- Collection:
- Georgia Government Publications
- Title:
- Georgia tax expenditure report for FY 2017
- Creator:
- Georgia. Department of Audits and Accounts
- Publisher:
- [Atlanta, Ga.] : Georgia Dept. of Audits and Accounts, 2017.
- Date of Original:
- 2016/2017
- Subject:
- Tax expenditures--Georgia
Tax revenue estimating--Georgia - Location:
- United States, Georgia, 32.75042, -83.50018
- Medium:
- state government records
- Type:
- Text
- Format:
- application/pdf
- External Identifiers:
- Call Number GA A800 .R1 T3 2017
- Metadata URL:
- https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bt3-b2017-belec-p-btext
- Digital Object URL:
- https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bt3-b2017-belec-p-btext
- Language:
- eng
- Holding Institution:
- University of Georgia. Map and Government Information Library
- Rights:
-
Georgia Tax Expenditure Report for FY 2017
Prepared by the Fiscal Research Center of the Andrew Young School of Policy Studies at Georgia State University
December 2015
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 ............................................................................................ 10 1. Personal Income Tax............................................................................................................... 43
1.1 Federal Exclusions .............................................................................................................. 45 1.2 Federal Deductions.............................................................................................................. 53 1.3 Special Federal Conformity Provisions............................................................................... 59 1.4 Georgia Exemptions ............................................................................................................ 61 1.5 Georgia Deductions............................................................................................................. 64 1.6 Georgia Credits ................................................................................................................... 65 2. Corporate Income Tax ............................................................................................................ 83 2.1 Federal Corporate Exclusions ............................................................................................. 84 2.2 Federal Corporate Deductions............................................................................................. 86 2.3 Special Federal Corporate Conformity Provisions.............................................................. 90 2.4 Corporate Apportionment ................................................................................................... 92 2.5 Georgia Deductions............................................................................................................. 94 2.6 Georgia Credits ................................................................................................................... 95 3. Corporate Net Worth Tax ..................................................................................................... 110 4. Sales and Use Tax ................................................................................................................. 111 4.5 Sales and Use Tax for Services ......................................................................................... 137 4.7 Vendor Compensation....................................................................................................... 140 4.9 Casual Sales....................................................................................................................... 141 5. Insurance Premium Tax .......................................................................................................... 144 6. Motor Fuel Tax ..................................................................................................................... 147 7. Alcoholic Beverage Tax ....................................................................................................... 149 8. Cigar and Cigarette Excise Tax ............................................................................................ 151 9. Financial Institutions Special State Occupation Tax ............................................................ 152 10. Special Assessment of Forest Land Conservation Use Property ........................................ 153 11. Alternative Ad Valorem Tax on Motor Vehicles ............................................................... 154 12. Special Excise Tax on Consumer Fireworks ...................................................................... 159 Appendix of Tables..................................................................................................................... 160 Table 1: Summary of expired provisions ................................................................................ 160 Table 2: Sales and use tax expenditures by type ..................................................................... 163 Tables 3-8: Distributional tables of selected provisions ......................................................... 171
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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 allocations 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 are allowed to 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 items in the tax base, such as the partial sales tax exemption for jet fuel.
Tax Expenditure Report
Preparation of a tax expenditure report is required by Title 45, Chapter 12, Article 4 of the Official Code of Georgia. 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, it is usually the case that tax expenditures are 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 are 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 6 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
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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.
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 personal 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 singlefactor 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 doubleweighted 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 should 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 the tax is imbedded in the price of the item. 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
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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 report identifies 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 provision. 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 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 an 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) 2013. Therefore, even in cases in which the Georgia DOR data is used as the primary data source, the tax expenditures 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,
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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 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.
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Consistency with prior estimates
The current report, FY 2017, presents estimates for FY 2015-FY 2017. The report for FY 2016 provided estimates for FY 2014-FY 2016. In most cases the estimates between the current and past reports are consistent, with the latest report continuing the same trend in the value of the estimates that was established in earlier reports. On the other hand, there are some cases in which the estimate presented in the FY 2017 report differs significantly from that 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 value for FY 2015, FY 2016, and FY 2017 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. In the case of those
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credit provisions which can be taken against multiple taxes, the expenditure value associated with each tax is presented along with the total expenditure value for all taxes. Note that for these credits this same information is repeated in each tax section of this report. 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 2015
Federal Income Tax Provisions1
1.1.001
Exclusion of employee meals and lodging
1.1.002 1.1.003
Exclusion of housing allowances for ministers Exclusion of employerprovided child care
1.1.004
Exclusion of employee awards
1.1.005
1.1.006 1.1.007 1.1.008 1.1.009 1.1.010
Exclusion of employer contributions and earnings to pension plans includes Keoghs, defined benefit and defined contribution plans Exclusion of employer contributions for health care, health insurance premiums and longterm care insurance premiums Exclusion of employerpaid accident and disability premiums Exclusion of employer contributions for premiums on group long-term life insurance Exclusion of employerpaid transportation benefits and employerprovided transit and vanpool benefits Exclusion of benefits provided through cafeteria plans
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Federal Individual Income Tax
Exclusion Exclusion Exclusion Exclusion Exclusion
Exclusion
Exclusion Exclusion Exclusion Exclusion
14 6 16 2 779
1,003
28 22 30 210
State FY 2016
15 6 17 2 1,006
1,010
29 22
31
216
State FY 2017
15 6 17 2 1,164
1,040
30 23
32
223
1 These are Internal Revenue Code provisions (IRC) that has been 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 2015
1.1.011
Exclusion of employer- Federal
Exclusion
1
provided adoption
Individual
assistance
Income Tax
1.1.012
Exclusion of employer- Federal
Exclusion
9
provided education
Individual
benefits (including
Income Tax
education assistance
and tuition reduction
benefits)
1.1.013
Exclusion of
Federal
Exclusion
45
miscellaneous fringe Individual
benefits
Income Tax
1.1.014
Exclusion of foreign
Federal
Exclusion
44
earned income
Individual
(including housing and Income Tax
salary)
1.1.015
Exclusion of certain
Federal
Exclusion
11
allowances for federal Individual
employees abroad
Income Tax
1.1.016
Exclusion of benefits
Federal
Exclusion
59
and allowances to
Individual
armed forces personnel Income Tax
(includes expenditure
for military disability
benefits)
1.1.017
Medical care and
Federal
Exclusion
25
Tricare Medical
Individual
Insurance for military Income Tax
dependents and retirees
1.1.018
Exclusion of veterans' Federal
Exclusion
58
benefits (includes
Individual
veterans disability
Income Tax
compensation,
pensions, and
readjustment benefits)
1.1.019
Exclusion of income
Federal
Exclusion
1
attributable to the
Individual
discharge of certain
Income Tax
student loan debt and
National Health
Service Corp and
certain state
educational loan
repayments
State FY 2016
1 9
46 44 12 61
26 62
1
State FY 2017
1 9
47 46 12 64
27 64
1
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.1.020
Exclusion of workers'
Federal
Exclusion
51
compensation benefits Individual
(includes disability and Income Tax
survivor benefits and
medical benefits, and
exclusion of damages
on account of personal
physical injuries or
physical sickness)
1.1.021
Exclusion of special
Federal
Exclusion
(m)
benefits for disabled
Individual
coal miners2
Income Tax
1.1.022
Exclusion of untaxed
Federal
Exclusion
239
Social Security and
Individual
railroad retirement
Income Tax
benefits
1.1.024
Exclusion of certain
Federal
Exclusion
2
foster care payments
Individual
Income Tax
1.1.026
Exclusion of
Federal
Exclusion
14
scholarship and
Individual
fellowship income
Income Tax
1.1.027
Exclusion of earnings
Federal
Exclusion
1
of Coverdell education Individual
savings accounts and Income Tax
interest on educational
savings bonds
1.1.028
Exclusion of earnings
Federal
Exclusion
4
of qualified tuition
Individual
programs (including Income Tax
prepaid tuition
programs and savings
account programs)
1.1.029
Exclusion for certain
Federal
Exclusion
(m)
agricultural cost-
Individual
sharing payments
Income Tax
1.1.030
Exclusion of discharge Federal
Exclusion
1
of indebtedness for
Individual
certain farmers
Income Tax
1.1.031
Exclusion of interest
Federal
Exclusion
(m)
on state and local
Individual
government private
Income Tax
activity bonds
State FY 2016
51
(m) 248
2 15 1
5
(m) 1 (m)
State FY 2017
52
(m) 261 2 16 1
7
(m) 1 (m)
2 (m) Refers to a revenue loss of less than $1 million and (-m) refers to a revenue increase of less than $1 million.
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.1.032
Exclusion of capital
Federal
Exclusion
191
gains from sale of
Individual
principal residences Income Tax
1.1.033
Exclusion of capital
Federal
Exclusion
130
gains at death
Individual
Income Tax
1.1.034
Exclusion of capital
Federal
Exclusion
-9
gains on gifts
Individual
Income Tax
1.1.035
Exemption from
Federal
Exclusion
2
imputed interest rules Individual
Income Tax
1.1.036
Exclusion of combat
Federal
Exclusion
22
pay
Individual
Income Tax
1.1.037
Exclusion of energy
Federal
Exclusion
(m)
conservation subsidies Individual
provided by public
Income Tax
utilities
1.1.039
Exclusion of gain for
Federal
Exclusion
4
certain small business Individual
stock
Income Tax
1.1.040
Exclusion of interest
Federal
Exclusion
1
on public purpose state Individual
and local government Income Tax
bonds
1.1.041
Exclusion of income
Federal
Exclusion
22
earned by voluntary
Individual
employees' beneficiary Income Tax
associations
1.1.042
Exclusion of survivor
Federal
Exclusion
(m)
annuities paid to
Individual
families of public
Income Tax
safety officers killed in
the line of duty
1.1.043
Exclusion of disaster
Federal
Exclusion
(m)
mitigation payments
Individual
Income Tax
1.2.001
Accelerated
Federal
Deduction
31
depreciation (MACRS) Individual
Income Tax
1.2.002
Deduction of
Federal
Deduction
1
expenditures on
Individual
energy-efficient
Income Tax
commercial building
property
State FY 2016
212
State FY 2017
234
133
136
21
43
3
3
23
24
(m)
(m)
4
4
1
2
22
23
(m)
(m)
(m)
(m)
32
31
1
1
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.2.003
Deduction of
Federal
Deduction
(m)
exploration and
Individual
development costs of Income Tax
nonfuel minerals,
includes excess of
depreciation over cost
depletion, nonfuel
minerals
1.2.004
Amortization of
Federal
Deduction
(m)
business startup costs Individual
Income Tax
1.2.005
Expensing of research Federal
Deduction
(m)
and development costs Individual
in lieu of the Research Income Tax
and Development tax
credit
1.2.006
Expensing of magazine Federal
Deduction
(m)
circulation
Individual
expenditures
Income Tax
1.2.007
Deductions of oil and
Federal
Deduction
0
gas exploration and
Individual
development costs
Income Tax
1.2.008
Special treatment for
Federal
Deduction
2
expenses related to
Individual
timber production
Income Tax
1.2.009
Expensing under IRC
Federal
Deduction
63
section 179 of
Individual
depreciable business Income Tax
property
1.2.010
Exceptions for publicly Federal
Deduction
7
traded partnerships
Individual
with qualified income Income Tax
derived from certain
energy-related
activities
1.2.011
Treatment of income
Federal
Deduction
1
from exploration and Individual
mining as qualified
Income Tax
income for publicly
traded partnerships
1.2.012
Various agricultural
Federal
Deduction
3
expensing provisions Individual
Income Tax
1.2.013
Community and
Federal
Deduction
1
regional development Individual
incentives
Income Tax
State FY 2016
(m)
State FY 2017
(m)
(m)
(m)
(m)
(m)
(m)
(m)
0
0
2
2
54
23
7
7
1
1
3
3
1
1
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.2.014
Expensing to remove
Federal
Deduction
(m)
architectural and
Individual
transportation barriers Income Tax
to the handicapped and
elderly
1.2.015
Inventory methods and Federal
Deduction
2
valuation, (including Individual
last-in first-out, lower Income Tax
of cost or market,
specific identification
for homogenous
products)
1.2.017
Health Savings
Federal
Deduction
5
Accounts
Individual
Income Tax
1.2.018
Deduction of property Federal
Deduction
145
taxes on real property Individual
Income Tax
1.2.019
Deduction of
Federal
Deduction
366
nonbusiness state and Individual
local government
Income Tax
income taxes, sales
taxes and property
taxes
1.2.020
Deduction of mortgage Federal
Deduction
493
interest on owner-
Individual
occupied residences Income Tax
1.2.021
Deduction of charitable Federal
Deduction
403
contributions (includes Individual
deductions for health, Income Tax
education, and for
purposes other than
health and education)
1.2.022
Deduction of casualty
Federal
Deduction
3
and theft losses
Individual
Income Tax
1.2.023
Deduction of overnight Federal
Deduction
1
expenses for National Individual
Guard and Reserve
Income Tax
members
1.2.024
Deduction of
Federal
Deduction
1
premiums for qualified Individual
mortgage insurance
Income Tax
1.2.025
Deduction of interest
Federal
Deduction
10
on student loans
Individual
Income Tax
State FY 2016
(m)
State FY 2017
(m)
2
2
6
7
152
162
390
409
529
576
417
430
3
3
1
1
0
0
11
12
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Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.2.026
Deduction of higher
Federal
Deduction
1
education expenses
Individual
Income Tax
1.2.027
Deduction of teacher
Federal
Deduction
(m)
classroom expenses
Individual
Income Tax
1.2.028
Deduction of health
Federal
Deduction
28
insurance premiums
Individual
and long-term care
Income Tax
insurance premiums by
the self-employed
1.2.029
Deduction of medical
Federal
Deduction
61
expenses and long-
Individual
term care expenses
Income Tax
1.2.030
Deduction of IRA
Federal
Deduction
127
contributions (includes Individual
traditional IRAs and Income Tax
Roth IRAs)
1.3.001
Like-kind exchanges
Federal
Deferral
23
Individual
Income Tax
1.3.002
Special rules for
Federal Special Rule
(m)
magazine, paperback Individual
book, and record
Income Tax
returns
1.3.003
Five-year carryback for Federal Special Rule
1
net operating losses
Individual
attributable to farming Income Tax
1.3.004
Special rules for
Federal Special Rule
(m)
mining reclamation
Individual
reserves
Income Tax
1.3.005
Cash accounting, other Federal Special Rule
12
than agriculture
Individual
Income Tax
1.3.006
Deferral of gain on
Federal Special Rule
9
non-dealer installment Individual
sales
Income Tax
1.3.007
Completed contract
Federal Special Rule
1
rules
Individual
Income Tax
1.3.008
Special treatment of
Federal
Deferral
2
employee stock
Individual
ownership plans
Income Tax
(ESOPs) (includes
deferral of tax on
State FY 2016
0 0 27
65 129
24 (m)
1 (m) 12 7 1 2
State FY 2017
0 0 27
69 118
24 (m)
1 (m) 13 6 1 2
16 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
certain employee stock plans)
1.3.009
Income averaging for farmers and fishermen
Federal Individual Income Tax
Georgia Individual Income Tax Provisions
1.4.001
Personal Exemption
State Individual Income Tax
1.4.002
Retirement Income
State Individual Income Tax
1.4.003
Exclusion of federally
State
taxable Social Security Individual
benefits
Income Tax
1.4.004
Georgia Higher Education Savings Plan Contributions
State Individual Income Tax
1.4.005
Interest on U.S. obligations
State Individual
1.4.006
Certain military income
Income Tax State
Individual Income Tax
1.4.007
Organ donation expenses
State Individual Income Tax
1.4.008
Aged 65/Blind deduction
State Individual
Income Tax
1.4.009
Certain dependent's unearned income
State Individual Income Tax
1.4.010
Premiums for high-
State
deductible health plans Individual
Income Tax
1.4.011
Salaries and wages reduced from Federal
State Individual
taxable income
Income Tax
because of the Federal
Jobs Tax Credit
1.4.012
Individual retirement account, Keogh, SEP and Sub-S plan withdrawals where tax has been paid to
State Individual Income Tax
Special Rule
Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption
Exemption
(m)
1
1
1,006
1,018
1,031
851
898
942
151
158
165
5
6
7
7
6
7
Estimate not available at this time
(m)
(m)
(m)
6
6
6
Estimate not available at this time
2
2
2
Estimate not available at this time
Estimate not available at this time
17 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
1.4.013 1.4.014 1.4.015
1.4.016 1.4.017 1.4.018 1.4.019 1.4.020 1.5.001 1.6.001
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 claimed by certain employers in food and beverage establishments Adjustment of certain payments to minority subcontractors Adjustments to federal AGI for certain Georgia resident partners Exemption for certain disaster relief firms
Standard Deduction
Rural Physician Credit
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
Exemption Exemption Exemption
Exemption Exemption Exemption Exemption Exemption Deduction
Credit
Estimate not available at this time Estimate not available at this time Estimate not available at this time
Estimate not available at this time
Estimate not available at this time
Estimate not available at this time Estimate not available at this time
Estimate not available at this time
189
199
209
1
1
2
18 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
1.6.002 1.6.003 1.6.004 1.6.005 1.6.006
1.6.007 1.6.008 1.6.009 1.6.010 1.6.012 1.6.013 1.6.014 1.6.015 1.6.016 1.6.017 1.6.018 1.6.019
Disabled person's home purchase or retrofit credit Driver Education Credit
Disaster Assistance Credit
Qualified Caregiving Expense Credit
Tax credit for life insurance for Georgia National Guard and Air National Guard Child and Dependent Care Credit
Adoption of Foster Child Credit
Low-Income Credit
Credit for taxes paid to another state
Georgia Job Tax Credit
Quality Jobs Tax Credit New Facilities Jobs Credit New Manufacturing Facilities Property Credit Manufacturer's Investment Tax Credit Optional Investment Tax Credit Port Activity Tax Credit Alternate Port Activity Tax Credit
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax
State Individual Income Tax Total State
Credit Total State
Credit Total State
Credit Total State
Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Credit Credit Credit Credit Credit
Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
1
1
1
35
36
36
3
3
3
8
9
9
235
254
275
70
71
73
30
35
38
Estimate combined with 1.6.012
Estimate not available at this time
15
15
16
1
1
1
6
6
6
Estimate combined with 1.6.018
19 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
1.6.020
Film Tax Credit
Total State
Credit
243
Credit
1.6.021
Research Tax Credit Total State
Credit
34
Credit
1.6.022
Seed-Capital Fund
Total State
Credit
(m)
Credit
Credit
1.6.023
Qualified Health
Total State
Credit
(m)
Insurance Expense
Credit
Credit
1.6.025
Qualified
Total State
Credit
(m)
Transportation Credit
Credit
1.6.026
Business Enterprise
Total State
Credit
(m)
Vehicle Credit
Credit
1.6.027
Employer's credit for Total State
Credit
10
providing or
Credit
sponsoring child care
for employees and
employer's credit for
purchasing child care
property
1.6.028
Low-Income Housing Total State
Credit
190
Credit
Credit
1.6.029
Historic Rehabilitation Total State
Credit
2
Credit
Credit
1.6.030
Diesel Particulate
Total State
Credit
(m)
Emission Reduction
Credit
Technology Equipment
Credit
1.6.031
Low- & Zero-emission Total State
Credit
36
Vehicle Credit &
Credit
Electric Vehicle
Charger Credit
1.6.032
Land Conservation
Total State
Credit
24
Credit
Credit
1.6.033
Clean Energy Property Total State
Credit
2
& Wood Residuals
Credit
Credit
1.6.034
Georgia Employer
Total State
Credit
(m)
GED Tax Credit
Credit
(previously known as
the Employer's Credit
for Basic Skills
Education)
1.6.035
Employer's Credit for Total State
Credit
31
Approved Employee
Credit
Retraining
State FY 2016
272
22
(m)
(m)
State FY 2017
308
23
(m)
(m)
(m)
(m)
(m)
(m)
10
10
203
218
2
32
(m)
(m)
28
3
35
15
2
1
(m)
1
32
33
20 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
1.6.036
Qualified Education
Total State
Expense Credit
Credit
1.6.037
Qualified Investor Tax Total State
Credit
Credit
1.6.038
Energy-efficient or water-efficient equipment credit
Total State Credit
1.6.039
Tax credit for water
Total State
conservation facilities
Credit
and qualified water conservation
investment property
1.6.040
Tax credit for shift from groundwater usage
Total State Credit
1.6.041
Tax credit for existing business enterprises undergoing qualified business expansion
Total State Credit
1.6.042
Tax credit for purchase of alternative fuel heavy-duty or mediumduty vehicle
Total State Credit
1.6.043
Bank Tax Credit
Total State Credit
Federal Corporate Income Tax Provisions
2.1.001
Exemption from imputed interest rules
Federal Corporate Income Tax
2.1.002
Exclusion of interest on state and local government private activity bonds
Federal Corporate Income Tax
2.1.003
Exclusion of contributions in aid of construction for water and sewer utilities
Federal Corporate Income Tax
2.1.004
Exclusion of earnings
Federal
of certain
Corporate
environmental
Income Tax
settlement funds
2.1.005
Exclusion of certain agricultural costsharing payments
Federal Corporate Income Tax
Credit Credit Credit Credit
Credit Credit Credit Credit Exclusion Exclusion Exclusion Exclusion Exclusion
45
45
45
(m)
(m)
(m)
0
0
0
Estimate not available at this time
Estimate not available at this time Estimate combined with 1.6.013
0
1
2
10
11
11
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
21 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
2.1.006
Exclusion of gain or
Federal
Exclusion
(m)
loss on sale or
Corporate
exchange for
Income Tax
brownfield property
2.1.008
Exclusion of disaster
Federal
Exclusion
(m)
mitigation payments
Corporate
Income Tax
2.1.009
Exclusion of interest
Federal
Exclusion
(m)
on public purpose state Corporate
and local government Income Tax
bonds
2.1.010
Various foreign
Federal
Exclusion
273
provisions including
Corporate
inventory property
Income Tax
sales source rule
exception, interest
expense allocation,
deferral of active
income of controlled
foreign corporations,
deferral of active
financing income
2.2.001
Accelerated
Federal
Deduction
5
depreciation (MACRS) Corporate
Income Tax
2.2.002
Deduction of
Federal
Deduction
(m)
expenditures on
Corporate
energy-efficient
Income Tax
commercial building
property
2.2.003
Deduction of
Federal
Deduction
(m)
exploration and
Corporate
development costs of Income Tax
nonfuel minerals
2.2.004
Amortization of
Federal
Deduction
(m)
business start-up costs Corporate
Income Tax
2.2.005
Expensing of research Federal
Deduction
7
and development costs Corporate
in lieu of the R&D tax Income Tax
credit
2.2.006
Expensing of magazine Federal
Deduction
(m)
circulation
Corporate
expenditures
Income Tax
State FY 2016
(m) (m) (m) 300
5 (m)
(m) (m) 8 (m)
State FY 2017
(m) (m) (m) 317
5 (m)
(m) (m) 8 (m)
22 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
2.2.007
Deductions of oil and
Federal
Deduction
0
gas exploration and
Corporate
development costs
Income Tax
2.2.008
Special treatment of
Federal
Deduction
3
expenses related to
Corporate
timber production
Income Tax
2.2.009
Deduction of charitable Federal
Deduction
14
contributions (includes Corporate
deductions for health, Income Tax
education, and for
purposes other than
health and education)
2.2.011
Expensing under IRC
Federal
Deduction
3
section 179 of
Corporate
depreciable business Income Tax
property
2.2.012
Amortization of air
Federal
Deduction
2
pollution control
Corporate
facilities
Income Tax
2.2.014
Various agricultural
Federal
Deduction
(m)
expensing provisions Corporate
Income Tax
2.2.015
Community and
Federal
Deduction
(m)
regional development Corporate
incentives
Income Tax
2.2.016
Expensing to remove
Federal
Deduction
(m)
architectural and
Corporate
transportation barriers Income Tax
to the handicapped and
elderly
2.2.017
Inventory methods and Federal
Deduction
5
valuation
Corporate
Income Tax
2.2.018
Limits on deductible
Federal
Exemption
-3
compensation and
Corporate
disallowance of
Income Tax
deduction for excess
parachute payments3
2.3.001
Like-kind exchanges
Federal
Deferral
22
Corporate
Income Tax
2.3.002
Special rules for
Federal Special Rule
(m)
