To help spur economic growth statewide and in Fayette County, Rep. Matt Ramsey has introduced a bill to increase tax credits for new job creation while also reducing the minimum threshold to help benefit more businesses.
House Bill 186 would increase the credit from $750 to $2,000 for each new job created, add a $250 bonus credit for an existing company that is expanding and lower the job creation threshold from 25 jobs to 10 jobs for counties such as Fayette.
“Under the current law, companies in Fayette would have to create 25 jobs a year in order to qualify for the program,” said Matt Forshee, President/CEO of the Fayette County Development Authority. “Most of the companies in Fayette are too small to manage this kind of growth. Lowering the threshold will encourage more job creation by making the program more accessible. Additionally, the change to the Quality Jobs Tax credit encourages the creation of jobs paying above 120 percent of the county average wage, thereby raising the overall incomes in Fayette County.”
The bill will help Georgia compete with other states for new jobs and investment, Ramsey said.
“It encourages the location of jobs to counties like Fayette, who currently compete not with rural or urban Georgia, but with similar suburban corporate areas outside of places like Charlotte and Nashville,” Ramsey said.
The legislation had wide support last year but did not pass due to budget constraints.
This bill will first be heard by the Ways and Means committee on which Ramsey sits before hopefully proceeding to a House vote in the coming weeks.
If the bill passes, the new tax credits would strengthen the state’s toolbox to recruit new business with one of the best economic incentive packages in the country, Forshee said.
