing facility.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06200
Sod grass sold in the original state of production by the sod producer, employee of the
producer, or family member of the producer
Statute
48-8-3(62)
Year Enacted
1998
Year Effective
1998
Data Source
U.S. Census of Agriculture, the U.S. Economic Census, and
the Annual Survey of Sod Producers
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sod grass sold in the original state of production by the sod producer,
employee of the producer, or family member of the producer. This
exemption does not apply to sales from a nursery or other places where
plants are sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
Local Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
4.06300 Funeral merchandise when paid with funds from the Georgia Crime Victims Emergency
Statute
48-8-3(63)
Year Enacted
1998
156 | P a g e
Year Effective
1998
Data Source
The Uniform Crime Report and the National Office for
Victims of Crime
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale or use of funeral merchandise, outer burial containers, and
cemetery markers as defined in O.C.G.A 43-18-1, which are purchased
with funds received from the Georgia Crime Victims Emergency Fund
under Chapter 15 of Title 17.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06500
Sale of dyed diesel fuel used exclusively for operations of vessels or boats by licensed
commercial fishermen
Statute
48-8-3(65)
Year Enacted
NA
Year Effective
NA
Data Source
The Georgia Department of Natural Resources and the U.S.
Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of dyed diesel fuel used exclusively for operations of vessels or boats
by licensed commercial fishermen.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06600
Sale of gold, silver, or platinum bullion
Statute
48-8-3(66)
Year Enacted
2000
Year Effective
2000
Data Source
U.S. Mint 2020 Annual Report
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of gold, silver, or platinum bullion.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
157 | P a g e
4.06700
Sale of coins or currency
Statute
48-8-3(67)
Year Enacted
2000
Year Effective
2000
Data Source
Professional Numismatists Guild
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of coins or currency.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06810
High-Tech Data Center Equipment Exemption
Statute
48-8-3(68.1)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for HB 696/LC 43 0923S for 2018
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption for high-technology data center equipment, subject to a
minimum investment threshold of $250 million over ten years, and certain
other structural infrastructural system requirements.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
15
12
13
Local Tax Expenditure
11
9
10
(m) Denotes a value of less than $1 million
4.06900
Sales of machinery and equipment and material incorporated and used in a clean room of
Class 100 or less
Statute
48-8-3(69)
Year Enacted
2000
Year Effective
2001
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
Estimate Combined with 4.06000
Description: Sales of machinery, equipment, and material incorporated and used in
construction or operation of a clean room of Class 100 or less when the
clean room is used directly in the manufacture of tangible personal
property.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate Combined with
4.06000
(m) Denotes a value of less than $1 million
158 | P a g e
4.07000
Sale of natural gas used directly in the manufacture of electricity
Statute
48-8-3(70)
Year Enacted
1999
Year Effective
2000
Data Source
U.S. Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale of natural or artificial gas used directly in the manufacture of
electricity which is subsequently sold.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
83
90
99
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
4.07100
Sale to or by an organization whose primary purpose is to raise funds for books, materials,
and programs for public libraries
Statute
48-8-3(71)
Year Enacted
1999
Year Effective
2000
Data Source
National Center for Charitable Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sale to or by an organization whose primary purpose is to raise funds for
books, materials, and programs for public libraries.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.07200
Sale of prescribed mobility enhancing equipment
Statute
48-8-3(72)
Year Enacted
1999
Year Effective
2000
Data Source
State Health Expenditures from the Centers for Medicare and
Medicaid Services and the Medical Expenditure Panel Survey
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The sale to or use by a patient of all mobility enhancing equipment
prescribed by a physician.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
159 | P a g e
4.07600
Exemption for personal property used in the renovation or expansion of an aquarium
Statute
48-8-3(76)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 238 LC 28 7425 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
This exemption is set to expire January 1, 2022.
Description: Sale or use of tangible personal property used for or in the renovation or
expansion of an aquarium located in this state that charges admission and is
owned or operated by an organization that is tax exempt under 501(c)(3).
Qualifying aquarium must pay tax and apply for refund.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
(m)
0
Local Tax Expenditure
2
(m)
0
(m) Denotes a value of less than $1 million
4.08100
The purchase of food and nonalcoholic beverages provided at no charge aboard a qualified
airline
Statute
48-8-3(81)
Year Enacted
2005
Year Effective
2005
Data Source
Bureau of Transportation Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The purchase of food and nonalcoholic beverages provided at no charge
aboard a qualified airline not including alcohol or tobacco.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
6
7
Local Tax Expenditure
2
4
5
(m) Denotes a value of less than $1 million
4.08300
Sale of biomass materials used to produce electricity or steam intended for sale
Statute
48-8-3(83)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for HB 1018 LC 18 4936 for 2009 and the U.S.
Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: The sale or use of biomass material, including pellets or other fuels derived
from compressed, chipped, or shredded biomass material, utilized in the
production of energy, including without limitation the production of
electricity and/or steam.
160 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
2
2
2
1
2
2
4.08600
Sales of engines, parts, equipment and other tangible personal property used in the
maintenance or repair of certain aircraft
Statute
48-8-3(86)
Year Enacted
2009
Year Effective
2009
Data Source
Fiscal Note for HB 933 LC 40 0540 for 2014
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale or use of engines, parts, equipment, and other tangible personal
property used in the maintenance or repair of aircraft when such engines,
parts, equipment, and other tangible personal property are installed on such
aircraft that is being repaired or maintained in this state, so long as such
aircraft is not registered in this state.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
22
22
23
Local Tax Expenditure
16
17
17
(m) Denotes a value of less than $1 million
4.09300
Sale of tangible personal property used for and in the construction of a competitive project
of regional significance.
Statute
48-8-3(93)
Year Enacted
2012
Year Effective
2012
Data Source
Fiscal Note for HB 587 LC 43 2010S for 2021
Estimate Reliability
Class B
Data Reliability
Class B
Note
In 2021, this provision was extended to June 30, 2023.
Description: For the period commencing January 1, 2012, until June 30, 2023, sales of
tangible personal property used for and in the construction of a competitive
project of regional significance. The exemption applies to purchases made
during the entire time of construction of the competitive project of regional
significance so long as such project meets the definition of a ""competitive
project of regional significance"" within the period commencing January 1,
2012, until June 30, 2023.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
9
9
9
Local Tax Expenditure
7
7
7
(m) Denotes a value of less than $1 million
161 | P a g e
4.09400
The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used
for packaging tangible personal property for shipment or sale
Statute
48-8-3(94)
Year Enacted
2014
Year Effective
2014
Data Source
Fiscal Note for HB 586 LC 43 2029S for 2021
Estimate Reliability
Class B
Data Reliability
Class A
Note
Estimate Combined with 4.3.2
Description: The sale, use, consumption, or storage of materials, containers, labels,
sacks, or bags used for packaging tangible personal property for shipment
or sale. To qualify for the packaging exemption, the items shall be used
solely for packaging and shall not be purchased for reuse. The packaging
exemption shall not include materials purchased at a retail establishment for
consumer use.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
Estimate Combined with 4.3.3
Local Tax Expenditure
(m) Denotes a value of less than $1 million
4.09700
Sales of admission to a nonrecurring major sporting event
Statute
48-8-3(97)
Year Enacted
2016
Year Effective
2017
Data Source
Fiscal Note for HB 951 LC 34 4805 for 2016
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales of admissions to nonrecurring major sporting events in this state that
are expected to generate over $50 million in the host locality.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
0
Local Tax Expenditure
(m)
(m)
0
(m) Denotes a value of less than $1 million
4.10000
Exemption for sales of tickets to a qualified fine arts performance or exhibition
Statute
48-8-3(100)
Year Enacted
2017
Year Effective
Transactions occurring on or after July 1, 2021
Data Source
Fiscal Note for HB 586 LC 43 2029S for 2021
Estimate Reliability
Class B
Data Reliability
Class B
Note
Provision previously expired June 30, 2020, and was restored
in the 2021 legislative session. Provision expires December
31, 2022.
