- Collection:
- Georgia Government Publications
- Title:
- Georgia tax expenditure report for FY 2018
- Contributor to Resource:
- Georgia. Department of Audits and Accounts
- Publisher:
- Atlanta, Ga. : Department of Audits and Accounts
- Date of Original:
- 2016-12
- Subject:
- Tax expenditures--Georgia--Periodicals
Tax revenue estimating--Georgia--Periodicals
Tax expenditures
Tax revenue estimating
Georgia
Periodicals - Location:
- United States, Georgia, 32.75042, -83.50018
- Medium:
- audit reports
- Type:
- Text
- Format:
- application/pdf
- Description:
- Tax expenditure report for the state of Georgia
- External Identifiers:
- Call Number GA A800 .R1 T3 2018
- Metadata URL:
- https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bt3-b2018-belec-p-btext
- Digital Object URL:
- https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bt3-b2018-belec-p-btext
- Language:
- eng
- Holding Institution:
- University of Georgia. Map and Government Information Library
- Rights:
-
Georgia Tax Expenditure Report for FY 2018
Prepared by the Fiscal Research Center of the Andrew Young School of Policy Studies at Georgia State University
December 2016
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............................................................................................................................. 51
1.1 Federal Exclusions ............................................................................................................................ 53 1.2 Federal Deductions ........................................................................................................................... 61 1.3 Special Federal Conformity Provisions ............................................................................................ 66 1.4 Georgia Exemptions.......................................................................................................................... 68 1.5 Georgia Deductions .......................................................................................................................... 71 1.6 Georgia Credits ................................................................................................................................. 72 2. Corporate Income Tax .......................................................................................................................... 91 2.1 Federal Corporate Exclusions ........................................................................................................... 92 2.2 Federal Corporate Deductions .......................................................................................................... 94 2.3 Special Federal Corporate Conformity Provisions ........................................................................... 97 2.4 Corporate Apportionment ................................................................................................................. 99 2.5 Georgia Deductions ........................................................................................................................ 101 2.6 Georgia Credits ............................................................................................................................... 102 3. Corporate Net Worth Tax ................................................................................................................... 117 4. Sales and Use Tax ............................................................................................................................... 118 4.5 Sales and Use Tax for Services....................................................................................................... 145 4.7 Vendor Compensation .................................................................................................................... 149 4.9 Casual Sales .................................................................................................................................... 150 5. Insurance Premium Tax ...................................................................................................................... 153 6. Motor Fuel Tax ................................................................................................................................... 157 7. Alcoholic Beverage Tax ..................................................................................................................... 158 8. Tobacco Products Excise Tax ............................................................................................................. 161 9. Financial Institutions Special State Occupation Tax .......................................................................... 162 10. Special Assessment of Forest Land Conservation Use Property ...................................................... 163 11. Alternative Ad Valorem Tax on Motor Vehicles.............................................................................. 164 12. Special Excise Tax on Consumer Fireworks .................................................................................... 169 13. State Hotel-Motel Tax....................................................................................................................... 170 Appendix of Tables................................................................................................................................... 171 Table 1: Summary of expired provisions .............................................................................................. 171 Table 2: Sales and use tax expenditures by type................................................................................... 174 Tables 3-8: Distributional tables of selected provisions ....................................................................... 181
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Introduction
Tax expenditures are provisions in the tax code that allow for special treatment of a source of income or a certain type of expense. Such treatment usually results in a reduction in tax liability for the taxpayer. In principle, these tax benefits could be provided by direct appropriation, thus these provisions are referred to as "expenditures". They represent tax revenues that would have been otherwise generated if not for this preferential treatment in the tax code.
Like direct government expenditures, tax expenditures are an allocation of government revenue that are intended to achieve a particular policy outcome or encourage some activity. The value of a tax expenditure can be thought of as representing the amount of money that would be necessary to provide the same level of financial support in the form of a government grant instead of through the tax code. Tax expenditures are received by businesses and individual taxpayers and are present in all of Georgia's major taxes, including the individual income tax, corporate income tax, and sales tax.
Tax expenditures, also referred to as tax preference items, can take several forms. Many are structured as tax credits and deductions, such as the corporate credit for hiring a new worker or the individual deduction for the mortgage interest paid on a primary residence. Other expenditures are in the form of exclusions of income. For example, at the state level, individuals in Georgia 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) 2014. 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, B, and C. Class A estimates and data sources are considered the most reliable. Data sources with
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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 2018, presents estimates for FY 2016-FY 2018. The report for FY 2017 provided estimates for FY 2015-FY 2017. 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 2018 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 2016, FY 2017, and FY 2018 for all tax expenditures identified in the report. Provisions that are assigned a positive value denote an expenditure that is estimated to reduce state or local revenues. Provisions assigned a value of "(m)" denote a tax expenditure that is estimated to reduce state revenues by less than $1 million. Provisions assigned a negative value denote a positive tax expenditure that is estimated to increase state revenues. Provisions assigned a value of "(-m)" denote a tax expenditure that is estimated to increase state revenues by less than $1 million.
In addition to an identifying title, each expenditure provision is assigned an expenditure number, the first digit of which corresponds to the different sections of this report, such as 1 for the individual income tax and 5 for the insurance premium tax. The remaining portion of the numeric identifier is used to divide the expenditures into different subcategories such as federal and state expenditures, and deductions and credits. Only in the case of the sales tax exemptions does the expenditure number have any relationship to the state tax code section to which the expenditure item is associated. The numeric identifiers for each provision are consistent across tax expenditure reports and can be used to compare expenditure estimates from one report to the next.
Following the summary tables are detailed sections for each of the specific taxes covered in this report. These detailed sections begin with a brief description of the tax, latest figures on revenue collection and any information on recent modifications to the base. These detailed sections also include additional information for each of the expenditure items such as the statute number, the year in which the expenditure provision was enacted and the year in which it became effective, information on the data and estimate reliability and data source, a more detailed description of the tax expenditure provision, and the value of the expenditure provision. The report concludes
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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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Summary of State Tax Expenditures
Expenditure Summary
Tax
Type of
State
Expenditure FY 2016
Federal Income Tax Provisions1
1.1.001
Exclusion of
Federal
Exclusion
15
employee meals
Individual
and lodging
Income
Tax
1.1.002
Exclusion of
Federal
Exclusion
6
housing
Individual
allowances for
Income
ministers
Tax
1.1.003
Exclusion of
Federal
Exclusion
16
employer-provided Individual
child care
Income
Tax
1.1.004
Exclusion of
Federal
Exclusion
2
employee awards Individual
Income
Tax
1.1.005
Net Exclusion of
Federal
Exclusion
943
pension
Individual
contributions and
Income
earnings for
Tax
employees and
self-employed
individuals
(Keoghs)
1.1.006
Exclusion of
Federal
Exclusion
1,087
employer
Individual
contributions for
Income
health care, health
Tax
insurance
premiums and
long-term care
insurance
premiums
1.1.007
Exclusion of
Federal
Exclusion
29
employer-paid
Individual
accident and
Income
disability
Tax
premiums
State FY 2017
15 6 17 2 1,148
1,135
31
State FY 2018
16 6 17 2 1,317
1,185
32
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 1.1.008
1.1.010 1.1.011 1.1.012
1.1.013 1.1.014 1.1.015 1.1.016
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Exclusion of
Federal
Exclusion
23
employer
Individual
contributions for
Income
premiums on group Tax
long-term life
insurance
Exclusion of
Federal
Exclusion
230
benefits provided Individual
through cafeteria
Income
plans
Tax
Exclusion of
Federal
Exclusion
1
employer-provided Individual
adoption assistance Income
Tax
Exclusion of
Federal
Exclusion
9
employer-provided Individual
education benefits Income
(including
Tax
education
assistance and
tuition reduction
benefits)
Exclusion of
Federal
Exclusion
46
miscellaneous
Individual
fringe benefits
Income
Tax
Exclusion of
Federal
Exclusion
51
foreign earned
Individual
income (including Income
housing and salary) Tax
Exclusion of
Federal
Exclusion
12
certain allowances Individual
for federal
Income
employees abroad
Tax
Exclusion of
Federal
Exclusion
65
benefits and
Individual
allowances to
Income
armed forces
Tax
personnel (includes
expenditure for
military disability
benefits)
State FY 2017
24
242 1 9
47 54 12 69
State FY 2018
26
254 1 9
48 57 13 72
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Expenditure 1.1.017 1.1.018 1.1.019
1.1.020
1.1.021 1.1.022
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Exclusion of
Federal
Exclusion
24
medical care and Individual
Tricare medical
Income
Insurance for
Tax
military
dependents,
retirees, and retiree
dependents
Exclusion of
Federal
Exclusion
63
veterans' benefits Individual
(includes veterans Income
disability
Tax
compensation,
pensions, and
readjustment
benefits)
Exclusion of
Federal
Exclusion
1
income attributable Individual
to the discharge of Income
certain student loan Tax
debt and National
Health Service
Corp and certain
state educational
loan repayments
Exclusion of
Federal
Exclusion
56
workers'
Individual
compensation
Income
benefits (includes
Tax
disability and
survivor benefits
and medical
benefits, and
exclusion of
damages on
account of personal
physical injuries or
physical sickness)
Exclusion of
Federal
Exclusion
(m)
special benefits for Individual
disabled coal
Income
miners
Tax
Exclusion of
Federal
Exclusion
259
untaxed Social
Individual
Security and
Income
railroad retirement
Tax
benefits
State FY 2017
24
65
1
57
(m) 275
State FY 2018
24
63
1
58
(m) 290
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Expenditure 1.1.024 1.1.026 1.1.027
1.1.028
1.1.029 1.1.030 1.1.031 1.1.032 1.1.033
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Exclusion of
Federal
Exclusion
1
certain foster care Individual
payments
Income
Tax
Exclusion of
Federal
Exclusion
15
scholarship and
Individual
fellowship income Income
Tax
Exclusion of
Federal
Exclusion
1
earnings of
Individual
Coverdell
Income
education savings
Tax
accounts and
interest on
educational
savings bonds
Exclusion of
Federal
Exclusion
7
earnings of
Individual
qualified tuition
Income
programs
Tax
(including prepaid
tuition programs
and savings
account programs)
Exclusion for
Federal
Exclusion
(m)
certain agricultural Individual
cost-sharing
Income
payments
Tax
Exclusion of
Federal
Exclusion
1
cancellation of
Individual
indebtedness
Income
income for farmers
Tax
Exclusion of
Federal
Exclusion
(m)
interest on state
Individual
and local
Income
government private Tax
activity bonds
Exclusion of
Federal
Exclusion
230
capital gains on
Individual
sales of principal
Income
residences
Tax
Exclusion of
Federal
Exclusion
152
capital gains at
Individual
death
Income
Tax
State FY 2017
1 16 1
8
(m) 1 (m) 248 159
State FY 2018
1 17 1
9
(m) 1 (m) 261 166
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Expenditure 1.1.034 1.1.035 1.1.036 1.1.037 1.1.040 1.1.041
1.1.042
1.1.043 1.2.001 1.2.003
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Carryover basis of Federal
Exclusion
23
capital gains on
Individual
gifts
Income
Tax
Permanent
Federal
Exclusion
3
exemption from
Individual
imputed interest
Income
rules
Tax
Exclusion of
Federal
Exclusion
22
combat pay
Individual
Income
Tax
Exclusion of
Federal
Exclusion
(m)
energy
Individual
conservation
Income
subsidies provided
Tax
by public utilities
Exclusion of
Federal
Exclusion
1
interest on public Individual
purpose state and
Income
local government
Tax
bonds
Exclusion of
Federal
Exclusion
23
income earned by Individual
voluntary
Income
employees'
Tax
beneficiary
associations
Exclusion of
Federal
Exclusion
(m)
survivor annuities Individual
paid to families of Income
public safety
Tax
officers killed in
the line of duty
Exclusion of
Federal
Exclusion
(m)
disaster mitigation Individual
payments
Income
Tax
Accelerated
Federal
Deduction
27
depreciation
Individual
(MACRS)
Income
Tax
Expensing of
Federal
Deduction
(m)
exploration and
Individual
development costs: Income
nonfuel minerals
Tax
State FY 2017
47 3 23 (m)
1
23
(m)
(m) 26 (m)
State FY 2018
42 3 23 (m)
1
23
(m)
(m) 26 (m)
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Expenditure 1.2.004 1.2.005 1.2.006 1.2.007 1.2.008 1.2.009 1.2.010
1.2.011
1.2.012
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Amortization of
Federal
Deduction
1
business startup
Individual
costs
Income
Tax
Expensing of
Federal
Deduction
(m)
research and
Individual
experimental
Income
expenses
Tax
Expensing of
Federal
Deduction
(m)
magazine
Individual
circulation
Income
expenditures
Tax
Deductions of oil
Federal
Deduction
0
and gas exploration Individual
and development
Income
costs
Tax
Special treatment
Federal
Deduction
2
for expenses
Individual
related to timber
Income
production
Tax
Expensing under
Federal
Deduction
12
IRC section 179 of Individual
depreciable
Income
business property
Tax
Exceptions for
Federal
Deduction
7
publicly traded
Individual
partnerships with
Income
qualified income
Tax
derived from
certain energy-
related activities
Treatment of
Federal
Deduction
1
income from
Individual
exploration and
Income
mining of natural
Tax
resources as
qualifying income
under the publicly
traded partnerships
rules
Various
Federal
Deduction
2
agricultural
Individual
expensing
Income
provisions
Tax
State FY 2017
1 (m) (m) 0 2 12 8
1
2
State FY 2018
1 (m) (m) 0 2 10 8
1
2
15 | P a g e
Expenditure 1.2.013 1.2.014
1.2.015
1.2.017 1.2.018 1.2.019
1.2.020
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Community and
Federal
Deduction
1
regional
Individual
development
Income
incentives
Tax
Expensing to
Federal
Deduction
(m)
remove
Individual
architectural and
Income
transportation
Tax
barriers to the
handicapped and
elderly
Inventory methods Federal
Deduction
2
and valuation,
Individual
(including last-in
Income
first-out, lower of
Tax
cost or market,
specific
identification for
homogenous
products)
Health Savings
Federal
Deduction
11
Accounts
Individual
Income
Tax
Deduction of
Federal
Deduction
161
property taxes on Individual
real property
Income
Tax
Deduction of
Federal
Deduction
373
nonbusiness state Individual
and local
Income
government
Tax
income taxes and
personal property
taxes
Deduction of
Federal
Deduction
552
mortgage interest Individual
on owner-occupied Income
residences
Tax
State FY 2017
1 (m)
2
13 172 396
595
State FY 2018
1 (m)
2
15 181 416
630
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Expenditure 1.2.021
1.2.022 1.2.023 1.2.025 1.2.028
1.2.029 1.2.030 1.3.001 1.3.002
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Deduction of
Federal
Deduction
432
charitable
Individual
contributions
Income
(includes
Tax
deductions for
health, education,
and for purposes
other than health
and education)
Deduction of
Federal
Deduction
3
casualty and theft Individual
losses
Income
Tax
Deduction of
Federal
Deduction
1
overnight expenses Individual
for National Guard Income
and Reserve
Tax
members
Deduction of
Federal
Deduction
10
interest on student Individual
loans
Income
Tax
Deduction of
Federal
Deduction
31
health insurance Individual
premiums and
Income
long-term care
Tax
insurance
premiums by the
self-employed
Deduction of
Federal
Deduction
72
medical and dental Individual
expenses and long- Income
term care expenses
Tax
Net exclusion of
Federal
Deduction
111
pension
Individual
contributions and
Income
earnings:
Tax
traditional and
Roth IRAs
Deferral of gain on Federal
Deferral
27
like-kind
Individual
exchanges
Income
Tax
Special rules for
Federal Special Rule
(m)
magazine,
Individual
paperback book,
Income
and record returns
Tax
State FY 2017
446
3 1 11 33
77 120
28 (m)
State FY 2018
400
3 1 11 32
81 128
29 (m)
17 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
1.3.003 1.3.004 1.3.005 1.3.006 1.3.007 1.3.008
1.3.009
Five-year carryback for net operating losses attributable to farming Special rules for mining reclamation reserves
Cash accounting, other than agriculture
Deferral of gain on non-dealer installment sales
Completed contract rules
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax on certain employee stock plans) Income averaging for farmers and fishermen
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
Type of Expenditure Special Rule
State FY 2016
1
Special Rule
(m)
Special Rule
12
Special Rule
8
Special Rule
1
Deferral
2
Special Rule
(m)
Georgia Individual Income Tax Provisions
1.4.001
Personal
State
Exemption
Individual
Income
Tax
1.4.002
Retirement Income State
Individual
Income
Tax
1.4.003
Exclusion of
State
federally taxable Individual
Social Security
Income
benefits
Tax
Exemption Exemption Exemption
1,022 1,050 174
State FY 2017
1
(m) 13 7 1 2
(m)
1,035 1,101 181
State FY 2018
1
(m) 13 6 1 1
(m)
1,048 1,155 189
18 | P a g e
Expenditure 1.4.004 1.4.005 1.4.006 1.4.007 1.4.008 1.4.009 1.4.010 1.4.011
1.4.012
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Georgia Higher
State
Exemption
7
7
9
Education Savings Individual
Plan Contributions Income
Tax
Interest on U.S.
State
Exemption
6
6
7
obligations
Individual
Income
Tax
Certain military
State
Exemption
Estimate not available at this
income
Individual
time
Income
Tax
Organ donation
State
Exemption
(m)
(m)
(m)
expenses
Individual
Income
Tax
Aged 65/Blind
State
Exemption
6
7
7
deduction
Individual
Income
Tax
Certain
State
Exemption
Estimate not available at this
dependent's
Individual
time
unearned income
Income
Tax
Premiums for high- State
Exemption
8
10
12
deductible health Individual
plans
Income
Tax
Salaries and wages State
Exemption
Estimate not available at this
reduced from
Individual
time
Federal taxable
Income
income because of
Tax
the Federal Jobs
Tax Credit
Individual
State
Exemption
Estimate not available at this
retirement account, Individual
time
Keogh, SEP and
Income
Sub-S plan
Tax
withdrawals where
tax has been paid
to Georgia because
of the difference
between Georgia
and Federal law for
tax years 1981
through 1986.
19 | P a g e
Expenditure 1.4.013
1.4.014 1.4.015
1.4.016 1.4.017 1.4.018 1.4.019 1.4.020
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Depreciation
State
Exemption
Estimate not available at this
because of
Individual
time
differences in
Income
Georgia and
Tax
Federal law during
tax years 1981
through 1986.
Income from any
State
Exemption
Estimate not available at this
fund, program or Individual
time
system which is
Income
exempted by
Tax
federal law or
treaty.
Certain income in
State
Exemption
Estimate not available at this
which the Sub-S Individual
time
election is not
Income
recognized by
Tax
Georgia or another
state in order to
avoid double
taxation.
