Georgia’s bank tax credit offers no economic or fiscal return on investment, and the cost per job cannot be calculated.
Georgia State University’s Fiscal Research Center (FRC) found no measurable short-term economic benefits linked to the exemption, suggesting no fiscal return on investment during the study period.
Georgia offers financial institutions a tax credit to offset city- and county-imposed local special occupation taxes.
The credit equals 100% of local taxes levied—up to 0.25% of gross receipts or $1,000 annually—against banks’ state income tax liability. While not refundable, unused credits can roll over for up to five years.
Designed to prevent double taxation, the credit ensures banks aren’t taxed more heavily than other corporations. Despite $47.6 million claimed in fiscal 2020, the economic impact, such as jobs or output, mirrored activity expected without the credit.