Description: A sales tax exemption on the sale of tickets, fees, or charges for admission
to a qualified fine arts performance or exhibition.
162 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
(m)
(m)
(m)
4.10100
The sale of certain written material by a nonprofit
Statute
48-8-3(101)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note HB 217 for 2018
Estimate Reliability
Class B
Data Reliability
Class B
Note
This provision expires July 1, 2021.
Description: The sale or use of noncommercial written materials or mailings by an
organization which is exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code, if the organization is located in this state and
provides such materials to charity supporters for educational, charitable,
religious, or fundraising purposes. This exemption shall apply from July 1,
2018 until July 1, 2021.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
8
0
0
Local Tax Expenditure
6
0
0
(m) Denotes a value of less than $1 million
4.10200
Partial exemption for qualified manufactured homes
Statute
48-8-3(102)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note HB 871/LC 43 0891S for 2018
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: A partial exemption from state sales and use tax for qualified manufactured
homes equal to 50 percent of the sale price of such homes. Qualified
manufactured homes are those that are to be converted, and actually
converted within 30 days of sale, to real property in the state pursuant to
O.C.G.A. 8-2-183.1. The proposed exemption does not apply to any local
sales or use tax in the state.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
4
4
4
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
4.10300
Exemption for construction materials used in construction of an automobile museum
Statute
48-8-3(103)
Year Enacted
2018
Year Effective
2018
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Data Source
Fiscal Note for HB 793 for 2018
Estimate Reliability
Class B
Data Reliability
Class B
Note
This provision expires December 31, 2020.
Description: The sale or use of tangible personal property used for the construction of a
museum that is owned by an entity that is incorporated in this state as a
nonprofit organization exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code. The museum must celebrate as its primary mission
the diverse heritage of automobiles. This exemption shall apply from July
1, 2018, until December 31, 2020 and the aggregate state and local sales
and use tax refunded pursuant to this paragraph shall not exceed $960,000.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
0
0
Local Tax Expenditure
(m)
0
0
(m) Denotes a value of less than $1 million
4.10400
Exemption for poultry diagnostic and disease monitoring service nonprofit organization
Statute
48-8-3(104)
Year Enacted
2019
Year Effective
2019
Data Source
IRS Form 990 Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sales to or by any nonprofit organization which has as its primary purpose
providing poultry diagnostic and disease monitoring services.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.3.2
Exemption for energy, machinery or equipment, industrial material, and consumable
supplies used in manufacturing
Statute
48-8-3.2
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 586 LC 43 2029S for 2021
Estimate Reliability
Class B
Data Reliability
Class A
Note
This exemption was modified in 2017 to include maintenance
and replacement parts for certain machinery or equipment
used to mix, agitate, and transport freshly mixed concrete,
effective until July 1, 2020. This provision of the exemption
was restored effective July 1, 2021, and until July 1, 2026.
Description: Exemptions for energy, machinery or equipment, industrial material, and
consumable supplies used in manufacturing.
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4.3.3 4.3.4 4.3.5
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
3,427 3,657 3,858
2,853 3,044 3,212
Sale and use by a qualified agriculture producer of agricultural production inputs, energy
used in agriculture, and agricultural machinery and equipment
Statute
48-8-3.3
Year Enacted
2012
Year Effective
2013
Data Source
National Agricultural Statistical Service
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sale to, or use by, a qualified agriculture producer of agricultural production inputs, energy used in agriculture, and agricultural machinery
and equipment.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
201
207
213
Local Tax Expenditure
168
173
178
(m) Denotes a value of less than $1 million
Exemption for qualified boat repairs
Statute
48-8-3.4
Year Enacted Year Effective
2017 Transactions occurring on or after July 1, 2017
Data Source Estimate Reliability
Fiscal Note for HB 586 LC 43 2029S for 2021 Class B
Data Reliability Note
Class B The provision expires on June 30, 2031
Description: A sales tax exemption for certain tangible property used in the repair, retrofit, or maintenance of boats. The exemption cannot exceed $35,000 for
any single repair, retrofit, or maintenance event. State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Exemption for the sale and use of jet fuel
Statute
48-8-3.5
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for LC 43 1712 for 2020
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The sales of jet fuel is exempt from the state sales and use tax.
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State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
22
49
50
0
0
0
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4.5 Sales and Use Tax for Services
4.5.010
Construction Services
Description: Sales by establishments primarily engaged in the construction of buildings
or engineering projects (e.g., highways and utility systems), and preparation
of sites for new construction, but excluding cost of materials taxed under
current law and land. (NAICS 23)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1,855 1,925 1,970
Local Tax Expenditure
1,539 1,598 1,635
(m) Denotes a value of less than $1 million
4.5020
Automotive Services by Motor Vehicle and Parts Dealers
Description: Labor charges for service and repair of vehicles (by motor vehicle and parts
dealers only). (NAICS 441).
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
101
106
109
Local Tax Expenditure
84
88
91
(m) Denotes a value of less than $1 million
4.5030
Investment and Financial Advisers
Description: Fees charged by trusts, financial planning and investment management
services. (NAICS 52392-99)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
405
420
436
Local Tax Expenditure
336
348
362
(m) Denotes a value of less than $1 million
4.5040 Real Estate Services Description:
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
294
293
297
244
243
247
4.5050
Professional, Scientific and Technical Services
Description: Charges for professional, scientific and technical services, excluding
internet and streaming services, tangible good sales, temp staffing and other
non-qualifying sales. (NAICS 54)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2,289 2,410 2,483
Local Tax Expenditure
1,900 2,001 2,061
(m) Denotes a value of less than $1 million
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4.5060
Administrative and Support Services
Description: Sales by firms engaged primarily in administrative and support services,
excluding correctional facilities. Estimate also excludes the sale of tangible
goods, health care and temp staffing by such establishments. (NAICS 561)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
766
801
838
Local Tax Expenditure
636
665
695
(m) Denotes a value of less than $1 million
4.5070
Waste Management and Remediation Services
Description: Sales by firms that provide waste management and remediation services,
excluding tangible good sales. (NAICS 562)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
146
149
152
Local Tax Expenditure
121
124
126
(m) Denotes a value of less than $1 million
4.5080
Educational Services (excluding schools)
Description: Sales by establishments that provide educational services, such as training,
tutoring, coaching and support services, excluding pre-K-12 schools,
colleges and universities. Estimate excludes the sale of tangible goods, and
other non-qualifying revenue such as grants and donations. (NAICS 61)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
49
50
52
Local Tax Expenditure
41
42
43
(m) Denotes a value of less than $1 million
4.5090
Health Care and Social Assistance Services
Description: Sales by establishments primarily engaged in health care and social
assistance, excluding tangible good sales, grants, government revenue,
donations and other non-service revenue. (NAICS 62)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2,649 2,673 2,704
Local Tax Expenditure
2,198 2,219 2,244
(m) Denotes a value of less than $1 million
4.50100
Promoters of Events; Agents for Entertainers
Description: Fees charged by event promoters and agents for athletes and entertainers.
Excludes admissions fees and tangible good sales. (NAICS 7113-4)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
7
10
17
Local Tax Expenditure
6
9
14
(m) Denotes a value of less than $1 million
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4.50110
Repair and Maintenance Services
Description: Sales by establishments primarily engaged in the repair and maintenance of
vehicles, electronics, appliances and other goods. Excludes merchandise
and parts sales by such establishments. (NAICS 811)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
99
103
107
Local Tax Expenditure
82
85
89
(m) Denotes a value of less than $1 million
4.50120
Personal and Laundry Services
Description: Sales by establishments engaged in miscellaneous personal services, such
as hair and nail salons, laundromats, funeral homes and parking garages.
Excludes tangible good sales. (NAICS 812)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
129
135
141
Local Tax Expenditure
107
112
117
(m) Denotes a value of less than $1 million
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4.7 Vendor Compensation
4.70000
Compensation of dealers for reporting and paying tax
Statute
48-8-50
Year Enacted
1964
Year Effective
1964
Data Source
Office of Planning and Budget and DOR
Estimate Reliability
Class A
Data Reliability
Class A
Note
Georgia allows a vendor collection fee of 3 percent for the
first $3,000 and then 0.5 percent for amounts above $3,000
but does not impose a maximum limitation per vendor.
