State Uses Tax Credit Bill To Land NCR

A new state law heavy with tax breaks helped lure technology equipment-maker NCR to Georgia.

NCR, the company that makes equipment including ATM’s and cash registers, is relocating its headquarters from Ohio to metro Atlanta. With it come 1,250 jobs to Duluth, along with another 870 to Columbus for a new production plant.

The deal was sealed with a more than $60-million incentive package--most of which used the so-called Mega Tax Credit bill signed by Governor Perdue last month. Georgia’s offer doubled that on the table from Dayton-Ohio officials.

Sam Williams, president of the Metro Atlanta Chamber of Commerce, says yes--the state’s investment outlay is large, but two lawmakers who sponsored the bill ensure its viability:

"Senator Ron Stephens and Representative Larry O’Neal scrutinized the numbers from a payback point-of-view to make sure that this was more than justified even in an economic downturn."

The process to lobby NCR reportedly began in February, around the time the legislation was introduced to state House lawmakers.

Officials with the Department of Economic Development say NCR is eligible for up to $56.9 million over five years. But that amount will be offset by a net gain of $49 million from items like income and sales taxes, to be felt over 10 years. Officials say added value to the deal for NCR includes global access through the airport, consistent population and workforce growth, and access to multiple university resources.

Homebuyers Could Get Thousands in Tax Breaks

State Senators passed a bill Thursday that's designed to get the real estate market moving in Georgia.

The measure would give taxpayers who buy an existing home up to a $3,600 credit. But the incentive would only apply for six months after becoming law.

Republican Senator Chip Pearson says he wants to lure people into the housing market to kick-start Georgia's ailing economy.

"It's really a double-edged sword in that if we do not stabilize the housing prices and values and then start a recovery in those values, we will continue to stay in this depressed situation that we're in..."

But opponents of the bill say tax break will do more harm than good to the state's budget. And Senate leaders are already worried that by 2010, revenues could be in the hole by $3.5 billion.

Bill seeks homebuyer tax credit

Senator Johnny Isakson is proposing a $15,000 tax credit to lure home buyers back into a slumping market. Isakson's bill would spread the $15,000 credit over three years for the home buyer. The Georgia Republican says the incentive would help distressed homeowners and banks that are trying to make the best of bad loans. Isakson said it also would boost the real estate and construction industries, including homebuilders who can't sell newly built houses.

State tax officials ask for money back

The state Department of Revenue is asking some companies to pay back almost 1.6 million dollars in tax credits they received for importing more goods through Georgia ports. Department officials say credits are only granted for exports, but at least four companies were given credits for importing goods since a tax break was started in 1998. Georgia's Revenue Commissioner says import tax credits were given by mistake--they were discovered when Georgia Power was seeking a big refund for equipment it had sent to Georgia ports in 2002, '03, and '04. Georgia law allows companies who qualify for certain business expansion credits, to get money for showing increased use of ports in Savannah and Brunswick.