magazine, paperback Corporate
Income Tax
3 Negative values denote a tax expenditure that is estimated to increase state revenues.
State FY 2016
0
State FY 2017
0
3
4
15
15
(m)
(m)
2
1
(m)
(m)
(m)
(m)
(m)
(m)
5
5
-3
-3
21
22
(m)
(m)
23 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
book, and record returns
2.3.003
Five-year carryback for Federal
net operating losses
Corporate
attributable to farming Income Tax
2.3.004
Special rules for mining reclamation reserves
Federal Corporate Income Tax
2.3.005
Cash accounting, other Federal
than agriculture
Corporate
Income Tax
2.3.006
Deferral of gain on non-dealer installment sales
Federal Corporate Income Tax
2.3.007
Completed contract rules
Federal Corporate Income Tax
2.3.008
Special treatment of employee stock
Federal Corporate
ownership plans
Income Tax
(ESOPs) (includes deferral of tax on certain employee stock plans)
2.3.009
Deferral of capital construction costs of shipping companies
Federal Corporate Income Tax
Georgia Corporate Income Tax Provisions
2.4.001
Single-Factor Apportionment
Corporate Income Tax
2.4.002
Throwback Rule
Corporate Income Tax
2.4.003
Corporate Receipts Sourcing
Corporate Income Tax
2.5.001
Interest on obligations Corporate
of United States
Income Tax
2.5.002
Exception to intangible Corporate expenses and related Income Tax
interest cost
2.5.003
Exemption for certain Corporate
disaster relief firms
Income Tax
2.6.001
Georgia Job Tax Credit Total State Credit
2.6.002
Quality Jobs Tax Credit
Total State Credit
Special Rule Special Rule Special Rule Special Rule Special Rule
Deferral
Deferral
Apportionment Apportionment Apportionment
Deduction Deduction Exemption
Credit Credit
(m)
(m)
(m)
(m)
(m)
(m)
1
1
1
14
13
13
3
3
3
(m)
(m)
(m)
(m)
(m)
(m)
Estimate not available at this time Estimate not available at this time Estimate not available at this time Estimate not available at this time Estimate not available at this time
Estimate not available at this time
70
71
73
30
35
38
24 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
2.6.003 2.6.004 2.6.005 2.6.006 2.6.007 2.6.008 2.6.009 2.6.010 2.6.011 2.6.012 2.6.014 2.6.015 2.6.016
2.6.017 2.6.018 2.6.019
2.6.020
New Facilities Jobs Credit New Manufacturing Facilities Property Credit Manufacturer's Investment Tax Credit Optional Investment Tax Credit Port Activity Tax Credit Alternative Port Activity Tax Credit Film Tax Credit
Research Tax Credit
Seed-Capital Fund Credit Qualified Health Insurance Expense Credit Qualified Transportation Credit Business Enterprise Vehicle Credit Employer's Credit for providing or sponsoring child care for employees and employer's credit for purchasing child care property Low-Income Housing Credit Historic Rehabilitation Credit Diesel Particulate Emission Reduction Technology Equipment Credit Low- & Zero-emission Vehicle Credit & Electric Vehicle Charger Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit
Credit Credit Credit
Credit
Estimate combined with 2.6.001 Estimate not available at this time
15
15
16
1
1
1
6
6
6
Estimate combined with 2.6.007
243
272
308
34
22
23
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
10
10
10
190
203
218
2
2
32
(m)
(m)
(m)
36
28
3
25 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
2.6.021 2.6.022 2.6.023
2.6.024 2.6.025 2.6.026 2.6.027 2.6.028
2.6.029 2.6.030 2.6.031
2.6.032
Land Conservation Credit Clean Energy Property & Wood Residuals Credit Georgia Employer GED Tax Credit (previously known as the Employer's Credit for Basic Skills Education) Employer's Credit for Approved Employee Retraining Qualified Education Expense Credit Qualified Investor's Tax Credit Energy-Efficient or Water-Efficient Equipment Credit Tax credit for waterconservation facilities and qualified waterconservation investment property Tax credit for shift from groundwater usage Tax credit for existing business enterprises undergoing qualified business expansion Tax credit for purchases of alternative fuel heavyduty or medium-duty vehicle Bank Tax Credit
Corporate Net Worth Tax
3.001 3.002
Exemption for nonprofit corporations Exemptions from the Net Worth Tax
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Net Worth Tax
Net Worth Tax
Credit Credit Credit
Credit Credit Credit Credit Credit
Credit Credit
Credit
Credit Exemption Exemption
24
35
15
2
2
1
(m)
(m)
1
31
32
33
45
45
45
(m)
(m)
(m)
0
0
0
Estimate not available at this time
Estimate not available at this time Estimate combined with 2.6.002
0
1
2
10
11
11
Estimate not available at this time Estimate not available at this time
26 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
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
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
4.00300
Federal retailer's excise tax if separately itemized to the consumer and Georgia motor fuel tax imposed on the sale of motor fuel
4.00400
Sales of transportation furnished by a county or municipal public transit system or public transit authorities
4.00500
Sales of transportation furnished by an approved and authorized urban
transit system
4.00600
Sales to any Hospital
Authority created by Georgia law
4.00610
Sales to any Housing Authority created by Georgia law
4.00620
Sales to local government authorities
created on or after
January 1, 1980 for the
principal purpose of constructing, owning,
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
Estimate not available at this time Estimate not available at this time
Estimate not available at this time
9
9
10
Estimate Combined With 4.00400
Estimate Combined with 4.00700
2
2
2
2
2
2
27 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
or operating a coliseum
and related facilities
4.00630
Sales to any
Sales and Exemption
(m)
agricultural
Use Tax
commission created by
the Department of
Agriculture
4.00700
Sales of tangible
Sales and Exemption
93
personal property and Use Tax
services to an approved
nursing home, inpatient
hospice, general
hospital or mental
hospital when used
specifically in the
treatment function
4.00705
Sales of tangible
Sales and Exemption
1
personal property to a Use Tax
non-profit health center
established and
receiving funds
pursuant to the U.S.
Public Health Service
Act
4.00710
Sales of tangible
Sales and Exemption
2
personal property and Use Tax
services to a nonprofit
organization whose
primary function is to
provide services to
persons with
intellectual disabilities
4.00720
Sales to Georgia
Sales and Exemption
(m)
Society of the
Use Tax
Daughters of the
American Revolution
4.00730
Sales of tangible
Sales and Exemption
1
property and services
Use Tax
to a nonprofit volunteer
health clinic primarily
treating patients with
incomes below 200
percent of the poverty
level
4.00800
Sales of tangible
Sales and Exemption
35
personal property and Use Tax
State FY 2016
State FY 2017
(m)
(m)
97
101
1
1
2
2
(m)
(m)
1
1
36
37
28 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.00900
4.01000 4.01100 4.01200 4.01300 4.01400 4.01500
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 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 Sales of art and other artifacts for display or exhibition to museums Specific fundraising sales by any religious
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
Estimate not available at this time
2
2
2
(m)
(m)
(m)
7
7
6
1
1
1
(m)
(m)
(m)
(m)
(m)
(m)
29 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.01510 4.01700 4.01800
4.01900
4.02000 4.02100
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 Sales of pipe organs or steeple bells to any church qualifying as a nonprofit 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, 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
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
(m)
(m)
(m)
24
21
18
Estimate not available at this time
Estimate not available at this time
See expenditure estimate for Residential Utilities (4.5009)
Estimate not available at this time
30 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.02200
4.02300 4.02400 4.03000
4.03100
4.03200
4.03300 4.03310
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 Rental of videotape or film to persons charging admission to view the tape or film Vehicles purchased by service-connected disabled veterans when the U.S. Dept. of Veterans Affairs supplies a grant to purchase the specially adapted 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 Common or common and contract carriers Partial sales tax exemption for jet fuel sold to or used by a qualifying airline at a qualifying airport
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
See expenditure estimates for services (4.50003, 4.50010, 4.50011)
See expenditure estimates for Services (4.50003, 4.50010, 4.50011)
Estimate not available at this time
(m)
(m)
(m)
Estimate not available at this time Estimate not available at this time
Estimate not available at this time
21
0
0
31 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.03410 4.03420 4.03600 4.03610 4.03800 4.03900 4.03910 4.04000
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 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 tangible personal property and fees and charges for services by the Rock Eagle 4-H center Certain sales by a public or private school of tangible personal property, concessions, and tickets for admission to school functions Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property Sale of major components or repair parts installed in
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
Estimate not available at this time
1
1
1
(m)
(m)
(m)
Estimate not available at this time
(m)
(m)
(m)
2
2
2
Estimate not available at this time
31
31
24
32 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.04100 4.04200
4.04300 4.04400 4.04500 4.04600 4.04700
military aircraft, vehicles, or missiles Sale of tangible personal property and services to a nonprofit child-caring institution, child-placing agency, or maternity home 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 coinoperated amusement machines for which individual permits are required Sale of motor vehicles to nonresident purchasers when vehicles are immediately removed from Georgia and titled in another state The sale or use of paper stock when used to print catalogs for distribution outside Georgia Sale of tangible personal property or taxable services to nonprofit blood banks Sale of drugs dispensed by prescription, prescription glasses, contact lenses, contact lens samples and sales or use of certain
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
1
1
1
Estimate not available at this time
3
3
3
Estimate not available at this time
Estimate not available at this time
1
1
1
430
452
475
33 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
controlled substances
or dangerous drugs
4.04800
Sale of crab bait to
Sales and Exemption
(m)
licensed commercial
Use Tax
fishermen
4.05000
Sales of insulin
Sales and Exemption
21
syringes and blood
Use Tax
glucose level
measuring strips
dispensed without a
prescription
4.05100
Sale of oxygen when
Sales and Exemption
(m)
prescribed by a
Use Tax
licensed physician
4.05200
Sale or use of hearing Sales and Exemption
4
aids
Use Tax
4.05300
Transactions where
Sales and Exemption
114
food stamps or WIC
Use Tax
coupons are used as the
method of payment of
payment
4.05400
Sale or use of any
Sales and Exemption
39
durable medical
Use Tax
equipment or
prosthetic device
prescribed by a
physician
4.05500
Sale of Georgia lottery Sales and Exemption
163
tickets
Use Tax
4.05600
Sale by any qualified Sales and Exemption
1
nonprofit parent-
Use Tax
teacher organization
4.05700
Food purchased for
Sales and Exemption
469
off-premises
Use Tax
consumption
4.05710
Sales of food and
Sales and Exemption
3
beverages to a
Use Tax
qualified food bank
(expires June 30, 2016)
4.05720
Exemption for
Sales and Exemption
1
prepared food and food Use Tax
ingredients that are
donated to a qualified
nonprofit agency and
used for hunger relief
purposes
State FY 2016
State FY 2017
(m)
(m)
22
23
(m)
(m)
4
4
113
113
41
42
166
169
1
1
486
499
3
0
1
1
34 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.05730
4.05900 4.06000
4.06100 4.06200
4.06300 4.06500 4.06600 4.06700 4.06800
Exemption for prepared food and food ingredients that are donated following a natural disaster and used for disaster relief Sale of eligible food and beverages by any Girl or Boy Scout council Sale of certain machinery and equipment used to improve air quality in a clean room of Class 100,000 or less 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 Funeral merchandise when paid with funds from the Georgia Crime Victims' Emergency Fund Sale of dyed diesel fuel used exclusively for operations of vessels or boats by licensed commercial fishermen Sale of gold, silver, or platinum bullion Sale of coins or currency Sale of certain computer equipment when the total qualifying purchases by a high technology
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
(m)
(m)
(m)
1
1
1
(m)
(m)
(m)
Estimate not available at this time
2
2
2
(m)
(m)
(m)
(m)
(m)
(m)
Estimate not available at this time
4
4
4
Estimate not available at this time
35 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
company exceed $15
million
4.06900
Sales of machinery and Sales and Exemption
(m)
equipment and material Use Tax
incorporated and used
in a clean room of
Class 100 or less
4.07000
Sale of natural gas
Sales and Exemption
54
used directly in the
Use Tax
manufacture of
electricity
4.07100
Sale to or by an
Sales and Exemption
(m)
organization whose
Use Tax
primary purpose is to
raise funds for books,
materials, and
programs for public
libraries
4.07200
Sale of wheelchairs
Sales and Exemption
(m)
and attachments for
Use Tax
wheelchairs when sold
to permanently
disabled individuals
4.07500
Sales tax holiday for
Sales and Exemption
40
back to school items
Use Tax
(expired August 1,
2015)
4.07600
Exemption for personal Sales and Exemption
0
property used in the
Use Tax
renovation or
expansion of an
aquarium
4.08100
The purchase of food Sales and Exemption
4
and nonalcoholic
Use Tax
beverages provided at
no charge aboard a
qualified airline
4.08200
Sales tax holiday for
Sales and Exemption
1
water-efficient and
Use Tax
energy-efficient
purchases (expired
October 4, 2015)
4.08300
Sale of biomass
Sales and Exemption
(m)
materials used to
Use Tax
produce electricity or
steam or used to
State FY 2016
State FY 2017
(m)
(m)
54
51
(m)
(m)
(m)
(m)
42
0
1
1
4
4
1
0
1
1
36 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
4.08600 4.08700 4.08800 4.09100 4.09300
4.09400 4.09600
produce electricity or steam intended for sale Sales of engines, parts, equipment and other tangible personal property used in the maintenance or repair of certain aircraft Sales of tangible personal property used to renovate or expand a zoological institution (expires June 30, 2018) Sale of tangible personal property used in the construction of a qualified civil rights museum (expired July 30, 2015) The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave 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, 2016 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 sales or use of construction
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
20
20
20
0
0
(m)
(m)
0
0
Estimate not available at this time
21
21
0
Estimate not available at this time
0
(m)
0
37 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
4.3.2
4.3.3
4.50000 4.50001 4.50002 4.50003 4.50004 4.50005 4.50006 4.50007 4.50008
materials used for or in the construction of buildings at a private college Exemptions 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 Admissions and Amusements
Agricultural Services
Automotive Services
Business Services
Computer and Online Services
Construction Labor
Fabrication, Installation, and Repair Services Finance, Insurance, and Real Estate
Industrial and Mining Services
Sales and Use Tax
Sales and Use Tax
Sales and Use Tax for
Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services
Exemption
Exemption
Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption Exemption
3,374
178
157 145 132 664 358 1,485 220 1,021 10
State FY 2016
3,481
183
159 147 134 673 362 1,504 222 1,034 11
State FY 2017
3,579
187
165 153 130 698 376 1,559 231 1,072 11
38 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
4.50009 4.50010
Residential Utility Service
Personal Services
4.50011
Professional Services
4.50012
Storage
4.50013
Transportation Services
4.70000 4.90000
Compensation of dealers for reporting and collecting tax Sales tax exemption for casual sales
Insurance Premium Tax
5.00100 5.00200 5.00300 5.00400
5.00500
Deduction of retaliatory taxes paid to other states Insurance premium tax credits - Georgia Job Tax Credit Exemption for premiums of highdeductible health plans Exemption for insurance companies that only insure places of worship Insurance abatements
5.00600 5.00700
Special deductions for life insurance companies Insurance premium tax credit Low-Income Housing Credit
Sales and Use Tax for
Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax for Services Sales and Use Tax
Sales and Use Tax
Insurance Premium
Tax Total State
Credit
Insurance Premium
Tax Insurance Premium
Tax
Insurance Premium
Tax Insurance Premium
Tax Total State
Credit
Exemption Exemption Exemption Exemption Exemption Exemption Exemption Deduction
Credit Exemption Exemption
Rate Reduction Deduction
Credit
81 277 1,949 69 (m) 60 2 (m) 70 6 (m)
135 141 190
State FY 2016
82 281 1,974 70 (m) 60
2 (m) 71 8 (m)
138 144 203
State FY 2017
85 291 2,046 72 (m) 63 2 (m) 73 8 (m)
141 147 218
39 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
Motor Fuel Tax
6.00100
Motor fuel tax refunds for agricultural
purposes
6.00200
Sale of fuel to mass transit vehicles
6.00300
Sale of fuel to campus transportation vehicles
6.00400
Motor fuel tax exemption for aviation fuel
6.00500
Motor fuel tax vendor
compensation
6.00600
Motor fuel tax exemption for public school buses
Alcoholic Beverage Tax
7.00100
Sales to persons outside the state for resale or consumption outside the state
7.00200
Sales to stores or
canteens in U.S.
military reservations
7.00300
200 gallons annually of homebrew per household
7.00400
Sales to and use by religious organizations for sacramental
purposes
7.00500
Exemption for ethyl
alcohol used for certain purposes
7.00600
Malt beverages containing less than one-half of 0.5 percent alcohol by volume
Cigar and Cigarette Excise Tax
8.00100
Exemption for purchases for use exclusively by patients at the Georgia War Veterans Home and the
Motor Fuel Tax
Motor Fuel Tax
Motor Fuel Tax
Motor Fuel Tax
Motor Fuel Tax
Motor Fuel Tax
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax Alcoholic Beverage
Tax Alcoholic Beverage
Tax
Alcoholic Beverage
Tax Alcoholic Beverage
Tax
Cigar and Cigarette Excise Tax
Exemption Exemption Exemption Exemption Exemption Exemption
Exemption
Exemption Exemption Exemption
Exemption Exemption
Exemption
Estimate not available at this time
2
0
0
Estimate included in 6.00200
(m)
1
1
7
9
12
5
0
0
Estimate not available at this time
Estimate not available at this time
1
1
1
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
40 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
State FY 2016
State FY 2017
Georgia War Veterans Nursing Home
8.00200
De minimis amount brought into the state by one person
Cigar and Cigarette Excise Tax
Exemption
8.00300
Cigars and cigarettes stored in a public warehouse
Cigar and Cigarette Excise Tax
Exemption
8.00400
Certain cigars and
Cigar and Exemption
cigarettes held by
Cigarette
licensed dealers
Excise Tax
Financial Institutions Special State Occupation Tax
9.00100
Deduction for interest paid
Financial Institutions Business
License Tax
Deduction
9.00200
Deductions for income from authorized activities of a domestic international banking
Financial Institutions Business
License
Deduction
facility
Tax
9.00300
Deduction for income Financial Deduction
from banking business with persons or entities outside the U.S.