Description:
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
83
86
89
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
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4.9 Casual Sales
4.90000
Sales tax exemption for casual sales
Statute
DOR administrative rule
Year Enacted
NA
Year Effective
NA
Data Source
Georgia Department of Natural Resources and the General
Aviation Manufacturers Association
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Purchases of boats, planes and other tangible goods sold by persons not in
the business of selling such items are not subject to sales tax. (Prior to the
implementation of the Alternative Ad Valorem Tax on Motor Vehicles this
estimate included casual sale of motor vehicles.)
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
Local Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
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Sales and Use Tax expenditures for which an estimate is not currently available
Expenditure Expenditure
4.00100
48-8-3(1)
Expenditure Sales to Federal Government, State of Georgia or a county or municipality in Georgia or any agency of such governments
4.00200
48-8-3(2)
Tangible personal property furnished by the Federal Government or any county or municipality used by a contractor in the installation, repair, or extension of any public water, gas, or sewer system
4.00300 4.01800 4.01900
48-8-3(3) 48-8-3(18) 48-8-3(19)
Federal retailer's excise tax if separately itemized to the consumer and Georgia motor fuel tax imposed on the sale of motor fuel
Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation
All tangible personal property purchased outside this state by a nonresident when the property is brought into Georgia upon the nonresident becoming a resident
4.02100
48-8-3(21)
Sales, transfers or exchanges of tangible personal property resulting from business reorganization when the owners, partners, or stockholders maintain the same proportionate interest or share in the newly formed business
4.03100 4.03200
4.03300 4.03410 4.03610 4.03910 4.04200
48-8-3(31) 48-8-3(32)
Sale of tangible personal property manufactured or assembled in Georgia for export when delivery is taken outside of Georgia
Aircraft, watercraft, motor vehicles, and other transportation equipment manufactured or assembled in this State for exclusive use outside Georgia
48-8-3(33) 48-8-3(34.1) 48-8-3(36.1) 48-8-3(39.1)
48-8-3(42)
Common or common and contract carriers
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities
Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility
Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property Use or lease of tangible personal property when the lessor and lessee are under 100 percent common ownership and where the person who furnishes, leases, or rents the property has paid sales or use tax on the property
4.04400
48-8-3(44)
Sale of motor vehicles to nonresident purchasers when vehicles are immediately removed from Georgia and titled in another state
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Sales and Use Tax expenditures for which an estimate is not currently available
Expenditure Expenditure
4.04500
48-8-3(45)
Expenditure The sale or use of paper stock when used to print catalogs for distribution outside Georgia
4.06100 4.06800
48-8-3(61) 48-8-3(68)
Advertising inserts that are used in newspapers for resale
Sale of certain computer equipment when the total qualifying purchases by a high technology company exceed $15 million
4.09100
48-8-3(91)
The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave
4.3.6
36-88-3(8.1) Exemption for sales within an enterprise zone
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5. Insurance Premium Tax
The premium tax is imposed upon gross direct premiums received by insurers doing business in the state to insure persons, property, or risks in Georgia. The state tax rate is imposed at a rate of 2.25 percent of gross direct premiums, though the rate is reduced to 1.25 percent for insurers holding at least 25 percent of their total assets, exclusive of direct obligations of the United States, in specified classes of Georgia assets. For insurers holding 75 percent of such total assets in Georgia, the rate is reduced further to 0.5 percent.
Counties levy a tax at 1 percent on gross direct premiums of life insurance companies for policies covering persons residing in unincorporated areas of the county, except that the county tax shall not apply to life insurers that qualify for the abatement of the state tax for firms with 75 percent Georgia assets. Municipalities may levy a tax of up to 1 percent on life policies covering persons residing in the given municipality. Counties and municipalities may levy rates of up to 2.5 percent on gross direct premiums for policies other than life insurance policies.
This tax is administered by the State Insurance Commissioner. In FY 2020, state revenues from this tax equaled $555 million and local revenues equaled $700 million. The state proceeds from the tax are deposited into the State General Fund.
5.00100
Credit for retaliatory taxes paid to other states
Statute
33-8-7
Year Enacted
1960
Year Effective
Prior to 2000
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level.
Description: Property and casualty insurance companies domiciled in Georgia are able to
deduct from their Georgia tax liability taxes paid to other states on policies
written in those states.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
5.00200
Georgia Job Tax Credit Statute Year Enacted Year Effective Data Source
Estimate Reliability Data Reliability Note
33-8-4.1 1960 2000 DOR data as of 2020 and Office of Insurance and Safety Fire Commissioner Class A Class A The same estimate is provided in the corporate and personal Income tax sections, see 1.6.012 and 2.6.001. In 2018, the qualifying areas were expanded to include counties with
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military bases and industrial parks that are owned and
operated by a government entity.
Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must be
greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees. It also provides a tax credit for businesses enterprises
designated as operating in less-developed areas. These include areas with
ten or more contiguous census tracts with higher than 15 percent
poverty and counties with both a military base and a government
owned and operated industrial park.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
23
27
28
Corporate Income Tax Expenditure
131
157
160
Insurance Premium Tax Expenditure
7
7
7
State Tax Expenditure
160
191
194
(m) Denotes a value of less than $1 million
5.00300
Exemption for premiums of high-deductible health plans
Statute
33-8-4
Year Enacted
2008
Year Effective
2009
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The local exemption expired on December 31, 2014.
Description: Insurance companies are allowed to exempt from their insurance premium
tax liability any premiums paid by Georgia residents for high-deductible
health plans as defined by Section 233 of the Internal Revenue Code.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
5.00400
Exemption for insurance companies that only insure places of worship
Statute
33-8-13
Year Enacted
1996
Year Effective
1996
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class C
Data Reliability
Class C
Note
Not applicable at the local level.
Description: Insurance companies that only insure the risks of places of worship are
exempt from the state premium tax.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
5.00500
Insurance abatements
Statute
33-8-5
Year Enacted
1996
Year Effective
Prior to 2000
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level.
Description: Georgia imposes a reduced state rate of 1.25 percent on insurance
companies that invest at least 25 percent of their assets in qualified Georgia
assets. If the amount invested in qualified Georgia assets is greater than 75
percent, the rate is reduced to 0.50 percent.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
188
187
191
(m) Denotes a value of less than $1 million
5.00600
Special credits for life insurance companies
Statute
33-8-4, 33-8-8, 33-8-8.1
Year Enacted
1981
Year Effective
Prior to 2000
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level.
Description: Life insurance companies are permitted to deduct contributions to state
guarantee funds, license fees paid to local governments, local premium
taxes from premium taxes otherwise payable to the State.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
203
202
207
(m) Denotes a value of less than $1 million
5.00700
Low-Income Housing Credit
Statute
33-1-18
Year Enacted
1960
Year Effective
2001
Data Source
DOR data as of TY 2020 and Office of Insurance and Safety
Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the personal income tax
section and the corporate income tax section, see 1.6.028 and
2.6.017.
Description: This is a credit against Georgia income and insurance premium taxes for
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owners of rental housing qualifying for the federal low-income housing tax
credit and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
92
95
99
Corporate Income Tax Expenditure
31
32
33
Insurance Premium Tax Expenditure
163
167
174
State Tax Expenditure
286
294
306
(m) Denotes a value of less than $1 million
5.00800
Exemption for multiple employer self-insured health plans
Statute
33-50-3
Year Enacted
2016
Year Effective
2016
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Multiple employer self-insured health plans are exempt from the state
insurance premium tax on the plan's net premiums.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
5.00900
Agribusiness Tax Credit
Statute
33-1-25
Year Enacted
2017
Year Effective
Taxable years beginning on or after January 1, 2018
Data Source
DOR data as of TY 2020 and Office of Insurance and Safety
Fire Commissioner
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the personal and Corporate
income tax sections, see 1.6.049 and 5.00900.
