Description

The Tax Council will meet via Microsoft Teams at 1:00 p.m. on Thursday, June 20 to discuss two issues of interest. These are described in more detail below. We expect the meeting will last approximately 90 minutes.

Renewable Tax Credits – Inflation Reduction Act of 2022

John Rayis and Eileen Kuo of GAM Associate Member Lockton will lead the discussion on this issue. John is a former tax partner at Skadden, Arps, Slate, Meagher & Flom LLP, and Eileen previously served as a senior tax attorney at Milbank LLP.

The Inflation Reduction Act of 2022 introduced significant changes to the renewable energy tax credit landscape, including the ability to transfer such tax credits to certain third-party buyers for cash. Lockton’s tax insurance specialists will explore how these tax credits work, how participation in the transferability market enables businesses to enhance liquidity and meet ESG goals, and how tax insurance is used to mitigate the unique tax risks faced by the various parties in the renewable energy tax credit space, as well as its broader applications.

Tax Incentive Review – Industry Feedback – Time Sensitive!

GAM Vice President of Government Affairs Brittney Hull and GAM Tax Counsel Jonathan Feldman will lead the discussion on this item.

This year, the Georgia General Assembly passed Senate Bill 366, which revises the annual tax incentive review process (created by Senate Bill 6 in 2021). This year’s process will include an opportunity for feedback. The new process requires the Georgia Department of Audits and Accounts (DOAA) to post the list of tax incentives selected by the legislature for review on the DOAA website and obtain input from beneficiaries and representatives. DOAA wants to hear from industry about the benefits of the selected incentives and why they are good for the state.

We will discuss this in more detail in our June 20 meeting, but any information and comments must be provided by July 12, 2024 at the following link:

https://www.audits2.ga.gov/tax-incentive-feedback/

The incentives selected for review are listed below. Some of them are applicable or have impacts on manufacturers. Note that any information provided to DOAA is subject to the Open Records Act.

• Insurance abatements (O.C.G.A. § 33-8-5)
• Exclusion of global intangible low-taxed income (O.C.G.A. § 48-7-21)
• Bank Tax Credit (O.C.G.A. § 48-7-29.7)
• Sales tax exemption – jet fuel (O.C.G.A. § 48-8-3.5)
• Sales tax exemption – natural gas used in manufacture of electricity (O.C.G.A. § 48-8-3[70])
• Sales tax exemption – professional, scientific, and technical services
• Sales tax exemption – construction services
• Sales tax exemption – revenue from coin-operated amusement machines (O.C.G.A. § 48-8-3[43])

We hope you will join us on June 20 to discuss these issues!