Institutions Business License
Tax
Special Assessment of Forest Land Conservation Use Property
10.00000
Special assessment of forest land conservation use property
State Grant
Credit
Alternative Ad Valorem Tax on Motor Vehicles
11.001
Reduced rate for
Title Fee
related family transfers
Rate Reduction
11.002
Disabled veteran exemption
Title Fee Exemption
11.003
Reduced rate for rental Title Fee vehicles
Rate Reduction
11.004
Reduced rate for vehicles manufactured in years 1963 through
Title Fee
Rate Reduction
11.005
1985 Reduced rate for
Title Fee
Rate
salvage vehicles
Reduction
Estimate not available at this time Estimate not available at this time Estimate not available at this time
2
2
2
Estimate not available at this time
Estimate not available at this time
29
35
35
5
6
5
(m)
(m)
(m)
56
65
57
(m)
(m)
(m)
23
28
25
41 | P a g e
Expenditure Summary
Summary of State Tax Expenditures
Tax
Type of
State
Expenditure FY 2015
11.006
Dealer loaner vehicle Title Fee Exemption
7
exemption
11.007
Reduced rate for
Title Fee
Rate
(m)
donated vehicles
Reduction
11.008
Extended payment
Title Fee Exemption
5
period for out-of-state
vehicles
11.009
Trade-in exemption
Title Fee Exemption
338
(including rebates and
cash discounts)
11.010
Special assessment for Title Fee Exemption
20
used vehicles
11.011
Special assessment for Title Fee Exemption
-46
new vehicles
11.012
Buy here pay here
Title Fee
Rate
3
transactions
Reduction
11.013
Exemption from
Title Fee Exemption
(m)
TAVT for leased
vehicles qualifying for
Manufacturing
Headquarters
State FY 2016
5 (m) 2
345
21 -56 6 (m)
State FY 2017
3 (m) -2
303
18 -49 6 (m)
42 | P a g e
1. Personal Income Tax
The personal income tax was first levied in Georgia in 1929 at a rate equal to one-third the federal rate of income taxation. The current rate structure which includes six brackets, ranging from 1 percent to 6 percent, has remained largely unchanged since 1955. The threshold for each bracket depends on the filing status of the taxpayer, i.e. single or head of household, married filing separate or joint. The individual income tax collections equaled $9.0 billion in FY 2014 and accounted for 50 percent of Georgia's revenues from taxation. In CY 2014, 4.3 million individual state returns were filed. While predominately paid by individuals, a significant number of business activities 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's General Fund.
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. In addition, for tax year 2012 and before, filers were allowed a personal exemption of $5,400 for joint filers and $2,700 for other filers and $3,000 for each dependent. For tax years after 2012, the personal exemption for joint filers is $7,400 and is $3,700 for married taxpayers filing a separate return.
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 though, the value 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. Therefore, any changes to provisions that may occur because of federal legislative action that occurred after that period are not reflected in the estimates.
43 | P a g e
The explanations of the federal conformity provisions are taken from Tax Expenditures: Compendium of Background Material in Individual Provisions, published by the Committee on the Budget, United States Senate and prepared by the Congressional Research Service, December 2012.
44 | P a g e
1.1 Federal Exclusions
1.1.001 1.1.002 1.1.003 1.1.004 1.1.005
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)
2015 2016 2017
State Tax Expenditure
14 15
15
(m) Denotes a value of less than $1 million
Exclusion of housing allowances for ministers
Federal Statute IRC Section 107 and 265
Description: In general, this provision allows ministers to deduct certain housing related
expenditures from their gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
6
6
6
(m) Denotes a value of less than $1 million
Exclusion of employer-provided child care
Federal Statute IRC Section 129
Description: Payments by an employer, under a dependent care assistance program, for
qualified dependent care assistance provided to an employee are excluded
from the employee's income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
16 17
17
(m) Denotes a value of less than $1 million
Exclusion of employee awards
Federal Statute IRC Section 74(c) and 274(j)
Description: This provision provides an exclusion for certain awards of tangible personal
property given to employees for length of service or for safety achievement.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Exclusion of employer contributions and earnings to pension plans includes Keoghs,
defined benefit and defined contribution plans
Federal Statute IRC Sections 401-407, 410-418E, and 457
Description: Employer contributions to qualified pension, profit-sharing, stock-bonus,
and annuity plans on behalf of an employee are not taxable to the employee.
Furthermore, the employee is generally not taxed on the benefits when
they are distributed.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
779 1,006 1,164
(m) Denotes a value of less than $1 million
45 | P a g e
1.1.006 1.1.007 1.1.008 1.1.009 1.1.010 1.1.011
Exclusion of employer contributions for health care, health insurance premiums and long-
term care insurance premiums
Federal Statute IRC Sections 105,106, and 125
Description: Employees are allowed to exclude contributions by their employers for
health care coverage for themselves and their dependents.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1,003 1,010 1,040
(m) Denotes a value of less than $1 million
Exclusion of employer-paid accident and disability premiums
Federal Statute IRC Sections 105 and 106
Description: Premiums paid by employers for employee accident and disability insurance
plans are excluded from the taxable income of employees.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
28 29
30
(m) Denotes a value of less than $1 million
Exclusion of employer contributions for premiums on group long-term life insurance
Federal Statute IRC Section 79
Description: Premiums paid by the employer for qualified group-term life insurance plans
for the employee are excluded from employee's taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
22 22
23
(m) Denotes a value of less than $1 million
Exclusion of employer-paid transportation benefits and employer-provided transit and
vanpool benefits
Federal Statute IRC Section 132(f)
Description: Employer provided qualified transportation benefits are excluded from
employee taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
30 31
32
(m) Denotes a value of less than $1 million
Exclusion of benefits provided through cafeteria plans
Federal Statute IRC Section 125
Description: Qualified benefits offered through an employer's cafeteria plan are not
included as taxable income to the employee.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
210 216 223
(m) Denotes a value of less than $1 million
Exclusion of employer-provided adoption assistance Federal Statute IRC Section 137 Description: Benefits received from a qualified employer-sponsored adoption assistance
program are excludable from taxable income for the employee.
46 | P a g e
1.1.012 1.1.013 1.1.014 1.1.015 1.1.016
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
1
1
1
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)
2015 2016 2017
State Tax Expenditure
9
9
9
(m) Denotes a value of less than $1 million
Exclusion of miscellaneous fringe benefits
Federal Statute IRC Section 132 and 117(D)
Description: Certain miscellaneous fringe benefits provided by employers, including
services provided at no additional costs, employee discounts, working
condition fringes, de minimis fringes and certain tuition reductions, can be
excluded from the employee's taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
45 46
47
(m) Denotes a value of less than $1 million
Exclusion of foreign earned income (including housing and salary)
Federal Statute IRC Section 911
Description: U.S. taxpayers who live and work abroad are allowed a capped exclusion of
their wage and salary income. In addition, qualified individuals can also
exclude certain excess foreign housing costs. This provision does not apply
to federal employees working abroad.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
44 44
46
(m) Denotes a value of less than $1 million
Exclusion of certain allowances for federal employees abroad
Federal Statute IRC Section 912
Description: U.S. federal civilian employees who work abroad are allowed to exclude
from taxable income certain special allowances they receive that are
generally linked to the cost of living.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
11 12
12
(m) Denotes a value of less than $1 million
Exclusion of benefits and allowances to armed forces personnel (includes expenditure for military disability benefits) Federal Statute IRC Section 112, 134, 104(a)(4) or (5) and 104(b) Description: Military personnel are provided with a variety of in-kind benefits (or cash
47 | P a g e
1.1.017 1.1.018 1.1.019 1.1.020
payments in lieu of such benefits) that are not taxed. In addition, certain
members of the armed forces are eligible for tax exclusion of disability pay.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
59 61
64
(m) Denotes a value of less than $1 million
Medical care and Tricare Medical Insurance for military dependents and retirees
Federal Statute IRC Section 134
Description: Military personnel are provided with a variety of in-kind benefits (or cash
payments in lieu of such benefits) that are not taxed. In addition, certain
members of the armed forces are eligible for tax exclusion of disability pay.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
25 26
27
(m) Denotes a value of less than $1 million
Exclusion of veterans' benefits (includes veterans disability compensation, pensions, and
readjustment benefits)
Federal Statute 38 U.S.C. Section 5301
Description: All benefits administered by the U.S. Department of Veterans Affairs are
exempt from income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
58 62
64
(m) Denotes a value of less than $1 million
Exclusion of income attributable to the discharge of certain student loan debt and National
Health Service Corp and certain state educational loan repayments
Federal Statute IRC Section 108(f)
Description: This section provides that in certain instances, student loan cancellation and
student loan repayment assistance may be excluded from gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Exclusion of workers' compensation benefits (includes disability and survivor benefits and
medical benefits, and exclusion of damages on account of personal physical injuries or
physical sickness)
Federal Statute IRC Section 104(a)(1)-(5)
Description: Employees are not taxed on the value of insurance contributions for
workers' compensation medical benefits made on their behalf by employers,
or on the medical benefits or reimbursements they actually receive.
Workers' compensation benefits to employees in cases of work-related
injury and to survivors in cases of work-related death are not taxable.
Damages paid, through either a court award or a settlement, to compensate
for physical injury or sickness are not included in income of the recipient.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
51 51
52
(m) Denotes a value of less than $1 million
48 | P a g e
1.1.021 1.1.022 1.1.024 1.1.026
1.1.027
Exclusion of special benefits for disabled coal miners
Federal Statute IRC Section 104(a)(1)
Description: Cash and medical benefits to coal mine workers or their survivors for total
disability or death resulting from coal workers' pneumoconiosis (black lung
disease) paid under the Black Lung Benefits Act generally are not taxable.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of untaxed Social Security and railroad retirement benefits
Federal Statute IRC Section 86
Description: In general, Social Security and railroad retirement benefits are not subject to
tax.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
239 248
261
(m) Denotes a value of less than $1 million
Exclusion of certain foster care payments
Federal Statute IRC Section 131
Description: Qualified payments are excluded from the foster care provider's gross
income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Exclusion of scholarship and fellowship income
Federal Statute IRC Section 117
Description: Scholarships and fellowships can be excluded from the gross income of
students and their families provided: (1) the students are pursuing degrees
and (2) the amounts are used for tuition and fees required for enrollment or
for books, supplies, and equipment required for courses at a qualified
institution. Amounts used for room, board and incidental expenses are not
excluded from gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
14 15
16
(m) Denotes a value of less than $1 million
Exclusion of earnings of Coverdell education savings accounts and interest on educational
savings bonds
Federal Statute IRC Section 530
Description: Contributions to a Coverdell Education Savings Account are not deductible
but the earnings grow on a tax deferred basis.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
49 | P a g e
1.1.028 1.1.029 1.1.030 1.1.031 1.1.032 1.1.033
Exclusion of earnings of qualified tuition programs (including prepaid tuition programs and
savings account programs)
Federal Statute IRC Section 529
Description: Contributions to qualified tuition programs are not deductible at the federal
level but earnings accumulate on a tax-deferred basis.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
4
5
7
(m) Denotes a value of less than $1 million
Exclusion for certain agricultural cost-sharing payments
Federal Statute IRC Section 126
Description: Grants made for the purpose of conserving soil and water resources or
protecting the environment are excluded from the recipient's taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of discharge of indebtedness for certain farmers
Federal Statute Sections 108 and 1070(b)(4)
Description: The provision allows farmers who are solvent to treat the income arising
from the cancellation of certain indebtedness as if they were insolvent
taxpayers. As such, income that would normally be subject to tax would be
excluded from tax under qualifying conditions.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Exclusion of interest on state and local government private activity bonds
Federal Statute Various
Description: Interest earned on qualified private activity bonds is tax exempt.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of capital gains from sale of principal residences
Federal Statute IRC Section 121
Description: A taxpayer may exclude from federal income tax up to $250,000 of capital
gain ($500,000 in the case of married taxpayers filing joint returns) from the
sale or exchange of their principal residence.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
191 212 234
(m) Denotes a value of less than $1 million
Exclusion of capital gains at death Federal Statute IRC Sections 1001,1002,1014,1015,1023,1040,1221, and 1222 Description: A capital gain 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
50 | P a g e
1.1.034 1.1.035 1.1.036 1.1.037 1.1.039
owner.
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2015 2016 2017 130 133 136
Exclusion of capital gains on gifts
Federal Statute IRC Sections 1001,1002,1014,1015,1023,1040,1221, and 1222
Description: A capital gain 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)
2015 2016 2017
State Tax Expenditure
-9 21
43
(m) Denotes a value of less than $1 million
Exemption from imputed interest rules
Federal Statute IRC Sections 163(e), 483, 1274, and 1274A
Description: Debt instruments for amounts not exceeding an inflation adjusted maximum,
given in exchange for real property, may not have imputed to them an
interest rate greater than 9 percent.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
3
3
(m) Denotes a value of less than $1 million
Exclusion of combat pay
Federal Statute IRC Section 112
Description: Compensation received by active members of the armed forces is excluded
from gross income for any month the service member served in a combat
zone or was hospitalized as a result of an injury or illness incurred while
serving in a combat zone.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
22 23
24
(m) Denotes a value of less than $1 million
Exclusion of energy conservation subsidies provided by public utilities
Federal Statute IRC Section 136
Description: In general, this provision allows customers to exclude from their gross
income the value of any subsidy provided by a public utility for the
purchase or installation of any energy conservation measure.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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
51 | P a g e
1.1.040 1.1.041 1.1.042 1.1.043
stock.
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
4
4
4
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 Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
1
1
2
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)
2015 2016 2017
State Tax Expenditure
22 22
23
(m) Denotes a value of less than $1 million
Exclusion of survivor annuities paid to families of public safety officers killed in the line of
duty
Federal Statute IRC Section 101(h)
Description: The surviving spouse of a public safety officer killed in the line of duty can
exclude from gross income a survivor annuity payment under a
governmental pension plan.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of disaster mitigation payments
Federal Statute IRC Section 139
Description: Payments made for disaster mitigation under the Robert T. Stafford
Disaster Relief and Emergency Insurance Act or the National Flood
Insurance Act is excluded from income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
52 | P a g e
1.2 Federal Deductions
1.2.001 1.2.002 1.2.003 1.2.004 1.2.005
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS) the cost
of tangible depreciation property of certain energy property is allowed a
shorter depreciation period. Taxpayers are allowed to depreciate the costs
of new rental housing and certain other buildings and equipment on an
accelerated schedule.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
31 32
31
(m) Denotes a value of less than $1 million
Deduction of expenditures on energy-efficient commercial building property
Federal Statute IRC Section 179D
Description: This provision provides a formula-based tax deduction for all or part of the
cost of energy-efficient commercial building property placed in service after
December 31, 2005 and before January 1, 2014.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Deduction of exploration and development costs of nonfuel minerals, includes excess of
depreciation over cost depletion, nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617,56,1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Amortization of business startup 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)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Expensing of research and development costs in lieu of the Research and Development tax credit Federal Statute IRC Section 174 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.
53 | P a g e
1.2.006 1.2.007
1.2.008 1.2.009 1.2.010
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m) (m)
(m)
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)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas or other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible drilling
and development costs.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
Special treatment for expenses related to timber production
Federal Statute IRC Sections 194, 263A(c)(5)
Description: This provision allows expensing of production costs of growing timber.
Taxpayers are also allowed different depreciation practices for qualified
reforestation expenses.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Expensing under IRC section 179 of depreciable business property
Federal Statute IRC Section 179
Description: Within certain limits, a taxpayer may elect to deduct as a current expense
the cost of qualifying property in the tax year when it is placed in service.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
63 54
23
(m) Denotes a value of less than $1 million
Exceptions for publicly traded partnerships with qualified income derived from certain energy-related activities Federal Statute IRC Section 7704 Description: This code section allows publicly traded partnerships to be treated as a
54 | P a g e
1.2.011 1.2.012 1.2.013 1.2.014 1.2.015
corporation for the purposes of the federal income tax under most
situations.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
7
7
(m) Denotes a value of less than $1 million
Treatment of income from exploration and mining as qualified income for publicly traded
partnerships
Federal Statute IRC Section 7704
Description: This code section allows publicly traded partnerships to be treated as a
corporation for the purposes of the federal income tax under most
situations.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Various agricultural expensing provisions
Federal Statute IRC Sections 175, 180, 1231
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning and the costs
associated with raising dairy and breeding cattle.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
Community and regional development incentives
Federal Statute IRC Sections 38(b), 39(d), 45A, 280C(a), 1391-1397D
Description: Communities designated as empowerment zones and renewable
communities are eligible for special development incentives.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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 $15,000 of expenses
incurred in a single year for removing physical barriers to handicap or
elderly individuals in qualified facilities or public transportation vehicles
owned or leased by the taxpayer.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Inventory methods and valuation, (including last-in first-out, lower of cost or market, specific identification for homogenous products) Federal Statute IRC Sections 475, 491-492
55 | P a g e
1.2.017 1.2.018 1.2.019 1.2.020 1.2.021
Description: This provision allows taxpayers to use alternative inventory systems to
determine cost of goods sold.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Health Savings Accounts
Federal Statute IRC Section 223
Description: This provision allows taxpayers to exclude their health savings account
contributions from their gross income in determining their taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
6
7
(m) Denotes a value of less than $1 million
Deduction of property taxes on real property
Federal Statute IRC Section 164
Description: Taxpayers may claim an itemized deduction for property taxes paid on
owner-occupied residences.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
145 152
162
(m) Denotes a value of less than $1 million
Deduction of nonbusiness state and local government income taxes, sales taxes and
property taxes
Federal Statute IRC Section 164
Description: State and local income, sales and personal property taxes paid by individuals
are deductible from adjusted gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
366 390
409
(m) Denotes a value of less than $1 million
Deduction of mortgage interest on owner-occupied residences
Federal Statute IRC Section 163(h)
Description: A taxpayer may claim an itemized deduction for qualified residence interest
which includes interest paid on a mortgage secured by a principal residence
and a second residence.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
493 529 576
(m) Denotes a value of less than $1 million
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.