Description: This income tax credit is to establish qualified low-income community rural
investment funds and tax credits. The credit amount is 15 percent of the
eligible investment per year beginning in the third year after the investment
is made and continuing through the sixth year, for a total credit equal to 60
percent of the eligible investment. The credit is nonrefundable and may not
be sold, but may be carried forward indefinitely. The amount of credits
available is subject to a cumulative cap of $100 million.
State Fiscal Years ($ in Millions)
2021
2022
2023
Income Tax Expenditure
2
4
4
Corporate Income Tax Expenditure
1
1
1
Insurance Premium Tax Expenditure
8
9
9
State Tax Expenditure
11
14
14
(m) Denotes a value of less than $1 million
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6. Motor Fuel Tax
The tax on motor fuels was substantially modified in 2015. Under the new law, the state tax on motor fuels other than diesel fuel and aviation gasoline is, as of January 1, 2021, 28.7 cents per gallon. The state tax on diesel fuel is 32.2 cents per gallon and the tax on aviation gasoline is 1 cent per gallon. Tax rates are adjusted annually for inflation and for the change in average fuel economy of new vehicles registered in the state in the prior year from the year before. The base of the motor fuel tax is imposed on any source of energy that can be used for propulsion of a motor vehicle on the public highways, including, but not limited to gasoline, fuel oils, compressed petroleum gas, and special fuels.
The tax is administered by the Georgia DOR and revenues generated from this tax are allocated by the state constitution to the Georgia Department of Transportation for highway purposes. State motor fuel tax revenues for FY 2020 totaled $1.87 billion.
6.00400
Motor fuel tax exemption for aviation fuel
Statute
48-9-3
Year Enacted
1978
Year Effective
1978
Data Source
Fiscal Note for LC 34 1367S for 2018
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption for aviation fuel
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
6.00500
Motor fuel tax vendor compensation
Statute
48-9-8(b)
Year Enacted
1992
Year Effective
1992
Data Source
Office of Planning and Budget and DOR
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Motor fuel dealers are allowed to retain 1 percent of total amounts collected
as reimbursement for the cost of collection.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
18
20
20
(m) Denotes a value of less than $1 million
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7. Alcoholic Beverage Tax
This state and local tax is imposed on alcoholic beverages including malt beverages, wine, and distilled spirits. Malt beverages sold in bulk containers (tap or draft beer) are taxed at a state rate of $10 per container up to 31 gallons with a proportionate tax on fractional parts of 31 gallons for larger containers. For bottled and canned malt beverages, the state tax rate is 4 cents per 12 ounces and proportionate rates on fractional parts of 12 ounces for other sizes. Table wines are taxed at a state rate of 11 cents per liter and an additional state import tax of 29 cents per liter is imposed on table wines produced outside of Georgia and imported into the state, in both cases with proportionate rates for fractional parts of a liter. A state excise tax of 27 cents per liter and an additional state import tax of 40 cents per liter is imposed on dessert wines, with proportionate rates for fractional parts of a liter. A state excise tax of 50 cents per liter is imposed on distilled spirits while alcohol (defined to mean ethyl alcohol greater than 190 proof intended for use as a beverage, including grain alcohol and spirits of wine) is subject to a state tax of 70 cents per liter, in both cases with the tax applied proportionately on fractions of a liter. Distilled spirits and alcohol imported to Georgia from outside the state are also subject to an additional state import tax of 50 cents and 70 cents per liter, respectively.
A uniform local government beer tax is levied at 5 cents per 12 ounces for bottled and canned malt beverages with proportionate rates for sizes other than 12 ounces. The rate for bulk (tap or draft) malt beverages is $6 per container for containers up to 15 gallons with proportionate rates for larger containers. Counties and municipalities may levy excise tax on wine at rates that do not exceed 22 cents per liter. Counties and municipalities may levy excise taxes on distilled spirits sold by the package at rates that do not exceed 22 cents per liter or proportionate rates for other size containers. Counties and municipalities may also levy excise taxes at rates up to 3 percent of the price charged for mixed drinks.
The state portion of the tax is administered by the Georgia DOR. Proceeds from the state tax are deposited into the State General Fund. In FY 2020, state collections equaled $208 million. Local collections for FY 20183 equaled $150 million.
7.00300
200 gallons annually of homebrew per household
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
American Homebrewers' Association
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Allows an exemption for up to 200 gallons annually of homebrew per
household.
3 Latest data available.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
7.00400
Sales to and use by religious organizations for sacramental purposes
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
National Center for Charitable Statistics & Catholic.org
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Sales to and use by religious organizations for sacramental purposes
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
7.00600
Malt beverages containing less than one-half of 0.5 percent alcohol by volume
Statute
3-5-90
Year Enacted
1987
Year Effective
1987
Data Source
U.S. Economic Census & American Beer Institute
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Malt beverages which contain less than one-half of 1 percent alcohol by
volume shall not be subject to any tax levied under this title or any tax
levied pursuant to authority granted by this title.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Alcoholic beverages tax expenditures for which an estimate is not currently
available
Expenditure Statute
Summary
7.00100 7.00200
3-5-61 3-5-61, 3-6-70
Sales to persons outside the state for resale or consumption outside the state Sales to stores or canteens in U.S. military reservations
7.00500
3-5-61, 3-6-70 Exemption for ethyl alcohol used for certain purposes
180 | P a g e
8. Tobacco Products Excise Tax
This tax is levied upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of tobacco, cigars, and cigarettes in Georgia. The tax is imposed at a rate of 37 cents per pack of 20 cigarettes and a like rate, pro rata, for other sized packages. Little cigars, weighing not more than three pounds per thousand are taxed at a rate of 2.5 mills each ($2.50 per 1000). All other cigars are taxed at 23 percent of the wholesale cost price, exclusive of any trade, cash, of other discounts or any promotion, advertising, display or other similar allowances. Loose or smokeless tobacco is taxed at a rate of 10 percent of the wholesale cost price.
Under legislation enacted in 2020, excise taxes are also levied on consumable vapor products beginning January 1, 2021. The tax is imposed at a rate of 5 cents per fluid milliliter for consumable vapor products in a closed system and 7 percent of the wholesale cost price for other consumable vapor products and devices.
The tax is administered by the Georgia DOR. In FY 2020, the tax totaled $226 million. The proceeds of the tax are deposited into the State General Fund.
8.00100
Exemption for purchases for use exclusively by patients at the Georgia War Veterans
Home and the Georgia War Veterans Nursing Home
Statute
48-11-2
Year Enacted
1955
Year Effective
Latest Modification 2003
Data Source
Georgia Department of Veterans Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Exemption for purchases for use exclusively by patients at the Georgia War
Veterans Home and the Georgia War Veterans Nursing Home
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Tobacco Products excise tax expenditures for which an estimate is not
currently available
Expenditure Statute Summary
8.00200
48-11-3 De minimis amount brought into the state by one person
8.00300
48-11-3 Cigars and cigarettes stored in a public warehouse
8.00400
48-11-3 Certain cigars and cigarettes held by licensed dealers
181 | P a g e
9. Financial Institutions Special State Occupation Tax
This is a special state occupation tax imposed on the adjusted gross receipts of each depository financial institution that does business or owns property in the state. The state tax rate is levied at a rate of 0.25 percent. In addition to the state tax, counties and municipalities may levy a rate not to exceed 0.25 percent of gross receipts. Any amount paid under the special state occupation tax by a financial institution reduces the institution's state income tax liability by an equal amount.
The tax is administered by the Georgia DOR. The revenues from this tax in FY 2020 equaled $30 million. The proceeds of the tax are deposited into the State General Fund.
9.00100
Deduction for interest paid
Statute
48-6-95
Year Enacted
1975
Year Effective
1975
Data Source
FDIC Statistics on Depository Institutions
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Financial institutions are allowed to deduct from gross receipts interest paid
on all liabilities.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
6
8
10
(m) Denotes a value of less than $1 million
Financial institutions tax expenditures for which an estimate is not currently
available
Expenditure Statute
9.00200
48-6-95
9.00300
48-6-95
Summary Deductions for income from authorized activities of a domestic international banking facility Deduction for income from banking business with persons or entities outside the U.S.
