Wednesday, May 14, 2008

Governor Signs Bill Capping Taxes on Energy for Manufactures

Today Governor Sonny Perdue signed legislation capping the sales tax on energy used in the manufacturing process. HB 272 provides a cap for certain energy prices over which no additional state sales and use tax will be paid by manufacturers. Commodities subject to this partial exemption include natural gas, No. 2 fuel oil, No. 6 fuel oil, propane, petroleum coke, coal and the fuel cost recovery charge component of retail electricity rates.

“This bill continues to support Georgia industries as they work to compete in an ever-more competitive market,” said Governor Sonny Perdue. “As energy prices continue to rise, we will ensure that our manufacturers can continue to grow their businesses and create more jobs for Georgians.”

Governor Perdue first announced his support for HB 272 at the Georgia Chamber of Commerce’s annual Eggs and Issues Breakfast in January.

“This bill will help protect our manufacturing jobs in this state, and I’m glad to see it come to fruition,” said Rep. Jeff Lewis. “It gives Georgia a competitive advantage in providing Georgians long-term opportunities.”

Governor Perdue also signed HB 237 enacting the "Integrated Plant Theory" and SB 359 recognizing goods and products manufactured in Georgia.

SB 359 requires the Georgia Department of Economic Development to create a “Made in Georgia” label in order to showcase and promote goods and products manufactured in Georgia informing Georgians of the state’s diverse manufacturing sector. The bill also provides educational outreach tools to bring the science of manufacturing in the classroom and emphasize the significant contributions Georgia companies make to the economy and quality of life in Georgia.

HB 237, the “Integrated Plant Theory,” expands the allowable sales and use tax exemption for machinery and equipment used in the manufacturing process. Industries using the following equipment in the manufacturing process are affected by the exemption expansion: material-handling equipment/racking systems used for conveyance and storage of tangible personal property in certain circumstances; aircraft engine remanufacturers; and air or water pollution reduction systems.

“The Georgia Chamber of Commerce would like to extend our great appreciation to Governor Perdue for signing three very important initiatives that will make Georgia an even friendlier environment for manufacturers,” said George Israel, Georgia Chamber of Commerce President & CEO. “As Georgia companies face record-high energy costs and fierce global competition, the Governor has shown he recognizes the pressure businesses are currently facing. By signing this legislation Governor Perdue has showcased the importance of keeping jobs in Georgia and encouraging the retention and growth of companies in this state.”

For more information on this legislation, please visit www.legis.state.ga.us.

No comments: