Deal focuses on energy tax and job creation

Gov. Nathan Deal will ask the legislature for a series of industry tax breaks and a modeization of job tax credits to help stimulate Georgia's lagging economy. 
 
At the Georgia Chamber of Commerce's annual Eggs and Issues breakfast, Deal laid out his plans for Georgia's economic growth as the state tries to dig its way out of the Great Recession.
 
"The sum total of all these proposals is to fulfill my goal to make Georgia the number one place to do business," Deal said.
 
Specifically, Deal wants to eliminate the sales tax on energy used in manufacturing.  He believes the current tax prevents manufacturing companies from locating to Georgia.
 
"Business leaders are making the business decision to expand manufacturing activity and facilities in neighboring states," Deal said.  "Every time they make that decision we miss out on new investment in our communities and new job opportunities for Georgians."
 
Roy Bowen, president of the Georgia Association of Manufacturers agrees the elimination of the energy sales tax will help lure more job-creating industry to the state.
 
"I can point to hundreds of millions of dollars that have gone to the Carolinas, Alabama and Virginia, not to Georgia by companies with a large presence in Georgia," said Bowen.  "So this is critical to securing the jobs for Georgians and for creating new jobs."
 
Deal also proposes a sales and use tax exemption on construction materials used in projects of regional significance and decreasing the number of jobs businesses need to create to get tax credits from 50 to 15.
 
He also told the business leaders that the passage of the transportation sales tax referendum, the deepening of Savannah's harbor and securing the state's water supply are critical to Georgia's future economy.
 
House minority leader, state Rep. Stacey Abrams, agreed in principle with all of Deal's proposals, but only if it didn't shift the tax burden onto working citizens.
 
"As much as we want to exempt taxes to bring in businesses, if the tax burden then shifts to the citizens who live in those communities, we've got to make certain we're not creating a burden that doesn't wash in the end."
 
Deal plans to address education needs during his State of the State address Tuesday night.