Atlanta, GA - June 14, 2010 - The 2010 Georgia legislative session proved to be one for the history books. The General Assembly typically convenes the second full week of January for a term of 40 legislative days, adjourning Sine Die between mid-March and early-April. Though, this year the General Assembly stretched its work to the tail end of April, making this year's session the longest in history. Lawmakers were hard at work battling budget woes and trying to find solutions to fill the state's significant deficit. The task was certainly daunting; however, tough decisions had to be made to move the state forward for the upcoming fiscal year.
The budget was not the only item legislators wrestled with this year. General Assembly members also reviewed important policies - including legislation affecting transportation, education and healthcare. In addition, lawmakers had the foresight to pass noteworthy pieces of legislation that positively impact the Georgia technology community as well. TAG actively worked with state elected officials for the creation of legislation that will surely help our technology industry to continue to thrive here in Georgia. We are pleased to report all three initiatives passed both chambers and were signed into law by the Governor. This is a great win for our community at-large and we look forward to the road ahead. Here are a few highlights of each bill:
- Angel Investor Tax Credit: 22 other states currently have the capacity to provide an income tax credit for angel (or private) investors who invest in a qualified business venture. Programs vary from state to state; however, the underlying theme is the same - states view this program as a means to boost their overall statewide economy by incentivizing angels to infuse capital in early-stage companies (namely high-tech, bio, etc) who typically cannot get bank loans, even in a good economy. Angel investing is necessary for the high-tech community, as it is an important part of the financing stage of all our companies. Without the capital provided by angel investors, many companies will not be eligible for venture capital funding, and consequently, will not be able to grow to yield the positive economic development measures (e.g. jobs, IP, etc) that benefit the state. TAG helped to promote HB 1069 which provides an income tax credit to a qualified investor who invests in a qualified business, as defined in the bill. The income tax credit is 35% of the investment, at an individual cap of $50,000 per year. The aggregate cap per year for the program is $10 million.
- Alternative Investment for Georgia's Public Firefighter Pension Fund: Georgia is the last state in the nation that does not authorize our public pension funds the option to invest in the broader alternative asset class, which includes venture capital. As a direct result, Georgian companies in search of venture capital often struggle to receive the next stage of financing necessary to continue business growth/development. Investing in alternative assets would be a great help to our public pensions as it would allow for diversification which would lower the overall risk of the portfolio and open the door for a greater return on investments made. To address this issue, TAG promoted HB 249 which authorizes the Georgia Firefighter Pension Fund to invest in the alternative asset class, including venture capital up to 5% of the fund. The bill does not mandate investments, rather just provides for another tool in the tool box. GPFPF would be required to provide annual reports to both Senate and House Retirement committees for review. This bill does NOT apply to the Employee Retirement System or the Teachers Retirement System.
- Broadening the Definition of a Textbook: TAG also promoted SB 319, which authorizes the Georgia Board of Education to broaden the definition of a textbook to include the hardware and technical equipment necessary to support digital content in direct classroom instruction. The legislation received broad support from both the technology and education community.
A special thanks to members of our community who reached out to their elected officials and the Governor's office to voice their support for the above legislative initiatives. Your voice was certainly heard!
About TAG
Technology Association of Georgia is dedicated to the promotion and economic advancement of the state's technology industry and provides leadership in driving initiatives in the areas of policy, capital, education and giving. TAG also brings the technology community together through events, initiative programs and networking opportunities.
TAG was launched in January, 1999 with the merger of three of the state's largest technology organizations: the Southeastern Software Association, the Business and Technology Alliance and Women in Technology. At its launch, TAG became one of the largest technology organizations in the country.
Our Societies, or special interest groups, encompass a large variety of disciplines, from conducting business internationally to raising capital, from outsourcing to project management, technology in entertainment to International Business solutions.
Media Contact
Melanie Brandt
Email: Melanie (at) tagonline (dot) org
Phone: 404-920-2037
75 Fifth Street, NW; Suite 625, Atlanta, GA 30308
http://www.tagonline.org
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