Adjustment for
State
Exemption
Estimate not available at this
certain teachers
Individual
time
retired from the
Income
Teachers
Tax
Retirement System
of Georgia
Amount claimed
State
Exemption
Estimate not available at this
by certain
Individual
time
employers in food Income
and beverage
Tax
establishments
Adjustment of
State
Exemption
Estimate not available at this
certain payments to Individual
time
minority
Income
subcontractors
Tax
Adjustments to
State
Exemption
Estimate not available at this
federal AGI for
Individual
time
certain Georgia
Income
resident partners
Tax
Exemption for
State
Exemption
Estimate not available at this
certain disaster
Individual
time
relief firms
Income
Tax
20 | P a g e
Expenditure 1.5.001 1.6.001 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
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Standard
State
Deduction
217
Deduction
Individual
Income
Tax
Rural Physician
State
Credit
1
Credit
Individual
Income
Tax
Disabled person's
State
Credit
(m)
home purchase or Individual
retrofit credit
Income
Tax
Driver Education
State
Credit
(m)
Credit
Individual
Income
Tax
Disaster Assistance State
Credit
(m)
Credit
Individual
Income
Tax
Qualified
State
Credit
(m)
Caregiving
Individual
Expense Credit
Income
Tax
Tax credit for life
State
Credit
1
insurance for
Individual
Georgia National
Income
Guard and Air
Tax
National Guard
Child and
State
Credit
37
Dependent Care
Individual
Credit
Income
Tax
Adoption of Foster State
Credit
3
Child Credit
Individual
Income
Tax
Low-Income
State
Credit
8
Credit
Individual
Income
Tax
Credit for taxes
State
Credit
271
paid to another
Individual
state
Income
Tax
Georgia Job Tax Total State
Credit
87
Credit
Credit
State FY 2017
231 2 (m) (m) (m) (m) 1
37 3 9 286 88
State FY 2018
242 2 (m) (m) (m) (m) 1
38 4 9 300 90
21 | P a g e
Expenditure 1.6.013 1.6.014 1.6.015
1.6.016 1.6.017 1.6.018 1.6.019 1.6.020 1.6.021 1.6.022 1.6.023 1.6.025 1.6.026 1.6.027
1.6.028 1.6.029
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Quality Jobs Tax Total State
Credit
49
56
58
Credit
Credit
New Facilities Jobs Total State
Credit
Estimate combined with
Credit
Credit
1.6.012
New
Total State
Credit
Estimate not available at this
Manufacturing
Credit
time
Facilities Property
Credit
Manufacturer's
Total State
Credit
19
19
20
Investment Tax
Credit
Credit
Optional
Total State
Credit
1
1
1
Investment Tax
Credit
Credit
Port Activity Tax Total State
Credit
6
7
7
Credit
Credit
Alternate Port
Total State
Credit
Estimate combined with
Activity Tax Credit Credit
1.6.018
Film Tax Credit Total State
Credit
338
376
414
Credit
Research Tax
Total State
Credit
28
29
31
Credit
Credit
Seed-Capital Fund Total State
Credit
(m)
(m)
(m)
Credit
Credit
Qualified Health Total State
Credit
(m)
(m)
(m)
Insurance Expense Credit
Credit
Qualified
Total State
Credit
(m)
(m)
(m)
Transportation
Credit
Credit
Business
Total State
Credit
(m)
(m)
(m)
Enterprise Vehicle Credit
Credit
Employer's credit Total State
Credit
11
11
12
for providing or
Credit
sponsoring child
care for employees
and employer's
credit for
purchasing child
care property
Low-Income
Total State
Credit
192
206
217
Housing Credit
Credit
Historic
Total State
Credit
5
31
28
Rehabilitation
Credit
Credit
22 | P a g e
Expenditure 1.6.030
1.6.031
1.6.032 1.6.033 1.6.034
1.6.035 1.6.036 1.6.037 1.6.038 1.6.039
1.6.040
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Diesel Particulate Total State
Credit
0
0
0
Emission
Credit
Reduction
Technology
Equipment Credit
Low- and Zero-
Total State
Credit
30
5
(m)
Emission Vehicle
Credit
Credit & Electric
Vehicle Charger
Credit
Land Conservation Total State
Credit
29
14
0
Credit
Credit
Clean Energy
Total State
Credit
1
1
1
Property and Wood Credit
Residuals Credit
Georgia Employer Total State
Credit
1
1
1
GED Tax Credit
Credit
(previously known
as the Employer's
Credit for Basic
Skills Education)
Employer's Credit Total State
Credit
35
36
37
for Approved
Credit
Employee
Retraining
Qualified
Total State
Credit
47
47
47
Education Expense Credit
Credit
Qualified Investor Total State
Credit
1
2
2
Tax Credit
Credit
Energy-efficient or Total State
Credit
0
0
0
water-efficient
Credit
equipment credit
Tax credit for
Total State
Credit
Estimate not available at this
water conservation Credit
time
facilities and
qualified water
conservation
investment
property
Tax credit for shift Total State
Credit
Estimate not available at this
from groundwater Credit
time
usage
23 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
1.6.041
Tax credit for existing business enterprises undergoing qualified business expansion
Tax
Total State Credit
Type of Expenditure
Credit
State State State FY 2016 FY 2017 FY 2018
Estimate combined with 1.6.013
1.6.042
1.6.043 1.6.044 1.6.045
Tax credit for purchase of alternative fuel heavy-duty or medium-duty vehicle Bank Tax Credit
Employer tax credit for hiring qualified parolees Income Tax Credit for Contributions to Rural Health Care Organizations
Total State Credit
Total State Credit
Total State Credit
Total State Credit
Credit
Credit Credit Credit
3
3
0
15
16
16
0
0
1
0
0
2
Federal Corporate Income Tax Provisions
2.1.001
Permanent
Federal
Exclusion
(m)
(m)
(m)
exemption from
Corporate
imputed interest
Income
rules
Tax
2.1.002 2.1.003
Exclusion of
Federal
Exclusion
(m)
(m)
(m)
interest on state
Corporate
and local
Income
government private Tax
activity bonds
Exclusion of
Federal
Exclusion
(m)
(m)
(m)
contributions in aid Corporate
of construction for Income
water and sewer
Tax
utilities
2.1.004 2.1.005
Exclusion of
Federal
Exclusion
(m)
(m)
(m)
earnings of certain Corporate
environmental
Income
settlement funds
Tax
Exclusion of
Federal
Exclusion
(m)
(m)
(m)
certain agricultural Corporate
cost-sharing
Income
payments
Tax
24 | P a g e
Expenditure 2.1.006 2.1.008 2.1.009 2.1.010
2.2.001 2.2.003 2.2.004 2.2.005 2.2.006
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Exclusion of gain Federal
Exclusion
(m)
or loss on sale or Corporate
exchange for
Income
brownfield
Tax
property
Exclusion of
Federal
Exclusion
(m)
disaster mitigation Corporate
payments
Income
Tax
Exclusion of
Federal
Exclusion
(m)
interest on public Corporate
purpose state and
Income
local government
Tax
bonds
Various foreign
Federal
Exclusion
249
provisions
Corporate
including
Income
inventory property
Tax
sales source rule
exception, interest
expense allocation,
deferral of active
income of
controlled foreign
corporations,
deferral of active
financing income
Accelerated
Federal
Deduction
5
depreciation
Corporate
(MACRS)
Income
Tax
Expensing of
Federal
Deduction
(m)
exploration and
Corporate
development costs: Income
nonfuel minerals
Tax
Amortization of
Federal
Deduction
(m)
business start-up Corporate
costs
Income
Tax
Expensing of
Federal
Deduction
8
research and
Corporate
experimental
Income
expenses
Tax
Expensing of
Federal
Deduction
(m)
magazine
Corporate
circulation
Income
expenditures
Tax
State FY 2017
(m) (m) (m) 253
4 (m) (m) 9 (m)
State FY 2018
(m) (m) (m) 256
4 (m) (m) 10 (m)
25 | P a g e
Expenditure 2.2.007 2.2.008 2.2.009
2.2.011 2.2.012 2.2.014 2.2.015 2.2.016
2.2.017
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Deductions of oil
Federal
Deduction
0
and gas exploration Corporate
and development
Income
costs
Tax
Special treatment
Federal
Deduction
3
of expenses related Corporate
to timber
Income
production
Tax
Deduction of
Federal
Deduction
15
charitable
Corporate
contributions
Income
(includes
Tax
deductions for
health, education,
and for purposes
other than health
and education)
Expensing under
Federal
Deduction
3
IRC section 179 of Corporate
depreciable
Income
business property
Tax
Amortization of air Federal
Deduction
1
pollution control Corporate
facilities
Income
Tax
Various
Federal
Deduction
(m)
agricultural
Corporate
expensing
Income
provisions
Tax
Community and
Federal
Deduction
(m)
regional
Corporate
development
Income
incentives
Tax
Expensing to
Federal
Deduction
(m)
remove
Corporate
architectural and
Income
transportation
Tax
barriers to the
handicapped and
elderly
Inventory methods Federal
Deduction
5
and valuation
Corporate
Income
Tax
State FY 2017
0 3 16
3 1 (m) (m) (m)
5
State FY 2018
0 3 16
3 1 (m) (m) (m)
5
26 | P a g e
Expenditure 2.2.018
2.3.001 2.3.002 2.3.003 2.3.004 2.3.005 2.3.006 2.3.007 2.3.008
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Limits on
Federal
Exemption
-3
deductible
Corporate
compensation and Income
disallowance of
Tax
deduction for
excess parachute payments2
Deferral of gain on Federal
Deferral
30
like-kind
Corporate
exchanges
Income
Tax
Special rules for
Federal Special Rule
(m)
magazine,
Corporate
paperback book,
Income
and record returns
Tax
Five-year
Federal Special Rule
(m)
carryback for net Corporate
operating losses
Income
attributable to
Tax
farming
Special rules for
Federal Special Rule
(m)
mining reclamation Corporate
reserves
Income
Tax
Cash accounting,
Federal
Special Rule
1
other than
Corporate
agriculture
Income
Tax
Deferral of gain on Federal Special Rule
15
non-dealer
Corporate
installment sales
Income
Tax
Completed
Federal Special Rule
3
contract rules
Corporate
Income
Tax
Special treatment
Federal
Deferral
-1
of employee stock Corporate
ownership plans
Income
(ESOPs) (includes
Tax
deferral of tax on
certain employee
stock plans)
State FY 2017
-4
30 (m) (m)
(m) 1 14 3 -1
State FY 2018
-4
31 (m) (m)
(m) 1 14 3 -1
2 Negative values denote a tax expenditure that is estimated to increase state revenues.
27 | P a g e
Summary of State Tax Expenditures
Expenditure 2.3.009
2.4.001 2.4.002 2.4.003 2.5.001 2.5.002
2.5.003
Summary
Deferral of capital construction costs of shipping companies Single-Factor Apportionment
Throwback Rule
Corporate Receipts Sourcing
Interest on obligations of United States Exception to intangible expenses and related interest cost Exemption for certain disaster relief firms
Tax
Federal Corporate
Income Tax
Corporate Income Tax
Corporate Income Tax
Corporate Income Tax
Corporate Income Tax
Corporate Income Tax
Corporate Income Tax
Type of Expenditure
Deferral
State State State
FY 2016 FY 2017 FY 2018
(m)
(m)
(m)
Apportionment Apportionment Apportionment
Deduction Deduction
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
Exemption
Estimate not available at this time
Georgia Corporate Income Tax Provisions
2.6.001
Georgia Job Tax Total State
Credit
Credit
2.6.002
Quality Jobs Tax Total State
Credit
Credit
2.6.003
New Facilities Jobs Total State
Credit
Credit
2.6.004
New
Total State
Manufacturing
Credit
Facilities Property
Credit
2.6.005
Manufacturer's
Total State
Investment Tax
Credit
Credit
2.6.006
Optional
Total State
Investment Tax
Credit
Credit
2.6.007
Port Activity Tax Total State
Credit
Credit
Credit Credit Credit Credit
Credit Credit Credit
87
88
90
49
56
58
Estimate combined with 2.6.001
Estimate not available at this time
19
19
20
1
1
1
6
7
7
2.6.008 2.6.009
Alternative Port Activity Tax Credit Film Tax Credit
Total State Credit
Total State Credit
Credit Credit
Estimate combined with
2.6.007
338
376
414
28 | P a g e
Expenditure 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
2.6.021 2.6.022 2.6.023
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Research Tax
Total State
Credit
28
Credit
Credit
Seed-Capital Fund Total State
Credit
(m)
Credit
Credit
Qualified Health Total State
Credit
(m)
Insurance Expense Credit
Credit
Qualified
Total State
Credit
(m)
Transportation
Credit
Credit
Business
Total State
Credit
(m)
Enterprise Vehicle Credit
Credit
Employer's Credit Total State
Credit
11
for providing or
Credit
sponsoring child
care for employees
and employer's
credit for
purchasing child
care property
Low-Income
Total State
Credit
192
Housing Credit
Credit
Historic
Total State
Credit
5
Rehabilitation
Credit
Credit
Diesel Particulate Total State
Credit
0
Emission
Credit
Reduction
Technology
Equipment Credit
Low- and Zero- Total State
Credit
30
emission Vehicle
Credit
Credit & Electric
Vehicle Charger
Credit
Land Conservation Total State
Credit
29
Credit
Credit
Clean Energy
Total State
Credit
1
Property & Wood
Credit
Residuals Credit
Georgia Employer Total State
Credit
1
GED Tax Credit
Credit
(previously known
as the Employer's
Credit for Basic
Skills Education)
State FY 2017
29 (m) (m) (m) (m) 11
206 31 0
5
14 1 1
State FY 2018
31 (m) (m) (m) (m) 12
217 28 0
(m)
0 (m) 1
29 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
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 2.6.033 2.6.034
Employer's Credit for Approved Employee Retraining Qualified Education Expense Credit Qualified Investor Tax Credit Energy-Efficient or Water-Efficient Equipment Credit Tax credit for water-conservation 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 heavy-duty or medium-duty vehicle Bank Tax Credit
Employer tax credit for hiring qualified parolees Income Tax Credit for Contributions to Rural Health Care Organizations
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
Type of Expenditure
Credit Credit Credit Credit Credit
Credit Credit
Credit
Credit Credit Credit
State State State
FY 2016 FY 2017 FY 2018
35
36
37
47
47
47
1
2
2
0
0
0
Estimate not available at this time
Estimate not available at this time
Estimate combined with 2.6.002
3
3
0
15
16
16
0
0
1
0
0
2
Corporate Net Worth Tax
3.001
Exemption for
nonprofit
corporations
Net Worth Tax
Exemption
Estimate not available at this time
30 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
3.002
Exemptions from Net Worth
the Net Worth Tax
Tax
Type of Expenditure Exemption
State State State FY 2016 FY 2017 FY 2018
Estimate not available at this time
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
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
Estimate not available at this time
Estimate not available at this time
Estimate not available at this time
9
10
10
Estimate combined with 4.00400
31 | P a g e
Expenditure 4.00600 4.00610 4.00620
4.00630 4.00700
4.00705
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Sales to any
Sales and Exemption
Estimate combined with
Hospital Authority Use Tax
4.00700
created by Georgia
law
Sales to any
Sales and Exemption
2
2
2
Housing Authority Use Tax
created by Georgia
law
Sales to local
Sales and Exemption
2
2
1
government
Use Tax
authorities created
on or after January
1, 1980 for the
principal purpose
of constructing,
owning, or
operating a
coliseum and
related facilities
Sales to any
Sales and Exemption
(m)
(m)
(m)
agricultural
Use Tax
commission
created by the
Department of
Agriculture
Sales of tangible Sales and Exemption
98
103
108
personal property Use Tax
and services to an
approved nursing
home, inpatient
hospice, general
hospital or mental
hospital when used
specifically in the
treatment function.
Sales of tangible Sales and Exemption
1
1
1
personal property Use Tax
to a non-profit
health center
established and
receiving funds
pursuant to the
U.S. Public Health
Service Act
32 | P a g e
Expenditure 4.00710
4.00720 4.00730
4.00800 4.00900
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Sales of tangible Sales and Exemption
2
2
2
personal property Use Tax
and services to a
nonprofit
organization whose
primary function is
to provide services
to persons with
intellectual
disabilities
Sales to Georgia Sales and Exemption
(m)
(m)
(m)
Society of the
Use Tax
Daughters of the
American
Revolution
Sales of tangible Sales and Exemption
1
1
1
property and
Use Tax
services to a
nonprofit volunteer
health clinic
primarily treating
patients with
incomes below 200
percent of the
poverty level
Sales of tangible Sales and Exemption
39
41
43
personal property Use Tax
and services to the
University System
of Georgia and its
educational units
Sale of tangible
Sales and Exemption
Estimate combined with
personal property Use Tax
4.00800
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
33 | P a g e
Expenditure 4.01000
4.01100
4.01200 4.01300 4.01400 4.01500
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Sales of tangible Sales and Exemption
3
personal property Use Tax
and services used
exclusively in the
educational
function of an
approved private
elementary or
secondary school
Sale of tangible
Sales and Exemption
(m)
personal property Use Tax
or services to, and
the purchase of
tangible personal
property or
services by, any
educational or
cultural institute
School lunches
Sales and Exemption
7
sold and served to Use Tax
pupils and
employees of
public schools
School lunches
Sales and Exemption
1
sold and served to Use Tax
pupils and
employees of
approved private
schools
Sales of art and
Sales and Exemption
(m)
other artifacts for Use Tax
display or
exhibition to
museums
Specific
Sales and Exemption
(m)
fundraising sales
Use Tax
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
State FY 2017
3
(m)
7 (m) (m) (m)
State FY 2018
3
(m)
7 (m) (m) (m)
34 | P a g e
Expenditure 4.01510 4.01700 4.01800
4.01900
4.02000
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Sales of pipe
Sales and Exemption
(m)
(m)
(m)
organs or steeple
Use Tax
bells to any church
qualifying as a
nonprofit
Sales of fuel or
Sales and Exemption
17
18
19
consumable
Use Tax
supplies used by
ships engaged in
inter-coastal or
foreign commerce
Charges for
Sales and Exemption
Estimate not available at this
transportation of
Use Tax
time
tangible personal
property made in
connection with
interstate or
intrastate
transportation
All tangible
Sales and Exemption
Estimate not available at this
personal property Use Tax
time
purchased outside
this state by a
nonresident when
the property is
brought into
Georgia upon the
nonresident
becoming a
resident
Water delivered
Sales and Exemption
63
65
68
through water
Use Tax
mains, lines, or
pipes
35 | P a g e
Expenditure 4.02100
4.02200
4.02300 4.02400 4.02500 4.03000
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Sales, transfers or Sales and Exemption
Estimate not available at this
exchanges of
Use Tax
time
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
Professional,
Sales and Exemption See expenditure estimates for
insurance or
Use Tax
(4.50003, 4.50010, 4.50011)
personal service
transactions which
involve sales as
inconsequential
elements for which
no separate charge
is made
Repair services
Sales and Exemption See expenditure estimates for
when a separate
Use Tax
(4.50003, 4.50010, 4.50011)
charge is made to
the customer
Rental of videotape Sales and Exemption
7
7
7
or film to persons Use Tax
charging admission
to view the tape or
film
Fares of for-hire
Sales and Exemption
Estimate not available at this
vehicles
Use Tax
time
Vehicles purchased Sales and Exemption
(m)
(m)
(m)
by service-
Use Tax
connected disabled
veterans when the
U.S. Dept. of
Veterans Affairs
supplies a grant to
purchase and
specially adapted
the vehicle
36 | P a g e
Expenditure 4.03100
4.03200
4.03300 4.03410
4.03420 4.03600
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Sale of tangible
Sales and Exemption
Estimate not available at this
personal property Use Tax
time
manufactured or
assembled in
Georgia for export
when delivery is
taken outside of
Georgia
Aircraft,
Sales and Exemption
Estimate not available at this
watercraft, motor Use Tax
time
vehicles, and other
transportation
equipment
manufactured or
assembled in this
State for exclusive
use outside
Georgia
Common or
Sales and Exemption
Estimate not available at this
common and
Use Tax
time
contract carriers
Machinery and
Sales and Exemption
Estimate not available at this
equipment used to Use Tax
time
handle, move, or
store tangible
personal property
in certain
distribution
facilities
Machinery and
Sales and Exemption
(m)
(m)
(m)
equipment used
Use Tax
directly to
remanufacture
certain aircraft
engines or aircraft
engine parts
Machinery and
Sales and Exemption
(m)
(m)
(m)
equipment used in Use Tax
a facility for the
primary purpose of
reducing or
eliminating air and
water pollution
37 | P a g e
Expenditure 4.03610 4.03800 4.03900
4.03910
4.04000 4.04100
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Machinery and
Sales and Exemption
Estimate not available at this
equipment used for Use Tax
time
water conservation
and incorporated
into a qualified
water conservation
facility.
Sale of tangible
Sales and Exemption
(m)
(m)
(m)
personal property Use Tax
and fees and
charges for
services by the
Rock Eagle 4-H
center
Certain sales by a Sales and Exemption
2
2
2
public or private
Use Tax
school of tangible
personal property,
concessions, and
tickets for
admission to
school functions
Cargo containers Sales and Exemption
Estimate not available at this
and related chassis Use Tax
time
used for storage or
shipping by
persons engaged in
international
shipment of
tangible personal
property
Sale of major
Sales and Exemption
46
48
59
components or
Use Tax
repair parts
installed in military
aircraft, vehicles,
or missiles
Sale of tangible
Sales and Exemption
1
1
1
personal property Use Tax
and services to a
nonprofit child-
caring institution,
child-placing
agency, or
maternity home
38 | P a g e
Expenditure 4.04200
4.04300 4.04400 4.04500 4.04600
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Use or lease of
Sales and Exemption
Estimate not available at this
tangible personal
Use Tax
time
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
Sales and Exemption
Estimate not available at this
coin-operated
Use Tax
time
amusement
machines for
which individual
permits are
required
Sale of motor
Sales and Exemption
Estimate not available at this
vehicles to
Use Tax
time
nonresident
purchasers when
vehicles are
immediately
removed from
Georgia and titled
in another state.
The sale or use of Sales and Exemption
Estimate not available at this
paper stock when Use Tax
time
used to print
catalogs for
distribution outside
Georgia.