56 | P a g e
1.2.022 1.2.023 1.2.024 1.2.025 1.2.026 1.2.027
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2015 2016 2017 403 417 430
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)
2015 2016 2017
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
Deduction of overnight expenses for National Guard and Reserve members
Federal Statute IRC Sections 162(p) and 62(a)(2)(E)
Description: An above-the-line deduction is available for unreimbursed overnight travel,
meals, and lodging expenses of National Guard and Reserve members.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Deduction of premiums for qualified mortgage insurance
Federal Statute IRC Section 163(h)
Description: Qualified mortgage insurance premiums paid with respect to a qualified
residence can be treated as tax deductible.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
0
0
(m) Denotes a value of less than $1 million
Deduction of interest on student loans
Federal Statute IRC Section 221
Description: Taxpayers may deduct interest paid on qualified education loans in
determining their adjusted gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
10 11
12
(m) Denotes a value of less than $1 million
Deduction of higher education expenses
Federal Statute IRC Section 222
Description: Taxpayers may deduct qualified tuition and related expenses for
postsecondary education from their adjusted gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
0
0
(m) Denotes a value of less than $1 million
Deduction of teacher classroom expenses Federal Statute IRC Section 62
57 | P a g e
1.2.028 1.2.029 1.2.030
Description: An eligible employee of a public or private elementary or secondary school
may claim a deduction for certain unreimbursed expenses.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) 0
0
(m) Denotes a value of less than $1 million
Deduction of health insurance premiums and long-term care insurance premiums by the
self-employed
Federal Statute IRC Section 161(l)
Description: Generally, a self-employed individual may deduct the entire amount paid for
health insurance or long-term care insurance.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
28 27
27
(m) Denotes a value of less than $1 million
Deduction of medical expenses and long-term care expenses
Federal Statute IRC Section 213
Description: Most medical expenses that are paid by an individual but not reimbursed by
an employer or insurance company may be deducted from taxable income
to the extent they exceed 7.5 percent of adjusted gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
61 65
69
(m) Denotes a value of less than $1 million
Deduction of IRA contributions (includes traditional IRAs and Roth IRAs)
Federal Statute Section 219 and 408 and 408A
Description: Individuals participating in a traditional or Roth IRA are allowed to deduct
contributions in the case of traditional IRAs and distributions in the case of
Roth IRAs. Both exemptions are phased out for higher-income individuals.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
127 129
118
(m) Denotes a value of less than $1 million
58 | P a g e
1.3 Special Federal Conformity Provisions
1.3.001 1.3.002 1.3.003 1.3.004 1.3.005 1.3.006
Like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like
kind, no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
23 24
24
(m) Denotes a value of less than $1 million
Special rules for magazine, paperback book, and record returns
Federal Statute IRC Section 458
Description: Publishers and distributors of magazines, paperbacks, and records may elect
to exclude from gross income for a tax year, the income from the sale of
goods that are returned after the close of the tax year.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Five-year carryback for net operating losses attributable to farming
Federal Statute IRC Section 172
Description: Current law provides a five-year carryback period for losses related to
farming. The normal carryback period for losses is two years.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Special rules for mining reclamation reserves
Federal Statute IRC Section 468
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Cash accounting, other than agriculture
Federal Statute IRC Sections 446 and 448
Description: The cash method of accounting may be used by any business taxpayer that
is not a tax shelter and falls into at least one of three specified categories.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
12 12
13
(m) Denotes a value of less than $1 million
Deferral of gain on non-dealer installment sales Federal Statute IRC Sections 453 and 453A(b)
59 | P a g e
1.3.007 1.3.008 1.3.009
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
9
7
6
(m) Denotes a value of less than $1 million
Completed contract rules
Federal Statute IRC Section 460
Description: Some taxpayers with construction or manufacturing contracts extending for
more than one tax year are allowed to report some or all of the profit on the
contracts under special accounting rules rather than the normal rules of tax
accounting.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax on
certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6), 1042, 497(e)(7),
4978, 4979A, 422-423
Description: Employer contributions may be deducted as a business expense. In
addition, some contributions are subject to less restrictive limits than
contributions to other employee benefit plans. Tax on qualified employee
stock purchase plans are not taxed when granted or excised. Tax is deferred
until stock is sold.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Income averaging for farmers and fishermen
Federal Statute IRC Section 1301
Description: Beginning with tax years after 1997, taxpayers have the option to calculate
their current year income tax by averaging over a prior three-year period, all
or a portion of their income from farming and/or fishing.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) 1
1
(m) Denotes a value of less than $1 million
60 | P a g e
1.4 Georgia Exemptions
1.4.001 1.4.002 1.4.003
Personal Exemption
Statute
48-7-26
Year Enacted
1987
Year Effective
1987
Data Source
DOR data for 2013
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)
2015 2016 2017
State Tax Expenditure
1,006 1,018 1,031
(m) Denotes a value of less than $1 million
Retirement Income
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2009
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 4 in Appendix
Description: For tax years beginning in 2012, individuals 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)
2015 2016 2017
State Tax Expenditure
851
898
942
(m) Denotes a value of less than $1 million
Exclusion of federally taxable Social Security benefits
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2013
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Social Security and tier 1 railroad retirement benefits are excluded from
state taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
151 158 165
(m) Denotes a value of less than $1 million
61 | P a g e
1.4.004 1.4.005 1.4.007 1.4.008
Georgia Higher Education Savings Plan Contributions
Statute
48-7-27
Year Enacted
NA
Year Effective
Taxable years beginning on or after January 1, 2002
Data Source
DOR data for 2013
Estimate Reliability
Class A
Data Reliability
Class A
Note
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 $2,000 per qualified
plan beneficiary.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
6
7
(m) Denotes a value of less than $1 million
Interest on U.S. obligations
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2013
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 6 in Appendix
Description: Interest earned on U.S. government bonds and other obligations are not
included as taxable income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
6
7
(m) Denotes a value of less than $1 million
Organ donation expenses
Statute
48-7-27
Year Enacted
1981
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
United Network for Organ Sharing, 2014
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Expenses associated with the donation of organs in accordance with the
National Organ Procurement Act. The maximum value of excluded
expenses cannot exceed $10,000.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Aged 65/Blind deduction Statute Year Enacted Year Effective Data Source
48-7-27 1971 1971 DOR data for 2013
62 | P a g e
1.4.010
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)
2015 2016 2017
State Tax Expenditure
6
6
6
(m) Denotes a value of less than $1 million
Premiums for high-deductible health plans
Statute
48-7-27
Year Enacted
1981
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
Kaiser-Health Research and Educational Trust and
America's Health Insurance Plan, Center for Policy and
Research
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Taxpayers are allowed to exclude 100 percent of premiums paid for certain
high-deductible health plans.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
63 | P a g e
1.5 Georgia Deductions
1.5.001 Standard Deduction
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2013
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 8 in Appendix
Description: Taxpayers who do not itemize expenses on their federal return are allowed a
standard deduction equal to $2,300 for head of household and single filers,
$1,500 for married filing separately and $3,000 in the case of joint filers.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
189
199
209
(m) Denotes a value of less than $1 million
64 | P a g e
1.6 Georgia Credits
1.6.001 1.6.002 1.6.003 1.6.004
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 2015
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)
2015 2016 2017
State Tax Expenditure
1
1
2
(m) Denotes a value of less than $1 million
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 2015
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Driver Education Credit
Statute
48-7-29.5
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit provides a credit against income tax for the lesser of $150 or the
cost of a qualified driver education class.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Disaster Assistance Credit
Statute
48-7-29.4
Year Enacted
2000
65 | P a g e
1.6.005 1.6.006
Year Effective
Taxable years beginning on or after January 1, 2000
Data Source
DOR data for 2015
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 $500, whichever is less.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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 2015
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Tax credit for life insurance for Georgia National Guard and Air
National Guard
Statute
48-7-29.9
Year Enacted
2005
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is available for active duty members of the Georgia National
Guard and Air National Guard who are on active duty for more than
90 consecutive days and who purchase qualified life insurance through the
Services' Group Life Insurance program administered by the U.S. Department
of Veterans Affairs. The credit amount is equal to the cost of the premiums of
the life insurance policy.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
66 | P a g e
1.6.007 1.6.008 1.6.009 1.6.010
Child and Dependent Care Credit
Statute
48-7-29.10
Year Enacted
2006
Year Effective
Taxable years beginning on or after January 1, 2006
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is equal to 30 percent of the federal credit claimed for qualified
expenses related to the care of children and dependents.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
35
36
36
(m) Denotes a value of less than $1 million
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 2015
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 $2,000 per child annually until the
child attains the age of 18 and applies to adoptions occurring in taxable
years beginning on or after January 1, 2008.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
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 2015
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)
2015 2016 2017
State Tax Expenditure
8
9
9
(m) Denotes a value of less than $1 million
Credit for taxes paid to another state
Statute
48-7-28
Year Enacted
1931
67 | P a g e
1.6.012 1.6.013
Year Effective
1931
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: A resident individual with income taxed by another state is allowed a credit
for such tax. The maximum value of this credit is equal to the amount that
would be due if the income were taxed by Georgia.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
235 254 275
(m) Denotes a value of less than $1 million
Georgia Job Tax Credit
Statute
48-7-40 and 48-7-40.1
Year Enacted
48-7-40: 1989; 48-7-40.1: 1993
Year Effective
48-7-40: Taxable years beginning on or after January 1,
1990; 48-7-40.1: Taxable years beginning on or after
January 1, 1994
Data Source
DOR data for 2015 and Office of Insurance and Safety Fire
Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section and the insurance premium tax section, see 2.6.001 and
5.00200
Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must
be greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
8
8
8
Corporate Income Tax Expenditure
60
62
62
Insurance Premium Tax Expenditure
2
2
3
State Tax Expenditure
70
71
73
(m) Denotes a value of less than $1 million; may not sum due to rounding
Quality Jobs Tax Credit Statute Year Enacted Year Effective Data Source Estimate Reliability Data Reliability Note
48-7-40.17 2009 Taxable years beginning on or after January 1, 2009 DOR data for 2015 Class A Class A The same estimate is provided in the corporate income tax section, see 2.6.002
68 | P a g e
1.6.014 1.6.016
Description: This credit is for employers creating new high-wage jobs or relocating high-
wage jobs into the state. A quality job or high-wage job has 30 hours a
week of regular work; is not already located in Georgia; and pays at or
above 110 percent of the average wage of the county in which it is located.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
1
Corporate Income Tax Expenditure
30
34
37
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
30
35
38
(m) Denotes a value of less than $1 million; may not sum due to rounding
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 January 1, 2009
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income
tax section, see 2.6.003
Description: For business enterprises that first qualified in a taxable year beginning
before January 1, 2009, $450 million in qualified investment property
must be purchased for the project within a six-year period. The
manufacturer must also create at a minimum 1,800 new jobs within a
six-year period and can receive credit for up to a maximum of 4,500
jobs. 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 full-time employees
and either the qualified investment requirement of $450 million in
qualified investment property, or the payroll requirement of $150
million in total annual Georgia W-2 reported payroll within the six-
year period.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
Estimate included
Corporate Income Tax Expenditure
in 1.6.012
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.005
69 | P a g e
1.6.017 1.6.018
Description: Taxpayer must invest a minimum of $50,000 per project per location
during the tax year to receive credit. Eligible taxpayers must be in
operation for the immediately preceding three years. Leased property for a
period of five years or longer is eligible for the credit.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
13
14
14
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
15
15
16
(m) Denotes a value of less than $1 million; may not sum due to rounding
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 for 2015
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 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 $20 million for tier 3 and 4 counties.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
1
1
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Port Activity Tax Credit
Statute
48-7-40.15
Year Enacted
1998
Year Effective
Latest modifications apply to taxable years beginning on or
after January 1, 2010
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.007
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more
70 | P a g e
1.6.019 1.6.020
than 10 percent over 75 net tons, five containers or 10 20-foot equivalent
units (TEU's) during the previous 12-month period are qualified for
increased job tax credits or investment tax credits. For taxable years
beginning on or after January 1, 2010, the increase is based on a
comparison of the previous 12-month period to the second preceding 12-
month period.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
6
6
6
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
6
6
6
(m) Denotes a value of less than $1 million
Alternate Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income
tax section, see 2.6.008
Description: Credit is allowed to any business enterprise located in a tier 2 or 3
county or in a less developed area and which qualifies and receives the
Jobs Tax Credit and which
1. Consists of a distribution facility of greater than 650,000 square feet
in operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or
its subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
Estimate included
Corporate Income Tax Expenditure
in 1.6.018
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
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 2015 Class A Class A The same estimate is provided in the corporate income tax section, see 2.6.009. Tax credit provisions applicable to qualified interactive entertainment production companies were modified in 2015.
71 | P a g e
1.6.021 1.6.022
Description: Production companies which have at least $500,000 of qualified
expenditures in a state-certified production may claim this credit.
Certification must be approved through the Georgia Department of
Economic Development. There are special provisions relating to the tax
credits awarded to interactive entertainment companies. Under the 2015
modifications to this provision, interactive entertainment companies are
eligible to claim this credit for tax years before January 1, 2019.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
148
166
187
Corporate Income Tax Expenditure
95
107
121
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
243
272 308
(m) Denotes a value of less than $1 million; may not sum due to rounding
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.010
Description: This credit is for expenses resulting from research conducted in Georgia by
businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
33
21
22
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
34
22
23
(m) Denotes a value of less than $1 million
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 for 2015
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-
stage financing for businesses formed as a result of research conducted in
Georgia's research universities.
72 | P a g e
1.6.023 1.6.025
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m)
(m)
(m)
(m)
(m)
(m)
0
0
0
(m)
(m)
(m)
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 for 2015
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: 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)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Qualified Transportation Credit
Statute
48-7-29.3
Year Enacted
1999
Year Effective
Taxable years beginning on or after January 1, 2001
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.014
Description: A tax credit provided to employers for the cost of providing any federally
qualified transportation benefit to an employee.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
73 | P a g e
1.6.026 1.6.027 1.6.028
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.015
Description: This is a credit given to a business enterprise for the purchase of a motor
vehicle that is used exclusively to provide transportation for its employees.
In order to qualify, a business enterprise must certify that each vehicle
carries an average daily ridership of not less than four employees for an
entire taxable year.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Employer's credit for providing or sponsoring child care for employees and employer's
credit for purchasing child care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994; Credit for Cost of Qualified Child
Care Property: taxable years beginning on or after January 1,
2000.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.016
Description: Employer's Credit for Providing or Sponsoring Child Care for Employees.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
3
3
4
Corporate Income Tax Expenditure
7
7
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
10
10
10
(m) Denotes a value of less than $1 million; may not sum due to rounding
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
74 | P a g e
1.6.029 1.6.030
Note
The same estimate is provided in the corporate income tax
section and the insurance premium tax section, see 2.6.017
and 5.00700
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal Low-Income Housing tax credit
and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
60
64
69
Corporate Income Tax Expenditure
25
27
29
Insurance Premium Tax Expenditure
105
112
120
State Tax Expenditure
190
203 218
(m) Denotes a value of less than $1 million
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data for 2015 and Fiscal Note for H.B. 308 for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section, see 2.6.018
Description: A credit for the certified rehabilitation of a certified structure or historic
home. Standards set by the Georgia Department of Natural Resources must
be met. This credit was modified in 2015 to allow unused credits to be
assigned or sold to other taxpayers.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
2
2
28
Corporate Income Tax Expenditure
0
0
4
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
2
2
32
(m) Denotes a value of less than $1 million
Diesel Particulate Emission Reduction Technology Equipment Credit
Statute
48-7-40.19
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.019
Description: This is a credit given to any person who installs diesel particulate emission
reduction equipment at any truck stop, depot, or other facility. For
purposes of this credit, diesel particulate emission reduction technology
equipment is any equipment that provides heat, air conditioning, light, or
communications for the driver's compartment of a commercial motor
vehicle parked at a truck stop, depot, or other facility, the use of which
results in the engine being turned off with a corresponding reduction of
75 | P a g e
1.6.031 1.6.032
particulate emissions from such vehicle's diesel engine.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
0
0
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Low- & Zero-emission Vehicle Credit & Electric Vehicle Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.020. This credit has been repealed for all vehicle
purchases or leases occurring on or after July 1, 2015. The
credit for electric vehicle chargers and conversions remain
applicable.
Description: This is a credit for the purchase or lease of a new zero- or low-emission
vehicle that is registered in the state of Georgia. The credit also applies to
the conversion of a standard vehicle to a zero- or low-emission vehicle. In
addition, the credit applies to the purchase of an electric vehicle charger.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
36
28
3
Corporate Income Tax Expenditure
(m)
(m)
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
36
28
3
(m) Denotes a value of less than $1 million
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 for 2015
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 Title
36. This credit was modified in 2015 such that the aggregate value of credits
awarded under this provision cannot exceed $30 million per year and no
new credit applications will be accepted after December 31, 2016.
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1.6.033 1.6.034
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
24
34
15
Corporate Income Tax Expenditure
1
1
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
24
35
15
(m) Denotes a value of less than $1 million; may not sum due to rounding
Clean Energy Property and Wood Residuals Credit
Statute
48-7-29.14
Year Enacted
2008
Year Effective
July 1, 2008
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.022
Description: The Georgia Clean Energy Property and Wood Residuals tax credit includes
two general types of income tax credits: 1) investments in the construction,
purchase or lease of clean energy property, and 2) the value of wood
residuals delivered to a qualified renewable biomass facility. The clean
energy property tax credits apply to solar, wind and energy efficiency
projects, geothermal heat pumps, and certain biomass equipment for
making electricity. The clean energy property tax credit expired on
December 31, 2014. For the purposes of the Wood Residuals tax credit,
wood residuals include urban wood waste, land clearing residues, and
pellets, but not wood from a U.S. national forest.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
1
1
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
2
2
1
(m) Denotes a value of less than $1 million
Georgia Employer GED Tax Credit (previously known as the Employer's Credit for
Basic Skills Education)
Statute
48-7-41
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for H.B. 63 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.023. The 2015 provision replaces the
previous provision. The 2015 provision is capped at $1
million in aggregate credits annually.
Description: Allows an employer a tax credit against their income tax liability for the
employer incurred expenses associated with GED attainment of employees.
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1.6.035 1.6.036
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m)
(m)
1
(m)
(m)
(m)
0
0
0
(m)
(m)
1
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 for 2015
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, 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.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
12
13
13
Corporate Income Tax Expenditure
18
19
20
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
31
32
33
(m) Denotes a value of less than $1 million; may not sum due to rounding
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.025
Description: This provides a tax credit for donations made by taxpayers to a student
scholarship organization which are used for tuition and fees for a qualified
school or program.
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1.6.037 1.6.038
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
34
33
33
Corporate Income Tax Expenditure
11
11
11
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
45
45
45
(m) Denotes a value of less than $1 million; may not sum due to rounding
Qualified Investor Tax Credit
Statute
48-7-40.30
Year Enacted
2010
Year Effective
January 1, 2011; legislation modified in 2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.026
Description: This credit provides a 35 percent tax credit for amounts invested in certain
Georgia-headquartered small businesses. The credit was modified in 2015
and is now available for qualified investments made in years 2011-
2018. The aggregate value of credits awarded under this provision cannot
exceed $5 million per year.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
0
0
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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 for 2015
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.
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1.6.041 1.6.042
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
0
0
0
0
0
0
0
0
0
0
0
0
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 for 2015
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)
2015 2016 2017
Income Tax Expenditure
Estimate included
Corporate Income Tax Expenditure
in 1.6.013
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
Tax credit for purchase of alternative fuel heavy-duty or medium-duty vehicle
Statute
48-7-29.18
Year Enacted
2014
Year Effective
Taxable years beginning on or after 2015
Data Source
Fiscal Note for H.B. 404 for 2012
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.031
Description: Provides a tax credit for the purchase of an alternative fuel heavy-duty
vehicle not to exceed $20,000 or $12,000 in the case of an alternative fuel
medium-duty vehicle. The aggregate value of the credit is limited to $2.5
million in each fiscal year beginning with fiscal year 2016 and ending with
fiscal year 2017. The credit is applicable to purchases made on or after July
1, 2015 and before July 30, 2017.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
0
(m)
(m)
Corporate Income Tax Expenditure
0
1
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
1
2
(m) Denotes a value of less than $1 million; may not sum due to rounding
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1.6.043
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.032
Description: Depository financial institutions are allowed a credit against their state
income tax liability equal to the sum of the amount of business licenses
taxes paid to local governments and any special state occupation tax paid to
the state.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
9
10
10
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
10
11
11
(m) Denotes a value of less than $1 million
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Income tax expenditures for which an estimate is not currently available
Expenditure Statute
Summary
1.4.006
48-7-27 Certain military income
1.4.009
48-7-27 Certain dependent's unearned income
1.4.011
48-7-27 Salaries and wages reduced from Federal taxable income because of the
Federal Jobs Tax Credit
1.4.012
48-7-27 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
1.4.013
48-7-27 Depreciation because of differences in Georgia and Federal law during
tax years 1981 through 1986
1.4.014
48-7-27 Income from any fund, program or system which is exempted by
federal law or treaty
1.4.015
48-7-27 Certain income in which the Sub-S election is not recognized by
Georgia or another state in order to avoid double taxation
1.4.016
48-7-27 Adjustment for certain teachers retired from the Teachers Retirement
System of Georgia
1.4.017
48-7-27 Amount claimed by certain employers in food and beverage
establishments
1.4.018
48-7-27 Adjustment of certain payments to minority subcontractors
1.4.019
48-7-27 Adjustments to federal AGI for certain Georgia resident partners
1.4.020
48-2-100 Exemption for certain disaster relief firms
1.6.015
48-7-40.25 New Manufacturing Facilities Property Credit
1.6.039
48-7-40.10 Tax credit for water conservation facilities and qualified water
conservation investment property
1.6.040
48-7-40.11 Tax credit for shift from groundwater usage
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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 current rate of 6 percent was adopted in 1969. The Georgia corporate income tax does not include a minimum level of exempt income and includes only one income tax bracket.
Corporate tax collections for FY 2014 were $885 million or 5 percent of total state tax revenues. Approximately 274,000 corporate returns were filed for CY 2014. All revenue collected from this tax is deposited into the State General Fund.
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. Whereas 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 because of 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. 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.
83 | P a g e
2.1 Federal Corporate Exclusions
2.1.001 2.1.002 2.1.003 2.1.004 2.1.005 2.1.006
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)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of interest on state and local government private activity bonds
Federal Statute IRC Section 103,141,142 and 146
Description: Interest earned on qualified private activity bonds is tax exempt.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of contributions in aid of construction for water and sewer utilities
Federal Statute IRC Section 118(c)
Description: Qualifying contributions in aid of construction received by regulated water
and sewage disposal utilities are not included in the utility's gross income
under certain conditions.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of earnings of certain environmental settlement funds
Federal Statute IRC Section 468B
Description: Under certain conditions environmental settlement funds are exempt from
tax.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of certain agricultural cost-sharing payments
Federal Statute IRC Section 126
Description: Grants made for the purpose of conserving soil and water resources or
protecting the environment are excluded from the recipient's gross income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of gain or loss on sale or exchange for brownfield property Federal Statute IRC Section 512 and 514 Description: Qualifying brownfield property that is acquired from an unrelated party,
subject to remediation, and sold to another unrelated party is exempt from
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2.1.008 2.1.009 2.1.010
unrelated business income tax.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of disaster mitigation payments
Federal Statute IRC Section 139
Description: Payments made for disaster mitigation under the Robert T. Stafford
Disaster Relief and Emergency Insurance Act or the National Flood
Insurance Act is excluded from income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of interest on public purpose state and local government bonds
Federal Statute IRC Sections 103, 141 and 146
Description: Interest income of qualifying governmental bonds is excluded from taxable
income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Various foreign provisions including inventory property sales source rule exception,
interest expense allocation, deferral of active income of controlled foreign corporations,
deferral of active financing income
Federal Statute IRC Sections 861-863, 865, 953-954, 864
Description: These provisions provide certain exceptions to the general treatment of
foreign sourced income.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
273 300
317
(m) Denotes a value of less than $1 million
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2.2 Federal Corporate Deductions
2.2.001 2.2.002 2.2.003 2.2.004 2.2.005
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS), the
cost of tangible depreciation property of certain energy property is allowed
a shorter depreciation period. Taxpayers are allowed to depreciate the
costs of new rental housing and certain other buildings and equipment on
an accelerated schedule.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
Deduction of expenditures on energy-efficient commercial building property
Federal Statute IRC Section 179D
Description: This provision provides a formula-based tax deduction for all or part of the
cost of energy-efficient commercial building property placed in service after
December 31, 2005 and before January 1, 2014.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Deduction of exploration and development costs of nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617,56,1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Expensing of research and development costs in lieu of the R&D tax credit
Federal Statute IRC Section 174 and 59e
Description: This provision allows a business taxpayer to deduct certain research
expenditures that are paid or incurred in connection with the taxpayer's
trade or business.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
8
8
(m) Denotes a value of less than $1 million
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2.2.006 2.2.007
2.2.008 2.2.009 2.2.011
Expensing of magazine circulation expenditures
Federal Statute IRC Section 173
Description: In general, current federal tax law allows publishers of newspapers,
magazines, and other periodicals to deduct their expenditures to maintain,
establish, or increase circulation in the year in which they are made.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas, or other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible drilling
and development costs.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
Special treatment of expenses related to timber production
Federal Statute IRC Sections 194, 263A(c)(5)
Description: This provision allows expensing of production costs of growing timber.