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10. Special Assessment of Forest Land Conservation Use Property
Real property devoted to qualified conservation use is assessed at 40 percent of its current use value. This tax treatment is designed to reduce the property tax burden on landowners in an effort to discourage the conversion of land to residential or commercial use. The property must be maintained in a qualifying conservation use for a period of 10 years. Because the state offsets the loss of local government property tax revenue stemming from this exemption, this exemption represents a reduction in state tax revenues.
10.00000 Special assessment of forest land conservation use property
Statute
48-5A-2
Year Enacted
2008
Year Effective
2008
Data Source
Office of Planning and Budget; and the Georgia DOR
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Grants made available by the Georgia General Assembly through annual
appropriations and awarded to counties, municipalities and county or
independent school districts for purposes of the Special Assessment of
Forest Land Conservation Use Property program
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
39
50
44
(m) Denotes a value of less than $1 million
183 | P a g e
11. Alternative Ad Valorem Tax on Motor Vehicles
As of March 1, 2013, motor vehicles titled in Georgia are subject to a title ad valorem tax, referred to as the TAVT or Motor Vehicle Title Fee. This legislation was passed in the 2012 session of the General Assembly and was substantially amended in the 2013 session. As part of the legislation, sales and use tax on the sale of motor vehicles was eliminated for purchases or leases occurring on or after March 1, 2013.
The tax base is the fair market value, at the time of titling, of new and used motor vehicles registered and titled in the state, including casual sales, dealer sales, leased vehicles, rental and salvage vehicles, and vehicles being brought into the state by people relocating to Georgia. For dealer sales, the tax base is reduced by the value of the purchaser's trade-in vehicle, if any. For dealer sales of new vehicles, the tax base is also reduced by the amounts of dealer rebates and cash discounts, if any. For most transactions occurring on or after January 1, 2020, the fair market value is equal to the retail selling price.
The statutory TAVT rate from January 1, 2020, through June 30, 2023, is 6.6 percent, after which the rate will be 7.0 percent. The revenue from the tax is shared between the state and local governments as specified by law; beginning July 1, 2019, the state and local shares are 35 percent and 65 percent, respectively.
The tax is administered by the Georgia DOR but collected at the local level. All proceeds from the state portion of the TAVT are deposited into the State General Fund. The TAVT generated $636 million in state receipts for FY 2020 and $1.13 billion for local governments.
11.001
Reduced rate for related family transfers
Statute
48-5C-1(d)(1)-(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: A reduced rate of 0.25 percent applies to transfers for a vehicle transferred
between immediate family members or a transfer occurring as a result of
the death of an immediate family member.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
11
12
12
Local Tax Expenditure
22
23
24
(m) Denotes a value of less than $1 million
11.002
Disabled veteran exemption
Statute
48-5C-1(d)(1)-(2)
Year Enacted
2012
Year Effective
2013
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Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption from the title fee of the sale of a vehicle to a service-connected
disabled veteran when the veteran received a grant from the U.S.
Department of Veterans Affairs to purchase and specifically adapt the
vehicle to his or her disability.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
11.003
Reduced rate for rental vehicles
Statute
48-5C-1(d)(11)(A)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Rental vehicles are subject to a reduced state title fee rate of 0.625 percent
of the fair market value and a local title fee rate of 0.625 percent of the fair
market value.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
15
16
17
Local Tax Expenditure
36
37
39
(m) Denotes a value of less than $1 million
11.004
Reduced rate for vehicles manufactured in years 1963-89
Statute
48-5C-1(d)(17)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Vehicles manufactured in years 1963 through 1989 are subject to a reduced
state title fee rate of 0.5 percent and reduced local title fee rate of 0.5
percent of the fair market value of the vehicle. This provision allows kit
cars to be valued at the greater of the retail selling price of the kit; the
average of the current fair market value; or the current wholesale value of
the motor vehicle. Vehicles with a model year prior to 1963, for which a
conditional title has been obtained, are allowed to opt into the TAVT
system upon payment of a state TAVT payment equal to 0.5 percent of the
fair market value of the vehicle and a local TAVT payment equal to 0.5
percent of the fair market value of the vehicle.
185 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
(m)
(m)
(m)
11.005
Reduced rate for salvage vehicles
Statute
48-5C-1(b)(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Salvage vehicles are subject to a state title fee rate of 1 percent and are not
subject to the local title fee
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
15
15
16
Local Tax Expenditure
49
50
53
(m) Denotes a value of less than $1 million
11.006
Dealer loaner vehicle exemption
Statute
48-5C-1(d)(12)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Dealer loaner vehicles are exempt from the state and local title fee for a
period of 366 days.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
3
4
3
Local Tax Expenditure
6
12
16
(m) Denotes a value of less than $1 million
11.007
Reduced rate for donated vehicles
Statute
48-5C-1(d)(13)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Vehicles donated to nonprofit organizations for the purpose of being
transferred to another person are subject to a reduced state title fee rate of 1
percent of the fair market value of the vehicle. No local title fee applies
186 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2021
2022
2023
(m)
(m)
(m)
(m)
(m)
(m)
11.008
Extended payment period for out-of-state vehicles
Statute
48-5C-1(d)(3)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class B
Data Reliability
Class B
Note
In 2017, the treatment of out-of-state vehicles changed from
12 percent of fair market value paid in two equal installments
over two years to 3 percent of fair market value due upon
registration.
Description: Vehicles registered by individuals moving from out-of-state are allowed to
pay reduced title fee rate of three percent
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
18
18
19
Local Tax Expenditure
33
34
35
(m) Denotes a value of less than $1 million
11.009
Trade-in exemption (including rebates and cash discounts)
Statute
48-5C-1(a)(1)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Both the state and local title fee is imposed on the fair market value of a
vehicle net of the trade-in value of another motor vehicle, rebates or cash
discounts.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
151
155
163
Local Tax Expenditure
280
288
303
(m) Denotes a value of less than $1 million
11.010
Special assessment for used vehicles
Statute
48-5C-1(a)(1)(C)
Year Enacted
2012
Year Effective
2013
Data Source
DOR Data
Estimate Reliability
Class B
Data Reliability
Class C
Note
187 | P a g e
Description: Under certain conditions, used vehicles may be valued based on bill of sale,
odometer reading, and values from alternative pricing guides.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
8
8
9
Local Tax Expenditure
15
16
17
(m) Denotes a value of less than $1 million
11.012
Buy here pay here transactions
Statute
48-5C-1(b)(1)(B)(xv)
Year Enacted
2013
Year Effective
2014
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Seller financed used car transactions are subject to a title fee rate that is two
and a half percentage points below the standard title fee rate.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
6
6
7
Local Tax Expenditure
12
12
13
(m) Denotes a value of less than $1 million
11.014
Treatment of Leased Vehicles
Statute
48-5C-1(a)(1)(E)
Year Enacted
2017
Year Effective
2018
Data Source
DOR Data
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: The TAVT is levied only on the base payments under the lease agreement.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
9
9
9
Local Tax Expenditure
16
17
17
(m) Denotes a value of less than $1 million
11.015
Treatment of vehicles involved in divorce settlement or business reorganization
Statute
48-5C-1(d)(18), 48-5C-1(d)(15)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for HB 329 LC 28 8929S for 2018
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Vehicles transferred because of a divorce decree are subject to a reduced
state TAVT rate of 0.5 percent of vehicle fair market value and a reduced
local TAVT rate of 0.5 percent of vehicle fair market value. The transfer of
188 | P a g e
a title made as a result of a business reorganization is exempt from the title
fee.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
11.016
Treatment of non-IRP Buses
Statute
48-5C-1(d)(7.1)
Year Enacted
2018
Year Effective
2018
Data Source
Fiscal Note for HB 329 LC28 8929S for 2018
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: In the case of for-hire charter buses and motor coaches which seat at least
15 passengers or more, the legislation allows the TAVT to be paid over a
12-month period in two equal installments.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
11.017
Exemption for vehicles purchased by disabled first responders
Statute
48-5C-1(a)(.1)
Year Enacted
2019
Year Effective
2019
Data Source
Fiscal Note SB 138 LC 43 1258 for 2019
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Vehicles purchased by disabled first responders, as defined on O.C.G.A.