Sale of tangible
Sales and Exemption
1
1
1
personal property Use Tax
or taxable services
to nonprofit blood
banks
39 | P a g e
Expenditure 4.04700
4.04800 4.05000
4.05100 4.05200 4.05300
4.05400
4.05500 4.05600
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Sale of drugs
Sales and Exemption
397
dispensed by
Use Tax
prescription,
prescription
glasses, contact
lenses, contact lens
samples and sales
or use of certain
controlled
substances or
dangerous drugs
Sale of crab bait to Sales and Exemption
(m)
licensed
Use Tax
commercial
fishermen
Sales of insulin
Sales and Exemption
25
syringes and blood Use Tax
glucose level
measuring strips
dispensed without
a prescription
Sale of oxygen
Sales and Exemption
1
when prescribed by Use Tax
a licensed
physician
Sale or use of
Sales and Exemption
5
hearing aids
Use Tax
Transactions where Sales and Exemption
116
food stamps or
Use Tax
WIC coupons are
used as the method
of payment of
payment
Sale or use of any Sales and Exemption
34
durable medical
Use Tax
equipment or
prosthetic device
prescribed by a
physician
Sale of Georgia
Sales and Exemption
159
lottery tickets
Use Tax
Sale by any
Sales and Exemption
(m)
qualified nonprofit Use Tax
parent-teacher
organization
State FY 2017
422
(m) 27
1 6 115
35
164 (m)
State FY 2018
453
(m) 28
1 6 115
36
168 (m)
40 | P a g e
Expenditure 4.05700 4.05710 4.05720
4.05730
4.05900 4.06000
4.06100 4.06200
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Food purchased for Sales and Exemption
489
502
513
off-premises
Use Tax
consumption
Sales of food and Sales and Exemption
1
1
1
beverages to a
Use Tax
qualified food bank
(expires June 30,
2021)
Exemption for
Sales and Exemption
3
3
3
prepared food and Use Tax
food ingredients
that are donated to
a qualified
nonprofit agency
and used for
hunger relief
purposes
Exemption for
Sales and Exemption
(m)
(m)
(m)
food and food
Use Tax
ingredients that are
donated following
a natural disaster
and used for
disaster relief
Sale of eligible
Sales and Exemption
1
1
1
food and beverages Use Tax
by any Girl or Boy
Scout council
Sale of certain
Sales and Exemption
(m)
(m)
(m)
machinery and
Use Tax
equipment used to
improve air quality
in a clean room of
Class 100,000 or
less
Advertising inserts Sales and Exemption
Estimate not available at this
that are used in
Use Tax
time
newspapers for
resale
Sod grass sold in Sales and Exemption
3
3
3
the original state of Use Tax
production by the
sod producer,
employee of the
producer, or family
member of the
producer
41 | P a g e
Expenditure 4.06300 4.06500
4.06600 4.06700 4.06800
4.06900
4.07000 4.07100
4.07200
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Funeral
Sales and Exemption
(m)
(m)
(m)
merchandise when Use Tax
paid with funds
from the Georgia
Crime Victims'
Emergency Fund
Sale of dyed diesel Sales and Exemption
(m)
(m)
(m)
fuel used
Use Tax
exclusively for
operations of
vessels or boats by
licensed
commercial
fishermen
Sale of gold, silver, Sales and Exemption
3
3
3
or platinum bullion Use Tax
Sale of coins or
Sales and Exemption
1
1
1
currency
Use Tax
Sale of certain
Sales and Exemption
Estimate not available at this
computer
Use Tax
time
equipment when
the total qualifying
purchases by a
high technology
company exceed
$15 million
Sales of machinery Sales and Exemption
(m)
(m)
(m)
and equipment and Use Tax
material
incorporated and
used in a clean
room of Class 100
or less
Sale of natural gas Sales and Exemption
45
49
56
used directly in the Use Tax
manufacture of
electricity
Sale to or by an
Sales and Exemption
(m)
(m)
(m)
organization whose Use Tax
primary purpose is
to raise funds for
books, materials,
and programs for
public libraries
Sale of prescribed Sales and Exemption
2
3
3
mobility enhancing Use Tax
equipment
42 | P a g e
Expenditure 4.07500 4.07600 4.08100
4.08200 4.08300 4.08600
4.08700
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Sales tax holiday Sales and Exemption
42
for back to school Use Tax
items (expired July
31, 2016)
Exemption for
Sales and Exemption
(m)
personal property Use Tax
used in the
renovation or
expansion of an
aquarium
The purchase of
Sales and Exemption
4
food and
Use Tax
nonalcoholic
beverages provided
at no charge
aboard a qualified
airline
Sales tax holiday Sales and Exemption
1
for water-efficient Use Tax
and energy-
efficient purchases
(expired October 2,
2016)
Sale of biomass
Sales and Exemption
1
materials used to
Use Tax
produce electricity
or steam intended
for sale
Sales of engines, Sales and Exemption
17
parts, equipment
Use Tax
and other tangible
personal property
used in the
maintenance or
repair of certain
aircraft
Sales of tangible Sales and Exemption
0
personal property Use Tax
used to renovate or
expand a
zoological
institution (expires
June 30, 2018)
State FY 2017
0 (m)
5
0
2 17
(m)
State FY 2018
0 0
5
0
2 17
(m)
43 | P a g e
Expenditure 4.09100 4.09300
4.09400 4.09600 4.09700
Summary of State Tax Expenditures
Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
The sale of
Sales and Exemption
Estimate not available at this
prewritten software Use Tax
time
which has been
delivered to the
purchaser
electronically or by
means of load and
leave.
Sale of tangible
Sales and Exemption
9
9
9
personal property Use Tax
used for and in the
construction of a
competitive project
of regional
significance, for
the period
commencing
January 1, 2012,
until June 30, 2019
The sale, use,
Sales and Exemption
Estimate not available at this
consumption, or
Use Tax
time
storage of
materials,
containers, labels,
sacks, or bags used
for packaging
tangible personal
property for
shipment or sale
Exemption for
Sales and Exemption
(m)
0
0
sales or use of
Use Tax
construction
materials used for
or in the
construction of
buildings at a
private college
(expired July 1,
2016)
Sales of admission Sales and Exemption
0
1
3
to a nonrecurring Use Tax
major sporting
event
44 | P a g e
Expenditure 4.09800 4.3.2
4.3.3
4.50000 4.50001 4.50002 4.50003 4.50004
Summary of State Tax Expenditures
Summary
Tax
Type of
State
Expenditure FY 2016
Sales of tangible Sales and Exemption
1
personal property Use Tax
and services to a
qualified job
training
organization
Exemptions for
Sales and Exemption
3,005
energy, machinery Use Tax
or equipment,
industrial material,
and consumable
supplies used in
manufacturing
Sale and use by a Sales and Exemption
183
qualified
Use Tax
agriculture
producer of
agricultural
production inputs,
energy used in
agriculture, and
agricultural
machinery and
equipment
Admissions and
Sales and Exemption
153
Amusements
Use Tax
for
Services
Agricultural
Sales and Exemption
147
Services
Use Tax
for
Services
Automotive
Sales and Exemption
134
Services
Use Tax
for
Services
Business Services Sales and Exemption
673
Use Tax
for
Services
Computer and
Sales and Exemption
362
Online Services
Use Tax
for
Services
State FY 2017
1
3,145
192
158 152 138 697 375
State FY 2018
1
3,294
201
164 158 143 722 389
45 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
4.50005 4.50006 4.50007 4.50008 4.50009 4.50010 4.50011 4.50012 4.50013 4.70000 4.90000
Construction Labor
Fabrication, Installation, and Repair Services Finance, Insurance, and Real Estate
Industrial and Mining Services
Residential Utility Service
Personal Services
Professional Services
Storage
Transportation Services
Compensation of dealers for reporting and paying tax Sales tax exemption for casual sales
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 Sales and Use Tax
Sales and Use Tax
Type of Expenditure Exemption
State FY 2016
1,504
Exemption
224
Exemption
1,034
Exemption
11
Exemption
19
Exemption
281
Exemption
1,974
Exemption
70
Exemption
(m)
Exemption
65
Exemption
2
Insurance Premium Tax
5.00100
Deduction of
Insurance Deduction
(m)
retaliatory taxes
Premium
paid to other states
Tax
State FY 2017
1,557 230 1,070 11 20 291 2,043 72 (m) 68 2 (m)
State FY 2018
1,614 239 1,109 11 20 302 2,118 75 (m) 70 2 (m)
46 | P a g e
Summary of State Tax Expenditures
Expenditure 5.00200 5.00300 5.00400
5.00500 5.00600 5.00700 5.00800
Summary
Tax
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
Special deductions for life insurance companies Insurance premium tax credit - Low Income Housing Credit Insurance Premium Tax Exemption for multiple employer self-insured health plans
Total State Credit
Insurance Premium
Tax
Insurance Premium
Tax
Insurance Premium
Tax Insurance Premium
Tax Total State
Credit
Insurance Premium
Tax
Type of Expenditure
Credit
State State State
FY 2016 FY 2017 FY 2018
87
88
90
Exemption
9
10
11
Exemption
(m)
(m)
(m)
Rate Reduction 145
148
151
Deduction
152
155
158
Credit
192
206
217
Exemption
(m)
(m)
(m)
Motor Fuel Tax
6.00100
Motor fuel tax
refunds for
agricultural
purposes
6.00400
Motor fuel tax
exemption for
aviation fuel
6.00500
Motor fuel tax
vendor
compensation
Motor Fuel Tax
Exemption
Estimate not available at this time
Motor Fuel Exemption
2
2
2
Tax
Motor Fuel Exemption
16
17
17
Tax
Alcoholic Beverage Tax
7.00100
Sales to persons
outside the state
for resale or
consumption
outside the state
Alcoholic Beverage
Tax
Exemption
Estimate not available at this time
47 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
7.00200 7.00300 7.00400 7.00500 7.00600
Sales to stores or canteens in U.S. military reservations 200 gallons annually of homebrew per household Sales to and use by religious organizations for sacramental purposes Exemption for ethyl alcohol used for certain purposes Malt beverages containing less than one-half of 0.5 percent alcohol by volume
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Alcoholic Beverage
Tax
Type of Expenditure Exemption
State State State FY 2016 FY 2017 FY 2018
Estimate not available at this time
Exemption
1
1
1
Exemption
(m)
(m)
(m)
Exemption
(m)
(m)
(m)
Exemption
(m)
(m)
(m)
Tobacco Products Excise Tax
8.00100
Exemption for
purchases for use
exclusively by
patients at the
Georgia War
Veterans Home
and the Georgia
War Veterans
Nursing Home
8.00200
De minimis
amount brought
into the state by
one person
Tobacco Products Excise Tax
Tobacco Products Excise Tax
Exemption Exemption
(m)
(m)
(m)
Estimate not available at this time
8.00300 8.00400
Cigars and cigarettes stored in a public warehouse Certain cigars and cigarettes held by licensed dealers
Tobacco Products Excise Tax Tobacco Products Excise Tax
Exemption Exemption
Estimate not available at this time
Estimate not available at this time
48 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
Tax
Type of
State State State
Expenditure FY 2016 FY 2017 FY 2018
Financial Institutions Special State Occupation Tax
9.00100
Deduction for
Financial
Deduction
interest paid
Institutions
Business
License
Tax
9.00200
Deductions for
Financial
Deduction
income from
Institutions
authorized
Business
activities of a
License
domestic
Tax
international
banking facility
9.00300
Deduction for
Financial
Deduction
income from
Institutions
banking business Business
with persons or
License
entities outside the
Tax
U.S.
2
2
2
Estimate not available at this time
Estimate not available at this time
Special Assessment of Forest Land Conservation Use Property
10.00000
Special assessment State Grant
Credit
29
33
33
of forest land
conservation use
property
Alternative Ad Valorem Tax on Motor Vehicles
11.001
Reduced rate for
Title Fee Rate Reduction
7
7
7
related family
transfers
11.002
Disabled veteran Title Fee Exemption
(m)
(m)
(m)
exemption
11.003 11.004
11.005
Reduced rate for
Title Fee Rate Reduction 73
80
75
rental vehicles
Reduced rate for
Title Fee Rate Reduction (m)
(m)
(m)
vehicles
manufactured in
years 1963 through
1985
Reduced rate for
Title Fee Rate Reduction 31
33
31
salvage vehicles
11.006 11.007 11.008
Dealer loaner
Title Fee Exemption
7
6
4
vehicle exemption
Reduced rate for
Title Fee Rate Reduction (m)
(m)
(m)
donated vehicles
Extended payment Title Fee Exemption
2
0
-1
period for out-of-
state vehicles
49 | P a g e
Summary of State Tax Expenditures
Expenditure Summary
11.009
11.010 11.011 11.012 11.013
Trade-in exemption (including rebates and cash discounts) Special assessment for used vehicles Special assessment for new vehicles Buy here pay here transactions Exemption from TAVT for leased vehicles qualifying for Manufacturing Headquarters
Tax Title Fee
Title Fee Title Fee Title Fee Title Fee
Type of Expenditure Exemption
State FY 2016
395
Exemption
21
Exemption
-43
Rate Reduction
6
Exemption
1
Special Excise Tax on Consumer Fireworks
State Hotel-Motel Tax
State FY 2017
434
22 -44 7 1
State FY 2018
407
20 -41 7 1
50 | 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 unchanged at 7 percent since 1955 when the rate on taxable incomes over $20,000 was eliminated. The threshold for each bracket depends on the filing status of the taxpayer, i.e. single or head of household, married filing separate or joint.
The initial base of the Georgia individual income tax is the taxpayer's federal adjusted gross income (AGI). Several adjustments are made to this starting point to arrive at the version of AGI adopted by Georgia. After computing the Georgia version of AGI, taxpayers deduct an amount representing either the value of their Georgia itemized deductions or the Georgia standard deduction. 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 is administered by the Georgia DOR. Individual income tax collections equaled $9.7 billion in FY 2015 and accounted for 50 percent of Georgia's revenues from taxation. In CY 2015, 4.5 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 General Fund.
It is important to keep in mind that tax expenditure estimates may differ from revenue estimates presented in fiscal notes. Estimates included in fiscal notes incorporate behavioral effects that are not considered when estimating tax expenditure provisions. 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 individual income tax credit provisions. Forecasting the value of the revenue loss stemming from the use of these credits is problematic because of the presence of extensive carry forwards in the case of some credits. Because of past credit carry forwards, taxpayers may claim credits on current or future year tax returns that were created in prior years. In some cases, the credit may have expired, such that taxpayers are no long able to create new credits but the revenue loss to the state continues for several years until all carryforward liabilities have been exhausted. Therefore, the estimates provided in this report should be interpreted as the expected revenue loss stemming from the use of currently created or previously created credits and not an estimate of the value of credits created in a given year.
51 | P a g e
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. The estimates associated with the federal conformity provisions are based on current law as it existed in November 2016. Therefore, any changes to provisions that may occur because of federal legislative action that occurred after that period are not reflected in the estimates. 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 2014.
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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 Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
15 15
16
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)
2016 2017 2018
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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Net Exclusion of pension contributions and earnings plans for employees and self-employed individuals (Keoghs) 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.
53 | P a g e
1.1.006 1.1.007 1.1.008 1.1.010 1.1.011
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2016 2017 2018 943 1148 1317
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)
2016 2017 2018
State Tax Expenditure
1087 1135 1185
(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)
2016 2017 2018
State Tax Expenditure
29 31
32
(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)
2016 2017 2018
State Tax Expenditure
23 24
26
(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)
2016 2017 2018
State Tax Expenditure
230 242 254
(m) Denotes a value of less than $1 million
Exclusion of employer-provided adoption assistance
Federal Statute IRC Section 137
Description: Benefits received from a qualified employer-sponsored adoption assistance
program are excludable from taxable income for the employee.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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1.1.012 1.1.013 1.1.014 1.1.015 1.1.016
Exclusion of employer-provided education benefits (including education assistance and
tuition reduction benefits)
Federal Statute IRC Section 117(d) and Section 127
Description: Tuition reductions for employees of educational institutions may be
excluded from taxable income. In addition, an employee may exclude
amounts paid by the employer for qualified educational assistance
programs.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
46 47
48
(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)
2016 2017 2018
State Tax Expenditure
51 54
57
(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)
2016 2017 2018
State Tax Expenditure
12 12
13
(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
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.
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1.1.017 1.1.018 1.1.019 1.1.020
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
65 69
72
Exclusion of medical care and Tricare medical insurance for military dependents, retirees,
and retiree dependents
Federal Statute IRC Section 112 and 134
Description: Military personnel are provided with a variety of in-kind benefits (or cash
payments in lieu of such benefits) that are not taxed. In addition, certain
members of the armed forces are eligible for tax exclusion of disability pay.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
24 24
24
(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)
2016 2017 2018
State Tax Expenditure
63 65
63
(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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
56 57
58
(m) Denotes a value of less than $1 million
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1.1.021 1.1.022 1.1.024 1.1.026
1.1.027
Exclusion of special benefits for disabled coal miners
Federal Statute IRC Section 104(a)(1)
Description: Cash and medical benefits to coal mine workers or their survivors for total
disability or death resulting from coal workers' pneumoconiosis (black lung
disease) paid under the Black Lung Benefits Act generally are not taxable.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
259 275
290
(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)
2016 2017 2018
State Tax Expenditure
1
1
1
(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)
2016 2017 2018
State Tax Expenditure
15 16
17
(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)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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1.1.028 1.1.029 1.1.030 1.1.031 1.1.032 1.1.033
Exclusion of earnings of qualified tuition programs (including prepaid tuition programs
and savings account programs)
Federal Statute IRC Section 529
Description: Contributions to qualified tuition programs are not deductible at the federal
level but earnings accumulate on a tax-deferred basis.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
8
9
(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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of cancellation of indebtedness income for farmers
Federal Statute Sections 108 and 1070(b)(4)
Description: The provision allows farmers who are solvent to treat the income arising
from the cancellation of certain indebtedness as if they were insolvent
taxpayers. As such, income that would normally be subject to tax would be
excluded from tax under qualifying conditions.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of capital gains on sales 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)
2016 2017 2018
State Tax Expenditure
230 248 261
(m) Denotes a value of less than $1 million
Exclusion of capital gains at death Federal Statute IRC Sections 1001, 1014, 1015, 1023, 1040, 1221, and 1222 Description: A capital gain tax is not imposed on the increased value of an asset when
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1.1.034 1.1.035 1.1.036 1.1.037 1.1.040
ownership of the property is transferred as a result of the death of the
owner.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
152 159 166
(m) Denotes a value of less than $1 million
Carryover basis of capital gains on gifts
Federal Statute IRC Sections 1001, 1014, 1015, 1023, 1040, 1221, and 1222
Description: A capital gain tax is not imposed on the increased value of an asset when
ownership of the property is transferred as a gift during the owner's
lifetime.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
23 47
42
(m) Denotes a value of less than $1 million
Permanent Exemption from imputed interest rules
Federal Statute IRC Sections 163(e), 483, 1274, and 1274A
Description: Debt instruments for amounts not exceeding an inflation adjusted
maximum, given in exchange for real property, may not have imputed to
them an interest rate greater than 9 percent.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
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)
2016 2017 2018
State Tax Expenditure
22 23
23
(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 Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
(m) (m)
(m)
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
59 | P a g e
1.1.041 1.1.042 1.1.043
income (expenditure estimate has been adjusted to reflect GA law that only
interest on GA bonds is excluded from income).
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Exclusion of income earned by voluntary employees' beneficiary associations
Federal Statute IRC Sections 501(a) and 501(c)(9)
Description: Provided certain requirements are met, the income earned by a voluntary
employee beneficiary association (VEBA) is exempt from federal income
taxes.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
23 23
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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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1.2 Federal Deductions
1.2.001 1.2.003 1.2.004 1.2.005 1.2.006
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS) the cost
of tangible depreciation property of certain energy property is allowed a
shorter depreciation period. Taxpayers are allowed to depreciate the costs
of new rental housing and certain other buildings and equipment on an
accelerated schedule.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
27 26
26
(m) Denotes a value of less than $1 million
Expensing of exploration and development costs: nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617, 56, 1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $5,000 in
qualified start-up expenditures.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Expensing of research and experimental expenses
Federal Statute IRC Section 174 and 59(e)
Description: This provision allows a business taxpayer to deduct certain research
expenditures that are paid or incurred in connection with the taxpayer's
trade or business.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Expensing of magazine circulation expenditures
Federal Statute IRC Section 173
Description: In general, current federal tax law allows publishers of newspapers,
magazines, and other periodicals to deduct their expenditures to maintain,
establish, or increase circulation in the year in which they are made.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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1.2.007
1.2.008 1.2.009 1.2.010 1.2.011
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A, and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas or other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible drilling
and development costs.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
12 12
10
(m) Denotes a value of less than $1 million
Exceptions for publicly traded partnerships with qualified income derived from certain
energy-related activities
Federal Statute IRC Section 7704
Description: This code section allows publicly traded partnerships to be treated as a
corporation for the purposes of the federal income tax under most
situations.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
8
8
(m) Denotes a value of less than $1 million
Treatment of income from exploration and mining of natural resources as qualifying income under the publicly traded partnerships rules 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.