Taxpayers are also allowed different depreciation practices for qualified
reforestation expenses.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
3
4
(m) Denotes a value of less than $1 million
Deduction of charitable contributions (includes deductions for health, education, and for
purposes other than health and education)
Federal Statute IRC Sections 170 and 642(c)
Description: Subject to certain limitations, charitable contributions may be deducted by
taxpayers.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
14 15
15
(m) Denotes a value of less than $1 million
Expensing under IRC section 179 of depreciable business property
Federal Statute IRC Section 179
Description: Within certain limits, a taxpayer may elect to deduct, as a current expense,
the cost of qualifying property in the tax year when it is placed in service.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
(m)
(m)
(m) Denotes a value of less than $1 million
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2.2.012 2.2.014 2.2.015 2.2.016 2.2.017
Amortization of air pollution control facilities
Federal Statute IRC Section 169(d)(5)
Description: This provision allows plants placed in service after January 1, 1976 the
option of amortizing investments in pollution control equipment for coal-
fired electric generation plants.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
1
(m) Denotes a value of less than $1 million
Various agricultural expensing provisions
Federal Statute IRC Section 175, 180, 1231
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning, and the costs
associated with raising dairy and breeding cattle.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Community and regional development incentives
Federal Statute IRC Sections 38(b), 39(d), 45A, 280C(a), 1391-1397D and 1400F,H,I
and J
Description: Communities designated as empowerment zones and renewable
communities are eligible for special development incentives.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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 $15,000 of expenses
incurred in a single year for removing physical barriers to handicap or
elderly individuals in qualified facilities or public transportation vehicles
owned or leased by the taxpayer.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Inventory methods and valuation
Federal Statute IRC Section 475, 491-492
Description: This provision allows taxpayers to use alternative inventory systems to
determine the cost of goods sold.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
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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)
2015 2016 2017
State Tax Expenditure
-3
-3
-3
(m) Denotes a value of less than $1 million
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2.3 Special Federal Corporate Conformity Provisions
2.3.001 2.3.002 2.3.003 2.3.004 2.3.005 2.3.006
Like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like
kind no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
22 21
22
(m) Denotes a value of less than $1 million
Special rules for magazine, paperback book, and record returns
Federal Statute IRC Section 458
Description: Publishers and distributors of magazines, paperbacks, and records may
elect to exclude from gross income for a tax year, the income from the sale
of goods that are returned after the close of the tax year.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Five-year carryback for net operating losses attributable to farming
Federal Statute IRC Section 172
Description: Current law provides a five-year carryback period for losses related to
farming. The normal carryback period for losses is two years.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Special rules for mining reclamation reserves
Federal Statute IRC Section 468
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Cash accounting, other than agriculture
Federal Statute IRC Sections 446 and 448
Description: The cash method of accounting may be used by any business taxpayer that
is not a tax shelter and falls into at least one of three specified categories.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Deferral of gain on non-dealer installment sales Federal Statute IRC Sections 453 and 453A(b)
90 | P a g e
2.3.007 2.3.008 2.3.009
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
14 13
13
(m) Denotes a value of less than $1 million
Completed contract rules
Federal Statute IRC Section 460
Description: Some taxpayers with construction or manufacturing contracts extending for
more than one tax year are allowed to report some or all of the profit on the
contracts under special accounting rules rather than the normal rules of tax
accounting.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax on
certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6),1042,497(e)(7),
4978,4979A, 422-423
Description: ESOPs are provided special tax treatment. Employer contributions may be
deducted as a business expense. In addition, some contributions are
subject to less restrictive limits than contributions to other employee benefit
plans. Tax on qualified employee stock purchase plans are not taxed when
granted or excised. Tax is deferred until stock is sold.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Deferral of capital construction costs of shipping companies
Federal Statute IRC Section 7518
Description: U.S. operators of vessels in foreign, or domestic commerce of the U.S.,
or in U.S. fisheries, may establish a capital construction
fund into which they may make certain tax deductible deposits. In
addition, the earnings on the deposits are tax deferred.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m) (m)
(m)
(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 "throwout 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 throwout 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 among 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.
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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
Corporate income tax 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
2.5.003
48-2-100 Exemption for certain disaster relief firms
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2.6 Georgia Credits
2.6.001 2.6.002
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 for 2015 and Office of Insurance and Safety Fire
Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate includes the tax credit for expanding business
(2.6.030) and the new facilities job credit (2.6.003). The
same estimate is provided in the income tax section and the
insurance premium tax section, see 1.6.012 and 5.00200
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.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
8
8
8
Corporate Income Tax Expenditure
60
62
62
Insurance Premium Tax Expenditure
2
2
3
State Tax Expenditure
70
71
73
(m) Denotes a value of less than $1 million; may not sum due to rounding
Quality Jobs Tax Credit
Statute
48-7-40.17
Year Enacted
2009
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.013.
Description: This credit is for employers creating new high-wage jobs or relocating high-
wage jobs into the state. A quality job or high-wage job has 30 hours a
week of regular work; a job that is not already located in Georgia; and pays
at or above 110 percent of the average wage of the county in which it is
located.
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2.6.003 2.6.005
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
1
Corporate Income Tax Expenditure
30
34
37
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
30
35
38
(m) Denotes a value of less than $1 million; may not sum due to rounding
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 January 1, 2009
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section,
see 1.6.014
Description: For business enterprises that first qualified in a taxable year beginning
before January 1, 2009, $450 million in qualified investment property
must be purchased for the project within a six-year period. The
manufacturer must also create at a minimum 1,800 new jobs within a
six-year period and can receive credit for up to a maximum of 4,500
jobs. 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 full-time employees
and either the qualified investment requirement of $450 million in
qualified investment property, or the payroll requirement of $150
million in total annual Georgia W-2 reported payroll within the six-
year period.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
Estimate included
Corporate Income Tax Expenditure
in 2.6.001
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.016
Description: Taxpayer must invest a minimum of $50,000 per project per location
during the tax year to receive credit. Eligible taxpayers must be in operation
for the immediately preceding three years. Leased property for a period of
five years or longer is eligible for the credit.
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2.6.006 2.6.007
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
13
14
14
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
15
15
16
(m) Denotes a value of less than $1 million; may not sum due to rounding
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.017
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 $20 million for tier 3 and 4 counties.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
1
1
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Port Activity Tax Credit
Statute
48-7-40.15
Year Enacted
1998
Year Effective
Latest modifications apply to taxable years beginning on or
after January 1, 2010
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.008. The same estimate is
provided in the income tax section, see 1.6.018.
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more
than 10 percent over 75 net tons, five containers or 10 20-foot equivalent
units (TEU's) during the previous 12-month period are qualified for
increased job tax credits or investment tax credits. For taxable years
beginning on or after January 1, 2010, the increase is based on a
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2.6.008 2.6.009
comparison of the previous 12-month period to the second preceding 12-
month period.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
6
6
6
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
6
6
6
(m) Denotes a value of less than $1 million
Alternative Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.007. The same estimate is
provided in the income tax section, see 1.6.019.
Description: Credit is allowed to any business enterprise located in a tier 2 or 3
county or in a less developed area and which qualifies and receives the
Jobs Tax Credit and which
1. Consists of a distribution facility of greater than 650,000 square feet
in operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or
its subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
Estimate included
Corporate Income Tax Expenditure
in 2.6.007
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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 $500,000 of qualified
expenditures in a state-certified production may claim this credit.
Certification must be approved through the Georgia Department of
Economic Development. There are special provisions relating to the tax
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2.6.010 2.6.011
credits awarded to interactive entertainment companies. Under the 2015
modifications to this provision, interactive entertainment companies are
eligible to claim this credit for tax years before January 1, 2019.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
148
166
187
Corporate Income Tax Expenditure
95
107
121
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
243
272 308
(m) Denotes a value of less than $1 million; may not sum due to rounding
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.021
Description: This credit is for expenses resulting from research conducted in Georgia by
businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
33
21
22
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
34
22
23
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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.
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2.6.012 2.6.014
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m)
(m)
(m)
(m)
(m)
(m)
0
0
0
(m)
(m)
(m)
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Qualified Transportation Credit
Statute
48-7-29.3
Year Enacted
1999
Year Effective
Taxable years beginning on or after January 1, 2001
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.025
Description: A tax credit provided to employers for the cost of providing any federally
qualified transportation benefit to an employee.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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2.6.015 2.6.016 2.6.017
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data for 2015
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.026
Description: This is a credit given to a business enterprise for the purchase of a motor
vehicle that is used exclusively to provide transportation for its employees.
In order to qualify, a business enterprise must certify that each vehicle
carries an average daily ridership of not less than four employees for an
entire taxable year.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Employer's Credit for providing or sponsoring child care for employees and employer's
credit for purchasing child care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994; Credit for Cost of Qualified Child
Care Property: taxable years beginning on or after January 1,
2000.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.027
Description: Tax credit for expenses related to an employer who purchases qualified
child care property; and a tax credit for employers who provide or sponsor
child care for employees.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
3
3
4
Corporate Income Tax Expenditure
7
7
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
10
10
10
(m) Denotes a value of less than $1 million; may not sum due to rounding
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data for 2015
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2.6.018 2.6.019
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section and
the insurance premium tax section, see 1.6.028 and 5.00700
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal Low-Income Housing tax credit
and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
60
64
69
Corporate Income Tax Expenditure
25
27
29
Insurance Premium Tax Expenditure
105
112
120
State Tax Expenditure
190
203 218
(m) Denotes a value of less than $1 million
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data for 2015 and Fiscal Note for H.B. 308 for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the income tax section, see
1.6.029.
Description: A credit for the certified rehabilitation of a certified structure or historic
home. Standards set by the Georgia Department of Natural Resources must
be met. This credit was modified in 2015 to allow unused credits to be
assigned or sold to other taxpayers.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
2
2
28
Corporate Income Tax Expenditure
0
0
4
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
2
2
32
(m) Denotes a value of less than $1 million
Diesel Particulate Emission Reduction Technology Equipment Credit
Statute
48-7-40.19
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.030
Description: This is a credit given to any person who installs diesel particulate emission
reduction equipment at any truck stop, depot, or other facility. For
purposes of this credit, diesel particulate emission reduction technology
equipment is any equipment that provides for heat, air conditioning, light,
or communications for the driver's compartment of a commercial motor
vehicle parked at a truck stop, depot, or other facility, the use of which
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2.6.020 2.6.021
results in the engine being turned off with a corresponding reduction of
particulate emissions from such vehicle's diesel engine.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
0
0
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Low- & Zero-emission Vehicle Credit & Electric Vehicle Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.031. This credit has been repealed for all vehicle
purchases or leases occurring on or after July 1, 2015.
Description: This is a credit for the purchase or lease of a new zero- or low-emission
vehicle that is registered in the state of Georgia. The credit also applies to
the conversion of a standard vehicle to a zero- or low-emission vehicle. In
addition, the credit applies to the purchase of an electric vehicle charger.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
36
28
3
Corporate Income Tax Expenditure
(m)
(m)
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
36
28
3
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.032
Description: This is an income tax credit for the qualified donation of real property that
qualifies as conservation land pursuant to Chapter 22 of Title 36. This credit
was modified in 2015 such that the aggregate value of credits awarded
under this provision cannot exceed $30 million per year and no new credit
applications will be accepted after December 31, 2016.
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2.6.022 2.6.023
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
24
34
15
Corporate Income Tax Expenditure
1
1
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
24
35
15
(m) Denotes a value of less than $1 million; may not sum due to rounding
Clean Energy Property & Wood Residuals Credit
Statute
48-7-29.14
Year Enacted
2008
Year Effective
July 1, 2008
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.033
Description: The Georgia Clean Energy Property and Wood Residuals tax credit includes
two general types of income tax credits: 1) investments in the construction,
purchase or lease of clean energy property, and 2) the value of wood
residuals delivered to a qualified renewable biomass facility. The clean
energy property tax credits apply to solar, wind and energy efficiency
projects, geothermal heat pumps, and certain biomass equipment for
making electricity. The clean property tax credit expired on December 31,
2014. For the purposes of the wood residuals tax credit, wood residuals
include urban wood waste, land clearing residues, and pellets, but not wood
from a U.S. national forest.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
1
1
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
2
2
1
(m) Denotes a value of less than $1 million
Georgia Employer GED Tax Credit (previously known as the Employer's Credit for
Basic Skills Education)
Statute
48-7-41
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for H.B. 63 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.034. The 2015 provision replaces the previous provision.
The 2015 provision is capped at $1 million in aggregate
credits annually.
Description: Allows an employer a tax credit against their income tax liability for
the employer incurred expenses associated with GED attainment of
employees.
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2.6.024 2.6.025
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m)
(m)
1
(m)
(m)
(m)
0
0
0
(m)
(m)
1
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
12
13
13
Corporate Income Tax Expenditure
18
19
20
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
31
32
33
(m) Denotes a value of less than $1 million; may not sum due to rounding
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.036
Description: This provides a tax credit for donations made by taxpayers to a student
scholarship organization which are used for tuition and fees for a qualified
school or program.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
34
33
33
Corporate Income Tax Expenditure
11
11
11
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
45
45
45
(m) Denotes a value of less than $1 million; may not sum due to rounding
105 | P a g e
2.6.026 2.6.027 2.6.030
Qualified Investor's Tax Credit
Statute
48-7-40.30
Year Enacted
2010
Year Effective
January 1, 2011; legislation modified in 2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.037
Description: This credit provides a 35 percent tax credit for amounts invested in certain
Georgia headquartered small businesses. The credit was modified in 2015
and is now available for qualified investments made in years 2011-
2018. The aggregate value of credits awarded under this provision cannot
exceed $5 million per year.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
0
0
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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 $2,500, whichever is less.
The credit is only available for those tax years in which federal funds are
made available to the state for this purpose.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
0
0
0
Corporate Income Tax Expenditure
0
0
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
Tax credit for existing business enterprises undergoing qualified business expansion
Statute
48-7-40.21
Year Enacted
2001
Year Effective
Latest modifications are applicable to tax years beginning
on or after January 1, 2008
106 | P a g e
2.6.031 2.6.032
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.041
Description: This credit applies to businesses that create at least 500 new full-time
jobs within a taxable year.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
Estimate included in Provision 2.6.002.
Corporate Income Tax Expenditure
Insurance Premium Tax Expenditure
State Tax Expenditure
(m) Denotes a value of less than $1 million
Tax credit for purchases of alternative fuel heavy-duty or medium-duty vehicle
Statute
48-7-29.18
Year Enacted
2014
Year Effective
Taxable year beginning on or after 2015
Data Source
Fiscal Note for H.B. 404 for 2012
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the individual income tax
section, see 1.6.042
Description: Provides a tax credit for the purchase of an alternative fuel heavy-duty
vehicle not to exceed $20,000 or $12,000 in the case of an alternative fuel
medium-duty vehicle. The aggregate value of the credit is limited to $2.5
million in each fiscal year beginning with fiscal year 2016 and ending with
fiscal year 2017. The credit is applicable to purchases made on or after July
1, 2015 and before July 30, 2017.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
0
(m)
(m)
Corporate Income Tax Expenditure
0
1
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
1
2
(m) Denotes a value of less than $1 million; may not sum due to rounding
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the 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 licenses
taxes paid to local governments and any special state occupation tax paid to
the state.
107 | P a g e
Income Tax Expenditure Corporate Income Tax Expenditure Insurance Premium Tax Expenditure State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
1
1
1
9
10
10
0
0
0
10
11
11
108 | P a g e
Corporate income tax credits for which an estimate is not currently available
Expenditure 2.6.004
2.6.028
2.6.029
Statute 48-7-40.25
48-7-40.10
48-7-40.11
Summary New Manufacturing Facilities Property Credit Tax credit for water conservation facilities and qualified water conservation investment property Tax credit for shift from groundwater usage
109 | P a g e
3. Corporate Net Worth Tax
Georgia imposes a tax on the net worth of corporations. 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. Revenues from this tax totaled $40 million in FY 2014. All revenues from this tax are deposited into the State General Fund.
The tax is graduated based upon the taxable net worth of the corporation. The minimum liability is $10 for corporations having $10,000 or less in taxable net worth. The maximum liability is $5,000 for corporations with taxable net worth of more than $22 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 Exemptions from the Net Worth Tax
110 | P a g e
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. In FY 2014 the state sales and use tax generated $5.1 billion and accounted for approximately 29 percent of state tax revenues. All proceeds from the state sales and use tax net of the vendor commission are deposited into the State General Fund.
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 a 1 to 3 percent sales tax with a few exceptions. The local sales taxes in most counties 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). In addition, Atlanta also levies another 1 percent sales tax to cover expenses related to sewer repairs and two counties levy a Homestead Option Sales Tax (HOST). Lastly, 46 counties implemented a 1 percent Transportation Sales Tax (TSPLOST) beginning January 1, 2013.
In general, the local tax base is consistent with the state sales tax base; the major exception being food for home consumption which is included in the local sales tax base, but not in the state base. The sales tax is remitted to the Georgia DOR by the retailer. The use tax is remitted by the consumer in cases where the retailer does not collect and remit sales tax.
For purposes of this report, the base of taxation for the sales and use tax is defined to include mainly tangible personal property. For example, food for home consumption consists of tangible property that is not included in the sales tax base at the state level and is listed as a state sales tax exemption. On the other hand, all or most services are also excluded from the state and local tax base. This report provides estimates of some services that are indirectly exempt from the sales tax.
Lastly, this report identifies each sales tax expenditure used as a business input. This designation allows the reader to distinguish between tax expenditures that are provided for reasons of reducing economic distortions and those provided on the basis of more societal reasons, while still providing a comprehensive list of all statutory 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
111 | P a g e
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)
2015 2016 2017
State Tax Expenditure
9
9
10
Local Tax Expenditure
6
6
7
(m) Denotes a value of less than $1 million
4.00500
Sales of transportation furnished by an approved and authorized urban transit system
Statute
48-8-3(5)
Year Enacted
1970
Year Effective
1970
Data Source
National Transit Database
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate Combined With 4.00400
Description: Fares and charges, except charges for charter or sightseeing service,
collected by an urban transit system for the transportation of
passengers.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
Estimate Combined
Local Tax Expenditure
with 4.00400
(m) Denotes a value of less than $1 million
4.00600
Sales to any Hospital Authority created by Georgia law
Statute
48-8-3(6)
Year Enacted
1976
Year Effective
1976
Data Source
Georgia Office of Planning and Budget and IRS Form 990
Data
Estimate Reliability
Class B
Data Reliability
Class B
Note
Estimate Combined with 4.00700
Description: Sales to any hospital authority created by Article of Chapter 7 of Title
31.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
Estimate Combined
Local Tax Expenditure
with 4.00700
(m) Denotes a value of less than $1 million
4.00610
Sales to any Housing Authority created by Georgia law
Statute
48-8-3(6.1)
Year Enacted
1999
Year Effective
1999
Data Source
Georgia Department of Community Affairs and the
112 | P a g e
American Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sales to any housing authority created by Article 1 of Chapter 3 of Title 8.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
2
(m) Denotes a value of less than $1 million
4.00620
Sales to local government authorities created on or after January 1, 1980 for the principal
purpose of constructing, owning, or operating a coliseum and related facilities
Statute
48-8-3(6.2)
Year Enacted
2002
Year Effective
2002
Data Source
Georgia Department of Community Affairs
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales to local government authorities created on or after January 1, 1980 for
the principal purpose of constructing, owning, or operating a coliseum and
related facilities.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.00630
Sales to any agricultural commission created by the Department of Agriculture
Statute
48-8-3(6.3)
Year Enacted
2002
Year Effective
2002
Data Source
Georgia Department of Agriculture and the Georgia Office of
Planning and Budget
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales to any agricultural commission created by the Department of
Agriculture.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00700
Sales of tangible personal property and services to an approved nursing home, inpatient
hospice, general hospital or mental hospital when used specifically in the treatment
function
Statute
48-8-3(7)
Year Enacted
1971
Year Effective
1971
113 | P a g e
Data Source
DOR data for 2009 and IRS Form 990 data
Estimate Reliability
Class B
Data Reliability
Class B
Note
Estimate Combined with 4.00600
Description: Sales of tangible personal property and services to an approved nursing
home, inpatient hospice, general hospital or mental hospital when used
specifically in the treatment function.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
93
97
101
Local Tax Expenditure
70
73
76
(m) Denotes a value of less than $1 million
4.00705
Sales of tangible personal property to a non-profit health center established and receiving
funds pursuant to the U.S. Public Health Service Act
Statute
48-8-3(7.05)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426/2015 LC 34 4527
Estimate Reliability
Class C
Data Reliability
Class B
Note
This exemption was eliminated in 2010 and reinstated in
2015. This provision is scheduled to expire on June 30, 2018.
Description: Sales of tangible personal property to a non-profit health center
established and receiving funds pursuant to the U.S. Public Health Service
Act.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
(m)
(m)
1
(m) Denotes a value of less than $1 million
4.00710
Sales of tangible personal property and services to a nonprofit organization whose
primary function is to provide services to persons with intellectual disabilities
Statute
48-8-3(7.1)
Year Enacted
2001
Year Effective
2002
Data Source
U.S. Economic Census and American Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sales of tangible personal property and services to a nonprofit organization,
the primary function of which is the provision of services to persons with
intellectual disabilities, when such organization is a tax exempt organization
under the Internal Revenue Code and obtains an exemption determination
letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
114 | P a g e
4.00720
Sales to Georgia Society of the Daughters of the American Revolution
Statute
48-8-3(7.2)
Year Enacted
2002
Year Effective
2002
Data Source
IRS 990 Form Data
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property or services to any chapter of the Georgia
State Society of the Daughters of the American Revolution which is tax
exempt under IRS Code Section 501(c)(3) and obtains an exemption
determination letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00730
Sales of tangible property and services to a nonprofit volunteer health clinic primarily
treating patients with incomes below 200 percent of the poverty level
Statute
48-8-3(7.3)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426/2015 LC 34 4527
Estimate Reliability
Class C
Data Reliability
Class C
Note
This exemption was eliminated in 2010 and reinstated in
2015. This provision is scheduled to expire on June 30, 2018.
Description: Sales of tangible personal property and services to a nonprofit volunteer
health clinic primarily treating patients with incomes below 200 percent of
the poverty level.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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
Description: Sales of tangible personal property and services to the University System of
Georgia and its educational units.