45-9-85, or a surviving spouse are exempt from TAVT up to a maximum of
$50,000 in aggregate fair market value combined for all motor vehicles that
he or she registers during any three-year period.
State Fiscal Years ($ in Millions)
2021
2022
2023
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
Title ad valorem tax expenditures for which an estimate is not currently
available
Expenditure Statute Summary
11.013
48-5C-1 Exemption for leased vehicles qualifying for Manufacturing Headquarters
189 | P a g e
12. Special Excise Tax on Consumer Fireworks
An excise tax of 5 percent is levied on gross receipts from the retail sale of fireworks, in addition to any state and local taxes otherwise imposed by law. This tax was enacted in 2015, effective for sales on or after July 1, 2015. The tax is administered by the Georgia DOR and the proceeds from this excise tax are deposited into the State General Fund. The consumer fireworks tax generated $1.63 million in state receipts for FY 2020.
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13. State Hotel-Motel Tax
An excise tax of $5.00 per day is levied on each room rented or leased. This tax was enacted in 2015 and became effective on July 1, 2015. The tax is administered by the Georgia DOR. Although collections from this tax are deposited into the State General Fund, they must be appropriated exclusively for transportation purposes. The state hotel-motel tax generated $153 million in state receipts for FY 2020.
191 | P a g e
14. For-Hire Ground Transport Excise Tax
An excise tax is imposed on for hire ground transport trips (50 cents per trip) and shared for hire ground transport trips (25 cents per trip). The per-trip amount of the tax is to be adjusted annually for inflation using the Consumer Price Index for All Urban Consumers rate published by the U.S. Bureau of Labor Statistics. The tax was enacted in 2020 and produced $15.9 million in state receipts for FY 2021.
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Appendix of Tables
Expenditure 1.6.003
1.6.025 1.6.030 1.6.034
1.6.037
1.6.039 1.6.040 1.6.042 1.6.044 2.1.007
2.2.013
2.6.014 2.6.019 2.6.023
2.6.028
Table 1: Summary of Expired Provisions
Summary
Tax
Driver Education Credit
State Individual Income Tax
Qualified Transportation Credit
Total State Credit
Diesel Particulate Emission Reduction Technology Equipment Credit
Total State Credit
Georgia Employer GED Tax Credit (previously known as the Employer's Credit for Basic Skills Education)
Total State Credit
Qualified Investor Tax Credit
State Individual Income Tax
Tax credit for water conservation facilities and qualified water conservation investment property
Total State Credit
Tax credit for shift from groundwater usage
Total State Credit
Tax credit for purchase of alternative fuel heavyduty or medium-duty vehicle
Total State Credit
Employer tax credit for hiring qualified parolees
Total State Credit
Exclusion of health insurance benefits for military
Federal
retirees and retiree dependents enrolled in
Corporate
Medicare
Income Tax
Election to expense 50 percent of qualified property used to refine liquid fuels
Federal Corporate Income Tax
Qualified Transportation Credit
Total State Credit
Diesel Particulate Emission Reduction Technology Equipment Credit
Total State Credit
Georgia Employer GED Tax Credit (previously known as the Employer's Credit for Basic Skills Education)
Total State Credit
Tax credit for water-conservation facilities and qualified water-conservation investment property
2.6.029 2.6.031
Tax credit for shift from groundwater usage
Tax credit for purchases of alternative fuel heavyduty or medium-duty vehicle
Total State Credit
Total State Credit
Total State Credit
Expiration Date 12/31/2018 12/31/2018 12/31/2018
12/31/2019 12/31/2020 12/31/2016 12/31/2016 6/30/2017 12/31/2019
1/1/2015 1/1/2015 12/31/2018 12/31/2018 12/31/2019
12/31/2016 12/31/2016 6/30/2017
193 | P a g e
Expenditure 4.00730
4.03310 4.05730
4.07500 4.08200 4.08700 4.08800
4.09600
4.09800 4.09900 4.10300 4.3.5 6.00100 6.00200 6.00300 6.00600
Table 1: Summary of Expired Provisions
Summary
Tax
Sales of tangible property and services to a
nonprofit volunteer health clinic primarily treating
patients with incomes below 200 percent of the Sales and Use
poverty level
Tax
Partial sales tax exemption for jet fuel sold to or Sales and Use
used by a qualifying airline at a qualifying airport
Tax
Exemption for food and food ingredients that are
donated following a natural disaster and used for disaster relief
Sales and Use Tax
Sales tax holiday for back to school items
Sales and Use
Tax
Sales tax holiday for water-efficient and energy- Sales and Use
efficient purchases
Tax
Sales of tangible personal property used to renovate or expand a zoological institution
Sales and Use Tax
Sale of tangible personal property used in the
construction of a qualified civil rights museum
Sales and Use
Tax
Exemption for sales or use of construction
materials used for or in the construction of buildings at a private college
Sales and Use Tax
Sales of tangible personal property and services to
a qualified job training organization
Sales and Use
Tax
Exemption for expenses related to the renovation or expansion of qualified theatres
Sales and Use Tax
Exemption for construction materials used in
Sales and Use
construction of an automobile museum
Tax
Exemption for the sale and use of jet fuel
Sales and Use
Tax
Motor fuel tax refunds for agricultural purposes
Motor Fuel
Tax
Sale of fuel to mass transit vehicles
Motor Fuel
Tax
Sale of fuel to campus transportation vehicles
Motor Fuel
Tax
Motor fuel tax exemption for public school buses Motor Fuel
Tax
Expiration Date
6/30/2019 6/30/2015
6/30/2020 7/31/2016 10/2/2016 6/30/2018
7/30/2015
6/30/2016 6/30/2020 1/1/2019 12/31/2020 6/30/2019 6/30/2015 6/30/2015 6/30/2015 6/30/2015
194 | P a g e
Table 2: Sales and Use Tax Expenditures by Type
Expenditure Summary
State FY 2019
Sales Tax Exemption for a Business Input4
Sales of fuel or consumable supplies used by
ships engaged in inter-coastal or foreign
4.01700
commerce
5
State FY 2020
5
State FY 2021
5
4.03410 4.03420
4.03910 4.04500 4.04800 4.06000
4.06400 4.06500 4.06800
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities Machinery and equipment used directly to remanufacture certain aircraft engines or aircraft engine parts Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property
The sale or use of paper stock when used to print catalogs for distribution outside Georgia
Sale of crab bait to licensed commercial fishermen Sale of certain machinery and equipment used to improve air quality in a clean room of Class 100,000 or less Sale of electricity or fuels used exclusively for the operation of an irrigation system on a farm for crop irrigation (expired December 31, 2012) Sale of dyed diesel fuel used exclusively for operations of vessels or boats by licensed commercial fishermen Sale of certain computer equipment when the total qualifying purchases by a high technology company exceed $15 million
Estimate not available at this time
(m)
(m)
(m)
Estimate not available at this time
Estimate not available at this time
(m)
(m)
(m)
(m)
(m)
(m)
x
x
x
(m)
(m)
(m)
Estimate not available at this time
4.06900 4.07000
4.08100 4.08300
Sales of machinery and equipment and material incorporated and used in a clean room of Class 100 or less Sale of natural gas used directly in the manufacture of electricity The purchase of food and nonalcoholic beverages provided at no charge aboard a qualified airline Sale of biomass materials used to produce electricity or steam intended for sale