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1.2.012 1.2.013 1.2.014 1.2.015 1.2.017
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
1
1
1
Various agricultural expensing provisions
Federal Statute IRC Sections 162, 175, 180, 446, 448, 461, 464
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning and the costs
associated with raising dairy and breeding cattle.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
(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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Inventory methods and valuation, (including last-in first-out, lower of cost or market,
specific identification for homogenous products)
Federal Statute IRC Sections 475, 491-492
Description: This provision allows taxpayers to use alternative inventory systems to
determine cost of goods sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
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.
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1.2.018 1.2.019 1.2.020 1.2.021 1.2.022
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
11 13
15
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)
2016 2017 2018
State Tax Expenditure
161 172 181
(m) Denotes a value of less than $1 million
Deduction of nonbusiness state and local government income taxes and
personal property taxes
Federal Statute IRC Section 164
Description: State and local income, sales and personal property taxes paid by
individuals are deductible from adjusted gross income.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
373 396
416
(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)
2016 2017 2018
State Tax Expenditure
552 595
630
(m) Denotes a value of less than $1 million
Deduction of charitable contributions (includes deductions for health, education, and for
purposes other than health and education)
Federal Statute IRC Sections 170 and 642(c)
Description: Subject to certain limitations, charitable contributions may be deducted by
individuals.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
432 446 400
(m) Denotes a value of less than $1 million
Deduction of casualty and theft losses
Federal Statute IRC Sections 165(c)(3), 165(e), 165(h)-165(k)
Description: An individual may claim an itemized deduction for unreimbursed personal
casualty or theft losses up to a specified limit.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
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1.2.023 1.2.025 1.2.028 1.2.029 1.2.030
Deduction of overnight expenses for National Guard and Reserve members
Federal Statute IRC Sections 162(p) and 62(a)(2)(E)
Description: An above-the-line deduction is available for unreimbursed overnight travel,
meals, and lodging expenses of National Guard and Reserve members.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(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)
2016 2017 2018
State Tax Expenditure
10 11
11
(m) Denotes a value of less than $1 million
Deduction of health insurance premiums and long-term care insurance premiums by the
self-employed
Federal Statute IRC Section 162(l)
Description: Generally, a self-employed individual may deduct the entire amount paid for
health insurance or long-term care insurance.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
31 33
32
(m) Denotes a value of less than $1 million
Deduction of medical and dental expenses and long-term care expenses
Federal Statute IRC Section 213
Description: Most medical expenses that are paid by an individual but not reimbursed by
an employer or insurance company may be deducted from taxable income
to the extent they exceed 10 percent of adjusted gross income.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
72 77
81
(m) Denotes a value of less than $1 million
Net exclusion of pension contributions and earnings: traditional and Roth IRAs
Federal Statute Section 219 and 408 and 408A
Description: Individuals participating in a traditional or Roth IRA are allowed to deduct
contributions in the case of traditional IRAs and distributions in the case of
Roth IRAs. Both exemptions are phased out for higher-income individuals.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
111 120 128
(m) Denotes a value of less than $1 million
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1.3 Special Federal Conformity Provisions
1.3.001 1.3.002 1.3.003 1.3.004 1.3.005 1.3.006
Deferral of gain on like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like
kind, no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
27 28
29
(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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Special rules for mining reclamation reserves
Federal Statute IRC Section 468 and 1274
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
12 13
13
(m) Denotes a value of less than $1 million
Deferral of gain on non-dealer installment sales Federal Statute IRC Sections 453 and 453A(b)
66 | P a g e
1.3.007 1.3.008 1.3.009
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
8
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)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax
on certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6), 512(e), 1042,
4975(d)(3), 4978, 4979A
Description: Employer contributions may be deducted as a business expense. In
addition, some contributions are subject to less restrictive limits than
contributions to other employee benefit plans. Tax on qualified employee
stock purchase plans are not taxed when granted or excised. Tax is
deferred until stock is sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
1
(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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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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 2014
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)
2016 2017 2018
State Tax Expenditure
1,022 1,035 1,048
(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 2014
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)
2016 2017 2018
State Tax Expenditure
1,050 1,101 1,155
(m) Denotes a value of less than $1 million
Exclusion of federally taxable Social Security benefits
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2014
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Social Security and tier 1 railroad retirement benefits are excluded from
state taxable income.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
174 181 189
(m) Denotes a value of less than $1 million
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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 2014
Estimate Reliability
Class A
Data Reliability
Class A
Note
The contribution limits were increased from $2,000 to
$4,000 effective January 1, 2016. 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 $4,000 per qualified
plan beneficiary.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
7
9
(m) Denotes a value of less than $1 million
Interest on U.S. obligations
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2014
Estimate Reliability
Class A
Data Reliability
Class A
Note
For distributional analysis see Table 6 in Appendix
Description: Interest earned on U.S. government bonds and other obligations are not
included as taxable income.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
6
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, 2015
Estimate Reliability
Class B
Data Reliability
Class A
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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Aged 65/Blind deduction
Statute
48-7-27
Year Enacted
1971
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1.4.010
Year Effective
1971
Data Source
DOR data for 2014
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)
2016 2017 2018
State Tax Expenditure
6
7
7
(m) Denotes a value of less than $1 million
Premiums for high-deductible health plans
Statute
48-7-27
Year Enacted
1981
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
Kaiser-Health Research and Educational Trust and America's
Health Insurance Plan, Center for Policy and Research
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Taxpayers are allowed to exclude 100 percent of premiums paid for certain
high-deductible health plans.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
8
10
12
(m) Denotes a value of less than $1 million
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1.5 Georgia Deductions
1.5.001
Standard Deduction
Statute
48-7-27
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2014
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)
2016 2017 2018
State Tax Expenditure
217
231
242
(m) Denotes a value of less than $1 million
71 | 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 as of 2016
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)
2016 2017 2018
State Tax Expenditure
1
2
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 as of 2016
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)
2016 2017 2018
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 as of 2016
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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Disaster Assistance Credit
Statute
48-7-29.4
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1.6.005 1.6.006
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2000
Data Source
DOR data as of 2016
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)
2016 2017 2018
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 as of 2016
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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Tax credit for life insurance for Georgia National Guard and Air
National Guard
Statute
48-7-29.9
Year Enacted
2005
Year Effective
Taxable years beginning on or after January 1, 2005
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is available for active duty members of the Georgia National
Guard and Air National Guard on active duty for more than 90 consecutive
days and who purchase qualified life insurance through the Services'
Group Life Insurance program administered by the U.S. Department of
Veterans Affairs. The credit amount is equal to the cost of the premiums of
the life insurance policy.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
73 | P a g e
1.6.007 1.6.008 1.6.009 1.6.010
Child and Dependent Care Credit
Statute
48-7-29.10
Year Enacted
2006
Year Effective
Taxable years beginning on or after January 1, 2006
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: This credit is equal to 30 percent of the federal credit claimed for qualified
expenses related to the care of children and dependents.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
37
37
38
(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 as of 2016
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)
2016 2017 2018
State Tax Expenditure
3
3
4
(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 as of 2016
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)
2016 2017 2018
State Tax Expenditure
8
9
9
(m) Denotes a value of less than $1 million
Credit for taxes paid to another state
Statute
48-7-28
Year Enacted
1931
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1.6.012 1.6.013
Year Effective
1931
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: A resident individual with income taxed by another state is allowed a credit
for such tax. The maximum value of this credit is equal to the amount that
would be due if the income were taxed by Georgia.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
271 286 300
(m) Denotes a value of less than $1 million
Georgia Job Tax Credit
Statute
48-7-40 and 48-7-40.1
Year Enacted
48-7-40: 1989; 48-7-40.1: 1993
Year Effective
48-7-40: Taxable years beginning on or after January 1,
1990; 48-7-40.1: Taxable years beginning on or after
January 1, 1994
Data Source
DOR data as of 2016 and Office of Insurance and Safety
Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section and the insurance premium tax section, see 2.6.001
and 5.00200
Description: The credit provides a statewide job tax credit to any business or
headquarters engaged in manufacturing, warehousing and distribution,
processing, telecommunications, broadcasting, tourism, or research and
development. Retail establishments are only allowed the credit if located in
one of the 40 least-developed counties of the state. Average wages must
be greater than the average wage of the county in the state with the lowest
average wage. To be eligible, employers must offer health insurance to all
new employees.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
10
10
10
Corporate Income Tax Expenditure
72
73
75
Insurance Premium Tax Expenditure
5
5
5
State Tax Expenditure
87
88
90
(m) Denotes a value of less than $1 million
Quality Jobs Tax Credit Statute Year Enacted Year Effective Data Source Estimate Reliability Data Reliability Note
48-7-40.17 2009 Taxable years beginning on or after January 1, 2009 DOR data as of 2016 Class A Class A This provision was modified to allow consideration of jobs in disregarded entities for purposes of qualifying for the
75 | P a g e
1.6.014 1.6.016
credit. The same estimate is provided in the corporate
income tax section see 2.6.002
Description: This credit is for employers creating new high-wage jobs or relocating
high-wage jobs into the state. A quality job or high-wage job has 30 hours
a week of regular work; is not already located in Georgia; and pays at or
above 110 percent of the average wage of the county in which it is
located.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
48
56
58
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
49
56
58
(m) Denotes a value of less than $1 million
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 as of 2016
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)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 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 as of 2016
Estimate Reliability
Class B
Data Reliability
Class A
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1.6.017 1.6.018
Note
The same estimate is provided in the corporate income tax
section see 2.6.005
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)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
17
18
19
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
19
19
20
(m) Denotes a value of less than $1 million
Optional Investment Tax Credit
Statute
48-7-40.7, 48-7-40.8, and 48-7-40.9
Year Enacted
1995
Year Effective
Taxable years beginning on or after January 1, 1996.
Data Source
DOR data as of 2016
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)
2016 2017 2018
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 $1 million
Port Activity Tax Credit
Statute
48-7-40.15
Year Enacted
1998
Year Effective
Latest modifications apply to taxable years beginning on or
after January 1, 2010
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.007
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
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1.6.019 1.6.020
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more
than 10 percent over 75 net tons, five containers or 10 20-foot equivalent
units (TEU's) during the previous 12-month period are qualified for
increased job tax credits or investment tax credits. For taxable years
beginning on or after January 1, 2010, the increase is based on a
comparison of the previous 12-month period to the second preceding 12-
month period.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
6
6
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
6
7
7
(m) Denotes a value of less than $1 million
Alternate Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.008
Description: Credit is allowed to any business enterprise located in a tier 2 or 3 county
or in a less developed area and which qualifies and receives the Jobs Tax
Credit and which
1. Consists of a distribution facility of greater than 650,000 square feet in
operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or its
subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 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 as of 2016 Class A Class A The same estimate is provided in the corporate income tax
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1.6.021 1.6.022
section see 2.6.009. Tax credit provisions applicable to
qualified interactive entertainment production companies
were modified in 2015. There are special provisions relating t
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)
2016 2017 2018
Income Tax Expenditure
199
222
244
Corporate Income Tax Expenditure
139
155
170
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
338
376
414
(m) Denotes a value of less than $1 million
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.010
Description: This credit is for expenses resulting from research conducted in Georgia
by businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
27
28
30
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
28
29
31
(m) Denotes a value of less than $1 million
Seed-Capital Fund Credit
Statute
48-7-40.27 & 40.28
Year Enacted
2008
Year Effective
Applicable to investments made on or after July 1, 2008
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.011
Description: This provides a tax credit for certain qualified investments made on or
79 | P a g e
1.6.023 1.6.025
after July 1, 2008 in a research fund, the purpose of which is to provide
early-stage financing for businesses formed as a result of research
conducted in Georgia's research universities.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 Health Insurance Expense Credit
Statute
48-7-29.13
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of 2016
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)
2016 2017 2018
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 as of 2016
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.
80 | P a g e
1.6.026 1.6.027
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)
2016 2017 2018
(m)
(m)
(m)
(m)
(m)
(m)
0
0
0
(m)
(m)
(m)
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data as of 2016
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)
2016 2017 2018
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 $1 million
Employer's credit for providing or sponsoring child care for employees and employer's
credit for purchasing child care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994; Credit for Cost of Qualified Child
Care Property: taxable years beginning on or after January
1, 2000.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.016
Description: Employer's Credit for Providing or Sponsoring Child Care for Employees.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
4
4
4
Corporate Income Tax Expenditure
7
7
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
11
11
12
(m) Denotes a value of less than $1 million
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1.6.028 1.6.029 1.6.030
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section and the insurance premium tax section, see 2.6.017
and 5.00700
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal Low-Income Housing tax credit
and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
64
69
72
Corporate Income Tax Expenditure
27
29
31
Insurance Premium Tax Expenditure
101
108
113
State Tax Expenditure
192
206
217
(m) Denotes a value of less than $1 million
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data as of 2016 and Fiscal Note for H.B. 308 for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section see 2.6.018
Description: A credit for the certified rehabilitation of a certified structure or historic
home. Standards set by the Georgia Department of Natural Resources
must be met. This credit was modified in 2015 to allow unused credits to
be assigned or sold to other taxpayers.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
4
27
24
Corporate Income Tax Expenditure
1
4
4
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
5
31
28
(m) Denotes a value of less than $1 million
Diesel Particulate Emission Reduction Technology Equipment Credit
Statute
48-7-40.19
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.019
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1.6.031 1.6.032
Description: This is a credit given to any person who installs diesel particulate emission
reduction equipment at any truck stop, depot, or other facility. For
purposes of this credit, diesel particulate emission reduction technology
equipment is any equipment that provides heat, air conditioning, light, or
communications for the driver's compartment of a commercial motor
vehicle parked at a truck stop, depot, or other facility, the use of which
results in the engine being turned off with a corresponding reduction of
particulate emissions from such vehicle's diesel engine.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $1 million
Low- and Zero-Emission Vehicle Credit & Electric Vehicle Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Date Reliability
Class A
Note
The same estimate is provided in the corporate income tax see
2.6.020. This credit has been repealed for all vehicle purchases
or leases occurring on or after July 1, 2015. The credit for
electric vehicle chargers and conversions remain applicable.
Description: This is a credit for the purchase or lease of a new zero- or low-emission
vehicle that is registered in the state of Georgia. The credit also applies to the
conversion of a standard vehicle to a zero or low-emission vehicle. In addition,
the credit applies to the purchase of an electric vehicle charger
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
30
5
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
30
5
(m)
(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 as of 2016
Estimate Reliability
Class B
Data Reliability
Class A
Note
The sunset on this provision was extended until 2021 from
2016 in the 2016 legislative session. 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
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1.6.033
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 $30 million per year
and no new credit applications will be accepted after December 31, 2021.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
19
9
0
Corporate Income Tax Expenditure
10
5
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
29
14
0
(m) Denotes a value of less than $1 million
Clean Energy Property and Wood Residuals Credit
Statute
48-7-29.14
Year Enacted
2008
Year Effective
2008
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.022
Description: The Georgia Clean Energy Property and Wood Residuals tax credit includes two
general types of income tax credits: 1) investments in the construction, purchase
or lease of clean energy property, and 2) the value of wood residuals delivered to
a qualified renewable biomass facility. The clean energy property tax credits
apply to solar, wind and energy efficiency projects, geothermal heat pumps, and
certain biomass equipment for making electricity. The clean energy property tax
credit expired on December 31, 2014. For the purposes of the Wood Residuals
tax credit, wood residuals include urban wood waste, land clearing residues, and
pellets, but not wood from a U.S. national forest.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
1.6.034
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 $1
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1.6.035 1.6.036
million in aggregate credits annually.
Description: Allows an employer a tax credit against their income tax liability for the
employer incurred expenses associated with GED attainment of employees.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
Employer's Credit for Approved Employee Retraining
Statute
48-7-40.5
Year Enacted
1994
Year Effective
Latest modifications are effective for taxable years
beginning on or after January 1, 2009
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section see 2.6.024
Description: The tax credit reimburses employers for the cost of providing retraining
services to their employees. As of January 1, 2009, retraining programs
shall not include any retraining on commercially, mass produced software
packages for word processing, data base management, presentations,
spreadsheets, e-mail, personal information management, or computer
operating systems except a retraining tax credit shall be allowable for those
providing support or training on such software.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
12
13
13
Corporate Income Tax Expenditure
23
24
24
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
35
36
37
(m) Denotes a value of less than $1 million
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data as of 2016
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.
85 | P a g e
1.6.037 1.6.038
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)
2016 2017 2018
34
34
34
12
12
12
0
0
0
47
47
47
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 as of 2016
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)
2016 2017 2018
Income Tax Expenditure
1
2
2
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
2
2
(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 as of 2016
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.
86 | 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)
2016 2017 2018
0
0
0
0
0
0
0
0
0
0
0
0
1.6.041 1.6.042
Tax credit for existing business enterprises undergoing qualified business expansion
Statute
48-7-40.21
Year Enacted
2001
Year Effective
Latest modifications are applicable to tax years beginning on
or after January 1, 2008
Data Source
DOR data as of 2016
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)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 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 B
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)
2016 2017 2018
Income Tax Expenditure
1
1
0
Corporate Income Tax Expenditure
2
2
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
3
3
0
(m) Denotes a value of less than $1 million
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1.6.043 1.6.044 1.6.045
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section 2.6.032
Description: Depository financial institutions are allowed a credit against their state
income tax liability equal to the sum of the amount of business licenses
taxes paid to local governments and any special state occupation tax paid
to the state.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
14
15
15
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
15
16
16
(m) Denotes a value of less than $1 million
Employer tax credit for hiring qualified parolees
Statute
48-7-40.31
Year Enacted
2016
Year Effective
2016
Data Source
Fiscal Note for H.B. 828 for 2016
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 2.6.033
Description: For the period beginning on or after January 1, 2017, and before January
1, 2020, an employer that employs a qualified parolee in a full-time job for
at least 40 weeks during a 12-month period shall be eligible for an income
tax credit in the amount of $2,500 per year for each qualified parolee.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
0
0
(m)
Corporate Income Tax Expenditure
0
0
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
0
1
(m) Denotes a value of less than $1 million
Income Tax Credit for Contributions to Rural Health Care Organizations
Statute
48-7-29.20
Year Enacted
2016
Year Effective
2017
Data Source
Fiscal Note for LC 28 7806ER for 2016
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section, see 2.6.034
88 | P a g e
Description: An individual taxpayer shall be allowed an income tax credit equal to a maximum of $2,500 for an individual filing a single return or $5,000 for joint returns. A corporation or other entity shall be allowed an income tax credit equal to a maximum of 75 percent of the corporation's income tax liability. Aggregate amount of credits cannot exceed $50 million in 2017, $60 million in 2018 and $70 million in 2019. The provision is no longer effective for tax years after 2019.
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)
2016 2017 2018
0
0
1
0
0
1
0
0
0
0
0
2
89 | P a g e
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.
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. In some cases, the credit may have expired, such that taxpayers are no long able to create new credits but the revenue loss to the state continues for several years until all carryforward liabilities have been exhausted. Therefore, the estimates provided in this report should be interpreted as the expected revenue loss stemming from the use of currently created or previously created credits and not an estimate of the value of credits created in a given year.
The tax is administered by the Georgia DOR. Corporate tax collections for FY 2015 were $937 million or 5.0 percent of total state tax revenues. Approximately 266,000 corporate returns were filed for CY 2015. All revenue collected from this tax is deposited into the State General Fund.
91 | P a g e
2.1 Federal Corporate Exclusions
2.1.001 2.1.002 2.1.003 2.1.004 2.1.005 2.1.006
Permanent exemption from imputed interest rules
Federal Statute IRC Sections 163(e), 483, 1274, and 1274(A)
Description: Debt instruments for amounts not exceeding an inflation adjusted
maximum, given in exchange for real property, may not have imputed to
them an interest rate greater than 9 percent.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Exclusion of contributions in aid of construction for water and sewer utilities
Federal Statute IRC Section 118(c), (d)
Description: Qualifying contributions in aid of construction received by regulated water
and sewage disposal utilities are not included in the utility's gross income
under certain conditions.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
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)
2016 2017 2018
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
unrelated business income tax.