115 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
35
36
37
24
25
26
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
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)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.01100
Sale of tangible personal property or services to, and the purchase of tangible personal
property or services by, any educational or cultural institute
Statute
48-8-3(11)
Year Enacted
1968
Year Effective
1968
Data Source
Comprehensive Bill for HB 445/2015 LC 34 4571S
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sales of tangible personal property or services to, and the purchase of
tangible personal property or services by, any educational or cultural
institute which: (A) Is tax exempt under Section 501(c)(3) of the Internal
Revenue Code; (B) Furnishes at least 50 percent of its programs through
universities and other institutions of higher education in support of their
educational programs; (C) Is paid for by government funds of a foreign
country; and (D) Is an instrumentality, agency, department, or branch of a
foreign government operating through a permanent location in this state.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01200
School lunches sold and served to pupils and employees of public schools
Statute
48-8-3(12)
Year Enacted
1953
Year Effective
1953
116 | P a g e
Data Source
Georgia School Nutrition Association and the Georgia
Department of Education
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: School lunches sold and served to pupils and employees of public schools.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
7
6
Local Tax Expenditure
5
5
4
(m) Denotes a value of less than $1 million
4.01300
School lunches sold and served to pupils and employees of approved private schools
Statute
48-8-3(13)
Year Enacted
1967
Year Effective
1967
Data Source
Georgia School Nutrition Association and the National
Center of Education Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: School lunches sold and served to pupils and employees of approved private
schools.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01500
Specific fundraising sales by any religious institution lasting no more than 30 days in a
calendar year and sales of religious paper when the paper is owned and operated by the
religious institution
Statute
48-8-3(15B)
117 | P a g e
Year Enacted
1953
Year Effective
1953
Data Source
The National Center for Charitable Statistics
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sales of any religious paper in this state when the paper is owned and
operated by religious institutions or denominations and no part of the net
profit from the operation of the institution or denomination inures to the
benefit of any private person when the number of days upon which the
fundraising activity occurs does not exceed 30 in any calendar year.
State Fiscal Years ($ in Millions)
2015 2016 2017
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01700
Sales of fuel or consumable supplies used by ships engaged in inter-coastal or foreign
commerce
Statute
48-8-3(17)
Year Enacted
1951
Year Effective
1951
Data Source
U.S. Energy Information Administration, U.S. Department
of Energy
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sales of fuel or consumable supplies used by ships engaged in inter-coastal
or foreign commerce.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
24
21
18
Local Tax Expenditure
16
14
13
(m) Denotes a value of less than $1 million
4.02000 Water delivered through water mains, lines, or pipes
Statute
48-8-3(20)
118 | P a g e
Year Enacted
1966
Year Effective
1966
Data Source
The Bureau of Labor Statistics Consumer Expenditure
Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale of water delivered to consumers through water mains, lines, or
pipes.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
See estimate for Residential
Local Tax Expenditure
Utilities Service (4.5009)
(m) Denotes a value of less than $1 million
4.02200
Professional, insurance or personal service transactions which involve sales as
inconsequential elements for which no separate charge is made
Statute
48-8-3(22)
Year Enacted
1951
Year Effective
1951
Data Source
US Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Professional, insurance or personal service transactions which involve
sales as inconsequential elements for which no separate charge is made.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
See expenditure estimates for
Local Tax Expenditure
services (4.50003, 4.50010, 4.50011)
(m) Denotes a value of less than $1 million
4.02300
Repair services when a separate charge is made to the customer
Statute
48-8-3(23)
Year Enacted
1951
Year Effective
1951
Data Source
US Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Repair services when a separate charge is made to the customer.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
See expenditure estimates for
Local Tax Expenditure
Services (4.50003, 4.50010, 4.50011)
(m) Denotes a value of less than $1 million
4.03000
Vehicles purchased by service-connected disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase the specially adapted vehicle
Statute
48-8-3(30)
Year Enacted
1972
Year Effective
1972
119 | P a g e
Data Source
The American Community Survey and Fiscal Note for
HB 259/2011 LC 5481
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The sale of a vehicle to a service-connected disabled veteran when the
veteran received a grant from the United States Department of Veterans
Affairs to purchase and specially adapt the vehicle to the veteran's
disability.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03310
Partial sales tax exemption for jet fuel sold to or used by a qualifying airline at a
qualifying airport
Statute
48-8-3(33.1); 48-9-3
Year Enacted
2011
Year Effective
2011
Data Source
Fiscal Note for HB 386 LC 34 3474S
Estimate Reliability
Class A
Data Reliability
Class A
Note
Exemption has been eliminated as of June 30, 2015.
Description: Partial sales tax exemption for jet fuel sold to or used by a qualifying
airline at a qualifying airport.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
21
0
0
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
4.03420
Machinery and equipment used directly to remanufacture certain aircraft engines or
aircraft engine parts
Statute
48-8-3(34.2)
Year Enacted
1996
Year Effective
1996
Data Source
U.S. Economic Census and The Federal Trade Commission
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Machinery and equipment used directly to remanufacture certain aircraft
engines or aircraft engine parts.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.03600
Machinery and equipment used in a facility for the primary purpose of reducing or
eliminating air and water pollution
Statute
48-8-3(36)
120 | P a g e
Year Enacted
1972
Year Effective
1972
Data Source
Fiscal Note for HB 445 LC 40 4571S
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Machinery and equipment used in a facility for the primary purpose of
reducing or eliminating air and water pollution
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.03800
Sale of tangible personal property and fees and charges for services by the Rock Eagle 4-
H center
Statute
48-8-3(38)
Year Enacted
1976
Year Effective
1976
Data Source
Comprehensive Bill for HB 445/2015 LC 34 4571S
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of tangible personal property and fees and charges for services by the
Rock Eagle 4-H center.
State Fiscal Years ($ in Millions)
2015 2016 2017
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)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
121 | P a g e
4.04000
Sale of major components or repair parts installed in military aircraft, vehicles, or missiles
Statute
48-8-3(40)
Year Enacted
1965
Year Effective
1965
Data Source
USASpending.gov and the U.S. Economic Census
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sale of major components or repair parts installed in military aircraft,
vehicles, or missiles.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
31
31
24
Local Tax Expenditure
22
21
16
(m) Denotes a value of less than $1 million
4.04100
Sale of tangible personal property and services to a nonprofit child-caring institution,
child-placing agency, or maternity home
Statute
48-8-3(41)
Year Enacted
2004
Year Effective
2004
Data Source
U.S. Economic Census
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales of tangible personal property and services to a child-caring institution
as defined in paragraph (1) of Code Section 49-5-3; a child-placing agency
as defined in paragraph (2) of Code Section 49-5-3, or maternity home as
defined in paragraph (14) of Code Section 49-5-3, when such institution,
agency, or home is engaged primarily in providing child services and is a
non-profit, tax-exempt organization under Section 501(c)(3) of the IRS
revenue code.
State Fiscal Years ($ in Millions)
2015 2016 2017
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
U.S. Economic Census and DOR
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,
amusement, entertainment, or pleasure.
122 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
3
3
3
2
2
2
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)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.04700
Sale of drugs dispensed by prescription, prescription glasses, contact lenses, contact lens
samples and sales or use of certain controlled substances or dangerous drugs
Statute
48-8-3(47)
Year Enacted
1984
Year Effective
1985
Data Source
State Health Expenditures from the Centers for Medicare
and Medicaid Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sale or use of drugs that are lawfully dispensable only by prescription for
the treatment of natural persons; prescription eyeglasses and contact lenses;
prescription contact lens samples; drugs dispensable by prescription for the
treatment of natural persons without charge to physicians, hospitals, etc. by
pharmaceutical manufacturers or distributors; drugs and durable medical
equipment dispensed or distributed without charge solely for the purposes of
a clinical trial approved by the FDA or an institutional review board.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
430 452 475
Local Tax Expenditure
297 312 328
(m) Denotes a value of less than $1 million
4.04800
Sale of crab bait to licensed commercial fishermen
Statute
48-8-3(48)
Year Enacted
1985
Year Effective
1985
Data Source
Georgia Department of Natural Resources and the U.S.
Economic Census
Estimate Reliability
Class C
123 | P a g e
4.05000 4.05100 4.05200
Data Reliability
Class C
Note
Description: Sale of crab bait to licensed commercial fisherman.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Sales of insulin syringes and blood glucose level measuring strips dispensed without a
prescription
Statute
48-8-3(50)
Year Enacted
1986
Year Effective
1986
Data Source
The Centers for Disease Control and Prevention and the
Medical Expenditures Panel Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
This estimate differs from the previous years report due to
new data
Description: Sale of blood measuring devices, monitoring equipment, or insulin delivery
systems used exclusively by diabetics; insulin, insulin syringes and blood
glucose monitoring strips when dispensed without a prescription.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
21
22
23
Local Tax Expenditure
15
15
16
(m) Denotes a value of less than $1 million
Sale of oxygen when prescribed by a licensed physician
Statute
48-8-3(51)
Year Enacted
1986
Year Effective
1986
Data Source
U.S. Economic Census and the Medical Expenditure Panel
Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sale of oxygen when prescribed by a licensed physician.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Sale or use of hearing aids
Statute
48-8-3(52)
Year Enacted
1986
Year Effective
1986
Data Source
Fiscal Note for LC 25 4850/2007 and the Kaiser Family
Foundation
Estimate Reliability
Class A
124 | P a g e
Data Reliability
Class B
Note
Description: Exempts the sale of approved hearing aids from sales and use tax.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
4
4
4
Local Tax Expenditure
3
3
3
(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)
2015 2016 2017
State Tax Expenditure
114
113
113
Local Tax Expenditure
86
84
84
(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)
2015 2016 2017
State Tax Expenditure
39
41
42
Local Tax Expenditure
27
28
29
(m) Denotes a value of less than $1 million
4.05500
Sale of Georgia lottery tickets
Statute
48-8-3(55)
Year Enacted
1992
Year Effective
1992
Data Source
Georgia Lottery Commission Annual Report
Estimate Reliability
Class A
Data Reliability
Class A
Note
125 | P a g e
Description: Sale of lottery tickets authorized by Chapter 27 of Title 50.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
163 166 169
Local Tax Expenditure
112 113 117
(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)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05700
Food purchased for off-premises consumption
Statute
48-8-3(57)
Year Enacted
1996
Year Effective
1998
Data Source
U.S. Consumer Expenditure Survey
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Exemption applies to food items consumed off-premises, including meat,
poultry, bread, milk, candy, canned soft drinks. It does not apply to
alcoholic beverages, tobacco, immediate consumption items, vitamins, and
minerals. This exemption does not apply to the local option sales tax but
does not apply to special purpose and educational option sales taxes levied
at the local level.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
469 486 499
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
4.05710
Sales of food and beverages to a qualified food bank (expires June 30, 2016)
Statute
48-8-3(57.1)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for HB 389/2014 LC 34 4513-EC
Estimate Reliability
Class B
Data Reliability
Class B
Note
Exemption was established in 2006 and expired June 30,
2010. Current exemption applies for sales between July 1,
2014 and June 30, 2016
126 | P a g e
Description: Sales of food and beverages to a qualified food bank.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
3
0
Local Tax Expenditure
2
2
0
(m) Denotes a value of less than $1 million
4.05720
Exemption for prepared food and food ingredients that are donated to a qualified
nonprofit agency and used for hunger relief purposes
Statute
48-8-3(57.2)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 389/2015 LC 34 4513-ER
Estimate Reliability
Class A
Data Reliability
Class A
Note
This exemption was eliminated in 2011 and reinstated in
2015. This provision is scheduled to expire on June 30,
2020.
Description: Exemption for persons donating prepared food and beverages to a
qualified nonprofit agency to be used for hunger relief.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.05730
Exemption for prepared food and food ingredients that are donated following a
natural disaster and used for disaster relief
Statute
48-8-3(57.3)
Year Enacted
2015
Year Effective
2015
Data Source
Comprehensive Bill for HB 445/2015 LC 34 4571S
Estimate Reliability
Class C
Data Reliability
Class B
Note
This provision is scheduled to expire on June 30, 2020
Description: Exemption for prepared food and beverages that are donated following a
natural disaster and used for disaster relief.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05900
Sale of eligible food and beverages by any Girl or Boy Scout council
Statute
48-8-3(59)
Year Enacted
1996
Year Effective
1996
Data Source
The American Community Survey, IRS Form 990 data, and
Girl Scouts of America annual report
Estimate Reliability
Class B
Data Reliability
Class B
Note
127 | P a g e
Description: Sales of food or food ingredients to and by member councils of the Girl
Scouts or Boy Scouts of America.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06000
Sale of certain machinery and equipment used to improve air quality in a clean room
of Class 100,000 or less
Statute
48-8-3(60)
Year Enacted
2000
Year Effective
2001
Data Source
Comprehensive Bill for HB 445/2015 LC 34 4571S
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of certain machinery and equipment used to improve air quality in
a clean room of Class 100,000 or less.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06200
Sod grass sold in the original state of production by the sod producer, employee of the
producer, or family member of the producer
Statute
48-8-3(62)
Year Enacted
1998
Year Effective
1998
Data Source
U.S. Census of Agriculture, the U.S. Economic Census, and
the annual Survey of Sod Producers
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sod grass sold in the original state of production by the sod producer,
employee of the producer, or family member of the producer.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06300
Funeral merchandise when paid with funds from the Georgia Crime Victims' Emergency
Fund
Statute
48-8-3(63)
Year Enacted
1998
Year Effective
1998
Data Source
The Uniform Crime Report and the National Office for
Victims of Crime
Estimate Reliability
Class C
Data Reliability
Class C
128 | P a g e
Note
Description: The sale or use of funeral merchandise, outer burial containers, and
cemetery markers as defined in Code Section 43-18-1, which are purchased
with funds received from the Georgia Crime Victims' Emergency Fund
under Chapter 15 of Title 17.
State Fiscal Years ($ in Millions)
2015 2016 2017
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06700
Sale of coins or currency
Statute
48-8-3(67)
Year Enacted
2000
Year Effective
2000
Data Source
US Mint annual report 2014
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of coins or currency.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
4
4
4
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
4.06900
Sales of machinery and equipment and material incorporated and used in a clean
room of Class 100 or less
Statute
48-8-3(69)
Year Enacted
2000
Year Effective
2001
Data Source
Comprehensive Bill for HB 445/2015 LC 34 4571S
Estimate Reliability
Class C
Data Reliability
Class C
129 | P a g e
Note
Description: Sales of machinery and equipment and material incorporated and used in
a clean room of Class 100 or less.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.07000
Sale of natural gas used directly in the manufacture of electricity
Statute
48-8-3(70)
Year Enacted
1999
Year Effective
2000
Data Source
U.S. Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale of natural gas used directly in the manufacture of electricity which is
subsequently sold.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
54
54
51
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)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.07200
Sale of wheelchairs and attachments for wheelchairs when sold to permanently disabled
individuals
Statute
48-8-3(72)
Year Enacted
1999
Year Effective
2000
Data Source
State Health Expenditures from the Centers for Medicare
and Medicaid Services and the Medical Expenditure Panel
Survey
Estimate Reliability
Class B
Data Reliability
Class B
130 | P a g e
Note
Description: Sale of wheelchairs and attachments for wheelchairs when sold to
permanently disabled individuals.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.07500
Sales tax holiday for back to school items (expired August 1, 2015)
Statute
48-8-3(75)
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 958/2014 LC 34 4112-EC
Estimate Reliability
Class A
Data Reliability
Class A
Note
Sales tax holidays for school supplies have been utilized
beginning in 2002
Description: Commencing at 12:01 A.M. on August 1, 2014, and concluding at 12:00
Midnight on August 2, 2014; and Commencing at 12:01 A.M. on July 31,
2015, and concluding at 12:00 Midnight on August 1, 2015. The sale of
articles of clothing and footwear; the single purchase of certain personal
computers including non-recreational software; and purchases of general
school supplies to be utilized in the classroom.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
40
42
0
Local Tax Expenditure
30
31
0
(m) Denotes a value of less than $1 million
4.07600
Exemption for personal property used in the renovation or expansion of an aquarium
Statute
48-8-3(76)
Year Enacted
Year Effective
Data Source
Fiscal Note for HB 238/2015 LC 28 7425
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: The subject bill provides an exemption from the state sales tax of tangible
personal property used for the renovation and expansion of an aquarium
owned or operated by an organization exempt from taxation under Section
501(c)(3) of the Internal Revenue Code. This bill amends a similar 2003-
2007 exemption in Code Section 48-8-3(76) that applied only to sales of
tangible personal property used for construction of an aquarium, rather than
its renovation or expansion.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
0
1
1
Local Tax Expenditure
0
(m)
(m)
(m) Denotes a value of less than $1 million
131 | P a g e
4.08100
The purchase of food and nonalcoholic beverages provided at no charge aboard a
qualified airline
Statute
48-8-3(81)
Year Enacted
2005
Year Effective
2005
Data Source
Bureau of Transportation Statistics and the Air Transport
Association
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The purchase of food and nonalcoholic beverages provided at no charge
aboard a qualified airline not including alcohol or tobacco.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
4
4
4
Local Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
4.08200
Sales tax holiday for water-efficient and energy-efficient purchases (expired October 4,
2015)
Statute
48-8-3(82)
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 958/2014 LC 34 4112-EC
Estimate Reliability
Class B
Data Reliability
Class B
Note
Sales tax holidays for energy-efficient products have been
utilized beginning in 2005
Description: Commencing at 12:01 A.M. on October 3, 2014, and concluding at 12:00
Midnight on October 5, 2014; and Commencing at 12:01 A.M. on October
2, 2015, and concluding at 12:00 Midnight on October 4, 2015. Purchase of
energy-efficient products or water-efficient products with a sales price of
$1,500 or less per product purchased for noncommercial home or personal
use.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
0
Local Tax Expenditure
1
1
0
(m) Denotes a value of less than $1 million
4.08300
Sale of biomass materials used to produce electricity or steam or used to produce
electricity or steam intended for sale
Statute
48-8-3(83)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for HB 1018/2009 LC 18 4936 and the U.S.
Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
132 | P a g e
Description: The sale or use of biomass material, including pellets or other fuels derived
from compressed, chipped, or shredded biomass material, utilized in the
production of energy, including without limitation, the production of
electricity and/or steam.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.08600
Sales of engines, parts, equipment and other tangible personal property used in the
maintenance or repair of certain aircraft
Statute
48-8-3(86)
Year Enacted
2009
Year Effective
2009
Data Source
Fiscal Note for HB 933/2014 LC 40 0540
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale or use of engines, parts, equipment, and other tangible personal
property used in the maintenance or repair of aircraft when such engines,
parts, equipment, and other tangible personal property are installed on such
aircraft that is being repaired or maintained in this state so long as such
aircraft is not registered in this State.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
20
20
20
Local Tax Expenditure
15
15
15
(m) Denotes a value of less than $1 million
4.08700
Sales of tangible personal property used to renovate or expand a zoological
institution (expires June 30, 2018)
Statute
48-8-3(87)
Year Enacted
2009
Year Effective
2009
Data Source
Fiscal Note for HB 428/2015 LC 40 0827
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property used to renovate or expand a
zoological institution.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
0
0
(m)
Local Tax Expenditure
0
0
(m)
(m) Denotes a value of less than $1 million
4.08800
Sale of tangible personal property used in the construction of a qualified civil rights
museum (expired July 30, 2015)
Statute
48-8-3(88)
Year Enacted
2009
Year Effective
2009
133 | P a g e
Data Source
Fiscal Note for HB 364/2009 LC 18 7942
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sales of tangible personal property used in the construction of a qualified
civil rights museum.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
0
0
Local Tax Expenditure
(m)
0
0
(m) Denotes a value of less than $1 million
4.09300
Sale of tangible personal property used for and in the construction of a competitive
project of regional significance, for the period commencing January 1, 2012, until June
30, 2016
Statute
48-8-3(93)
Year Enacted
2012
Year Effective
2012
Data Source
Fiscal Note for HB 958/2014 LC 34 4112-EC
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: For the period commencing January 1, 2012, until June 30, 2016, sales of
tangible personal property used for and in the construction of a competitive
project of regional significance. (B) The exemption provided in
subparagraph (A) of this paragraph shall apply to purchases made during the
entire time of construction of the competitive project of regional
significance so long as such project meets the definition of a "competitive
project of regional significance" within the period commencing January 1,
2012, until June 30, 2016.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
21
21
0
Local Tax Expenditure
15
15
0
(m) Denotes a value of less than $1 million
4.09600
Exemption for sales or use of construction materials used for or in the construction of
buildings at a private college
Statute
48-8-3(96)
Year Enacted
2015
Year Effective
2015
Data Source
Not Applicable
Estimate Reliability
Class A
Data Reliability
Class A
Note
Provision is effective for purchases made on or after July 1,
2015 and before July 1, 2016 and is limited in value to
$350,000.
Description: Allows an exemption for sales or use of construction materials used for or
In the construction of buildings at a private college.
