Georgia Governor Announces Encouraging Budget Proposal for Credits & Incentives

Georgia’s Governor Kemp Proposes Amended 2023 and 2024 Fiscal Budgets

Governor Kemp recently proposed the amended fiscal year 2023 and fiscal year 2024 budget recommendations to the Georgia General Assembly. With $32 billion in expected spending, Georgia lawmakers are in session and have 40 days to review the budget. Gov. Kemp is proposing an increase in education funding and community and economic development, healthcare, and safety are important topics in the proposed budget. 2022 was another record-breaking year of new jobs and investments as the State of Georgia brought in $21.2 billion in investment and 51,138 new jobs. McGuire Sponsel is excited to be in Georgia’s backyard. Our Credit & Incentive Services team is looking forward to seeing the new budget be moved forward along with deployment of existing community and economic development incentive programs that will guide and support the firm’s current and prospective clients.

Annual Georgia Economic Outlook Projection

The University of Georgia hosts the Georgia Economic Outlook annually, where economists provide perspective into next year’s economy. In 2023, business leaders and experts predict the State of Georgia will experience a recession. However, with multiple years of economic development success, the predicted recession should be short and relatively mild. Companies such as Hyundai, SK, Qcells, Rivian, and more are supported through well-established grants and incentives in Georgia. Consistent policies like the Jobs Tax Credit and the Quality Jobs Tax Credit established more than 15 years ago allow companies, small and large, to select Georgia to continue business-friendly growth. Furthermore, Governor Kemp continues to pledge his commitment to sustaining the state’s #1 spot for Top States for Business.

Regional Economic Business Assistance Program (REBA)

Kemp proposes $166.7 million for the Regional Economic Business Assistance program (REBA). The program will allow local governments to provide incentives directed to support business recruitment across the state. The funds can be used for infrastructure, building costs, or machinery and equipment that a company needs to establish or expand in Georgia. The REBA program also helps with “close the deal” incentives for companies looking to locate or expand in Georgia and another state. With McGuire Sponsel’s experience in procuring and negotiating inventive deals, this incentive program allows the company to favor it over other states.

Rural Workforce Housing Fund

Another proposal within the proposed budget reallocates $35.7 million within OneGeorgia to launch the Rural Workforce Housing Fund. A common pressure local communities face when recruiting companies is the need for housing for their respective employees. With the recent success of Rivian establishing 7,500 jobs in rural northeast GA and Hyundai establishing 8,100 jobs in rural southeast Georgia, this growth substantiates the need for housing infrastructure across rural Georgian communities. The fund allows local governments and housing authorities to provide quality housing for economic development projects that are on the horizon.

Future Outlook for Credits & Incentives in Georgia

McGuire Sponsel is encouraged to see the momentum for continued growth across the state of Georgia and looks forward to seeing what Georgia brings in the future with this positive business outlook.