92 | P a g e
2.1.008 2.1.009 2.1.010
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
(m) (m)
(m)
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)
2016 2017 2018
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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
249 253
256
(m) Denotes a value of less than $1 million
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2.2 Federal Corporate Deductions
2.2.001
2.2.003 2.2.004 2.2.005 2.2.006
Accelerated depreciation (MACRS)
Federal Statute IRC Sections 167 and 168
Description: Under the Modified Accelerated Cost Recovery System (MACRS), the
cost of tangible depreciation property of certain energy property is allowed
a shorter depreciation period. Taxpayers are allowed to depreciate the
costs of new rental housing and certain other buildings and equipment on
an accelerated schedule.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
5
4
4
(m) Denotes a value of less than $1 million
Expensing of exploration and development costs: nonfuel minerals
Federal Statute IRC Sections 263, 291, 616-617, 56, 1254
Description: Firms engaged in mining are permitted to expense certain exploration and
development costs.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $5,000 in
qualified start-up expenditures.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Expensing of research and experimental expenses
Federal Statute IRC Section 174 and 59e
Description: This provision allows a business taxpayer to deduct certain research
expenditures that are paid or incurred in connection with the taxpayer's
trade or business.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
8
9
10
(m) Denotes a value of less than $1 million
Expensing of magazine circulation expenditures
Federal Statute IRC Section 173
Description: In general, current federal tax law allows publishers of newspapers,
magazines, and other periodicals to deduct their expenditures to maintain,
establish, or increase circulation in the year in which they are made.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
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2.2.007
2.2.008 2.2.009 2.2.011 2.2.012
Deductions of oil and gas exploration and development costs
Federal Statute IRC Sections 611, 612, 613, 613A and 291; 263(c), 616-617, 57(a)(2),
59(e) and 1254
Description: Firms that extract oil, gas or, other minerals are permitted a deduction to
recover their capital investment in a mineral reserve, which depreciates due
to the physical and economic depletion or exhaustion as the mineral is
recovered. Firms engaged in the exploration and development of oil, gas or
geothermal properties have the option of expensing certain intangible
drilling and development costs.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
3
3
3
(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)
2016 2017 2018
State Tax Expenditure
15 16
16
(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)
2016 2017 2018
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
Amortization of air pollution control facilities
Federal Statute IRC Section 169(d)(5)
Description: This provision allows plants placed in service after January 1, 1976 the
option of amortizing investments in pollution control equipment for coal-
fired electric generation plants.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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2.2.014
Various agricultural expensing provisions
Federal Statute IRC Section 162, 175, 180, 446, 448, 461, 464
Description: Taxpayers in the business of farming may choose to expense costs
associated with soil and water conservation, soil conditioning and the costs
associated with raising dairy and breeding cattle.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
2.2.015
Community and regional development incentives
Federal Statute IRC Sections 38(b), 39(d), 45A, 280C(a), 1391-1397D and 1400F,H,I
and J
Description: Communities designated as empowerment zones and renewable
communities are eligible for special development incentives.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
2.2.016
Expensing to remove architectural and transportation barriers to the handicapped and
elderly
Federal Statute IRC Section 190
Description: This provision allows taxpayers to deduct up to $15,000 of expenses
incurred in a single year for removing physical barriers to handicap or
elderly individuals in qualified facilities or public transportation vehicles
owned or leased by the taxpayer.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
2.2.017
Inventory methods and valuation
Federal Statute IRC Section 475, 491-492
Description: This provision allows taxpayers to use alternative inventory systems to
determine the cost of goods sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
2.2.018 Limits on deductible compensation and disallowance of deduction for excess parachute
payments
Federal Statute IRC Sections 280G, 4999, and 162(m)
Description: Excess parachute payments are not allowable deductions against the
corporate income tax. In the case of publicly held corporations only
executive compensation of $1 million or less is deductible against the
corporate income tax.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
-3
-4
-4
(m) Denotes a value of less than $1 million
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2.3 Special Federal Corporate Conformity Provisions
2.3.001 2.3.002 2.3.003 2.3.004 2.3.005
Deferral of gain on like-kind exchanges
Federal Statute IRC Section 1031
Description: When business or investment property is exchanged for property of a like
kind no gain or loss is recognized on the exchange and therefore no tax is
paid at the time of the exchange.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
30 30
31
(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)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m) (m)
(m)
(m) Denotes a value of less than $1 million
Special rules for mining reclamation reserves
Federal Statute IRC Section 468 and 1274
Description: Electing taxpayers may deduct the current value equivalent of certain
estimated future reclamation and closing costs for mining and solid waste
disposal sites.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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2.3.006 2.3.007 2.3.008 2.3.009
Deferral of gain on non-dealer installment sales
Federal Statute IRC Sections 453 and 453A(b)
Description: Some taxpayers are allowed to report some sales using the installment
method of accounting in which the gross profit from the sale is prorated
over the years during which the payments are received.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
15 14
14
(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)
2016 2017 2018
State Tax Expenditure
3
3
3
(m) Denotes a value of less than $1 million
Special treatment of employee stock ownership plans (ESOPs) (includes deferral of tax
on certain employee stock plans)
Federal Statute IRC Sections 401(a)(28), 404(a)(9), 404(k), 415(c)(6), 512(e), 1042,
497(e)(7), 4975(d)(3), 4978, 4979A
Description: ESOPs are provided special tax treatment. Employer contributions may be
deducted as a business expense. In addition, some contributions are
subject to less restrictive limits than contributions to other employee
benefit plans. Tax on qualified employee stock purchase plans are not
taxed when granted or excised. Tax is deferred until stock is sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
-1
-1
-1
(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)
2016 2017 2018
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 between the states on how to define a "market" for the purpose of implementing this rule but, in general, it means that services will be taxed based on the state in which the customer receives the benefit. The rule is meant to apply a consistent destination-based treatment to services when compared to tangible goods.
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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 as of 2016 and Office of Insurance and Safety
Fire Commissioner
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 1.6.012 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)
2016 2017 2018
Income Tax Expenditure
10
10
10
Corporate Income Tax Expenditure
72
73
75
Insurance Premium Tax Expenditure
5
5
5
State Tax Expenditure
87
88
90
(m) Denotes a value of less than $1 million
Quality Jobs Tax Credit
Statute
48-7-40.17
Year Enacted
2009
Year Effective
Taxable years beginning on or after January 1, 2009
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.013. Estimate of this provision is higher than in previous
reports because new data is available
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
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)
2016 2017 2018
1
1
1
48
56
58
0
0
0
49
56
58
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 as of 2016
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)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 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 as of 2016
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.
103 | P a g e
2.6.006 2.6.007
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)
2016 2017 2018
1
1
1
17
18
19
0
0
0
19
19
20
Optional Investment Tax Credit
Statute
48-7-40.7, 48-7-40.8, and 48-7-40.9
Year Enacted
1995
Year Effective
Taxable years beginning on or after January 1, 1996.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section
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)
2016 2017 2018
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 $1 million
Port Activity Tax Credit
Statute
48-7-40.15
Year Enacted
1998
Year Effective
Latest modifications apply to taxable years beginning on or
after January 1, 2010
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.008. The same estimate is
provided in the income tax section see 1.6.018.
Description: For taxable years beginning before January 1, 2010, businesses or the
headquarters of any such businesses engaged in manufacturing,
warehousing and distribution, processing, telecommunications,
broadcasting, tourism, or research and development that have increased
shipments out of Georgia ports during the previous 12-month period by
more than 10 percent over their 1997 base year port traffic, or by more
than 10 percent over 75 net tons, five containers or 10 20-foot equivalent
units (TEU's) during the previous 12-month period are qualified for
increased job tax credits or investment tax credits. For taxable years
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2.6.008 2.6.009
beginning on or after January 1, 2010, the increase is based on a
comparison of the previous 12-month period to the second preceding 12-
month period.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
(m)
(m)
(m)
Corporate Income Tax Expenditure
6
6
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
6
7
7
(m) Denotes a value of less than $1 million
Alternative Port Activity Tax Credit
Statute
48-7-40.15A
Year Enacted
2009
Year Effective
2009
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Estimate combined with 2.6.007. The same estimate is
provided in the income tax section see 1.6.019.
Description: Credit is allowed to any business enterprise located in a tier 2 or 3 county
or in a less developed area and which qualifies and receives the Jobs Tax
Credit and which;
1. Consists of a distribution facility of greater than 650,000 square feet in
operation in this state prior to December 31, 2008;
2. Distributes product to retail stores owned by the same legal entity or its
subsidiaries as such distribution facility; and
3. Has a minimum of eight retail stores in this state in the first year of
operations.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 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 as of 2016
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 $500,000 of qualified
expenditures in a state-certified production may claim this credit.
Certification must be approved through the Georgia Department of
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2.6.010 2.6.011
Economic Development. There are special provisions relating to the tax
credits awarded to interactive entertainment companies. Under the 2015
modifications to this provision, interactive entertainment companies are
eligible to claim this credit for tax years before January 1, 2019.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
199
222
244
Corporate Income Tax Expenditure
139
155
170
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
338
376 414
(m) Denotes a value of less than $1 million
Research Tax Credit
Statute
48-7-40.12
Year Enacted
1997
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.021
Description: This credit is for expenses resulting from research conducted in Georgia
by businesses engaged in manufacturing, warehousing and distribution,
processing, telecommunications, tourism, or research and development
industries. A tax credit is allowed provided that the business enterprise for
the same taxable year claims and is allowed a research credit under Section
41 of the Internal Revenue Code of 1986, as amended.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
1
1
1
Corporate Income Tax Expenditure
27
28
30
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
28
29
31
(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 as of 2016
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)
2016 2017 2018
(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 as of 2016
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)
2016 2017 2018
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 $1 million
Qualified Transportation Credit
Statute
48-7-29.3
Year Enacted
1999
Year Effective
Taxable years beginning on or after January 1, 2001
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.025
Description: A tax credit provided to employers for the cost of providing any federally
qualified transportation benefit to an employee.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $1 million
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2.6.015 2.6.016 2.6.017
Business Enterprise Vehicle Credit
Statute
48-7-40.22
Year Enacted
2001
Year Effective
Taxable years beginning on or after January 1, 2002.
Data Source
DOR data as of 2016
Estimate Reliability
Class C
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.026
Description: This is a credit given to a business enterprise for the purchase of a motor
vehicle that is used exclusively to provide transportation for its employees.
In order to qualify, a business enterprise must certify that each vehicle
carries an average daily ridership of not less than four employees for an
entire taxable year.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $1 million
Employer's Credit for providing or sponsoring child care for employees and employer's
credit for purchasing child care property
Statute
48-7-40.6
Year Enacted
1994 & 1999
Year Effective
Credit for cost of operation: taxable years beginning on or
after January 1, 1994; Credit for Cost of Qualified Child
Care Property: taxable years beginning on or after January
1, 2000.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.027
Description: Tax credit for expenses related to an employer who purchases qualified
child care property; and a tax credit for employers who provide or sponsor
child care for employees.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
4
4
4
Corporate Income Tax Expenditure
7
7
7
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
11
11
12
(m) Denotes a value of less than $1 million
Low-Income Housing Credit
Statute
48-7-29.6
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of 2016
108 | P a g e
2.6.018 2.6.019
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section and
the insurance premium tax section, see 1.6.028 and
5.00700
Description: This is a credit against Georgia income taxes for taxpayers owning
developments which receive the federal Low-Income Housing tax credit
and that are placed in service on or after January 1, 2001.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
64
69
72
Corporate Income Tax Expenditure
27
29
31
Insurance Premium Tax Expenditure
101
108
113
State Tax Expenditure
192
206 217
(m) Denotes a value of less than $1 million
Historic Rehabilitation Credit
Statute
48-7-29.8
Year Enacted
2002
Year Effective
Taxable years beginning on or after January 1, 2004
Data Source
DOR data as of 2016 and Fiscal Note for H.B. 308 for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the income tax section see
1.6.029. This credit was modified in 2015 to allow unused
credits to be assigned or sold to other taxpayers.
Description: A credit for the certified rehabilitation of a certified structure or historic
home. Standards set by the Georgia Department of Natural Resources
must be met. This credit was modified in 2015 to allow unused credits to
be assigned or sold to other taxpayers.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
4
27
24
Corporate Income Tax Expenditure
1
4
4
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
5
31
28
(m) Denotes a value of less than $1 million
Diesel Particulate Emission Reduction Technology Equipment Credit
Statute
48-7-40.19
Year Enacted
2000
Year Effective
Taxable years beginning on or after January 1, 2001.
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.030
Description: This is a credit given to any person who installs diesel particulate emission
reduction equipment at any truck stop, depot, or other facility. For
purposes of this credit, diesel particulate emission reduction technology
equipment is any equipment that provides for heat, air conditioning, light,
109 | P a g e
2.6.020 2.6.021
or communications for the driver's compartment of a commercial motor
vehicle parked at a truck stop, depot, or other facility, the use of which
results in the engine being turned off with a corresponding reduction of
particulate emissions from such vehicle's diesel engine.
State Fiscal Years ($ in Millions)
2016 2017 2018
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 $1 million
Low - and Zero-emission Vehicle Credit & Electric Vehicle Charger Credit
Statute
48-7-40.16
Year Enacted
1998
Year Effective
Taxable years beginning on or after January 1, 1998
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.031. This credit has been repealed for all vehicle
purchases or leases occurring on or after July 1, 2015.
Description: This is a credit for the purchase or lease of a new zero or low-emission
vehicle that is registered in the state of Georgia. The credit also applies to
the conversion of a standard vehicle to a zero- or low-emission vehicle. In
addition, the credit applies to the purchase of an electric vehicle charger.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
30
5
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
30
5
(m)
(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 as of 2016
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.
110 | P a g e
2.6.022 2.6.023
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)
2016 2017 2018
19
9
0
10
5
0
0
0
0
29
14
0
Clean Energy Property & Wood Residuals Credit
Statute
48-7-29.14
Year Enacted
2008
Year Effective
July 1, 2008
Data Source
DOR data as of 2016
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)
2016 2017 2018
Income Tax Expenditure
1
1
(m)
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
1
(m)
(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.
111 | P a g e
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)
2016 2017 2018
1
1
1
(m)
(m)
(m)
0
0
0
1
1
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 as of 2016
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)
2016 2017 2018
Income Tax Expenditure
12
13
13
Corporate Income Tax Expenditure
23
24
24
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
35
36
37
(m) Denotes a value of less than $1 million
Qualified Education Expense Credit
Statute
48-7-29.16
Year Enacted
2008
Year Effective
Taxable years beginning on or after January 1, 2008
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section see
1.6.036
Description: This provides a tax credit for donations made by taxpayers to a student
scholarship organization which are used for tuition and fees for a qualified
school or program.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
34
34
34
Corporate Income Tax Expenditure
12
12
12
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
47
47
47
(m) Denotes a value of less than $1 million
112 | P a g e
2.6.026 2.6.027 2.6.030
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 as of 2016
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)
2016 2017 2018
Income Tax Expenditure
1
2
2
Corporate Income Tax Expenditure
(m)
(m)
(m)
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
1
2
2
(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 as of 2016
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)
2016 2017 2018
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 $1 million
Tax credit for existing business enterprises undergoing qualified business expansion
Statute
48-7-40.21
Year Enacted
2001
Year Effective
Latest modifications are applicable to tax years beginning on
or after January 1, 2008
113 | P a g e
2.6.031 2.6.032
Data Source
DOR data as of 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
The same estimate is provided in the income tax section, see
1.6.041
Description: This credit applies to businesses that create at least 500 new full-time jobs
within a taxable year.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
Estimate combined
Corporate Income Tax Expenditure
with 2.6.002
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)
2016 2017 2018
Income Tax Expenditure
1
1
0
Corporate Income Tax Expenditure
2
2
0
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
3
3
0
(m) Denotes a value of less than $1 million
Bank Tax Credit
Statute
48-7-29.7
Year Enacted
2000
Year Effective
2001
Data Source
DOR data as of 2016
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.
114 | P a g e
2.6.033 2.6.034
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)
2016 2017 2018
1
1
1
14
15
15
0
0
0
15
16
16
Employer tax credit for hiring qualified parolees
Statute
48-7-40.31
Year Enacted
2016
Year Effective
2016
Data Source
Fiscal Note for H.B. 828 for 2016
Estimate Reliability
Class B
Data Reliability
Class A
Note
The same estimate is provided in the corporate income tax
section, see 1.6.044
Description: For the period beginning on or after January 1, 2017, and before January
1, 2020, an employer that employs a qualified parolee in a full-time job for
at least 40 weeks during a 12-month period shall be eligible for an income
tax credit in the amount of $2,500 per year for each qualified parolee.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
0
0
(m)
Corporate Income Tax Expenditure
0
0
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
0
1
(m) Denotes a value of less than $1 million
Income Tax Credit for Contributions to Rural Health Care Organizations
Statute
48-7-29.20
Year Enacted
2016
Year Effective
2017
Data Source
Fiscal Note for LC 28 7806ER for 2016
Estimate Reliability
Class B
Data Reliability
Class B
Note
The same estimate is provided in the corporate income tax
section, see 1.6.045
Description: An individual taxpayer shall be allowed an income tax credit equal to a
maximum of $2,500 for an individual filing a single return or $5,000 for
joint returns. A corporation or other entity shall be allowed an income tax
credit equal to a maximum of 75 percent of the corporation's income tax
liability. Aggregate amount of credits cannot exceed $50 million in 2017,
$60 million in 2018 and $70 million in 2019. The provision is no longer
effective for tax years after 2019.
State Fiscal Years ($ in Millions)
2016 2017 2018
Income Tax Expenditure
0
0
1
Corporate Income Tax Expenditure
0
0
1
Insurance Premium Tax Expenditure
0
0
0
State Tax Expenditure
0
0
2
(m) Denotes a value of less than $1 million
115 | 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
116 | 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. 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.
The tax is administered by the Georgia DOR. Revenues from this tax totaled $46 million in FY 2015. All revenues from this tax are deposited into the State General Fund.
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
117 | 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. 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). Forty-six 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.
The tax is administered by the Georgia DOR. In FY 2015 the state sales and use tax generated $5.4 billion and accounted for approximately 29 percent of state tax revenues. All proceeds from the state sales and use tax net of the vendor commission are deposited into the State General Fund.
4.00400
Sales of transportation furnished by a county or municipal public transit system or
public transit authorities
Statute
48-8-3(4)
Year Enacted
1968
Year Effective
1968
Data Source
National Transit Database
Estimate Reliability
Class B
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Data Reliability
Class A
Note
Estimate combined with 4.00500
Description: Sales by counties and municipalities arising out of their operation of any
public transit facility and sales by public transit authorities or charges by
counties, municipalities, or public transit authorities for the transportation
of passengers upon their conveyances.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
9
10
10
Local Tax Expenditure
6
7
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)
2016 2017 2018
State Tax Expenditure
Estimate combined with 4.00400
Local Tax Expenditure
(m) Denotes a value of less than $1 million
4.00600
Sales to any Hospital Authority created by Georgia law
Statute
48-8-3(6)
Year Enacted
1976
Year Effective
1976
Data Source
Georgia Office of Planning and Budget and IRS Form 990
Data
Estimate Reliability
Class B
Data Reliability
Class B
Note
Estimate combined with 4.00700
Description: Sales to any hospital authority created by Article 4 of Chapter 7 of Title 31.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
Estimate combined with 4.00700
Local Tax Expenditure
(m) Denotes a value of less than $1 million
4.00610
Sales to any Housing Authority created by Georgia law
Statute
48-8-3(6.1)
Year Enacted
1999
Year Effective
1999
Data Source
Georgia Department of Community Affairs and the
American Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
119 | P a g e
Note
Description: Sales to any housing authority created by Article 1 of Chapter 3 of Title 8.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
Local Tax Expenditure
2
2
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)
2016 2017 2018
State Tax Expenditure
2
2
1
Local Tax Expenditure
1
1
(m)
(m) Denotes a value of less than $1 million
4.00630
Sales to any agricultural commission created by the Department of Agriculture
Statute
48-8-3(6.3)
Year Enacted
2002
Year Effective
2002
Data Source
Georgia Department of Agriculture and the Georgia Office
of Planning and Budget
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales to any agricultural commission created by the Department of
Agriculture.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00700
Sales of tangible personal property and services to an approved nursing home, inpatient
hospice, general hospital or mental hospital when used specifically in the treatment
function.
Statute
48-8-3(7)
Year Enacted
1971
Year Effective
1971
Data Source
DOR data for 2009 and IRS Form 990 data
Estimate Reliability
Class B
Data Reliability
Class B
120 | P a g e
4.00705 4.00710
Note
Estimate combined with 4.00600
Description: Sales of tangible personal property and services to an approved non-profit
nursing home, inpatient hospice, general hospital or mental hospital when
used specifically in the treatment function and used exclusively by the
facility.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
98
103 108
Local Tax Expenditure
73
77
81
(m) Denotes a value of less than $1 million
Sales of tangible personal property to a non-profit health center established and receiving
funds pursuant to the U.S. Public Health Service Act
Statute
48-8-3(7.05)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426/LC 34 4527 for 2015
Estimate Reliability
Class C
Data Reliability
Class B
Note
This exemption was eliminated in 2010 and reinstated in
2015. This provision is scheduled to expire on June 30,
2018.
