March 8, 2024 – Issue 08

Crossover Day postpartum symptoms fell upon the Capitol this week as the building seemed to take a collective deep breath to let the dust settle. House and Senate floor calendars were relatively short, while committees began to sift through the new measures that they received after action on Feb. 29. Thursday, the House passed its version of the Fiscal Year 2025 budget, also known as the “big budget,” as it funds state government for a full calendar year. The budget is the one piece of legislation that is not subject to the Crossover Day rule.

This week, the second floor of the building experienced heightened activity, primarily serving as the hub for the state Democratic and Republican parties, focused on qualifying candidates for Congressional Districts and seats in the Georgia General Assembly. The qualifying period for federal, state, and local offices commenced on Monday, March 5, and concluded at noon on Friday, March 8.

Legislation of Interest

Today, at the March meeting of the Cobb Chamber Government Affairs Committee, Chairwoman Hillary Thrower (The Home Depot), provided a thorough report on legislative issues of interest to the business community. Excerpts from her report include:

State Update:
As a high-level overview, today marks Day 32 of the legislative session. Eight more legislative days to go. And the General Assembly will adjourn sine die on March 28th.

Budget:
The only thing the General Assembly is required to do during the session is pass the budget. Yesterday, the House passed the FY25 budget 172-1 and it was immediately transmitted to the Senate where they have already started holding appropriations meetings to hear budget presentations from state agencies. We will provide a full report on the budget once it passes the Senate.

Legislation:

Tax Credits Status
While Georgia is in a strong economic position, the legislature has increasingly scrutinized tax incentives to ensure the state receives an appropriate return on investment. Additionally, some legislative leaders are interested in reducing and/or eliminating the personal income tax. Cutting tax incentives to offset the cost of an income tax rate reduction has gained momentum.

Low-Income Housing Tax Credit Reduction
House Bill 1182 would reduce the low-income housing tax credit for apartment construction by 20 percent, unless the project will house seniors, veterans, provide transit, or is located in a rural area.

Data Center Sales Tax Exemption Suspension
House Bill 1192 would suspend the sales tax exemption on equipment purchased for use in data centers. This exemption is currently set to expire in 2031, but this change would occur immediately upon final passage and the Governor’s approval. The concern with this bill is that it suddenly changes the rules for how the data center incentive is administered. Many pending projects are set to commence, and active contracts are in place, but they could lose access to an incentive a company has already factored into the project. This is a dangerous precedent to set for broader economic development public policy.

Sunsets
House Bill 1181 moves all sunsets to within five years, or the end of 2029. The goal is to force a review of each tax benefit and make proponents advocate for an extension. The legislature has increasingly favored sunsets in recent years, but they are unfavorable to business because they do not provide long-term certainty. Five years is an arbitrary number, and the current elected leadership could change dramatically in that time. Furthermore, Georgia’s competitor states have longer sunsets or even no sunsets at all. This forces prospective companies to guess whether their incentive will be renewed, meaning Georgia risks losing projects to states where there is greater certainty.

Sports Betting
SR 579 by Chairman Bill Cowsert (R – Athens) overwhelmingly passed the Senate this week by a vote of 41-12. The resolution would ask voters if the Constitution of the State of Georgia shall be amended to legalize sports betting. If adopted by the voters, the money raised from tax revenue from sports betting would be allocated into several buckets including:

• the Georgia Lottery
• a percentage to educate the public about the dangers of gambling and gambling addiction; and
• a percentage to promote major sporting events in the state.

Legislation to regulate sports betting SB 386 by Sen. Clint Dixon (R – Gwinnett), passed the Senate a few weeks ago and is currently pending in the House.

Following the Cobb Chamber Legislative Wrap-Up Luncheon on Thurs., April 25, the next meeting of the Government Affairs Committee will be on Friday, May 17.

Qualifying Update

As previously mentioned, candidates qualified this week to run for the 2025-2026 Legislative Term. Under the new maps, the Cobb Legislative Delegation will grow to 22 members: six in the state Senate and 16 in the state House. The following have qualified for the various seats:

State Senate Seats in Cobb County:

State House Seats in Cobb County:

Next Week at the Capitol

Mon., March 11 – Legislative Day 33
Tues., March 12 – Committee Work Day
Wed., March 13 – Legislative Day 34
Thurs., March 14 – Legislative Day 35
Fri., March 15 – Recess

Secure Your Seat: Legislative Wrap-Up on April 25

Mark your calendars - after the dust settles and our lawmakers have a chance to catch their breath, join us for our annual Legislative Wrap-Up Luncheon where key policymakers will share with us what passed, what stalled and what might be on tap after the 2024 election cycle. Speakers and program information to come. Only a few seats will be available for signature and premier chamber members, so reserve yours today. This event remains a Chairman’s Circle benefit.

For an archive of previous From the Capitol Steps editions covering the 2024 Legislative Session, click here.

If you have any questions about the Cobb Chamber Government Affairs Committee, the Cobb Chamber legislative priorities or legislative advocacy in general, please reach out to Amanda Seals, Executive Vice President of Advocacy and Government Relations.