Estimate Combined with 4.06000
83
90
99
3
6
7
2
2
2
4 Sales tax exemptions which are defined primarily as an exemption for a profit making business.
195 | P a g e
Table 2: Sales and Use Tax Expenditures by Type
Expenditure 4.09400 4.3.2 4.3.3
Summary The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale Exemption for energy, machinery or equipment, industrial material, and consumable supplies used in manufacturing Sale and use by a qualified agriculture producer of agricultural production inputs, energy used in agriculture, and agricultural machinery and equipment
State
State
State
FY 2019 FY 2020 FY 2021
Estimate Combined with 4.3.3
3,427
3,657
3,858
201
207
213
4.3.4
Exemption for qualified boat repairs
(m)
(m)
(m)
Sales Tax Exemption for a Specific Item5
Federal retailer's excise tax if separately
itemized to the consumer and Georgia motor
4.00300
fuel tax imposed on the sale of motor fuel
Sales of transportation furnished by a county
or municipal public transit system or public
4.00400
transit authorities
Sales of transportation furnished by an
4.00500
approved and authorized urban transit system
Estimate not available at this time
7
7
9
Estimate combined with 4.00400
4.01200 4.01300
4.01600 4.01800 4.02000
4.02200 4.02300
School lunches sold and served to pupils and employees of public schools
School lunches sold and served to pupils and employees of approved private schools The sale or use of Holy Bibles; testaments, and similar books commonly recognized as being Holy Scripture regardless of by or to whom sold Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation Water delivered through water mains, lines, or pipes Professional, insurance or personal service transactions which involve sales as inconsequential elements for which no separate charge is made
Repair services when a separate charge is made to the customer
(m)
(m)
7
(m)
(m)
(m)
0
0
0
Estimate not available at this time
27
28
29
5 Sales tax exemptions which are defined primarily by the item being purchased and not defined, or only generally defined, by the seller or purchaser.
196 | P a g e
Expenditure 4.02400 4.03300
4.04200 4.04300 4.04700 4.05000 4.05100
Table 2: Sales and Use Tax Expenditures by Type
Summary
State FY 2019
Rental of videotape or film to persons
charging admission to view the tape or film
2
State FY 2020
1
State FY 2021
3
Common or common and contract carriers Use or lease of tangible personal property when the lessor and lessee are under 100 percent common ownership and where the person who furnishes, leases, or rents the property has paid sales or use tax on the property
Revenues from coin-operated amusement machines for which individual permits are required Sale of drugs dispensed by prescription, prescription glasses, contact lenses, contact lens samples and sales or use of certain controlled substances or dangerous drugs Sale of insulin syringes and blood glucose level measuring strips dispensed without a prescription
Sale of oxygen when prescribed by a licensed physician
Estimate not available at this time
Estimate not available at this time
47
51
55
453
478
508
39
41
43
5
1
1
4.05200 4.05400 4.05500 4.05700 4.06100
4.06200
Sale or use of hearing aids
6
7
7
Sale or use of any durable medical equipment
or prosthetic device prescribed by a physician
40
45
47
Sale of Georgia lottery tickets
209
219
230
Food purchased for off-premises consumption
Advertising inserts that are used in newspapers for resale Sod grass sold in the original state of production by the sod producer, employee of the producer, or family member of the producer
620
629
678
Estimate not available at this time
3
3
3
4.06600
Sale of gold, silver, or platinum bullion
3
3
3
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Expenditure 4.06700 4.09100
Table 2: Sales and Use Tax Expenditures by Type
Summary
State FY 2019
State FY 2020
State FY 2021
Sale of coins or currency The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave
1
1
1
Estimate not available at this time
4.10000 4.10200
Exemption for sales of tickets to a qualified
fine arts performance or exhibition
(m)
(m)
(m)
Partial exemption for qualified manufactured
homes
4
4
4
4.3.5
Exemption for the sale and use of jet fuel
23
51
41
Sales Tax Exemption for a Specific Purchaser6
Sales to Federal Government, State of Georgia
or a county or municipality in Georgia or any
4.00100
agency of such governments
318
329
341
Sales to any Hospital Authority created by
4.00600
Georgia law
86
89
91
Sales to any Housing Authority created by
4.00610
Georgia law
5
5
6
Sales to local government authorities created
on or after January 1, 1980 for the principal
purpose of constructing, owning, or operating
4.00620
a coliseum and related facilities
(m)
(m)
(m)
4.00630
4.00700 4.00705 4.00710 4.00720
Sales to any agricultural commission created
by the Department of Agriculture
(m)
(m)
(m)
Sales of tangible personal property and
services to an approved nursing home,
inpatient hospice, general hospital or mental
hospital when used specifically in the
treatment function
131
139
147
Sales of tangible personal property to a non-
profit health center established and receiving
funds pursuant to the U.S. Public Health
Service Act
1
1
1
Sales of tangible personal property and
services to a nonprofit organization whose
primary function is to provide services to
persons with intellectual disabilities
1
1
1
Sales to Georgia Society of the Daughters of
the American Revolution
(m)
(m)
(m)
6 Sales tax exemptions which are defined primarily by the purchaser and not defined, or only generally defined, by the seller or the item being purchased.
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Expenditure 4.00730 4.00800
4.00900 4.01000 4.01100 4.01900
4.02100 4.03100 4.03600 4.03610 4.04000 4.04100
Table 2: Sales and Use Tax Expenditures by Type
Summary Sales of tangible property and services to a nonprofit volunteer health clinic primarily treating patients with incomes below 200 percent of the poverty level Sales of tangible personal property and services to the University System of Georgia and its educational units Sale of tangible personal property and services used exclusively in the educational function of an approved private college or university located in Georgia in which the credits are accepted by the University System of Georgia Sales of tangible personal property and services used exclusively in the educational function of an approved private elementary or secondary school Sale of tangible personal property or services to, and the purchase of tangible personal property or services by, any educational or cultural institute All tangible personal property purchased outside this state by a nonresident when the property is brought into Georgia upon the nonresident becoming a resident Sales, transfers or exchanges of tangible personal property resulting from business reorganization when the owners, partners, or stockholders maintain the same proportionate interest or share in the newly formed business Sale of tangible personal property manufactured or assembled in Georgia for export when delivery is taken outside of Georgia Machinery and equipment used in a facility for the primary purpose of reducing or eliminating air and water pollution Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility. Sale of major components or repair parts installed in military aircraft, vehicles, or missiles Sale of tangible personal property and services to a nonprofit child-caring institution, childplacing agency, or maternity home
State
State
State
FY 2019 FY 2020 FY 2021
2
2
2
49
50
51
Estimate combined with 4.00800
5
5
5
(m)
(m)
(m)
Estimate not available at this time
Estimate not available at this time
Estimate not available at this time
(m)
(m)
(m)
Estimate not available at this time
28
33
33
1
1
1
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Expenditure 4.04600 4.06810 4.07100
Table 2: Sales and Use Tax Expenditures by Type
Summary
State FY 2019
Sale of tangible personal property or taxable
services to nonprofit blood banks
1
State FY 2020
1
State FY 2021
1
High-Tech Data Center Equipment Exemption 15
12
13
Sale to or by an organization whose primary
purpose is to raise funds for books, materials,
and programs for public libraries
(m)
(m)
(m)
4.07600
Exemption for personal property used in the
renovation or expansion of an aquarium
1
(m)
0
Sale of tangible personal property used for and
in the construction of a competitive project of
4.09300
regional significance
9
9
9
4.09700
Sales of admission to a nonrecurring major
sporting event
(m)
(m)
0
Exemption for construction materials used in
4.10300
construction of an automobile museum
(m)
0
0
4.10400
Exemption for poultry diagnostic and disease
monitoring service nonprofit organization
(m)
(m)
(m)
Sales Tax Exemption for a Specific Purchaser of a Specific Item7
4.01510
Sales of pipe organs or steeple bells to any church qualifying as a nonprofit
(m)
(m)
(m)
4.03000
Vehicles purchased by service-connected
disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase a
specially adapted the vehicle
(m)
(m)
(m)
4.03200
Aircraft, watercraft, motor vehicles, and other transportation equipment manufactured or assembled in this State for exclusive use outside Georgia
Estimate not available at this time
4.04400
Sale of motor vehicles to nonresident purchasers when vehicles are immediately removed from Georgia and titled in another state