Description: Sales of tangible personal property to a non-profit health center
Established and receiving funds pursuant to the U.S. Public Health Service
Act.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
(m)
1
1
(m) Denotes a value of less than $1 million
Sales of tangible personal property and services to a nonprofit organization whose
primary function is to provide services to persons with intellectual disabilities
Statute
48-8-3(7.1)
Year Enacted
2001
Year Effective
2002
Data Source
U.S. Economic Census and American Community Survey
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sales of tangible personal property and services to a nonprofit organization,
the primary function of which is the provision of services to persons with
intellectual disabilities, when such organization is a tax exempt organization
under the Internal Revenue Code and obtains an exemption determination
letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
121 | P a g e
4.00720
Sales to Georgia Society of the Daughters of the American Revolution
Statute
48-8-3(7.2)
Year Enacted
2002
Year Effective
2002
Data Source
IRS 990 Form Data
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property or services to any chapter of the
Georgia State Society of the Daughters of the American Revolution which
is tax exempt under IRS Code Section 501(c)(3) and obtains an exemption
determination letter from the State Revenue Commissioner.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.00730
Sales of tangible property and services to a nonprofit volunteer health clinic primarily
treating patients with incomes below 200 percent of the poverty level
Statute
48-8-3(7.3)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 426/LC 34 4527 for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
This exemption was eliminated in 2010 and reinstated in
2015. This provision is scheduled to expire on June 30,
2018.
Description: Sales of tangible personal property and services to a nonprofit volunteer
health clinic primarily treating patients with incomes below 200 percent of
the poverty level and when the item sold is used exclusively for general
treatment function.
State Fiscal Years ($ in Millions)
2016 2017 2018
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
Estimate combined with 4.00900
Description: Sales of tangible personal property and services to the University System of
Georgia and its educational units.
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)
2016 2017 2018
39
41
43
27
28
30
4.00900
Sale of tangible personal property and services used exclusively in the educational
function of an approved private college or university located in Georgia in which the
credits are accepted by the University System of Georgia
Statute
48-8-3(9)
Year Enacted
1966
Year Effective
1966
Data Source
University System of Georgia Annual Financial Report
Estimate Reliability
Class C
Data Reliability
Class C
Note
Estimate combined with 4.00800
Description: Sales of tangible personal property and services used exclusively in the
educational function of an approved private college or university located in
Georgia whose credits are accepted by the University System of Georgia.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
Estimate combined with 4.00800
Local Tax Expenditure
(m) Denotes a value of less than $1 million
4.01000
Sales of tangible personal property and services used exclusively in the educational
function of an approved private elementary or secondary school
Statute
48-8-3(10)
Year Enacted
1968
Year Effective
1968
Data Source
The National Center for Education Statistics and the Georgia
Department of Education
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property and services used exclusively in the
educational function of an approved private elementary or secondary
school.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
3
3
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
4.01100
Sale of tangible personal property or services to, and the purchase of tangible personal
property or services by any educational or cultural institute
Statute
48-8-3(11)
Year Enacted
1968
Year Effective
1968
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
123 | P a g e
Note
Description: Sales of tangible personal property or services to, and the purchase of
tangible personal property or services by, any educational or cultural
institute which: (A) Is tax exempt under Section 501(c)(3) of the Internal
Revenue Code; (B) Furnishes at least 50 percent of its programs through
universities and other institutions of higher education in support of their
educational programs; (C) Is paid for by government funds of a foreign
country; and (D) Is an instrumentality, agency, department, or branch of a
foreign government operating through a permanent location in this state.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01200
School lunches sold and served to pupils and employees of public schools
Statute
48-8-3(12)
Year Enacted
1953
Year Effective
1953
Data Source
Georgia School Nutrition Association and the Georgia
Department of Education
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Food, food ingredients, and prepared food sold and served to pupils and
employees of public schools.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
7
7
Local Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
4.01300
School lunches sold and served to pupils and employees of approved private schools
Statute
48-8-3(13)
Year Enacted
1967
Year Effective
1967
Data Source
Georgia School Nutrition Association and the National
Center of Education Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Food, food ingredients, and prepared food sold and served to pupils and
employees of approved private elementary and secondary schools.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01400
Sales of art and other artifacts for display or exhibition to museums
Statute
48-8-3(14)
Year Enacted
1973
124 | P a g e
Year Effective
1973
Data Source
U.S. Economic Census and IRS Form 990 data
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sales of art and anthropological, archeological, geological, horticultural, or
zoological objects or artifacts and other similar tangible personal property to
or for the use by any museum or organization which is tax exempt under
section 501(c)(3) of the Internal Revenue Code of such tangible personal
property for display or exhibition in a museum within this state.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.01500
Specific fundraising sales by any religious institution lasting no more than 30 days in a
calendar year and sales of religious paper when the paper is owned and operated by the
religious institution
Statute
48-8-3(15B)
Year Enacted
1953
Year Effective
1953
Data Source
The National Center for Charitable Statistics
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sales of any religious paper in this state when the paper is owned and
operated by religious institutions or denominations and no part of the net
profit from the operation of the institution or denomination inures to the
benefit of any private person. When the number of days upon which the
fundraising activity occurs does not exceed 30 in any calendar year.
State Fiscal Years ($ in Millions)
2016 2017 2018
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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
125 | P a g e
4.01700
Sales of fuel or consumable supplies used by ships engaged in inter-coastal or foreign
commerce
Statute
48-8-3(17)
Year Enacted
1951
Year Effective
1951
Data Source
U.S. Energy Information Administration, U.S. Department
of Energy
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sales of fuel or consumable supplies used by ships engaged in inter-coastal
or foreign commerce.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
17
18
19
Local Tax Expenditure
12
12
13
(m) Denotes a value of less than $1 million
4.02000
Water delivered through water mains, lines, or pipes
Statute
48-8-3(20)
Year Enacted
1966
Year Effective
1966
Data Source
U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale of water delivered to consumers through water mains, lines, or
pipes.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
63
65
68
Local Tax Expenditure
47
49
51
(m) Denotes a value of less than $1 million
4.02200
Professional, insurance or personal service transactions which involve sales as
inconsequential elements for which no separate charge is made
Statute
48-8-3(22)
Year Enacted
1951
Year Effective
1951
Data Source
U.S. Census Bureau Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Professional, insurance or personal service transactions which involve sales
as inconsequential elements for which no separate charge is made.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
See expenditure estimates
Local Tax Expenditure
for services (4.50003, 4.50010, 4.50011)
(m) Denotes a value of less than $1 million
126 | P a g e
4.02300
Repair services when a separate charge is made to the customer
Statute
48-8-3(23)
Year Enacted
1951
Year Effective
1951
Data Source
US Economic Census
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Repair services when a separate charge is made to the customer.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
See expenditure estimates
Local Tax Expenditure
for Services (4.50003, 4.50010, 4.50011)
(m) Denotes a value of less than $1 million
4.02400
Rental of videotape or film to persons charging admission to view the tape or film
Statute
48-8-3(24)
Year Enacted
1989
Year Effective
1989
Data Source
US Economic Census and Nash Information Services Box
Office Data
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Rental of videotape or film to persons charging admission to view the tape
or film.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
7
7
Local Tax Expenditure
5
5
5
(m) Denotes a value of less than $1 million
4.03000
Vehicles purchased by service-connected disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase and specially adapted the vehicle
Statute
48-8-3(30)
Year Enacted
1972
Year Effective
1972
Data Source
The Department of Veteran Affairs
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The sale of a vehicle to a service-connected disabled veteran when the
veteran received a grant from the United States Department of Veterans
Affairs to purchase and specially adapt the vehicle to the veteran's
disability.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
127 | P a g e
4.03420 4.03600 4.03800
Machinery and equipment used directly to remanufacture certain aircraft engines or
aircraft engine parts
Statute
48-8-3(34.2)
Year Enacted
1996
Year Effective
1996
Data Source
Fiscal Note for HB 933/LC 40 0540 for 2014 and The Federal
Trade Commission
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Machinery and equipment used directly to remanufacture certain aircraft
engines or aircraft engine parts or components in a remanufacturing
facility.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Machinery and equipment used in a facility for the primary purpose of reducing or
eliminating air and water pollution
Statute
48-8-3(36)
Year Enacted
1972
Year Effective
1972
Data Source
Fiscal Note for HB 445 LC 40 4571S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Machinery and equipment or any repair or replacement component used in
a facility for the primary purpose of reducing or eliminating air and water
pollution.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Sale of tangible personal property and fees and charges for services by the Rock Eagle
4-H center
Statute
48-8-3(38)
Year Enacted
1976
Year Effective
1976
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class 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.
128 | P a g e
4.03900 4.04000 4.04100
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
(m)
(m)
(m)
(m)
(m)
(m)
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)
2016 2017 2018
State Tax Expenditure
2
2
2
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Sale of major components or repair parts installed in military aircraft, vehicles, or missiles
Statute
48-8-3(40)
Year Enacted
1965
Year Effective
1965
Data Source
USASpending.gov and the U.S. Economic Census
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sale of major components or repair parts installed in military aircraft,
vehicles, or missiles.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
46
48
59
Local Tax Expenditure
32
33
39
(m) Denotes a value of less than $1 million
Sale of tangible personal property and services to a nonprofit child-caring institution,
child-placing agency, or maternity home
Statute
48-8-3(41)
Year Enacted
2004
Year Effective
2004
Data Source
U.S. Economic Census
Estimate Reliability
Class B
Data Reliability
Class B
Note
129 | P a g e
Description: Sales of tangible personal property and services to a child-caring institution
as defined in paragraph (1) of Code Section 49-5-3; a child-placing agency
as defined in paragraph (2) of Code Section 49-5-3, or maternity home as
defined in paragraph (14) of Code Section 49-5-3, when such institution,
agency, or home is engaged primarily in providing child services and is a
non-profit, tax-exempt organization under Section 501(c)(3) of the IRS
revenue code. Also includes sales from certain Fundraising activities
(limited to 30 days per year)
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.04600
Sale of tangible personal property or taxable services to nonprofit blood banks
Statute
48-8-3(46)
Year Enacted
1980
Year Effective
1980
Data Source
U.S. Economic Census and IRS 990 Form Data
Estimate Reliability
Class C
Data Reliability
Class B
Note
Description: Sale to certain blood banks having a nonprofit status according to Section
501(c)(3) of the IRS revenue code.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.04700
Sale of drugs dispensed by prescription, prescription glasses, contact lenses, contact
lens samples and sales or use of certain controlled substances or dangerous drugs
Statute
48-8-3(47)
Year Enacted
1984
Year Effective
1985
Data Source
State Health Expenditures from the Centers for Medicare
and Medicaid Services
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sale or use of drugs that are lawfully dispensable only by prescription for
the treatment of natural persons; prescription eyeglasses and contact
lenses; prescription contact lens samples; drugs dispensable by prescription
for the treatment of natural persons without charge to physicians,
hospitals, etc. by pharmaceutical manufacturers or distributors; drugs and
durable medical equipment dispensed or distributed without charge solely
for the purposes of a clinical trial approved by the FDA or an institutional
review board. Note: This exemption does not include over-the-counter
drugs, drugs sold for animal use, or non-prescription eyeglasses.
130 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2016 2017 2018 397 422 453 295 313 336
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
Data Reliability
Class C
Note
Description: Sale of crab bait to licensed commercial fisherman.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05000
Sales of insulin syringes and blood glucose level measuring strips dispensed without a
prescription
Statute
48-8-3(50)
Year Enacted
1986
Year Effective
1986
Data Source
The Centers for Disease Control and Prevention and the
Medical Expenditures Panel Survey
Estimate Reliability
Class C
Data Reliability
Class C
Note
This estimate differs from the previous years report due to
new data
Description: Sale of blood measuring devices, monitoring equipment, or insulin delivery
systems used exclusively by diabetics; insulin, insulin syringes and blood
glucose monitoring strips; when dispensed without a prescription.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
25
27
28
Local Tax Expenditure
18
19
20
(m) Denotes a value of less than $1 million
4.05100
Sale of oxygen when prescribed by a licensed physician
Statute
48-8-3(51)
Year Enacted
1986
Year Effective
1986
Data Source
The Medical Expenditure Panel Survey and The Department
of Health and Human Services
Estimate Reliability
Class C
Data Reliability
Class A
Note
Description: Sale of oxygen when prescribed by a licensed physician.
131 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
1
1
1
(m)
(m)
(m)
4.05200
Sale or use of hearing aids
Statute
48-8-3(52)
Year Enacted
1986
Year Effective
1986
Data Source
Medical Expenditure Panel Survey and Healthy Hearing
Review
Estimate Reliability
Class A
Data Reliability
Class B
Note
Description: Exempts the sale or use of approved hearing aids from sales and use tax.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
5
6
6
Local Tax Expenditure
4
4
4
(m) Denotes a value of less than $1 million
4.05300
Transactions where food stamps or WIC coupons are used as the method of payment of
payment
Statute
48-8-3(53)
Year Enacted
1986
Year Effective
1987
Data Source
U.S. Food and Nutrition Service and the U.S. Department of
Agriculture
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sales tax is not applied on items purchased using food stamps or WIC
coupons.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
116 115 115
Local Tax Expenditure
87
86
86
(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.
132 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
34
35
36
25
26
27
4.05500
Sale of Georgia lottery tickets
Statute
48-8-3(55)
Year Enacted
1992
Year Effective
1992
Data Source
Georgia Lottery Commission Annual Report
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Sale of lottery tickets authorized by Chapter 27 of Title 50.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
159
164
168
Local Tax Expenditure
118
121
124
(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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05700
Food purchased for off-premises consumption
Statute
48-8-3(57)
Year Enacted
1996
Year Effective
1998
Data Source
U.S. Consumer Expenditure Survey
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Exemption applies to food and food ingredients, which means substances,
whether in liquid, concentrated, solid, frozen, dried, or dehydrated form,
that are sold for ingestion or chewing by humans and are consumed for
their taste or nutritional value. It does not apply to alcoholic beverages,
tobacco, immediate consumption items, vitamins, and minerals. This
exemption does not apply to the local option sales tax but does not apply to
special purpose and educational option sales taxes levied at the local level.
Does not include items used primarily for medical or hygiene purposes
133 | P a g e
4.05710 4.05720 4.05730
(cough drops, breath strips, over the counter medication, etc.)
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
489 502 513
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
Sales of food and beverages to a qualified food bank (expires June 30, 2021)
Statute
48-8-3(57.1)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for HB 763/LC 430293S for 2014
Estimate Reliability
Class B
Data Reliability
Class B
Note
Exemption was first established in 2006 and expired June 30,
2010. Current exemption applies for sales between July 1,
2014 and June 30, 2021
Description: Sales of food and beverages to a qualified food bank (expires June 30,
2021)
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Exemption for prepared food and food ingredients that are donated to a qualified
nonprofit agency and used for hunger relief purposes
Statute
48-8-3(57.2)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 763/LC 43 0191 S for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
This exemption was eliminated in 2011 and reinstated in
2015. This provision is scheduled to expire on June 30,
2020.
Description: The use of food and food ingredients that is donated to a qualified nonprofit
agency and that is used for hunger relief purposes. "Qualified nonprofit
agency" means any entity that is tax exempt under section 501(c)(3) of the
Internal Revenue Code and that provides hunger relief. Does not include
drugs or over-the-counter drugs.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
3
3
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Exemption for food and food ingredients that are donated following a natural disaster
and used for disaster relief
Statute
48-8-3(57.3)
Year Enacted
2015
Year Effective
2015
134 | P a g e
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class C
Data Reliability
Class B
Note
This provision is scheduled to expire on June 30, 2020
Description: Exemption for food and food ingredients that are donated following a
natural disaster and used for disaster relief and does not apply to any
donated over the counter drugs.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.05900
Sale of eligible food and beverages by any Girl or Boy Scout council
Statute
48-8-3(59)
Year Enacted
1996
Year Effective
1996
Data Source
The American Community Survey, IRS Form 990 data, and
Girl Scouts of America annual report
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales of food or food ingredients to and by member councils of the Girl
Scouts or Boy Scouts of America in connection with fundraising activities.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06000
Sale of certain machinery and equipment used to improve air quality in a clean room of
Class 100,000 or less
Statute
48-8-3(60)
Year Enacted
2000
Year Effective
2001
Data Source
Fiscal Note for HB 445/LC 34 4571S for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of certain machinery and equipment used to improve air quality in a
clean room of Class 100,000 or less when incorporated into
telecommunications manufacturing facility.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.06200
Sod grass sold in the original state of production by the sod producer, employee of the
producer, or family member of the producer
Statute
48-8-3(62)
Year Enacted
1998
135 | P a g e
Year Effective
1998
Data Source
U.S. Census of Agriculture, the U.S. Economic Census, and
the Annual Survey of Sod Producers
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sod grass sold in the original state of production by the sod producer,
employee of the producer, or family member of the producer. Note: This
exemption does not apply to sales from a nursery or other places where
plants are sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
3
3
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
4.06300
Funeral merchandise when paid with funds from the Georgia Crime Victims' Emergency
Fund
Statute
48-8-3(63)
Year Enacted
1998
Year Effective
1998
Data Source
The Uniform Crime Report and the National Office for
Victims of Crime
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale or use of funeral merchandise, outer burial containers, and
cemetery markers as defined in Code Section 43-18-1, which are
purchased with funds received from the Georgia Crime Victims'
Emergency Fund under Chapter 15 of Title 17.
State Fiscal Years ($ in Millions)
2016 2017 2018
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.
136 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
(m)
(m)
(m)
(m)
(m)
(m)
4.06600
Sale of gold, silver, or platinum bullion
Statute
48-8-3(66)
Year Enacted
2000
Year Effective
2000
Data Source
US Mint 2014 annual report
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of gold, silver, or platinum bullion.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3
3
3
Local Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
4.06700
Sale of coins or currency
Statute
48-8-3(67)
Year Enacted
2000
Year Effective
2000
Data Source
Professional Numismatists Guild
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sale of coins or currency.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
4.06900
Sales of machinery and equipment and material incorporated and used in a clean room of
Class 100 or less
Statute
48-8-3(69)
Year Enacted
2000
Year Effective
2001
Data Source
Fiscal Bill for HB 445/ LC 34 4571S for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
Estimate combined with 4.06800
Description: Sales of machinery, equipment, and material incorporated and used in
construction or operation of a clean room of Class 100 or less when the
clean room is used directly in the manufacture of tangible personal
property.
137 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
(m)
(m)
(m)
(m)
(m)
(m)
4.07000
Sale of natural gas used directly in the manufacture of electricity
Statute
48-8-3(70)
Year Enacted
1999
Year Effective
2000
Data Source
U.S. Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale of natural or artificial gas used directly in the manufacture of
electricity which is subsequently sold.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
45
49
56
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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
4.07200
Sale of prescribed mobility enhancing equipment
Statute
48-8-3(72)
Year Enacted
1999
Year Effective
2000
Data Source
State Health Expenditures from the Centers for Medicare
and Medicaid Services and the Medical Expenditure Panel
Survey
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The sale to or use by a patient of all mobility enhancing equipment
prescribed by a physician.
138 | P a g e
4.07500 4.07600 4.08100
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
2
3
3
2
2
2
Sales tax holiday for back to school items (expired July 31, 2016)
Statute
48-8-3(75)
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 958/LC 34 4112-EC for 2014
Estimate Reliability
Class A
Data Reliability
NA
Note
Sales tax holidays for school supplies have been utilized
beginning in 2002; expired July 31, 2016
Description:
Sales Tax Holiday- From 12:01 AM on July 30th, 2016 until Midnight.
Articles of clothing with a sales price of $100 or less. School Supplies with
sales price $20 or less. Computers, computer components, and prewritten
computer software with a purchase price of $1,000 or less.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
42
0
0
Local Tax Expenditure
21
0
0
(m) Denotes a value of less than $1 million
Exemption for personal property used in the renovation or expansion of an aquarium
Statute
48-8-3(76)
Year Enacted
2015
Year Effective
2015
Data Source
Fiscal Note for HB 238/LC 28 7425 for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
This exemption expires January 1, 2017
Description:
Sale or use of tangible personal property used for or in the renovation or
expansion of an aquarium located in this state that charges admission and is
owned or operated by an organization that is tax exempt under 501(c)(3).