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State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
0
(m)
0
0
(m)
0
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4.3.2 4.3.3
Exemptions 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 386S LC 34 3477S
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemptions for energy, machinery or equipment, industrial material, and
consumable supplies used in manufacturing.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3,374 3,481 3,579
Local Tax Expenditure
2,352 2,410 2,469
(m) Denotes a value of less than $1 million
Sale and use by a qualified agriculture producer of agricultural production inputs, energy
used in agriculture, and agricultural machinery and equipment
Statute
48-8-3.3
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 386S LC 34 3477S
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale to, or use by, a qualified agriculture producer of agricultural production
inputs, energy used in agriculture, and agricultural machinery and
equipment.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
178
183
187
Local Tax Expenditure
123
126
130
(m) Denotes a value of less than $1 million
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4.5 Sales and Use Tax for Services
4.50000
Admissions and Amusements
Description: Admission to school and college sports events; rental of films and tapes by
theaters; cable tv and direct satellite tv; coin-operated video games
(includes pinball and other mechanical amusements); membership fees in
private clubs; overnight trailer parks.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
157 159 165
Local Tax Expenditure
118 119 123
(m) Denotes a value of less than $1 million
4.50001
Agricultural Services
Description: Veterinary services (both large and small animal); landscaping services
(including lawn care); pet grooming.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
145
147
153
Local Tax Expenditure
109
110
114
(m) Denotes a value of less than $1 million
4.50002
Automotive Services
Description: Automotive road service and towing services; automotive painting and
lube; parking lots and garages; automotive washing and waxing;
automotive rustproofing and undercoating; labor charges on repairs to
motor vehicles.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
132
134
130
Local Tax Expenditure
99
100
104
(m) Denotes a value of less than $1 million
4.50003
Business Services
Description: Billboards; test laboratories (excluding medical); interior design and
decorating; commercial art and graphic design; advertising agency fees (not
ad placement); sign construction and installation; employment agencies;
temporary help agencies; check and debt collection; credit information and
credit bureaus; exterminating (includes termite services); maintenance and
janitorial services; window cleaning; bail bond fees; telephone answering
service; telemarketing services on contract; secretarial and court reporting
services; security services (includes private investigation (detective)
services; armored car services.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
664 673 698
Local Tax Expenditure
498 505 523
(m) Denotes a value of less than $1 million
4.50004
Computer and Online Services Description: Online data processing services; downloaded software, books, music,
movies and video content, other electronic goods; internet service
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providers dial-up; internet service providers DSL or other broadband;
mainframe computer access and processing service; information services;
software custom programs and professional services.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
358 362 376
Local Tax Expenditure
268 272 282
(m) Denotes a value of less than $1 million
4.50005
Construction Labor
Description: Labor for the construction of buildings; heavy and civil engineering
construction labor; labor of specialty trade contractors.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1,485 1,504 1,559
Local Tax Expenditure
1,114 1,128 1,170
(m) Denotes a value of less than $1 million
4.50006
Fabrication, Installation, and Repair Services
Description: Labor charges for repairs for other tangible property; tv/radio repairs and
other electronic equipment; repair charges generally; labor charges on
repair of aircraft; repairs to interstate vessels; repairs to railroad rolling
stock; repairs or remodeling of real property; service contracts sold at the
time of sale of tangible personal property; installation charges by persons
selling property; installation charges by persons other than the seller of the
property.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
220
222
231
Local Tax Expenditure
165
167
173
(m) Denotes a value of less than $1 million
4.50007
Finance, Insurance, and Real Estate
Description: Service charges of banking institutions includes loan broker fees; insurance
services; property sales agents (real estate or personal); real estate
management fees (rental agents); investment counseling; real estate title
abstract services.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1,021 1,034 1,072
Local Tax Expenditure
765 775 804
(m) Denotes a value of less than $1 million
4.50008
Industrial and Mining Services
Description: Seismograph and geophysical services; metal and nonmetal and coal
mining services; typesetting services; platemaking for the print trade.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
10
11
11
Local Tax Expenditure
8
8
8
(m) Denotes a value of less than $1 million
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4.50009 4.50010
4.50011 4.50012 4.50013
Residential Utility Service
Description: Interstate telephone (including local, long distance, and cellular service)
and telegraph; water; sewer and refuse.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
81
82
85
Local Tax Expenditure
61
62
64
(m) Denotes a value of less than $1 million
Personal Services
Description: Carpet and upholstery cleaning; swimming pool cleaning and maintenance;
water softening and conditioning; shoe repair; garment services (altering
and repairing); health clubs, tanning parlors, and reducing salons; laundry
and dry cleaning services coin-operated; laundry and dry cleaning
services not coin-operated; massage services (includes dating services);
tax return preparation; sports and recreation instruction; barber shops;
beauty parlors; travel agent services.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
277
281
291
Local Tax Expenditure
208
211
218
(m) Denotes a value of less than $1 million
Professional Services
Description: Attorneys; accounting and bookkeeping; physicians; dentists; medical test
laboratories; architects; engineers; land surveying; nursing services out of
the hospital.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1,949 1,974 2,046
Local Tax Expenditure
1,462 1,480 1,535
(m) Denotes a value of less than $1 million
Storage
Description: Marine towing services (includes tugboats); household goods storage; cold
storage (includes fur storage); food storage; mini-storage; marina service
(docking, storage, cleaning, repair); packing and crating (includes bus
services); other warehousing and storage (including automotive storage).
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
69
70
72
Local Tax Expenditure
52
52
54
(m) Denotes a value of less than $1 million
Transportation Services
Description: Intrastate courier service.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(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 collecting tax
Statute
48-8-50
Year Enacted
1964
Year Effective
1964
Data Source
DOR Statistical Report for 2012
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Georgia allows a vendor collection fee of 3 percent for the first $3,000 and
then 0.5 percent for amounts above $3,000 but does not impose a
maximum limitation per vendor.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
60
60
63
(m) Denotes a value of less than $1 million
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4.9 Casual Sales
4.90000
Sales tax exemption for casual sales
Statute
DOR administrative rule
Year Enacted
NA
Year Effective
NA
Data Source
DOR data for 2013
Estimate Reliability
Class B
Data Reliability
Class A
Note
Sales of all motor vehicles will be exempt from state and
local sales tax beginning March 1st, 2013 but taxed under
the Alternative Ad Valorem Tax on Motor Vehicles, see
section 11 of the report. Provision listed as 4.30000 in
reports prior to FY 2014.
Description: Purchases of boats, planes and other tangible goods sold by persons not
in the business of selling such items are not subject to sales tax. (Prior to
the implementation of the Alternative Ad Valorem Tax on Motor
Vehicles this estimate included casual sale of motor vehicles.)
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(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 Statute
Summary
4.00100
48-8-3(1)
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
48-8-3(3)
Federal retailer's excise tax if separately itemized to the consumer and Georgia motor fuel tax imposed on the sale of motor fuel
4.00900
48-8-3(9)
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
4.01800
48-8-3(18)
Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation
4.01900
48-8-3(19)
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
4.02400
48-8-3(24)
Rental of videotape or film to persons charging admission to view the tape or film
4.03100
48-8-3(31)
Sale of tangible personal property manufactured or assembled in Georgia for export when delivery is taken outside of Georgia
4.03200
48-8-3(32)
Aircraft, watercraft, motor vehicles, and other transportation equipment manufactured or assembled in this State for exclusive use
outside Georgia
4.03300
48-8-3(33) Common or common and contract carriers
4.03410
48-8-3(34.1) Machinery and equipment used to handle, move, or store tangible
personal property in certain distribution facilities
4.03610
48-8-3(36.1) Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility
4.03910
48-8-3(39.1) Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property
4.04200
48-8-3(42) 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
4.04500
48-8-3(45)
The sale or use of paper stock when used to print catalogs for distribution outside Georgia
4.06100
48-8-3(61) Advertising inserts that are used in newspapers for resale
4.06600
48-8-3(66) Sale of gold, silver, or platinum bullion
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4.06800 4.09100 4.09400
48-8-3(68) 48-8-3(91) 48-8-3(94)
Sale of certain computer equipment when the total qualifying purchases by a high technology company exceed $15 million The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale
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5. Insurance Premium Tax
The premium tax is levied on premiums of persons, property or risks in Georgia written by insurance companies conducting business in Georgia. The state tax rate is imposed at a rate of 2.25 percent of gross direct premiums. Counties levy a 1 percent on gross direct premiums. Municipalities may levy a tax of up to 1 percent and counties and municipalities may levy rates of up to 2.5 percent on insurance premiums for policies other than life insurance policies. In FY 2014, state revenues from this tax equaled $372 million and local revenues equaled $470 million. This tax is administered by the State Insurance Commissioner. The state proceeds of the tax are deposited into the State General Fund.
5.00100 5.00200
Deduction of retaliatory taxes paid to other states
Statute
33-8-7
Year Enacted
1960
Year Effective
Prior to 2000
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level
Description: Property and casualty insurance companies domiciled in Georgia are able to
deduct from their Georgia tax liability taxes paid to other states on policies
written in those states.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Insurance premium tax credits - Georgia Job Tax Credit
Statute
33-8-4.1; 33-1-18; 48-7-29.14(b)(1)
Year Enacted
1960
Year Effective
2009, 2002, 2008
Data Source
DOR data for 2015 and Office of Insurance and Safety Fire
Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the individual income tax
section and the corporate tax section, see 1.6.012 and
2.6.001
Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must
be greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees.
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State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
8
8
8
Corporate Income Tax Expenditure
60
62
62
Insurance Premium Tax Expenditure
2
2
3
State Tax Expenditure
70
71
73
(m) Denotes a value of less than $1 million; may not sum due to rounding
5.00300
Exemption for premiums of high-deductible health plans
Statute
33-8-4
Year Enacted
2008
Year Effective
2009
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The local exemption expired on December 31, 2014.
Description: Insurance companies are allowed to exempt from their insurance premium
tax liability any premiums paid by Georgia residents for high-deductible
health plans as defined by Section 233 of the Internal Revenue Code.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
6
8
8
(m) Denotes a value of less than $1 million
5.00400
Exemption for insurance companies that only insure places of worship
Statute
33-8-13
Year Enacted
1996
Year Effective
1996
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level
Description: Insurance companies that only insure the risks of places of worship are
exempt from the state premium tax.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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.
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State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2015 2016 2017 135 138 141
5.00600 5.00700
Special deductions 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)
2015 2016 2017
State Tax Expenditure
141
144
147
(m) Denotes a value of less than $1 million
Insurance premium tax credit Low-Income Housing Credit
Statute
33-8-4.1; 33-1-18; 48-7-29.14(b)(1)
Year Enacted
1960
Year Effective
2009, 2002, 2008
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the individual income tax
section and the corporate income tax section, see 1.6.028
and 2.6.017
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal Low-Income Housing tax credit
and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2015 2016 2017
Income Tax Expenditure
60
64
69
Corporate Income Tax Expenditure
25
27
29
Insurance Premium Tax Expenditure
105
112
120
State Tax Expenditure
190
203 218
(m) Denotes a value of less than $1 million
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6. Motor Fuel Tax
The tax on motor fuels was substantially modified in 2015. Under the new law, the tax on motor fuels other than diesel fuel is 26 cents per gallon. The tax on diesel fuel is 29 cents per gallon. The base of the motor fuel tax is imposed on any source of energy that can be used for propulsion of a motor vehicle on the public highways, including, but not limited to: gasoline, fuel oils, compressed petroleum gas and special fuels. The tax is administered by the Georgia DOR.
6.00200 6.00300 6.00400
Sale of fuel to mass transit vehicles
Statute
48-9-3
Year Enacted
1978
Year Effective
Latest modification 2010
Data Source
Energy Information Administration and the U.S. Department
of Energy
Estimate Reliability
Class B
Data Reliability
Class A
Note
Combined with 6.00300
Description: Fuel sold for use in vehicles operated by a public campus transportation
system or fuel sold for use in public mass transit vehicles is exempt from
tax. This provision expired June 30, 2015.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
0
0
(m) Denotes a value of less than $1 million
Sale of fuel to campus transportation vehicles
Statute
48-9-3
Year Enacted
2010
Year Effective
2010
Data Source
Estimate included in 6.00200
Estimate Reliability
Class B
Data Reliability
Class A
Note
This exemption expired June 30, 2015
Description: Sale of fuel to campus transportation vehicles.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
Estimate included in 6.00200
(m) Denotes a value of less than $1 million
Motor fuel tax exemption for aviation fuel
Statute
48-9-3
Year Enacted
1978
Year Effective
1978
Data Source
DOR Statistical Report for 2010
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption for aviation fuel.
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6.00500 6.00600
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2015 2016 2017
(m)
1
1
Motor fuel tax vendor compensation
Statute
48-9-3,14; see also 48-8-50(3) & (4)
Year Enacted
1992
Year Effective
1992
Data Source
Fiscal Note for HB 170 LC 34 4630S
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Motor fuel dealers are allowed to retain 3 percent of total amounts
collected as reimbursement for the cost of collection.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
9
12
(m) Denotes a value of less than $1 million
Motor fuel tax exemption for public school buses
Statute
48-9-3
Year Enacted
2013
Year Effective
2014
Data Source
Fiscal Note for HB 211 LC 33 4918
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale of motor fuel to public school systems for the exclusive purpose of the
school system operating school buses when the motor fuel is purchased by
the school system is exempt from motor fuel tax. This provision expired
June 30, 2015.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
0
0
(m) Denotes a value of less than $1 million
Motor fuel tax expenditures for which an estimate is not currently available
Expenditure Statute
Summary
6.00100
48-9-10
Motor fuel tax refunds for agricultural purposes
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7. Alcoholic Beverage Tax
This tax is imposed on alcoholic beverages including malt beverages, wine, and distilled spirits. Malt beverages are taxed at a rate of $10 per container up to 31 gallons with a proportionate tax on fractional parts of 31 gallons for draft malt beverages. The tax rate is four and one-half cents per 12 ounces for bottles and cans with proportionate rates on fractional parts of other sizes. Wine is taxed at a rate of 11 cents per liter and an import tax of 29 cents per liter is imposed on table wines with proportional rates for fractional parts of a liter. An excise tax of 27 cents per liter with an import tax of 40 cents per liter is imposed on dessert wines with proportional rates for fractional parts of a liter. An excise tax of 50 cents per liter and an import tax of 70 cents per liter are levied on distilled spirits.
7.00300 7.00400 7.00500
200 gallons annually of homebrew per household
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
American Homebrewers' Association
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Allows an exemption for up to 200 gallons annually of homebrew per
household.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Sales to and use by religious organizations for sacramental purposes
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
National Center for Charitable Statistics and Catholic.org
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Sales to and use by religious organizations for sacramental purposes.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Exemption for ethyl alcohol used for certain purposes
Statute
3-5-61, 3-6-70
Year Enacted
1980
Year Effective
1980
Data Source
U.S. Economic Census
Estimate Reliability
Class B
Data Reliability
Class A
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7.00600
Note
Description: An exemption is allowed for purchases of ethyl alcohol intended for use or
used for the following purposes: scientific, chemical, mechanical, industrial,
medicinal, and culinary.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Malt beverages containing less than 0.5 percent alcohol
by volume
Statute
3-5-90
Year Enacted
1987
Year Effective
1987
Data Source
U.S. Economic Census and averagebeerprices.com
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Malt beverages which contain less than 0.5 percent alcohol by
volume shall not be subject to any tax levied under this title or any tax
levied pursuant to authority granted by this title.
State Fiscal Years ($ in Millions)
2015 2016 2017
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
3-5-61
Sales to persons outside the state for resale or consumption outside
the state
7.00200
3-5-61, 3-6-70 Sales to stores or canteens in U.S. military reservations
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8. Cigar and Cigarette Excise Tax
This tax is levied upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of cigars and cigarettes in Georgia. The tax is imposed at a rate of 37 cents per pack of 20 cigarettes and 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. The tax is administered by the Georgia DOR. In FY 2014 the tax totaled $217 million. The proceeds of the tax are deposited into the State General Fund.
8.00100
Exemption for purchases for use exclusively by patients at the
Georgia War Veterans Home and the Georgia War Veterans Nursing
Home
Statute
48-11-2
Year Enacted
1955
Year Effective
Latest Modification 2003
Data Source
Georgia Department of Veteran Services
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Exemption for purchases for use exclusively by patients at the Georgia
War Veterans Home and the Georgia War Veterans Nursing Home.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m) (m)
(m) Denotes a value of less than $1 million
Cigar and cigarette 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
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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 2014 equaled $19 million. The proceeds of the tax are deposited into the State General Fund.
9.00100
Deduction for interest paid
Statute
48-6-95
Year Enacted
1975
Year Effective
1975
Data Source
FDIC Statistics on Depository Institutions
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Financial institutions are allowed to deduct from gross receipts interest paid
on all liabilities.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Financial institutions tax expenditures for which an estimate is not currently
available
Expenditure Statute
9.00200
48-6-95
9.00300
48-6-95
Summary Deductions for income from authorized activities of a domestic international banking facility Deduction for income from banking business with persons or entities outside the U.S.
152 | P a g e
10. Special Assessment of Forest Land Conservation Use Property
Real property devoted to qualified conservation use is assessed at 40 percent of its current use value. This tax treatment is designed to reduce the property tax burden on landowners in an effort to discourage the conversion of land to residential or commercial use. The property must be maintained in a qualifying conservation use for a period of 10 years. Because the state offsets the loss of local government property tax revenue stemming from this exemption, this exemption represents a reduction in state tax revenues.
10.00000
Special assessment of forest land conservation use property
Statute
48-5A-2
Year Enacted
2008
Year Effective
2008
Data Source
Office of Planning and Budget; and the Georgia Department
of Revenue
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Grants made available by the Georgia General Assembly through annual
appropriations and awarded to counties, municipalities and county or
independent school districts for purposes of the Special Assessment of
Forest Land Conservation Use Property program.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
29
35
35
(m) Denotes a value of less than $1 million
153 | 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 fee, otherwise referred to as the Motor Vehicle Title Fee. Vehicles purchased on or after January 1, 2012 and before March 1, 2013 may opt-into the title fee system. 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 title fee rate in CY 2013 was 6.5 percent and increased to 6.75 percent in CY 2014 and to 7 percent in CY 2015. This fee generated $758 million to the State General Fund in FY 2014 and $611 million in local government receipts.
11.001 11.002
Reduced rate for related family transfers
Statute
48-5C-1(d)(1)-(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: A reduced rate of 0.25 percent applies to transfers for a vehicle transferred
between immediate family members or a transfer occurring as a result of the
death of an immediate family member.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
6
5
Local Tax Expenditure
4
4
5
(m) Denotes a value of less than $1 million
Disabled veteran exemption
Statute
48-5C-1(d)(7)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption from the title fee of the sale of a vehicle to a service-connected
disabled veteran when the veteran received a grant from the U.S.
Department of Veterans Affairs to purchase and specifically adapt the
vehicle to his or her disability.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
154 | P a g e
11.003 11.004 11.005
Reduced rate for rental vehicles
Statute
48-5C-1(d)(11)(A)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Rental vehicles are subject to a reduced state title fee rate of 0.625 percent
of the fair market value and a local title fee rate of 0.625 percent of the
fair market value.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
56
65
57
Local Tax Expenditure
44
47
51
(m) Denotes a value of less than $1 million
Reduced rate for vehicles manufactured in years 1963 through 1985
Statute
48-5C-1(d)(17)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Vehicles manufactured in years 1963 through 1985 are subject to a
reduced state title fee rate of 0.5 percent and reduced local title fee rate of
0.5 percent of the fair market value of the vehicle.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Reduced rate for salvage vehicles
Statute
48-5C-1(b)(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Salvage vehicles are subject to a state title fee rate of 1 percent and are not
subject to the local title fee.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
23
28
25
Local Tax Expenditure
26
29
32
(m) Denotes a value of less than $1 million
155 | P a g e
11.006 11.007 11.008 11.009
Dealer loaner vehicle exemption
Statute
48-5C-1(d)(12)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Dealer loaner vehicles are exempt from the state and local title fee for a
period of 366 days.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
7
5
3
Local Tax Expenditure
6
4
2
(m) Denotes a value of less than $1 million
Reduced rate for donated vehicles
Statute
48-5C-1(d)(13)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Vehicles donated to nonprofit organizations for the purpose of being
transferred to another person are subject to a reduced state title fee rate of
1 percent of the fair market value of the vehicle. No local title fee applies.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Extended payment period for out-of-state vehicles
Statute
48-5C-1(d)(3)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Vehicles registered by individuals moving from out of state are allowed to
pay the title fee in two equal installments over a 12-month period.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
5
2
-2
Local Tax Expenditure
4
0
0
(m) Denotes a value of less than $1 million
Trade-in exemption (including rebates and cash discounts)
Statute
48-5C-1(a)(1)
Year Enacted
2012
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11.010 11.011 11.012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Both the state and local title fee is imposed on the fair market value of a
vehicle net of the trade-in value of another motor vehicle, rebates or cash
discounts.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
338 345 303
Local Tax Expenditure
283 266 290
(m) Denotes a value of less than $1 million
Special assessment for used vehicles
Statute
48-5C-1(a)(1)(C)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Under certain conditions, used vehicles may be valued based on bill of
sale, odometer reading, and values from alternative pricing guides.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
20
21
18
Local Tax Expenditure
16
16
17
(m) Denotes a value of less than $1 million
Special assessment for new vehicles
Statute
48-5C-1(a)(1)(D)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The title fee is applied to the greater of the retail selling price or the
average of the current fair market value and the current wholesale value.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
-46
-56
-49
Local Tax Expenditure
-41
-42
-46
(m) Denotes a value of less than $1 million
Buy here pay here transactions
Statute
48-5C-1(b)(1)(B)(xv)
Year Enacted
2013
Year Effective
2014
Data Source
DOR data for 2015
Estimate Reliability
Class A
157 | P a g e
Data Reliability
Class A
Note
Description: Seller financed used car transactions are subject to a title fee rate that is
2.5 percentage points below the standard title fee rate.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
3
6
6
Local Tax Expenditure
3
4
3
(m) Denotes a value of less than $1 million
11.013
Exemption from TAVT for leased vehicles qualifying for Manufacturing Headquarters
Statute
48-5C-1
Year Enacted
2015
Year Effective
2015
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Creates the plate category of "Manufacturing HQ" and included
in the rights and qualifications of that plate is an exemption from the
TAVT.
