Governor Perdue Launches Small Business Tax Relief Plan
|Tuesday, February 8, 2005||
Contact: Office of Communications 404-651-7774
Legislation Provides $25 Million in Savings over Three Years
ATLANTA, GA - Governor Sonny Perdue announced today that legislation included in his Entrepreneur and Small Business Growth Initiative has been introduced in the state House of Representatives. House Bill 282 will provide tax relief to small businesses seeking to invest, grow and create jobs for Georgians.
“Small business is Georgia’s biggest economic engine for creating jobs and revenue,” said Governor Sonny Perdue. “I’ve made small business growth one of the main pillars of my economic development strategy, and this bill will give Georgia small businesses a boost they need and deserve.”
HB 282, introduced by Representative Jay Roberts, one of Governor Perdue’s Floor Leaders, will allow small businesses making capital investments of less than $410,000 to write off up to $102,000 of those expenses in the current year. For capital investments greater than $410,000, the tax write off is reduced dollar for dollar, thereby targeting only small businesses making capital investments. The legislation will also provide administrative relief by making tax filing easier for small businesses.
Under this legislation, small businesses throughout the state will see more than $25 million in tax savings in the first three years. The changes to the state’s tax law will also bring Georgia in line with federal tax law, improving the state’s overall business climate.
“Our state is committed to economic growth and to maximizing the profitability of every company that operates within our borders,” said Governor Perdue. “This bill will provide support for businesses to improve their bottom lines.”
Today, small businesses comprise more than 95 percent of all businesses in Georgia, employing half of Georgia’s workforce and generating more than half of the state’s revenue.
“Small businesses are the principal source of new jobs in Georgia’s economy and are essential to the state’s economic health,” said Chris Clark, chair of the Governor’s Entrepreneur and Small Business Network and deputy commissioner of the Georgia Department of Economic Development (GDEcD). “By enhancing opportunities and providing the right tools for entrepreneurial and small business development, Georgia can ensure its ongoing success.”
Earlier this year, Governor Perdue launched the Entrepreneur and Small Business Growth Initiative with an executive order moving the Governor’s Small Business Center to GDEcD to more effectively provide development assistance to small businesses, and the creation of the $3 million OneGeorgia Small Business Loan Fund to encourage rural banks to invest in new companies.