Qualifying aquarium must pay tax and apply for refund.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
0
Local Tax Expenditure
(m)
(m)
0
(m) Denotes a value of less than $1 million
The purchase of food and nonalcoholic beverages provided at no charge aboard a
qualified airline
Statute
48-8-3(81)
Year Enacted
2005
Year Effective
2005
139 | P a g e
Data Source
Bureau of Transportation Statistics
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The purchase of food and nonalcoholic beverages provided at no charge
aboard a qualified airline not including alcohol or tobacco.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
4
5
5
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 2,
2016)
Statute
48-8-3(82)
Year Enacted
2012
Year Effective
2013
Data Source
Fiscal Note for HB 958/LC 34 4112-EC for 2014
Estimate Reliability
Class B
Data Reliability
Class B
Note
Sales tax holidays for energy-efficient products have been
utilized beginning in 2005; expired October 2, 2016
Description: Sales Tax Holiday- From 12:01 AM on September 30, 2016 until Midnight
on October 2, 2016. The purchase of certain noncommercial home or
personal use Energy Star Qualified Products and Water Sense Products
with a sales price of $1,500 or less per product.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
0
0
Local Tax Expenditure
1
0
0
(m) Denotes a value of less than $1 million
4.08300
Sale of biomass materials used to produce electricity or steam intended for sale
Statute
48-8-3(83)
Year Enacted
2006
Year Effective
2006
Data Source
Fiscal Note for HB 1018/LC 18 4936 for 2009 and the U.S.
Energy Information Administration
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: The sale or use of biomass material, including pellets or other fuels derived
from compressed, chipped, or shredded biomass material, utilized in the
production of energy, including without limitation the production of
electricity and/or steam.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
2
2
Local Tax Expenditure
1
1
2
(m) Denotes a value of less than $1 million
140 | P a g e
4.08600 4.08700 4.09300
Sales of engines, parts, equipment and other tangible personal property used in the
maintenance or repair of certain aircraft
Statute
48-8-3(86)
Year Enacted
2009
Year Effective
2009
Data Source
Fiscal Note for HB 933/LC 40 0540 for 2014
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: The sale or use of engines, parts, equipment, and other tangible personal
property used in the maintenance or repair of aircraft when such engines,
parts, equipment, and other tangible personal property are installed on such
aircraft that is being repaired or maintained in this state, so long as such
aircraft is not registered in this State.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
17
17
17
Local Tax Expenditure
12
12
13
(m) Denotes a value of less than $1 million
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/LC 40 0827 for 2015
Estimate Reliability
Class C
Data Reliability
Class C
Note
Description: Sales of tangible personal property used to renovate or expand a non-profit
zoological institution located in this state that charges for admission,
exhibits, and cares for a collection consisting primarily of animals other
than fish, and has received accreditation from the association of zoos and
aquariums, and is owned or operated by an organization that is tax exempt
under section 501(c)(3) of the Internal Revenue Code. Exemption cannot
exceed $350,000 per institution and the exemption expires June 30, 2018.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
0
(m)
(m)
Local Tax Expenditure
0
(m)
(m)
(m) Denotes a value of less than $1 million
Sale of tangible personal property used for and in the construction of a competitive
project of regional significance, for the period commencing January 1, 2012, until June
30, 2019
Statute
48-8-3(93)
Year Enacted
2012
Year Effective
2012
Data Source
Fiscal Note for HB 958/LC 34 4112-EC for 2014
Estimate Reliability
Class B
Data Reliability
Class B
141 | P a g e
4.09600 4.09700
Note
Description: For the period commencing January 1, 2012, until June 30, 2019, sales of
tangible personal property used for and in the construction of a competitive
project of regional significance. (B) The exemption provided in
subparagraph (A) of this paragraph shall apply to purchases made during
the entire time of construction of the competitive project of regional
significance so long as such project meets the definition of a "competitive
project of regional significance" within the period commencing January 1,
2012, until June 30, 2016.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
9
9
9
Local Tax Expenditure
7
7
7
(m) Denotes a value of less than $1 million
Exemption for sales or use of construction materials used for or in the construction of
buildings at a private college (expired July 1, 2016)
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
$350,000.
Description: Allows an exemption for sales or use of construction materials used for or
In the construction of buildings at a private college with between 1,000 and
3,000 enrolled students.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
0
0
Local Tax Expenditure
(m)
0
0
(m) Denotes a value of less than $1 million
Sales of admission to a nonrecurring major sporting event
Statute
48-8-3(97)
Year Enacted
2016
Year Effective
2017
Data Source
Not Applicable
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Sales of admissions to nonrecurring major sporting events in this state that
are expected to generate over $50 million in the host locality.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
0
1
3
Local Tax Expenditure
0
1
3
(m) Denotes a value of less than $1 million
142 | P a g e
4.09800
Sales of tangible personal property and services to a qualified job training organization
Statute
48-8-3(98)
Year Enacted
2016
Year Effective
2016
Data Source
Fiscal Note for HB 924/LC 34 4906S for 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description:
Sales of tangible personal property and services to a qualified job training
organization located in this state when such organization is tax exempt
under 501(c)(3).
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
0
0
0
(m) Denotes a value of less than $1 million
143 | P a g e
4.3.2 4.3.3
Exemptions for energy, machinery or equipment, industrial material, and consumable
supplies used in manufacturing
Statute
48-8-3.2
Year Enacted
2012
Year Effective
2013
Data Source
Bureau of Economic Analysis
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemptions for energy, machinery or equipment, industrial material, and
consumable supplies used in manufacturing.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
3,005 3,145 3,294
Local Tax Expenditure
2,224 2,328 2,438
(m) Denotes a value of less than $1 million
Sale and use by a qualified agriculture producer of agricultural production inputs, energy
used in agriculture, and agricultural machinery and equipment
Statute
48-8-3.3
Year Enacted
2012
Year Effective
2013
Data Source
National Agricultural Statistical Service
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Sale to, or use by, a qualified agriculture producer of agricultural
production inputs, energy used in agriculture, and agricultural machinery
and equipment.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
183
192
201
Local Tax Expenditure
135
142
149
(m) Denotes a value of less than $1 million
144 | P a g e
4.5 Sales and Use Tax for Services
4.50000
Admissions and Amusements
Description: Admission to school and college sports events; cable tv and direct satellite tv;
coin-operated video games (includes pinball and other mechanical
amusements); membership fees in private clubs; overnight trailer parks.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
153 158 164
Local Tax Expenditure
115 119 123
(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 Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
147
152
158
110
114
118
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)
2016 2017 2018
State Tax Expenditure
134
138
143
Local Tax Expenditure
100
104
108
(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)
2016 2017 2018
State Tax Expenditure
673 697 722
Local Tax Expenditure
505 522 542
(m) Denotes a value of less than $1 million
145 | P a g e
4.50004
Computer and Online Services
Description: Online data processing services; downloaded software, books, music,
movies and video content, other electronic goods; internet service
providers dial-up; internet service providers DSL or other broadband;
mainframe computer access and processing service; information services;
software custom programs and professional services.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
362 375 389
Local Tax Expenditure
272 281 292
(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)
2016 2017 2018
State Tax Expenditure
1,504 1,557 1,614
Local Tax Expenditure
1,128 1,168 1,211
(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)
2016 2017 2018
State Tax Expenditure
224
230
239
Local Tax Expenditure
167
173
179
(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)
2016 2017 2018
State Tax Expenditure
1,034 1,070 1,109
Local Tax Expenditure
775 802 832
(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.
146 | P a g e
State Tax Expenditure Local Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions)
2016 2017 2018
11
11
11
8
8
9
4.50009
Residential Utility Service
Description: Interstate telephone (including local, long distance, and cellular service)
and telegraph.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
19
20
20
Local Tax Expenditure
14
15
15
(m) Denotes a value of less than $1 million
4.50010
Personal Services
Description: Carpet and upholstery cleaning; swimming pool cleaning and maintenance;
water softening and conditioning; shoe repair; garment services (altering
and repairing); health clubs, tanning parlors, and reducing salons; laundry
and dry cleaning services coin-operated; laundry and dry cleaning
services not coin-operated; massage services (includes dating services);
tax return preparation; sports and recreation instruction; barber shops;
beauty parlors; travel agent services.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
281
291
302
Local Tax Expenditure
211
218
226
(m) Denotes a value of less than $1 million
4.50011
Professional Services
Description: Attorneys; accounting and bookkeeping; physicians; dentists; medical test
laboratories; architects; engineers; land surveying; nursing services out of
the hospital.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1,974 2,043 2,118
Local Tax Expenditure
1,480 1,532 1,589
(m) Denotes a value of less than $1 million
4.50012
Storage
Description: Marine towing services (includes tugboats); household goods storage;
cold storage (includes fur storage); food storage; mini-storage; marina
service (docking, storage, cleaning, repair); packing and crating (includes
bus services); other warehousing and storage (including automotive
storage).
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
70
72
75
Local Tax Expenditure
52
54
56
(m) Denotes a value of less than $1 million
147 | P a g e
4.50013
Transportation Services
Description: Intrastate courier service.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
148 | P a g e
4.7 Vendor Compensation
4.70000
Compensation of dealers for reporting and paying tax
Statute
48-8-50
Year Enacted
1964
Year Effective
1964
Data Source
DOR data as of 2016
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)
2016 2017 2018
State Tax Expenditure
65
68
70
(m) Denotes a value of less than $1 million
149 | P a g e
4.9 Casual Sales
4.90000
Sales tax exemption for casual sales
Statute
DOR administrative rule
Year Enacted
NA
Year Effective
NA
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class A
Note
Sales of all motor vehicles will be exempt from state and
local sales tax beginning March 1st, 2013 but taxed under
the Alternative Ad Valorem Tax on Motor Vehicles, see
section 11 of the report. Provision listed as 4.30000 in
reports prior to FY 2014.
Description: Purchases of boats, planes and other tangible goods sold by persons not in
the business of selling such items are not subject to sales tax. (Prior to the
implementation of the Alternative Ad Valorem Tax on Motor Vehicles this
estimate included casual sale of motor vehicles.)
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
150 | P a g e
Sales and use tax expenditures for which an estimate is not currently
available
Expenditure Statute
Summary
4.00100 4.00200
4.00300 4.01800
48-8-3(1) 48-8-3(2)
48-8-3(3) 48-8-3(18)
Sales to Federal Government, State of Georgia or a county or municipality in Georgia or any agency of such governments 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 Federal retailer's excise tax if separately itemized to the consumer and Georgia motor fuel tax imposed on the sale of motor fuel Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation
4.01900 4.02100 4.02500
48-8-3(19) 48-8-3(21) 48-8-3(25)
All tangible personal property purchased outside this state by a nonresident when the property is brought into Georgia upon the nonresident becoming a resident Sales, transfers or exchanges of tangible personal property resulting from business reorganization when the owners, partners, or stockholders maintain the same proportionate interest or share in the newly formed business Fares of for-hire vehicles
4.03100 4.03200
4.03300
48-8-3(31) 48-8-3(32)
48-8-3(33)
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
4.03410 4.03610 4.03910 4.04200
4.04300 4.04400
48-8-3(34.1) 48-8-3(36.1) 48-8-3(39.1) 48-8-3(42)
48-8-3(42) 48-8-3(44)
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property Use or lease of tangible personal property when the lessor and lessee are under 100 percent common ownership and where the person who furnishes, leases, or rents the property has paid sales or use tax on the property Revenues from coin-operated 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
4.04500 4.06100
48-8-3(45) 48-8-3(61)
The sale or use of paper stock when used to print catalogs for distribution outside Georgia Advertising inserts that are used in newspapers for resale
4.06800 4.09100
48-8-3(68) 48-8-3(91)
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
151 | P a g e
4.09400
48-8-3(94)
The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale
152 | P a g e
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 at 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.
This tax is administered by the State Insurance Commissioner. In FY 2015, state revenues from this tax equaled $419 million and local revenues equaled $495 million. The state proceeds of the tax are deposited into the State General Fund.
5.00100 5.00200
Deduction of retaliatory taxes paid to other states
Statute
33-8-7
Year Enacted
1960
Year Effective
Prior to 2000
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
Note
Not applicable at the local level
Description: Property and casualty insurance companies domiciled in Georgia are able
to deduct from their Georgia tax liability taxes paid to other states on
policies written in those states.
State Fiscal Years ($ in Millions)
2016 2017 2018
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; 48-7-29.6
Year Enacted
1960
Year Effective
2000
Data Source
DOR data as of 2016 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.
153 | 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)
2016 2017 2018
10
10
10
72
73
75
5
5
5
87
88
90
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)
2016 2017 2018
State Tax Expenditure
9
10
11
(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)
2016 2017 2018
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.
154 | P a g e
State Tax Expenditure
(m) Denotes a value of less than $1 million
State Fiscal Years ($ in Millions) 2016 2017 2018 145 148 151
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)
2016 2017 2018
State Tax Expenditure
152
155
158
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
DOR data as of 2016 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 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
5.00800
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)
2016 2017 2018
64
69
72
27
29
31
101
108
113
192
206 217
Insurance Premium Tax Exemption for multiple employer self-insured health plans
Statute
33-50-3
Year Enacted
2016
Year Effective
2016
Data Source
Office of Insurance and Safety Fire Commissioner
Estimate Reliability
Class A
Data Reliability
Class A
155 | P a g e
Note
Description: Multiple employer self-insured health plans are exempt from the state
insurance premium tax on the plan's net premiums.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
156 | P a g e
6. Motor Fuel Tax
The tax on motor fuels was substantially modified in 2015. Under the new law, the state tax on motor fuels other than diesel fuel is 26 cents per gallon. The state tax on diesel fuel is 29 cents per gallon. The base of the motor fuel tax is imposed on any source of energy that can be used for propulsion of a motor vehicle on the public highways, including, but not limited to: gasoline, fuel oils, compressed petroleum gas and special fuels.
The tax is administered by the Georgia DOR and revenues generated from this tax are allocated by the state constitution to the Georgia Department of Transportation for highway purposes.
6.00400
Motor fuel tax exemption for aviation fuel
Statute
48-9-3
Year Enacted
1978
Year Effective
1978
Data Source
Fiscal Note for LC 34 4757 for 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption for aviation fuel.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
6.00500
Motor fuel tax vendor compensation
Statute
48-9-8(b)
Year Enacted
1992
Year Effective
1992
Data Source
Office of Planning and Budget Data for FY 2016
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Motor fuel dealers are allowed to retain 1 percent of total amounts
collected as reimbursement for the cost of collection.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
16
17
17
(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
157 | P a g e
7. Alcoholic Beverage Tax
This state and local tax is imposed on alcoholic beverages including malt beverages, wine, and distilled spirits. Malt beverages are taxed at a state rate of $10 per container up to 31 gallons with a proportionate tax on fractional parts of 31 gallons for draft malt beverages. The state 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 state rate of 11 cents per liter and a state import tax of 29 cents per liter is imposed on table wines with proportional rates for fractional parts of a liter. A state excise tax of 27 cents per liter with a state import tax of 40 cents per liter is imposed on dessert wines with proportional rates for fractional parts of a liter. A state excise tax of 50 cents per liter and a state import tax of 70 cents per liter are levied on distilled spirits.
A uniform local government beer tax is levied at five cents per 12 ounces for bottled and canned malt beverages with proportional rates for sizes other than 12 ounces. The rate for bulk (tap or draft) malt beverages is $6 per container for containers up to 15 gallons with proportionate rates for other sized containers. Counties and municipalities may levy excise tax at rates that do not exceed 22 cents per liter. Counties and municipalities may levy excise taxes on distilled spirits at rates that do not exceed 22 cents per liter or proportional rates for other size containers on distilled spirits sold by the package. Counties and municipalities may also levy excise taxes at rates up to 3 percent of the price charged for mixed drinks.
The state portion of the tax is administered by the Georgia DOR. Proceeds from the state tax are deposited into the State General Fund. In FY 2015, state collections equaled $184 million. Local collections for FY 20133 equaled $134 million.
7.00300
200 gallons annually of homebrew per household
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
American Homebrewers' Association
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Allows an exemption for up to 200 gallons annually of homebrew per
household.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
3 Latest data available.
158 | P a g e
7.00400
Sales to and use by religious organizations for sacramental purposes
Statute
3-5-61, 3-6-70
Year Enacted
1977
Year Effective
1977
Data Source
National Center for Charitable Statistics and Catholic.org
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Sales to and use by religious organizations for sacramental purposes.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
7.00500
Exemption for ethyl alcohol used for certain purposes
Statute
3-5-61, 3-6-70
Year Enacted
1980
Year Effective
1980
Data Source
U.S. Economic Census
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: An exemption is allowed for purchases of ethyl alcohol intended for use or
used for the following purposes: scientific, chemical, mechanical,
industrial, medicinal, and culinary.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
7.00600
Malt beverages containing less than one-half of 0.5 percent alcohol
by volume
Statute
3-5-90
Year Enacted
1987
Year Effective
1987
Data Source
U.S. Economic Census and averagebeerprices.com
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Malt beverages which contain less than one-half of 1 percent alcohol by
volume shall not be subject to any tax levied under this title or any tax
levied pursuant to authority granted by this title.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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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. Tobacco Products Excise Tax
This tax is levied upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of tobacco, cigars, and cigarettes in Georgia. The tax is imposed at a rate of 37 cents per pack of 20 cigarettes and 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 2015 the tax totaled $215 million. The proceeds of the tax are deposited into the State General Fund.
8.00100
Exemption for purchases for use exclusively by patients at the
Georgia War Veterans Home and the Georgia War Veterans Nursing
Home
Statute
48-11-2
Year Enacted
1955
Year Effective
Latest Modification 2003
Data Source
Georgia Department of Veteran Services
Estimate Reliability
Class B
Data Reliability
Class C
Note
Description: Exemption for purchases for use exclusively by patients at the Georgia
War Veterans Home and the Georgia War Veterans Nursing Home.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m) (m)
(m) Denotes a value of less than $1 million
Tobacco Products excise tax expenditures for which an estimate is not
currently available
Expenditure Statute Summary
8.00200
48-11-3 De minimis amount brought into the state by one person
8.00300
48-11-3 Cigars and cigarettes stored in a public warehouse
8.00400
48-11-3 Certain cigars and cigarettes held by licensed dealers
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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 2015 equaled $17 million. The proceeds of the tax are deposited into the State General Fund.
9.00100
Deduction for interest paid
Statute
48-6-95
Year Enacted
1975
Year Effective
1975
Data Source
FDIC Statistics on Depository Institutions
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Financial institutions are allowed to deduct from gross receipts interest paid
on all liabilities.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
2
2
(m) Denotes a value of less than $1 million
Financial institutions tax expenditures for which an estimate is not currently
available
Expenditure Statute
9.00200
48-6-95
9.00300
48-6-95
Summary Deductions for income from authorized activities of a domestic international banking facility Deduction for income from banking business with persons or entities outside the U.S.
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10. Special Assessment of Forest Land Conservation Use Property
Real property devoted to qualified conservation use is assessed at 40 percent of its current use value. This tax treatment is designed to reduce the property tax burden on landowners in an effort to discourage the conversion of land to residential or commercial use. The property must be maintained in a qualifying conservation use for a period of 10 years. Because the state offsets the loss of local government property tax revenue stemming from this exemption, this exemption represents a reduction in state tax revenues.
10.00000
Special assessment of forest land conservation use property
Statute
48-5A-2
Year Enacted
2008
Year Effective
2008
Data Source
Office of Planning and Budget; and the Georgia DOR
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Grants made available by the Georgia General Assembly through annual
appropriations and awarded to counties, municipalities and county or
independent school districts for purposes of the Special Assessment of
Forest Land Conservation Use Property program.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
29
33
33
(m) Denotes a value of less than $1 million
163 | 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, referred to as the Motor Vehicle Title Fee or the TAVT. This legislation was passed in the 2012 session of the General Assembly and was substantially amended in the 2013 session. As part of the legislation, sales and use tax on the sale of motor vehicles was eliminated for purchases or leases occurring on or after March 1, 2013.
The tax base for new vehicles is equal to the greater of the retail selling price and the average of the current fair market value and the wholesale value as determined by the Georgia DOR. The tax base for used vehicles is equal to the average of the current fair market value and the wholesale value as determined by the Georgia DOR less any reductions for the trade-in value of another vehicle and any dealer rebates or cash discounts.
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. The revenue from the tax is shared between the state and local governments at a specified annual rate. The state (local) share of the tax was 57 (43) percent for CY 2013 and 55 (45) percent for CY 2014 and CY 2015. For years after CY 2015, the local share is annually reduced (increased) in the event that the receipts to the local government from the proceeds of the tax exceed (fall short of) the target collection amount of the preceding year by more than 1 percent. Because the local governments exceeded the target collection amount for CY 2015, the state (local) share for CY 2016 has been adjusted to equal 59.45 (40.55) percent.