Estimate not available at this time
4.05300
Transactions where food stamps or WIC
coupons are used as the method of payment
161
151
142
4.05710
Sales of food and beverages to a qualified food bank
1
1
1
7 Sales tax exemptions which are specifically defined by the purchaser as well as the item being purchased.
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Expenditure
Table 2: Sales and Use Tax Expenditures by Type
Summary
State FY 2019
State FY 2020
State FY 2021
4.06300
Funeral merchandise when paid with funds from the Georgia Crime Victims Emergency Fund
4.07200
Sale of prescribed mobility enhancing equipment
4.08600
Sales of engines, parts, equipment and other tangible personal property used in the maintenance or repair of certain aircraft
4.10100
The sale of certain written material by a nonprofit
Sales Tax Exemption for a Specific Seller8
4.00200
Tangible personal property furnished by the Federal Government or any county or municipality used by a contractor in the installation, repair, or extension of any public water, gas, or sewer system
4.01500
Specific fundraising sales by any religious institution lasting no more than 30 days in a calendar year and sales of religious paper when the paper is owned and operated by the religious institution
4.03800
Sale of tangible personal property and fees and charges for services by the Rock Eagle 4H Center
4.03900
Certain sales by a public or private school of tangible personal property, concessions, and tickets for admission to school functions
4.05600
4.05720 4.05900 4.3.6 4.70000
Sale by any qualified nonprofit parent teacher organization Exemption for prepared food and food ingredients that are donated to a qualified nonprofit agency and used for hunger relief purposes Sale of eligible food and beverages by any Girl or Boy Scout council
Exemption for sales within an enterprise zone Compensation of dealers for reporting and paying tax
(m)
(m)
(m)
(m)
(m)
(m)
22
22
23
8
0
0
3
3
3
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
2
(m)
(m)
(m)
(m)
0
0
2
2
2
Estimate not available at this time
83
86
89
8 Sales tax exemptions which are specifically defined by the seller.
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Tables 3-9: Distributional Tables of Selected Provisions
Tables 3 through 9 provide information on the distribution across Georgia AGI for selected exemptions and deductions from the state personal income tax. The data used to produce the tables are from the state personal income tax files for 2019. It has not been adjusted for inflation, nor does it reflect any legislative changes that may have occurred since 2019. Column 1 of each table provides the categories of Georgia AGI. Column 2 (Number of Returns) provides the number of returns for each AGI category. Column 3 (Average Value) gives the average value of the tax exemption or deduction taken by filers in each AGI category. Column 4 (Total) provides the total value of the deduction or exemption associated with each AGI category and column 5 (Percent of Total) provides the percent of the total value of the deduction or exemption that falls into that AGI category.
Table 3: Total Personal Exemptions
GA AGI 0
Number of Returns 361,722
Average Value $4,881
Total $1,765,696,800
0 <GA AGI $25,000
1,559,856 $5,257 $8,199,629,600
$25,000 <GA AGI $50,000
1,006,874 $6,323 $6,366,416,600
$50,000 <GA AGI $100,000
809,351 $7,445 $6,025,357,800
$100,000 <GA AGI $500,000
614,594 $9,587 $5,892,260,000
$500,000 <GA AGI $1,000,000
27,625 $10,424
$287,968,200
GA AGI $1,000,000
13,339 $10,136
$135,209,800
Total
4,393,361 $6,526 $28,672,538,800
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
6.2% 28.6% 22.2% 21.0% 20.6%
1.0% 0.5% 100.0%
Table 4: Retirement Income Exclusion
Number of Average
Returns
Value
Total
GA AGI 0
380,337 $30,697 $11,675,341,094
0 <GA AGI $25,000
216,620 $27,709 $6,002,252,394
$25,000 <GA AGI $50,000
112,001 $27,051 $3,029,779,366
$50,000 <GA AGI $100,000
106,007 $29,220 $3,097,525,020
$100,000 <GA AGI $500,000
85,450 $39,199 $3,349,526,114
$500,000 <GA AGI $1,000,000
5,910 $63,176
$373,367,273
GA AGI $1,000,000
3,656 $73,748
$269,620,920
Total
909,981 $30,547 $27,797,412,181
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
42.0% 21.6% 10.9% 11.1% 12.0%
1.3% 1.0% 100.0%
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Table 5: Georgia Higher Education Savings Plan Deduction
GA AGI 0
Number of Returns 2,519
Average Value $4,106
Total $10,344,083
0 <GA AGI $25,000
2,569 $2,862
$7,351,605
$25,000 <GA AGI $50,000
2,926 $2,746
$8,033,989
$50,000 <GA AGI $100,000
7,308 $2,592
$18,943,507
$100,000 <GA AGI $500,000
35,161 $4,437
$156,016,080
$500,000 <GA AGI $1,000,000
2,960 $7,592
$22,472,824
GA AGI $1,000,000
1,051 $8,768
$9,215,539
Total
54,494 $4,264
$232,377,627
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
4.5% 3.2% 3.5% 8.2% 67.1% 9.7% 4.0% 100.0%
Table 6: Interest on U.S. Obligations
GA AGI 0
Number of Returns 31,116
Average Value $58,381
Total $1,816,573,818
0 <GA AGI $25,000
9,014 $2,140
$19,289,700
$25,000 <GA AGI $50,000
5,714 $2,117
$12,098,049
$50,000 <GA AGI $100,000
8,641 $2,030
$17,538,197
$100,000 <GA AGI $500,000
18,737 $2,326
$43,588,405
$500,000 <GA AGI $1,000,000
3,289 $4,745
$15,605,432
GA AGI $1,000,000
2,945 $29,688
$87,431,808
Total
79,456 $25,324 $2,012,125,409
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
90.3% 1.0% 0.6% 0.9% 2.2% 0.8% 4.3%
100.0%
Table 7: Blind and Age 65 Deductions
GA AGI 0
Number of Returns 279,791
Average Value $1,837
Total $513,949,800
0 <GA AGI $25,000
150,129 $1,786
$268,114,600
$25,000 <GA AGI $50,000
66,140 $1,758
$116,268,100
$50,000 <GA AGI $100,000
52,114 $1,766
$92,007,500
$100,000 <GA AGI $500,000
30,528 $1,860
$56,768,400
$500,000 <GA AGI $1,000,000
1,334 $2,018
$2,692,300
GA AGI $1,000,000
512 $2,044
$1,046,500
Total
580,548 $1,810 $1,050,847,200
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
48.9% 25.5% 11.1%
8.8% 5.4% 0.3% 0.1% 100.0%
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Table 8: Standard Deduction
GA AGI 0
Number of Returns 333,305
Average Value $5,144
Total $1,714,393,800
0 <GA AGI $25,000
1,519,167 $4,735 $7,193,836,400
$25,000 <GA AGI $50,000
938,178 $4,870 $4,568,629,600
$50,000 <GA AGI $100,000
660,851 $5,274 $3,485,587,200
$100,000 <GA AGI $500,000
359,765 $5,791 $2,083,455,400
$500,000 <GA AGI $1,000,000
6,708 $5,842
$39,187,400
GA AGI $1,000,000
2,189 $5,818
$12,736,600
Total
3,820,163 $4,999 $19,097,826,400
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
9.0% 37.7% 23.9% 18.3% 10.9%
0.2% 0.1% 100.0%
Table 9: Federally Taxable Social Security Benefits
GA AGI 0
Number of Returns 253,718
Average Value $18,480
Total $4,688,813,364
0 <GA AGI $25,000
131,110 $14,877 $1,950,519,696
$25,000 <GA AGI $50,000
88,668 $16,788 $1,488,522,725
$50,000 <GA AGI $100,000
73,801 $20,537 $1,515,636,135
$100,000 <GA AGI $500,000
46,896 $24,364 $1,142,586,570
$500,000 <GA AGI $1,000,000
3,032 $30,000
$90,960,805
GA AGI $1,000,000
1,884 $32,798
$61,791,687
Total
599,109 $18,258 $10,938,830,982
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total Dollars
42.9% 17.8% 13.6% 13.9% 10.4%
0.8% 0.6% 100.0%
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