State Fiscal Years ($ in Millions)
2015 2016 2017
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
158 | P a g e
12. Special Excise Tax on Consumer Fireworks
An excise tax of 5 percent is levied in addition to any state and local taxes imposed by law. The proceeds from this excise tax are deposited into the State General Fund. This provision became effective for fiscal years beginning on July 1, 2015. At this time, there are no exemptions allowed against this provision.
159 | P a g e
Appendix of Tables
Expenditure 1.6.024
1.6.031 1.6.033 2.6.013 2.6.033 4.02500
4.02600
4.02700 4.02800 4.02900 4.02910
4.03310 4.03400 4.03430
4.03440
Table 1: Summary of expired provisions
Summary
Tax
Teleworking Credit
Low- & Zero-Emission Vehicle Credit & Electric Vehicle Charger Credit Clean Energy Property and Wood Residuals Credit
Teleworking Credit
Cigarette export tax credit
Sale of seed, fertilizer, fungicide, and certain other agricultural chemicals to farmers, and feed for livestock, fish, or poultry purchased by persons engaged in animal husbandry Sale of machinery used exclusively for irrigation of crops to persons primarily engaged in producing farm crops for sale Sales of sugar for use as food to honey bee producers Sale of cattle, hogs, sheep, horses, poultry, or bees when sold for breeding purposes Sale of certain types of agricultural machinery
Off-road equipment and related attachments used exclusively in site preparation, planting, cultivating, or harvesting of timber by persons primarily engaged in growing or harvesting timber Partial sales tax exemption for jet fuel sold to or used by a qualifying airline at a qualifying airport Certain machinery used in the manufacturing of tangible personal property The sale or use of repair or replacement parts, machinery clothing, molds, dies, waxes or tooling for machinery Sale of tangible personal property to or used in or for the construction of a new alternative fuel facility primarily dedicated to the production and
State Individual Income Tax Total State
Credit Total State
Credit Corporate Income Tax Corporate Income 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
Expiration Date
12/31/2011
6/30/2015 12/31/2014 12/31/2011 6/30/2010 1/1/2013
1/1/2013
1/1/2013 1/1/2013 1/1/2013 1/1/2013
1/1/2013 1/1/2013 1/1/2013
6/30/2012
160 | P a g e
4.03500 4.03700 4.04900 4.04910 4.05800 4.06400 4.07010
4.07300 4.07400
4.07500 4.07700 4.07800 4.07900 4.08200 4.08800 4.08900 4.09000
processing of ethanol, biodiesel, butanol or their by-products Certain materials used in industrial packaging
Machinery and equipment used in combating air and water pollution and any industrial material used in a burning or recycling process Liquefied gases and other fuels used in poultry or pullet houses or structures Liquefied petroleum gas or other fuel used in a structure where swine are raised Graduated exemption for the sale of overhead materials used in government contracts Sale of electricity or fuels used exclusively for the operation of an irrigation system on a farm for crop irrigation Partial exemption for certain sales of natural or artificial gas, fuel oil, propane, petroleum coke and coal used directly or indirectly in the manufacture or processing of tangible personal property primarily for resale Sale of certain production equipment to film producers and film production companies Sale or use of digital broadcast equipment sold to, leased to, or used by a federally licensed commercial or public radio or television broadcast station, a cable network, or a cable distributor Sales tax holiday for back to school items
Liquefied gases and other fuels used in structures where plants, floral products, seedlings, and nursery stock are grown for sale Materials used to construct a new symphony hall costing in excess of $200 million that is owned and operated by a nonprofit organization Ice used to chill poultry or vegetables during processing or shipment Sales tax holiday for water-efficient and energyefficient purchases Sale of tangible personal property used in the construction of a qualified civil rights museum The sale of an airplane flight simulation training device. The sale of electricity to a manufacturer located in this state used directly in the manufacture of a product.
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
Sales and Use Tax Sales and Use Tax Sales and Use Tax Sales and Use Tax Sales and Use Tax
1/1/2013 12/31/2012 1/1/2013 6/30/2010 1/1/2011 1/1/2013 12/31/2010
1/1/2013 11/1/2008
8/1/2015 1/1/2013 9/1/2011 1/1/2013 10/4/2015 7/30/2015 6/30/2011 1/1/2013
161 | P a g e
4.09200
6.00200 6.00300 6.00600
Sale to an organization defined by the Internal Revenue Service as an instrumentality of the states relating to the holding of an annual meeting in this state for the period commencing July 1, 2012, and ending on December 31, 2013 Sale of fuel to mass transit vehicles
Sale of fuel to campus transportation vehicles
Motor fuel tax exemption for public school buses
Sales and 12/31/2013 Use Tax
Motor Fuel Tax
Motor Fuel Tax
Motor Fuel Tax
6/30/2015 6/30/2015 6/30/2015
162 | P a g e
Table 2: Sales and use tax expenditures by type
Expenditure Summary Sales Tax Exemption for a Business Input4
State FY State FY State FY
2015
2016
2017
4.01700
Sales of fuel or consumable supplies used by 24
21
18
ships engaged in inter-coastal or foreign
commerce
4.03410
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities
Estimate not available at this time
4.03420
Machinery and equipment used directly to
1
1
1
remanufacture certain aircraft engines or
aircraft engine parts
4.03910
Cargo containers and related chassis used for Estimate not available at this
storage or shipping by persons engaged in
time
international shipment of tangible personal
property
4.04500
The sale or use of paper stock when used to Estimate not available at this
print catalogs for distribution outside
time
Georgia.
4.04800
Sale of crab bait to licensed commercial
(m)
(m)
(m)
fishermen
4.06000
Sale of certain machinery and equipment
(m)
(m)
(m)
used to improve air quality in a clean room of Class 100,000 or less
4.06500
Sale of dyed diesel fuel used exclusively for (m)
(m)
(m)
operations of vessels or boats by licensed
commercial fishermen
4.06800
Sale of certain computer equipment when the Estimate not available at this
total qualifying purchases by a high
time
technology company exceed $15 million
4.06900
Sales of machinery and equipment and
(m)
(m)
(m)
material incorporated and used in a clean room of Class 100 or less
4.07000
Sale of natural gas used directly in the manufacture of electricity
54
54
51
4.08100
The purchase of food and nonalcoholic
4
4
4
beverages provided at no charge aboard a qualified airline
4.08300
Sale of biomass materials used to produce
(m)
1
1
electricity or steam or used to produce
electricity or steam intended for sale
4 Sales tax exemptions which are defined primarily as an exemption for a profit making business.
163 | P a g e
Table 2: Sales and use tax expenditures by type
Expenditure Summary
4.09400
The sale, use, consumption, or storage of
State FY State FY State FY
2015
2016
2017
Estimate not available at this
materials, containers, labels, sacks, or bags
time
used for packaging tangible personal
property for shipment or sale
4.3.2
Exemptions for energy, machinery or
3,374 3,481 3,579
equipment, industrial material, and consumable supplies used in manufacturing
4.3.3
Sale and use by a qualified agriculture
178
183
187
producer of agricultural production inputs,
energy used in agriculture, and agricultural machinery and equipment Sales Tax Exemption for a Specific Item5
4.00300
Federal retailer's excise tax if separately
Estimate not available at this
itemized to the consumer and Georgia motor
time
fuel tax imposed on the sale of motor fuel
4.00400
Sales of transportation furnished by a county
9
9
10
or municipal public transit system or public
transit authorities
4.00500
Sales of transportation furnished by an
Estimate Combined With
approved and authorized urban transit system
4.00400
4.01200
School lunches sold and served to pupils and
7
7
6
employees of public schools
4.01300
School lunches sold and served to pupils and
1
1
1
employees of approved private schools
4.01800
Charges for transportation of tangible personal property made in connection with
Estimate not available at this time
interstate or intrastate transportation
4.02000
Water delivered through water mains, lines, See expenditure estimate for
or pipes
Residential Utilities (4.5009)
4.02200
Professional, insurance or personal service transactions which involve sales as inconsequential elements for which no
See expenditure estimates for services (4.50003, 4.50010,
4.50011)
separate charge is made
4.02300
Repair services when a separate charge is made to the customer
See expenditure estimates for Services (4.50003, 4.50010,
4.50011)
4.02400
Rental of videotape or film to persons charging admission to view the tape or film
Estimate not available at this time
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.
164 | P a g e
Expenditure 4.03300 4.04200
4.04300
4.04700
4.05000
4.05100 4.05200 4.05400
4.05500 4.05700 4.05730
4.06100 4.06200
4.06600 4.06700 4.07500
Table 2: Sales and use tax expenditures by type
Summary Common or common and contract carriers
State FY State FY State FY
2015
2016
2017
Estimate not available at this
time
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
Estimate not available at this time
Revenues from coin-operated amusement
3
3
3
machines for which individual permits are
required
Sale of drugs dispensed by prescription,
430
452
475
prescription glasses, contact lenses, contact
lens samples and sales or use of certain
controlled substances or dangerous drugs
Sales of insulin syringes and blood glucose
21
22
23
level measuring strips dispensed without a
prescription
Sale of oxygen when prescribed by a
(m)
(m)
(m)
licensed physician
Sale or use of hearing aids
4
4
4
Sale or use of any durable medical
39
41
42
equipment or prosthetic device prescribed by
a physician
Sale of Georgia lottery tickets
163
166
169
Food purchased for off-premises
469
486
499
consumption
Exemption for prepared food and food
(m)
(m)
(m)
ingredients that are donated following a
natural disaster and used for disaster relief
Advertising inserts that are used in newspapers for resale
Estimate not available at this time
Sod grass sold in the original state of
2
2
2
production by the sod producer, employee of
the producer, or family member of the
producer
Sale of gold, silver, or platinum bullion
Estimate not available at this time
Sale of coins or currency
4
4
4
Sales tax holiday for back to school items
40
42
0
(expired August 1, 2015)
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Table 2: Sales and use tax expenditures by type
Expenditure Summary
4.08200
Sales tax holiday for water-efficient and
State FY State FY State FY
2015
2016
2017
1
1
0
energy-efficient purchases (expired October 4, 2015)
4.09100
The sale of prewritten software which has
Estimate not available at this
been delivered to the purchaser
time
electronically or by means of load and leave. Sales Tax Exemption for a Specific Purchaser6
4.00100
Sales to Federal Government, State of
Estimate not available at this
Georgia or a county or municipality in
time
Georgia or any agency of such governments
4.00600
Sales to any Hospital Authority created by Georgia law
Estimate Combined with 4.00700
4.00610
Sales to any Housing Authority created by
2
2
2
Georgia law
4.00620
Sales to local government authorities created
2
2
2
on or after January 1, 1980 for the principal
purpose of constructing, owning, or operating a coliseum and related facilities
4.00630
Sales to any agricultural commission created (m)
(m)
(m)
by the Department of Agriculture
4.00700
Sales of tangible personal property and
93
97
101
services to an approved nursing home, inpatient hospice, general hospital or mental
hospital when used specifically in the
treatment function.
4.00705
Sales of tangible personal property to a non-
1
1
1
profit health center established and receiving
funds pursuant to the U.S. Public Health
Service Act
4.00710
Sales of tangible personal property and
2
2
2
services to a nonprofit organization whose
primary function is to provide services to
persons with intellectual disabilities
4.00720
Sales to Georgia Society of the Daughters of (m)
(m)
(m)
the American Revolution
4.00730
Sales of tangible property and services to a
1
1
1
nonprofit volunteer health clinic primarily
treating patients with incomes below 200 percent of the poverty level
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.
166 | P a g e
Expenditure 4.00800 4.00900
4.01000 4.01100 4.01900 4.02100
4.03100 4.03600 4.03610 4.04000
Table 2: Sales and use tax expenditures by type
Summary Sales of tangible personal property and services to the University System of Georgia and its educational units
State FY 2015 35
State FY 2016 36
State FY 2017 37
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
Estimate not available at this time
Sales of tangible personal property and
2
2
2
services used exclusively in the educational
function of an approved private elementary
or secondary school
Sale of tangible personal property or services (m)
(m)
(m)
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
Estimate not available at this time
Sales, transfers or exchanges of tangible
Estimate not available at this
personal property resulting from business
time
reorganization when the owners, partners, or
stockholders maintain the same
proportionate interest or share in the newly
formed business
Sale of tangible personal property
Estimate not available at this
manufactured or assembled in Georgia for
time
export when delivery is taken outside of
Georgia
Machinery and equipment used in a facility
(m)
(m)
(m)
for the primary purpose of reducing or
eliminating air and water pollution
Machinery and equipment used for water
Estimate not available at this
conservation and incorporated into a
time
qualified water conservation facility.
Sale of major components or repair parts installed in military aircraft, vehicles, or missiles
31
31
24
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Table 2: Sales and use tax expenditures by type
Expenditure Summary
4.04100
Sale of tangible personal property and
State FY 2015 1
services to a nonprofit child-caring institution, child-placing agency, or
maternity home
4.04600
Sale of tangible personal property or taxable
1
services to nonprofit blood banks
4.05720
Exemption for prepared food and food
1
ingredients that are donated to a qualified
nonprofit agency and used for hunger relief
purposes
4.07100
Sale to or by an organization whose primary (m) purpose is to raise funds for books, materials, and programs for public libraries
4.07600
Exemption for personal property used in the
0
renovation or expansion of an aquarium
4.08700
Sales of tangible personal property used to
0
renovate or expand a zoological institution
(expires June 30, 2018)
4.08800
Sale of tangible personal property used in the (m) construction of a qualified civil rights
museum (expired July 30, 2015)
4.09300
Sale of tangible personal property used for
21
and in the construction of a competitive
project of regional significance, for the
period commencing January 1, 2012, until June 30, 2016
4.09600
Exemption for sales or use of construction
0
materials used for or in the construction of
buildings at a private college Sales Tax Exemption for a Specific Purchaser of a Specific Item7
4.01400
Sales of art and other artifacts for display or (m)
exhibition to museums
4.01510
Sales of pipe organs or steeple bells to any
(m)
church qualifying as a nonprofit
4.03000
Vehicles purchased by service-connected
(m)
disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase
the specially adapted vehicle
State FY 2016 1
1 1
(m) 1 0 0 21
(m)
(m) (m) (m)
State FY 2017 1
1 1
(m) 1 (m) 0 0
0
(m) (m) (m)
7 Sales tax exemptions which are specifically defined by the purchaser as well as the item being purchased.
168 | P a g e
Table 2: Sales and use tax expenditures by type
Expenditure Summary
4.03200
Aircraft, watercraft, motor vehicles, and
State FY State FY State FY
2015
2016
2017
Estimate not available at this
other transportation equipment manufactured
time
or assembled in this State for exclusive use
outside Georgia
4.03310
Partial sales tax exemption for jet fuel sold to 21
0
0
or used by a qualifying airline at a qualifying airport
4.04400
Sale of motor vehicles to nonresident
Estimate not available at this
purchasers when vehicles are immediately
time
removed from Georgia and titled in another state.
4.05300
Transactions where food stamps or WIC
114
113
113
coupons are used as the method of payment
of payment
4.05710
Sales of food and beverages to a qualified
3
3
0
food bank (expires June 30, 2016)
4.06300
Funeral merchandise when paid with funds
(m)
(m)
(m)
from the Georgia Crime Victims' Emergency
Fund
4.07200
Sale of wheelchairs and attachments for
(m)
(m)
(m)
wheelchairs when sold to permanently disabled individuals
4.08600
Sales of engines, parts, equipment and other
20
20
20
tangible personal property used in the
maintenance or repair of certain aircraft Sales Tax Exemption for a Specific Seller8
4.00200
Tangible personal property furnished by the Estimate not available at this
Federal Government or any county or
time
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
(m)
(m)
(m)
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
(m)
(m)
(m)
and charges for services by the Rock Eagle
4-H center
8 Sales tax exemptions which are defined primarily by the seller and not defined, or only generally defined, by the purchaser of the item being purchased.
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Expenditure 4.03900
4.05600 4.05900 4.90000
Table 2: Sales and use tax expenditures by type
Summary Certain sales by a public or private school of tangible personal property, concessions, and tickets for admission to school functions
State FY 2015 2
Sale by any qualified nonprofit parent-
1
teacher organization
Sale of eligible food and beverages by any
1
Girl or Boy Scout council
Sales tax exemption for casual sales
2
State FY 2016 2
1 1 2
State FY 2017 2
1 1 2
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Tables 3-8: Distributional tables of selected provisions
Tables 3 through 8 provide information on the distribution across Georgia AGI for several exemptions and deductions from the state individual income tax. Due to a lack of data and for reasons of confidentiality, these tables cannot be produced for other provisions. The data used to produce the tables is from the state individual income tax files for 2013. It has not been adjusted for inflation nor does it reflect any legislative changes that may have occurred since 2013. 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.
Georgia AGI - 2013 GA AGI0
Table 3: Total Personal Exemptions
Number of Average Value
Total
Returns
723,603
$2,303
$1,666,155,600
0<GA AGI$25,000
1,520,747
$5,959
$9,062,065,500
$25,000<GA AGI$50,000
850,976
$7,150
$6,084,295,200
$50,000<GA AGI$100,000
672,806
$8,237
$5,542,007,800
$100,000<GA AGI$500,000
431,789
$10,093
$4,358,030,200
$500,000<GA AGI$1,000,000
14,824
$10,892
$161,468,200
GA AGI>$1,000,000
6,380
$10,568
$67,423,000
Total
4,221,125
$26,941,445,500
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 6.2% 33.6% 22.6% 20.6% 16.2% 0.6% 0.3%
Table 4: Retirement Exemptions
Georgia AGI - 2013
Number of Average Value
Total
Returns
GA AGI0
328,689
$28,148
$9,251,812,016
0<GA AGI$25,000
172,829
$25,572
$4,419,548,971
$25,000<GA AGI$50,000
83,532
$24,946
$2,083,754,494
$50,000<GA AGI$100,000
72,165
$26,947
$1,944,642,102
$100,000<GA AGI$500,000
47,084
$36,277
$1,708,071,273
$500,000<GA AGI$1,000,000
2,578
$58,894
$151,827,834
GA AGI>$1,000,000
1,378
$71,473
$98,489,328
Total
708,255
$19,658,146,018
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 47.1% 22.5% 10.6% 9.9% 8.7% 0.8% 0.5%
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Table 5: Georgia Higher Education Savings Deduction
Georgia AGI - 2013
Number of Average Value
Total
Returns
GA AGI0
1,607
$2,171
$3,488,491
0<GA AGI$25,000
1,583
$1,784
$2,824,253
$25,000<GA AGI$50,000
2,044
$1,705
$3,485,905
$50,000<GA AGI$100,000
6,375
$1,807
$11,521,493
$100,000<GA AGI$500,000
20,329
$2,747
$55,852,124
$500,000<GA AGI$1,000,000
950
$4,088
$3,883,948
GA AGI>$1,000,000
275
$4,313
$1,186,123
Total
33,163
$82,242,337
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 4.2% 3.4% 4.2% 14.0% 67.9% 4.7% 1.4%
Table 6: Interest on U.S. Obligations
Georgia AGI - 2013
Number of Average Value
Total
Returns
GA AGI0
20,121
$12,756
$256,669,261
0<GA AGI$25,000
8,068
$1,526
$12,309,046
$25,000<GA AGI$50,000
5,043
$1,546
$7,797,225
$50,000<GA AGI$100,000
7,573
$1,572
$11,903,909
$100,000<GA AGI$500,000
10,725
$1,544
$16,563,077
$500,000<GA AGI$1,000,000
1,183
$2,313
$2,736,535
GA AGI>$1,000,000
1,020
$6,482
$6,611,464
Total
53,733
$314,590,517
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 81.6% 3.9% 2.5% 3.8% 5.3% 0.9% 2.1%
Table 7: Blind and Age 65 Deduction
Georgia AGI - 2013
Number of Average Value
Total
Returns
GA AGI0
184,464
$1,843
$340,005,900
0<GA AGI$25,000
88,254
$1,766
$155,838,800
$25,000<GA AGI$50,000
27,276
$1,704
$46,481,500
$50,000<GA AGI$100,000
13,434
$1,719
$23,093,200
$100,000<GA AGI$500,000
2,496
$1,823
$4,550,000
$500,000<GA AGI$1,000,000
50
$2,158
$107,900
GA AGI>$1,000,000
38
$1,916
$72,800
Total
316,012
$570,150,100
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 59.6% 27.3% 8.2% 4.1% 0.8% 0.0% 0.0%
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Table 8: Standard Deduction
Georgia AGI - 2013
Number of Average Value
Returns
GA AGI0
229,619
$2,581
0<GA AGI$25,000
1,379,011
$2,381
$25,000<GA AGI$50,000
577,070
$2,506
$50,000<GA AGI$100,000
247,797
$2,739
$100,000<GA AGI$500,000
32,681
$2,910
$500,000<GA AGI$1,000,000
168
$2,790
GA AGI>$1,000,000
119
$2,863
Total
2,466,465
The percent of total column may not sum to 100 percent due to rounding.
Total
$592,539,400 $3,283,680,200 $1,445,880,500 $678,835,600
$95,095,500 $468,800 $340,700
$6,096,840,700
Percent of Total 9.7% 53.9% 23.7% 11.1% 1.6% 0.0% 0.0%
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