04/15/2008
Small business wins big in 2008 session
The 2008 Session of the Georgia General Assembly was marked by some big victories for small business. Healthcare reform, small business tax breaks and limiting government regulation topped the list of issues NFIB won on behalf of its members statewide.
At press time, all bills passed during the session were pending the governor's signature.
Market-driven health insurance reform will help small business
House Bill 977, sponsored by Insurance Committee Chairman Tom Knox (Cumming), passed this session. The measure expands the availability and affordability of high-deductible health plans and health savings accounts. The most notable provision, supported by NFIB, would let employers with 50 or fewer employees take a credit of $250 per employee who enrolls in certain high-deductible plans. Other provisions of HB 977 include:
- Rebates to consumers who have HDHPs with HSAs, when they make behavior modifications, such as smoking cessation, weight loss or controlling diabetes and blood pressure.
- Removing state and local taxes on HDHP premiums.
- Allowing consumers to deduct HDHP premiums from state income taxes, if they are not already deducting premiums from federal income taxes.
Entrepreneurs in 'less-developed' areas to receive tax credits for job creation
House Bill 1273, sponsored by House Majority Whip Barry Fleming (Harlem) and approved by the Legislature, amends current law to allow businesses that create at least two new jobs (instead of five) in areas designated as less-developed to receive a job-tax credit equal to $3,500 a year per eligible new full-time employee. This credit for would be available for five years beginning one year after the job is created.
NFIB supported this measure as a way to enhance economic development and job creation throughout rural areas of the state.
Mandated leave bill dies in committee
House Bill 901, sponsored by Rep. Roger Bruce (Atlanta), would have mandated that employers grant employees a total of 24 hours of leave, paid or unpaid during a 12 month period.
One of the most alarming provisions in HB 901 is that would have jeopardized Georgia's employment-at-will doctrine. The legislation would prohibit the employer from disciplining, discharging or penalizing the employee for taking leave. NFIB has long opposed employer mandates such as these, because of the undue strain they place on businesses.
The government should not mandate the benefit package you offer your employees. You and your employees know best how to shape the benefit package that best fits your workplace.
Legislature approves measure capping sales tax on energy used in manufacturing
House Bill 272 by Rep. Jeff Lewis (White) caps the state sales tax on energy used in manufacturing. Specifically, it applies to natural or artificial gas, No. 2 fuel oil, No. 6 fuel oil, propane, and coal used directly or indirectly in the manufacture or processing, in a manufacturing plant located in Georgia.
In 2007, NFIB members voted to support this initiative as a way to further incent manufacturing efforts in Georgia.
Measure promoting Georgia manufacturers passes
Senate Bill 359, sponsored by Sen. Tim Golden (Valdosta), passed enacting the "Made in Georgia" program. This act enables the Georgia Department of Economic Development to create and implement a "Made in Georgia" program promoting goods and products manufactured in Georgia.
NFIB supported this legislation as a way to promote Georgia based manufacturing efforts.
Legislature gives approval to IRS bill incorporating benefits for small business
NFIB-supported legislation passed bringing Georgia tax law into compliance with recent Federal updates. House Bill 926, sponsored by Rep. Larry O'Neal (Warner Robins), incorporates into Georgia law the extension and expansion of the Section 179 business expensing provision.
Section 179 of the federal tax code states that a business owner can write off most business equipment/furniture in the year in which the equipment was put into service rather than depreciating it over a longer period, as in the past.
The final version of the legislation also incorporates changes in the recently adopted economic stimulus package. These changes include a 50 percent depreciation allowance for 2008 purchases as well as an increase in the small business expensing limitation from $128,000 to $250,000.
Costly workers' compensation proposal defeated
House Bill 661, sponsored by Rep. Mark Burkhalter (Duluth), would have allowed health insurers to electronically match claims data with workers' compensation claims to ensure the entity responsible for paying the claim actually pays the claim.
NFIB opposed the legislation because, in practice, the measure would have had an adverse impact on businesses in Georgia by shifting the cost of coordinating healthcare benefits away from healthcare insurers and onto the backs of employers.
NFIB recognized in both House and Senate for efforts on behalf of small business
Sen. Tommie Williams (Lyons) and Rep. Carl Rogers (Gainesville), along with many of their legislative colleagues, introduced Senate Resolution 860 and House Resolution 1082, respectively, to recognize and commend NFIB for effectively voicing the concerns of small business in the public policy making process.
Tax reform falls short
House and Senate leaders could not agree on a tax reform proposal by the end of the 2008 Session. This year's political stalemate will lay the ground work for much discussion in the interim regarding the most effective form of relief for Georgia citizens.
The proposal introduced in the House aims to eliminate the property tax individuals pay annually on their personal automobiles. The state Senate proposed to cut personal income taxes by 10 percent over five years. One measure that both bodies agreed upon, and which was endorsed by NFIB, dealt with capping property tax assessments on residential as well as commercial real property at the rate of government inflation.
NFIB will work to ensure that commercial property remains a focal point in capping annual property tax assessments as negotiations continue.
NFIB supports Small Business Health Options Program (SHOP) Act
Sens. Dick Durbin (Ill.), Olympia Snowe (Maine), Blanche Lincoln (Ark.) and Norm Coleman (Minn.) recently introduced Senate Bill 2795, the Small Business Health Options Program (SHOP) Act. The SHOP Act makes health insurance more affordable, predictable and accessible for small businesses (with up to 100 employees) and the self-employed. The legislation offers tax incentives to encourage states to fix poorly functioning small group insurance markets and creates state purchasing pools supported by a voluntary, nationwide pool.
SHOP details:
- Beginning in 2009, employers with 100 and fewer employees and the self-employed can join a state purchasing pool and receive a tax credit (if their state chooses to adopt specific small group market reform practices).
- In 2011, small employers and the self-employed can join a nationwide SHOP pool to purchase health insurance (unless their state opts out after adopting insurance rating reforms and chooses to create its own purchasing pool).
- Also in 2011, insurance rating based on health status and claims experience will be prohibited in both SHOP and in the states' small group market. This will help stabilize yearly premium increases and protect businesses from premiums that escalate simply because one employee suffers a major illness.
How does SHOP provide access to and choice of health insurance?
- SHOP and state purchasing pools will provide a voluntary, one-stop alternative to the bewildering, current market, with a web site providing information about the plans' streamlined administrative efficiencies.
- SHOP will offer new private health plans that are available nationwide, in addition to plans that operate in a single state.
Plan to attend the 2008 National Small Business Summit in Washington, D.C.
NFIB has joined forces with eBay to create an event you don't want to miss. You'll be able to interact with policymakers, business leaders and other leading entrepreneurs, share your experiences and find new ideas to boost your business.
With 2008 being an election year, we're inviting all of the presidential candidates as well as other important political leaders and decision makers.
Come and hear Meg Whitman, former CEO of eBay, as she shares her business insights. Tony Snow, former press secretary to President Bush, will energize you with his behind-the-scenes perspective on Washington politics and much more. The Summit is June 8-11, 2008. Get more details and register online, or call Member Support Manager Katie Jones at 404-876-8516.