The tax is administered by the Georgia DOR but initial proceeds remitted by taxpayers are collected at the local level. All proceeds from the state portion of the TAVT are deposited into the State General Fund. The TAVT generated $846 million in state receipts in FY 2015 and $702 million in local government receipts.
11.001
Reduced rate for related family transfers
Statute
48-5C-1(d)(1)-(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description:
A reduced rate of 0.25 percent applies to transfers for a vehicle
transferred between immediate family members or a transfer occurring
as a result of the death of an immediate family member.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
7
7
Local Tax Expenditure
5
6
7
(m) Denotes a value of less than $1 million
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11.002 11.003 11.004
Disabled veteran exemption
Statute
48-5C-1(d)(7)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Exemption from the title fee of the sale of a vehicle to a service-
connected disabled veteran when the veteran received a grant from the
U.S. Department of Veterans Affairs to purchase and specifically
adapt the vehicle to his or her disability.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
Reduced rate for rental vehicles
Statute
48-5C-1(d)(11)(A)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description:
Rental vehicles are subject to a reduced state title fee rate of 0.625
percent of the fair market value and a local title fee rate of 0.625
percent of the fair market value.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
73
80
75
Local Tax Expenditure
50
56
63
(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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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11.005 11.006 11.007
Reduced rate for salvage vehicles
Statute
48-5C-1(b)(2)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Salvage vehicles are subject to a state title fee rate of 1 percent and are
not subject to the local title fee.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
31
33
31
Local Tax Expenditure
30
33
37
(m) Denotes a value of less than $1 million
Dealer loaner vehicle exemption
Statute
48-5C-1(d)(12)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class A
Note
Description: Dealer loaner vehicles are exempt from the state and local title fee for
a period of 366 days.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
7
6
4
Local Tax Expenditure
5
5
4
(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)
2016 2017 2018
State Tax Expenditure
(m)
(m)
(m)
Local Tax Expenditure
(m)
(m)
(m)
(m) Denotes a value of less than $1 million
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11.008 11.009 11.010
Extended payment period for out-of-state vehicles
Statute
48-5C-1(d)(3)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: Vehicles registered by individuals moving from out of state are allowed
to pay the title fee in two equal installments over a 12-month period.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
2
0
-1
Local Tax Expenditure
0
0
2
(m) Denotes a value of less than $1 million
Trade-in exemption (including rebates and cash discounts)
Statute
48-5C-1(a)(1)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Both the state and local title fee is imposed on the fair market value of
a vehicle net of the trade-in value of another motor vehicle, rebates
or cash discounts.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
395
434
407
Local Tax Expenditure
278
308
348
(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)
2016 2017 2018
State Tax Expenditure
21
22
20
Local Tax Expenditure
16
16
19
(m) Denotes a value of less than $1 million
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11.011 11.012 11.013
Special assessment for new vehicles
Statute
48-5C-1(a)(1)(D)
Year Enacted
2012
Year Effective
2013
Data Source
DOR data for 2015
Estimate Reliability
Class B
Data Reliability
Class B
Note
Description: The title fee is applied to the greater of the retail selling price or the
average of the current fair market value and the current wholesale
value.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
-43
-44
-41
Local Tax Expenditure
-32
-34
-38
(m) Denotes a value of less than $1 million
Buy here pay here transactions
Statute
48-5C-1(b)(1)(B)(xv)
Year Enacted
2013
Year Effective
2014
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description: Seller financed used car transactions are subject to a title fee rate that
is two and a half percentage points below the standard title fee rate
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
6
7
7
Local Tax Expenditure
5
6
7
(m) Denotes a value of less than $1 million
Exemption from TAVT for leased vehicles qualifying for Manufacturing Headquarters
Statute
48-5C-1
Year Enacted
2015
Year Effective
2015
Data Source
DOR data for 2015
Estimate Reliability
Class A
Data Reliability
Class A
Note
Description:
Creates the plate category of "Manufacturing HQ" and included in the
rights and qualifications of that plate is an exemption from the TAVT.
State Fiscal Years ($ in Millions)
2016 2017 2018
State Tax Expenditure
1
1
1
Local Tax Expenditure
1
1
1
(m) Denotes a value of less than $1 million
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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. This provision became effective for fiscal years beginning on July 1, 2015. The tax is administered by the Georgia DOR. The proceeds from this excise tax are deposited into the State General Fund.
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13. State Hotel-Motel Tax An excise tax of $5.00 per day is levied on each room rented or leased. This provision became effective on July 1, 2015. The tax is administered by the Georgia DOR. Although collections from this tax are deposited in to the State General Fund, they must be appropriated exclusively for transportation purposes.
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Appendix of Tables
Table 1: Summary of Expired Provisions
Expenditure Summary
Tax
1.6.024
1.6.031/ 2.6.020 1.6.033/ 2.6.022 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
4.03500
Teleworking Credit
Low- & Zero-Emission Vehicle 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 processing of ethanol, biodiesel, butanol or their by-products Certain materials used in industrial packaging
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
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
1/1/2013
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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 4.09200
6.00200 6.00300
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. 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
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
Motor Fuel Tax
Motor Fuel Tax
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 12/31/2013
6/30/2015 6/30/2015
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6.00600
Motor fuel tax exemption for public school buses
Motor Fuel 6/30/2015 Tax
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Table 2: Sales and use tax expenditures by type
Expenditure Summary
State FY State FY State FY
2016
2017
2018
Sales Tax Exemption for a Business Input4
4.01700
Sales of fuel or consumable supplies used by
ships engaged in inter-coastal or foreign
commerce
4.02500
Fares of for-hire vehicles
4.03410 4.03420 4.03910
4.04500
Machinery and equipment used to handle, move, or store tangible personal property in certain distribution facilities Machinery and equipment used directly to remanufacture certain aircraft engines or aircraft engine parts Cargo containers and related chassis used for storage or shipping by persons engaged in international shipment of tangible personal property The sale or use of paper stock when used to print catalogs for distribution outside Georgia.
17
18
19
Estimate not available at this time
Estimate not available at this time
(m)
(m)
(m)
Estimate not available at this time
Estimate not available at this time
4.04800
Sale of crab bait to licensed commercial fishermen
(m)
(m)
(m)
4.06000 4.06500
Sale of certain machinery and equipment used to (m)
(m)
(m)
improve air quality in a clean room of Class
100,000 or less
Sale of dyed diesel fuel used exclusively for
(m)
(m)
(m)
operations of vessels or boats by licensed
commercial fishermen
4.06800 4.06900 4.07000 4.08100 4.08300 4.09400
Sale of certain computer equipment when the total qualifying purchases by a high technology company exceed $15 million Sales of machinery and equipment and material incorporated and used in a clean room of Class 100 or less Sale of natural gas used directly in the manufacture of electricity The purchase of food and nonalcoholic beverages provided at no charge aboard a qualified airline Sale of biomass materials used to produce electricity or steam intended for sale The sale, use, consumption, or storage of materials, containers, labels, sacks, or bags used for packaging tangible personal property for shipment or sale
Estimate not available at this time
(m)
(m)
(m)
45
49
56
4
5
5
1
2
2
Estimate not available at this time
4 Sales tax exemptions which are defined primarily as an exemption for a profit making business.
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Table 2: Sales and use tax expenditures by type
Expenditure 4.3.2
4.3.3
Summary 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
State FY 2016 3,005
183
State FY 2017 3,145
192
State FY 2018 3,294
201
Sales Tax Exemption for a Specific Item5
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
4.01200
School lunches sold and served to pupils and
employees of public schools
Estimate not available at this time
9
10
10
Estimate Combined With
4.00400
7
7
7
4.01300
School lunches sold and served to pupils and employees of approved private schools
1
(m)
(m)
4.01800 4.02000 4.02200
4.02300 4.02400 4.03300
Charges for transportation of tangible personal property made in connection with interstate or intrastate transportation Water delivered through water mains, lines, or pipes Professional, insurance or personal service transactions which involve sales as inconsequential elements for which no separate charge is made Repair services when a separate charge is made to the customer Rental of videotape or film to persons charging admission to view the tape or film Common or common and contract carriers
Estimate not available at this time
63
65
68
See expenditure estimates for (4.50003, 4.50010, 4.50011)
See expenditure estimates for
(4.50003, 4.50010, 4.50011)
7
7
7
Estimate not available at this time
4.04200 4.04300
Use or lease of tangible personal property when the lessor and lessee are under 100 percent common ownership and where the person who furnishes, leases, or rents the property has paid sales or use tax on the property Revenues from coin-operated amusement machines for which individual permits are required
Estimate not available at this time
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.
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Table 2: Sales and use tax expenditures by type
Expenditure 4.04700
4.05000 4.05100 4.05200
Summary Sale of drugs dispensed by prescription, 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 level measuring strips dispensed without a prescription Sale of oxygen when prescribed by a licensed physician Sale or use of hearing aids
State FY 2016 397
25 1 5
State FY 2017 422
27 1 6
State FY 2018 453
28 1 6
4.05400 4.05500
Sale or use of any durable medical equipment or
34
35
36
prosthetic device prescribed by a physician
Sale of Georgia lottery tickets
159
164
168
4.05700
Food purchased for off-premises consumption
489
502
513
4.06100 4.06200
4.06600
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 Sale of gold, silver, or platinum bullion
Estimate not available at this
time
3
3
3
3
3
3
4.06700
Sale of coins or currency
1
1
1
4.07500 4.08200 4.09100
4.90000
Sales tax holiday for back to school items (expired July 31, 2016) Sales tax holiday for water-efficient and energyefficient purchases (expired October 2, 2016) The sale of prewritten software which has been delivered to the purchaser electronically or by means of load and leave. Sales tax exemption for casual sales
42
0
0
1
0
0
Estimate not available at this time
2
2
2
Sales Tax Exemption for a Specific Purchaser6
4.00100
Sales to Federal Government, State of Georgia or
a county or municipality in Georgia or any
agency of such governments
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, or operating a coliseum
and related facilities
4.00630
Sales to any agricultural commission created by
the Department of Agriculture
Estimate not available at this time
Estimate Combined with 4.00700
2
2
2
2
2
1
(m)
(m)
(m)
6 Sales tax exemptions which are defined primarily by the purchaser and not defined, or only generally defined, by the seller or the item being purchased.
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Expenditure 4.00700 4.00705 4.00710 4.00720 4.00730 4.00800 4.00900
4.01000 4.01100 4.01900 4.02100
4.03100
Table 2: Sales and use tax expenditures by type
Summary 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 FY State FY State FY
2016
2017
2018
98
103
108
Sales of tangible personal property to a nonprofit health center established and receiving funds pursuant to the U.S. Public Health Service Act Sales of tangible personal property and services to a nonprofit organization whose primary function is to provide services to persons with intellectual disabilities Sales to Georgia Society of the Daughters of the American Revolution Sales of tangible property and services to a nonprofit volunteer health clinic primarily treating patients with incomes below 200 percent of the poverty level Sales of tangible personal property and services to the University System of Georgia and its educational units Sale of tangible personal property and services used exclusively in the educational function of an approved private college or university located in Georgia in which the credits are accepted by the University System of Georgia Sales of tangible personal property and services used exclusively in the educational function of an approved private elementary or secondary school Sale of tangible personal property or services to, and the purchase of tangible personal property or services by, any educational or cultural institute All tangible personal property purchased outside this state by a nonresident when the property is brought into Georgia upon the nonresident becoming a resident Sales, transfers or exchanges of tangible personal property resulting from business reorganization when the owners, partners, or stockholders maintain the same proportionate interest or share in the newly formed business Sale of tangible personal property manufactured or assembled in Georgia for export when delivery is taken outside of Georgia
1
1
1
2
2
2
(m)
(m)
(m)
1
1
1
39
41
43
Estimate combined with 4.00800
3
3
3
(m)
(m)
(m)
Estimate not available at this time
Estimate not available at this time
Estimate not available at this time
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Table 2: Sales and use tax expenditures by type
Expenditure 4.03600 4.03610 4.04000 4.04100 4.04600 4.07100 4.07600 4.08700 4.09300
4.09600
4.09800
Summary Machinery and equipment used in a facility for the primary purpose of reducing or eliminating air and water pollution Machinery and equipment used for water conservation and incorporated into a qualified water conservation facility. Sale of major components or repair parts installed in military aircraft, vehicles, or missiles Sale of tangible personal property and services to a nonprofit child-caring institution, child-placing agency, or maternity home Sale of tangible personal property or taxable services to nonprofit blood banks Sale to or by an organization whose primary purpose is to raise funds for books, materials, and programs for public libraries Exemption for personal property used in the renovation or expansion of an aquarium Sales of tangible personal property used to renovate or expand a zoological institution (expires June 30, 2018) Sale of tangible personal property used for and in the construction of a competitive project of regional significance, for the period commencing January 1, 2012, until June 30, 2019 Exemption for sales or use of construction materials used for or in the construction of buildings at a private college (expired July 1, 2016) Sales of tangible personal property and services to a qualified job training organization
State FY State FY State FY
2016
2017
2018
(m)
(m)
(m)
Estimate not available at this time
46
48
59
1
1
1
1
1
1
(m)
(m)
(m)
(m)
(m)
0
0
(m)
(m)
9
9
9
(m)
0
0
1
1
1
Sales Tax Exemption for a Specific Purchaser of a Specific Item7
4.01400
Sales of art and other artifacts for display or
exhibition to museums
4.01510
Sales of pipe organs or steeple bells to any
church qualifying as a nonprofit
4.03000
Vehicles purchased by service-connected
disabled veterans when the U.S. Dept. of
Veterans Affairs supplies a grant to purchase and
specially adapted the vehicle
4.03200
Aircraft, watercraft, motor vehicles, and other
transportation equipment manufactured or
assembled in this State for exclusive use outside
Georgia
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
(m)
Estimate not available at this time
7 Sales tax exemptions which are specifically defined by the purchaser as well as the item being purchased.
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Table 2: Sales and use tax expenditures by type
Expenditure 4.04400
4.05300 4.05710 4.06300 4.07200
Summary Sale of motor vehicles to nonresident purchasers when vehicles are immediately removed from Georgia and titled in another state. Transactions where food stamps or WIC coupons are used as the method of payment of payment Sales of food and beverages to a qualified food bank (expires June 30, 2021) Funeral merchandise when paid with funds from the Georgia Crime Victims' Emergency Fund Sale of prescribed mobility enhancing equipment
State FY State FY State FY
2016
2017
2018
Estimate not available at this
time
116
115
115
1
1
1
(m)
(m)
(m)
2
3
3
4.08600 4.09700
Sales of engines, parts, equipment and other tangible personal property used in the maintenance or repair of certain aircraft Sales of admission to a nonrecurring major sporting event
17
17
17
0
1
3
Sales Tax Exemption for a Specific Seller8
4.00200
Tangible personal property furnished by the
Federal Government or any county or
municipality used by a contractor in the
installation, repair, or extension of any public
water, gas, or sewer system.
4.01500
Specific fundraising sales by any religious
institution lasting no more than 30 days in a
calendar year and sales of religious paper when
the paper is owned and operated by the religious
institution
4.03800
Sale of tangible personal property and fees and
charges for services by the Rock Eagle 4-H
center
4.03900
Certain sales by a public or private school of
tangible personal property, concessions, and
tickets for admission to school functions
4.05600
Sale by any qualified nonprofit parent-teacher
organization
4.05720
Exemption for prepared food and food
ingredients that are donated to a qualified
nonprofit agency and used for hunger relief
purposes
4.05730
Exemption for food and food ingredients that are
donated following a natural disaster and used for
disaster relief
4.05900
Sale of eligible food and beverages by any Girl
or Boy Scout council
Estimate not available at this time
(m)
(m)
(m)
(m)
(m)
(m)
2
2
2
(m)
(m)
(m)
3
3
3
(m)
(m)
(m)
1
1
1
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 4.70000
Table 2: Sales and use tax expenditures by type
Summary Compensation of dealers for reporting and paying tax
State FY 2016 65
State FY 2017 68
State FY 2018 70
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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 2014. It has not been adjusted for inflation nor does it reflect any legislative changes that may have occurred since 2014. Column 1 of each table provides the categories of Georgia AGI. Column 2 (Number of Returns) provides the number of returns for each AGI category. Column 3 (Average Value) gives the average value of the tax exemption or deduction taken by filers in each AGI category. Column 4 (Total) provides the total value of the deduction or exemption associated with each AGI category and column 5 (Percent of Total) provides the percent of the total value of the deduction or exemption that falls into that AGI category.
Table 3: Total Personal Exemptions
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
333,334
$5,014
$1,671,268,900
0<GA AGI$25,000
1,554,879
$5,602
$8,710,576,000
$25,000<GA AGI$50,000
873,334
$6,902
$6,027,943,500
$50,000<GA AGI$100,000
694,204
$8,026
$5,571,819,100
$100,000<GA AGI$500,000
467,455
$9,990
$4,670,054,600
$500,000<GA AGI$1,000,000
18,036
$10,701
$192,996,200
GA AGI>$1,000,000
8,259
$10,322
$85,247,500
Total
3,949,501
$26,929,905,800
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 6.21% 32.35% 22.38% 20.69% 17.34% 0.72% 0.32%
100.00%
Table 4: Retirement Exemptions
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
336,757
$28,746
$9,680,435,999
0<GA AGI$25,000
182,505
$26,406
$4,819,245,097
$25,000<GA AGI$50,000
87,311
$26,006
$2,270,586,775
$50,000<GA AGI$100,000
78,579
$28,098
$2,207,931,002
$100,000<GA AGI$500,000
54,931
$38,784
$2,130,467,830
$500,000<GA AGI$1,000,000
3,302
$62,230
$205,482,063
GA AGI>$1,000,000
1,961
$73,295
$143,731,169
Total
745,346
$21,457,879,935
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 45.1% 22.5% 10.6% 10.3% 9.9% 1.0% 0.7% 100.0%
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Table 5: Georgia Higher Education Savings Deduction
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
1,762
$2,969
$5,231,695
0<GA AGI$25,000
1,429
$2,357
$3,368,507
$25,000<GA AGI$50,000
1,932
$2,013
$3,889,672
$50,000<GA AGI$100,000
6,426
$1,942
$12,477,288
$100,000<GA AGI$500,000
22,925
$2,954
$67,718,451
$500,000<GA AGI$1,000,000
1,177
$4,602
$5,416,263
GA AGI>$1,000,000
412
$5,106
$2,103,679
Total
36,063
$100,205,555
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 5.22% 3.36% 3.88% 12.45% 67.58% 5.41% 2.10%
100.00%
Table 6: Interest on U.S. Obligations
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
19,087
$15,475
$295,372,432
0<GA AGI$25,000
7,696
$1,958
$15,068,045
$25,000<GA AGI$50,000
4,628
$1,627
$7,528,270
$50,000<GA AGI$100,000
6,915
$1,536
$10,619,178
$100,000<GA AGI$500,000
10,715
$1,606
$17,203,408
$500,000<GA AGI$1,000,000
1,272
$2,042
$2,597,259
GA AGI>$1,000,000
1,277
$6,241
$7,969,253
Total
51,590
$356,357,845
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 82.89% 4.23% 2.11% 2.98% 4.83% 0.73% 2.24%
100.00%
Table 7: Blind and Age 65 Deduction
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
192,549
$1,838
$353,823,600
0<GA AGI$25,000
92,974
$1,771
$164,700,900
$25,000<GA AGI$50,000
29,844
$1,717
$51,246,000
$50,000<GA AGI$100,000
15,801
$1,731
$27,344,200
$100,000<GA AGI$500,000
3,355
$1,837
$6,162,000
$500,000<GA AGI$1,000,000
88
$1,876
$165,100
GA AGI>$1,000,000
40
$2,048
$81,900
Total
334,651
$603,523,700
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 58.63% 27.29% 8.49% 4.53% 1.02% 0.03% 0.01%
100.00%
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Table 8: Standard Deduction
Georgia AGI - 2014
Number of Average Value
Total
Returns
GA AGI0
237,658
$2,577
$612,469,100
0<GA AGI$25,000
1,415,017
$2,377
$3,363,351,100
$25,000<GA AGI$50,000
610,045
$2,495
$1,522,051,200
$50,000<GA AGI$100,000
275,424
$2,724
$750,197,300
$100,000<GA AGI$500,000
40,765
$2,902
$118,290,000
$500,000<GA AGI$1,000,000
256
$2,706
$692,700
GA AGI>$1,000,000
170
$2,847
$484,000
Total
2,579,335
6,367,535,400
The percent of total column may not sum to 100 percent due to rounding.
Percent of Total 9.62% 52.82% 23.90% 11.78% 1.86% 0.01% 0.01%
100.00%
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